Over 60% of auto parts companies achieve double growth in revenue and net profit

According to iFinD data from Tonghuashun, as of March 4th, 34 listed companies in the A-share automotive parts sector have disclosed their 2025 performance forecasts. Among them, 22 companies reported both revenue and net profit growth, accounting for approximately 64.71%, while only 4 companies experienced declines in both revenue and net profit.

Overall, the median and average revenue growth rates for the 22 companies with both revenue and profit increases are 15.98% and 25.82%, respectively. The median and average net profit growth rates attributable to parent company shareholders are 18.73% and 39.80%, respectively. Both profit growth indicators are higher than the revenue growth rate.

All Sub-sectors Have Companies with Good Performance

Companies in various sub-sectors of automotive parts are performing well. For example, in the chassis and engine systems sector, Jingjin Electric, Lintai New Materials, and Kaitai Co., Ltd. all achieved double growth in revenue and profit in 2025.

Taking Jingjin Electric as an example, in 2025, due to significant growth in the company’s main business of new energy vehicle electric drive systems and related technology development and services, the company expects to achieve total operating revenue of 2.726 billion yuan, a 108.93% increase from the previous year. At the same time, the company projects net profit attributable to parent company owners, excluding non-recurring gains and losses, of 40.4227 million yuan, a 108.26% increase year-over-year.

In the body accessories and trim parts sector, companies like Kuangda Technology, Shunyu Precision, and Jiezong Technology also performed well. Jiezong Technology, which specializes in precision transmission systems and automotive door and window systems, stated in its performance forecast that due to high industry prosperity and downstream demand growth, sales of some of its parts have rapidly increased, and it has continued to secure new project orders from downstream clients. These factors collectively drove the company’s sales performance. In 2025, the company expects net profit attributable to shareholders, excluding non-recurring gains and losses, to grow by 38.86% year-over-year.

Similarly, in the automotive electronic and electrical systems sector, Dadi Electric stated in its performance forecast that, besides including Anhui E-Yi Tech Electronic Technology Co., Ltd. into its consolidated financial statements, the growth in revenue is also closely related to the domestic commercial vehicle market’s recovery. In 2025, the company’s sales revenue from commercial vehicle wiring harnesses increased.

Multiple Factors Drive Industry Profitability

Reviewing the performance forecasts disclosed by various companies, phrases like “the automotive market maintained steady growth” and “the company grasped market trends” are common. As the end of the consumer chain, the growth in vehicle production and sales has driven the development of the entire industry chain.

The latest “Statistical Bulletin of the People’s Republic of China on National Economic and Social Development in 2025” from the National Bureau of Statistics shows that, among industrial enterprises above designated size, the added value of the automotive manufacturing industry increased by 11.5% year-over-year. As a major product of large-scale industrial enterprises, vehicle output in 2025 reached 34.78 million units, a 9.8% increase from the previous year. Among these, new energy vehicle production totaled 16.524 million units, a 25.1% increase.

Chen Shihua, Deputy Secretary-General of the China Association of Automobile Manufacturers, previously stated that in 2025, the automotive industry will withstand multiple challenges such as “internal competition” and will benefit from policies aimed at expanding the “Two New” initiatives, achieving a smooth transition and orderly connection. Many new models will be launched, and terminal demand will continue to be released, leading to above-expected growth in vehicle production and sales for the year.

Policy support remains a solid backing for industry development. Whether it is the “Automotive Industry Stabilization Growth Work Plan (2025–2026)” which promotes the industrialization of intelligent connected vehicle technologies and accelerates digital and intelligent transformation, or the “Implementation Plan for Digital Transformation of the Automotive Industry,” which aims to promote data sharing and connectivity across vehicle and component R&D, manufacturing, logistics, operational conditions, and recycling—these initiatives inject confidence into the industry’s overall growth.

The acceleration of industry intelligence has also improved the profitability of related companies. The automotive sector is transitioning from the electrification phase to the intelligentization phase. The commercialization of components such as intelligent cockpits, domain controllers, and lidar has led to rapid revenue growth for relevant companies. For example, Jingwei Hengrun, with its domain controller products, has seen its new product revenue grow rapidly, and cost reduction and efficiency measures have begun to show results, turning its 2025 net profit from loss to profit.

Meanwhile, policies and major automakers are increasing efforts to promote the adoption of intelligent assisted driving. From BYD’s “whole vehicle intelligence” strategy to the Ministry of Industry and Information Technology approving two L3-level autonomous driving (conditional automation) models on the road, China’s autonomous driving technology is gradually moving toward mass production.

According to the “2025 Urban NOA Automotive Assisted Driving Research Report” published by the China Automotive Industry Economic and Technical Information Institute, from January to November 2025, the sales of passenger cars equipped with city NOA (Navigation on Autopilot) features totaled 2.5373 million units, accounting for 81.1% of the market share for autonomous vehicles.

Industry Shift from “Manufacturing” to “Smart Manufacturing”

Industry insiders say that future technological innovation will not only directly determine product competitiveness but also reshape the path for brand breakthroughs. Automakers and component suppliers will continue to push technological innovation around the trend of intelligence, iterating advanced connected and automated driving technologies and accelerating their application.

CITIC Securities pointed out that reviewing the development stages of China’s new energy vehicle industry, the driving force has evolved from “policy-driven” to a “policy + market” dual-driven approach, and finally to a mature stage led entirely by technology and demand.

In terms of technology, the development of intelligent driving is expected to drive a reassessment of supply chain value. According to a research report from Changjiang Securities, as intelligent driving enters the L3 era, L3 systems will require higher standards in perception, decision-making, and execution modules. The shift of lidar from “high-end optional” to “core safety standard,” the surge in computing power driving the value of intelligent driving chips and domain controllers, and the acceleration of XYZ axis control in braking, steering, and suspension to replace mechanical parts for higher response speeds will all reshape supply chain value.

Zhu Kongyuan, Deputy General Manager of the China Automotive Industry Economic and Technical Information Institute, pointed out that in terms of technological change, city NOA is accelerating the deep reconstruction of system architecture from traditional modularization to integrated design.

The global consulting firm Roland Berger stated in its article “Automotive Industry Transformation Accelerates, Six Major Battlefields Decide the Future” that over the past year, generative AI (GenAI) has demonstrated commercial potential. Based on the improvement of data and computing power, the industry has explored multiple high-value scenarios around GenAI, achieving significant “cost reduction and efficiency gains.” AI empowerment of the automotive industry is not just partial optimization but a comprehensive reshaping across product R&D, manufacturing, marketing, service, and internal management.

The automotive industry is also entering a new stage of cross-industry integration with other innovative fields. Data shows that in areas such as smart vehicles, low-altitude aircraft, and intelligent robots, the generality of key components reaches about 70%. For example, in the robotics industry, from high-end interaction, controllers, and limb skeletons to wiring harnesses and rotary actuators, each sector has clear synergy with the automotive industry.

Zhang Yongwei, Chairman of the Car Industry Association, stated that starting from 2026, industry integration will move from the “trial” stage to “deep integration.” On one hand, automakers will accelerate their layout into robotics, embodied systems, and low-altitude fields, with products from leading companies entering small-scale mass production. On the other hand, supply chain companies will accelerate expanding their second growth curve, forming a “one-to-many” business layout.