The price of auto parts is no less than six factors play a role
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In recent months, car manufacturers and dealers have frequently adjusted vehicle prices. However, the pricing of auto parts has remained relatively high. According to a recent survey conducted by Xinhuaxin Market Research & Consulting Co., Ltd. in Beijing, six key factors influence the pricing of auto parts: raw material suppliers, part manufacturers, new market entrants, post-market producers, vehicle manufacturers, and consumers. The findings revealed that while there is a noticeable decline in auto parts prices, this segment remains under the radar for many car owners.
Since the beginning of the year, auto parts prices have been fluctuating, but few consumers pay attention to these changes. Some even expressed frustration, saying that the auto parts market is experiencing a "cold" phase. In fact, since the start of the year, most auto parts prices have been volatile due to various reasons. For example, Nanchang Pingan Insurance Company noted that the current level of price adjustments for auto parts is much more active than in previous years. Imported parts, especially from Toyota and Nissan, have seen reductions of 10% to 15%. Domestic auto parts also show mixed trends, with some components like body parts and wear items seeing price drops. However, certain parts—such as engine and transmission components—have actually increased in price by up to three times.
Experts suggest that supply and demand dynamics are the main drivers behind these price fluctuations. For rare or luxury models such as Bentley or Lamborghini, where only a few units exist in the country, spare parts are naturally expensive. On the other hand, models with large market shares, like the Santana, Jetta, and Fukang, see their parts prices gradually decrease over time as ownership increases.
In addition to supply and demand, manufacturing and distribution costs also play a role in auto parts pricing. As the cost of vehicle maintenance is closely tied to the overall cost of car ownership, shifts in spare parts prices can significantly impact consumer decisions. Yet, according to industry insiders, most car buyers remain indifferent to these price changes. A survey by a car magazine found that less than 10% of consumers consider the cost of spare parts before purchasing a vehicle.
Take Nanjing Fiat, for instance. Despite announcing a significant reduction in parts prices early this year, the news did not boost sales. This contrasts sharply with the immediate effect of price cuts on vehicle models. Industry sources estimate that repair and maintenance costs account for about one-third of a car’s total value, with parts making up over 60% of those costs. For example, a full overhaul of a Santana could cost around 6,000 yuan, with parts accounting for the majority of that amount.
Many consumers are unaware of the long-term financial implications of spare parts prices. A friend of mine, Li Xing, recently bought an economical model for under 100,000 yuan. He was happy with the initial deal, but when he needed to replace a headlight after an accident, he was shocked by the 2,000-yuan cost. That’s seven times higher than the cost of a similar part on an Audi A6. Had he known, he said, he might not have chosen that model.
This lack of awareness stems from two main factors. First, auto parts are highly technical, and most consumers are unfamiliar with them. Many first-time car buyers lack experience and don’t realize how important spare parts are until they need repairs. Second, some businesses intentionally obscure part prices to maximize profits. They take advantage of consumers’ limited knowledge, often pushing for unnecessary replacements or hiding price reductions from customers.
However, some companies are working to change this. Certain 4S service centers now openly publish part prices, which has been well-received by car owners. Analysts believe that while there is still room for further price reductions in the auto parts market, the extent of these cuts will depend on consumer awareness and competition among manufacturers.
Overall, the auto parts market is still in its infancy in terms of transparency and consumer engagement. Until buyers become more informed and the market becomes more competitive, the "cold" phase of spare parts pricing may continue.