Comprehensive foreign reports, a recent study shows that Chinese auto parts suppliers are increasingly seeking overseas acquisitions to respond to the upcoming surge in auto parts demand. China's auto parts suppliers will not only integrate with domestic suppliers, but will also acquire European and North American companies to increase the technological content of their products.

In a report on bankruptcy and M&A prospects, Bai Yatian Management Consulting pointed out that sales of light vehicles in China will increase by 30%. In five years, China's auto production may double to 30 million. This will stimulate Chinese large auto parts suppliers to seek potential mergers and acquisitions to meet the growing demand.

Changchun FAW Fuwei Automotive Components Co., Ltd., Ningbo Huaxiang Electronics Co., Ltd. and Fuao Automotive Components Co., Ltd. are among the most active auto parts suppliers in China.

As the automobile market gradually improved from the economic recession of 2009, mergers and acquisitions of auto parts suppliers began to heat up. The study expects that 15% of M&A buyers in 2010 will be Chinese and Indian car suppliers. In 2000, only 2% of buyers came from China and India.

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