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Affected by the depression of the automobile sales market in the first half of this year, as the upstream industry of vehicle manufacturing, the performance of auto parts enterprises also showed a large-scale decline. Not long ago, the overall decline in the ranking of auto parts companies in the Fortune 500 list released by Fortune magazine proves that it is an indisputable fact that the auto parts industry is collectively backward.

According to this year's Fortune 500 ranking, there are 10 auto parts companies on the list this year, of which seven have declined to varying degrees, except for two that have risen slightly and one that remains unchanged. According to the list data, in addition to revenue growth of 15.9% and 23.8% for Bosch and Hyundai Mobis in the first half of this year, Continental Group, Magna, Bridgestone and Michelin all grew by single digits and less than 5%. The revenue of Denso, Mobil and Ericsson Seiko fell by double digits, by-20.7%,-12.9% and-18.2%, respectively. It is worth noting that although Bosch and Hyundai Mobis have slightly increased their revenue from the same period last year, their ranking on the list is still falling.

In late July, major domestic auto parts companies have issued their first-half performance forecasts. As of today, 56 listed auto parts companies have announced their performance forecasts for the first half of 2019. Among them, 15 enterprises forecast an increase in net profit, 41 enterprises showed a pre-decrease in performance, a slight decrease, an increase in losses, and the first loss, accounting for 73.21 percent, and 36 enterprises showed a year-on-year decline in net profit, accounting for 64 percent.

In the overall recession of the automotive industry in recent years, the decline seems to have become a norm, and as the upstream parts enterprises in the overall environment is not optimistic, it is under tremendous pressure. No matter from the decline of foreign auto parts companies in the list of the world's top 500 auto parts companies, or from the performance warnings issued by the major domestic parts manufacturers, we can see that the collective decline of the auto parts industry has become an indisputable fact. According to the relevant research report of the China Automobile Association, this trend will continue for some time in the future. In the next few years, in order to maintain profits, vehicle manufacturers will further depress the prices of parts from top suppliers, and low profits may become the norm for auto parts enterprises in the future.

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