We compiled the 2024 financial results of 100 Chinese auto parts manufacturers (companies with more than 50% of their sales from auto parts or more than RMB 850 million in auto parts sales) listed on the Hong Kong, Shanghai, and Shenzhen Stock Exchanges, the Swiss Stock Exchange, and Nasdaq in the United States.
With the expansion of the auto market, 49 firms reported an increase in revenue and profit in 2024, while only 20 firms reported a decrease in revenue and profit.

As a trend among automotive parts suppliers, there was a widespread move to start R&D and application of technology to make the eVTOL and robotics businesses, which the Chinese government has positioned as growth areas, a new source of revenue.
Although the expansion of demand for products for new energy vehicles had been a factor boosting sales, further diversification of the business is expected in the future.

In addition, an increasing number of manufacturers are reviewing their overseas operations and building plants outside of Europe and the U.S. against a backdrop of geopolitical risks.
In addition to the shutdown of two factories in Europe and two in the Americas by Gyunsheng Electronics and the reduction of its workforce, Ningbo Huaxiang is considering divesting its European operations.

Hosai Technology, which is expanding its LiDAR sales in North America and Europe, plans to build its first overseas plant in Southeast Asia.
In addition, we expect to see an increase in other efforts to optimize production systems on a global scale.