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In October, China's passenger car market experienced a positive turn, with sales recovering and independent brands making a robust comeback. The National Passenger Car Market Information Association noted that domestic automakers' hard work is starting to pay off, signaling that the toughest times for these companies may be behind them. However, the internal strength of China's auto industry remains concerning, particularly regarding the weakness in core vehicle components. Most independent parts manufacturers are still struggling with basic tasks like mapping and prototyping, leaving them vulnerable to external dependencies. This situation raises concerns about the future development of China’s automotive sector. Experts have urged elevating the parts industry to a national strategic priority, suggesting policy guidance to address the fragmented, disorganized, and outdated state of China’s auto parts industry. As we know, components form the foundation of the automotive industry, directly influencing its growth trajectory. While vehicle manufacturers focus on final assembly, the importance of parts suppliers in the supply chain cannot be overstated. In fact, the profitability of the parts sector often surpasses that of the vehicle manufacturing industry, especially for core components. Yet, due to the rapid expansion of the automotive sector, the emphasis on 'lightweighting' components has persisted for far too long. Statistics from the "China Automotive Industry Yearbook" reveal that between 1986 and 2009, China’s automotive industry invested a total of 759 billion yuan, with vehicle investments totaling 509.3 billion yuan, compared to just over 200 billion yuan for parts and components. This results in an investment ratio of less than 1:0.4 for vehicles versus components, far lower than the 1:1.3 to 1:2 ratio seen in developed nations. Surveys indicate that many Chinese automakers allocate less than 1% of their budgets to parts development. Furthermore, industrial policies lack clear direction for the parts sector. Since the introduction of the "Automotive Industry Adjustment and Revitalization Plan" in 2009, most policies have focused on subsidies, such as tax reductions for small-displacement cars or incentives for rural markets and energy-efficient vehicles. These measures primarily benefit vehicle manufacturers and lack long-term continuity or foresight. The current situation reflects the bitter consequences of neglecting parts development. Data shows that Chinese brands rely heavily on foreign entities for critical components like engines, transmissions, and electronic systems, resulting in 60% of the industry’s profits flowing overseas. Core technologies remain heavily reliant on external sources, with over 90% of certain critical components sourced abroad. Meanwhile, leading international firms are aggressively expanding their presence in China. For instance, Honeywell announced plans to build a turbocharger plant in Wuhan, while Continental Group launched new production lines in Changchun for NOx sensors and other advanced components. Similarly, Delphi Packard Electric System opened a new branch in Chongqing to serve major local automakers. Bosch China reported auto sales reaching 23.3 billion yuan in 2010 and 24.9 billion yuan in 2011, outpacing the broader industry's growth. Dai Pengjie, Honeywell's regional head, predicts that China’s turbocharger market could double from four million units in 2011 to eight million by 2016. The "big but not strong" dilemma in China's auto sector is becoming increasingly apparent. To transition from mere assembly hubs to innovative leaders, China must accelerate R&D efforts, address its weak links in parts development, and leverage the nascent new energy vehicle market to close the gap with global peers. Only then can the automotive industry achieve sustainable growth and a prosperous future.