China's auto parts industry has experienced four historical phases but ever since China's entry into WTO, great opportunities and high risks coexist in market competition. China's auto parts manufacturers can't help seeking solutions to survive, to expand and to win a good market share against foreign rivals. This report analyses the incentives for merger and reorganization, classifies and argues .

Together with the development of China's economy, relatively rapid growth has been maintained in China's auto parts market in the recent years. Currently, there are about 5,000 large parts enterprises in China, whereas 15% of these enterprises get a monthly profit of 50 million yuan. Parts cost takes up over 70% of the total auto cost; therefore, the development of auto parts industry directly influences the automotive industry development.

Only continuously increase in auto parts sales revenue certainly can a boom in China's automotive industry be ensured. Auto parts, as a sub-branch of automobile industry, contributes a lot to the development of China's auto industry.