Core Insights - The global automotive parts industry is in a "stagnation transformation period," with traditional growth engines fading and a new order still in chaos [2] - Chinese automotive parts suppliers show a notable EBIT margin of 5.7%, significantly higher than Europe at 3.6% and South Korea at 3.4% [2] - The rapid growth of software-defined vehicles (SDVs) contrasts with the declining market penetration rate of pure electric vehicles, which dropped from 60% to 25% [3] Industry Dynamics - The Chinese market benefits from three driving forces: policy-driven growth in the new energy vehicle sector, demand expansion from consumption upgrades, and export opportunities from global supply chain restructuring [2] - In contrast, the European market struggles with the sunk costs of traditional fuel vehicle systems and mismatched transition rhythms to new energy [2] - The acceleration of SDVs and the slowdown in pure electric growth necessitate a balance between traditional and new business models for parts suppliers [3] Technological and Strategic Shifts - The report highlights the need for parts suppliers to develop "technology modularization" capabilities to adapt to different regional standards due to geopolitical shifts and technological divergence [4] - Companies are urged to enhance product development speed, create new R&D ecosystems, and improve operational efficiency to better integrate into regional industrial ecosystems [4] - Leading companies are adopting a dual-track evolution in product portfolios, balancing cash flow businesses with strategic growth areas [4] Operational Innovations - Industry leaders are leveraging digital twin technology to reduce R&D cycles by 30% and using AI quality inspection to lower defect rates to 0.2% [5] - The digital transformation is evolving from efficiency tools to core competitive advantages for companies [5]