Consulting firm Roland Berger released the "Global Auto Parts Supplier Research" report on December 25, predicting that the growth of the global auto parts market will slow down in the short term; in the long run, the industrial structure will undergo fundamental changes, focusing on Providers of products, customers and regional structures can benefit greatly.

The report pointed out that the global auto parts market has boomed in the past few years and has always maintained a high level of profit margins. Since 2011, the global EBIT margin of auto parts suppliers has continued to rise, reaching an all-time high of 7.5% in 2014. The report believes that the volatility and uncertainty of the global auto industry in 2015 continued to increase. Global light-vehicle production is expected to continue to rise over the next two years, but at a steeper rate of decline. Among them, Europe will maintain a low level, Japan will decline, NAFTA will grow moderately, and China will remain the only major growth driver.

In addition, OEMs, facing increasing pressure on margins, have begun cutting additional costs, increasing friction between OEMs and suppliers. Therefore, the report predicts that while suppliers maintain high profit margins, short-term growth will slow down, and downside risks outweigh opportunities.

Suppliers should seize the next wave of efficiency gains without limiting their flexibility to quickly adapt to more uncertain and volatile market developments, the report recommends. At the same time, suppliers should be prepared to benefit from industry relocation and mitigate the associated risks in the medium to long term.

In the short term, suppliers should improve intelligent efficiency; increase or maintain flexibility throughout the value chain in production, R&D and procurement; stimulate the initiative of key resources to ensure that they can join possible working groups at any time; strictly manage investment decisions and one-time charges; carefully monitor market developments and signals of possible market decline.

From a long-term perspective, suppliers should maintain or improve a unique sales proposition, highlighting clear technology or process differences; focus on product areas with above-average growth rates and profit potential, and actively capitalize on M&A opportunities; both from a revenue perspective Also from the perspective of creating value to balance regional share and customer share; establish the best process and structure to maintain flexibility and efficiency in a more complex global layout; apply scenario simulation technology to regularly review and adjust previously formulated strategies.