100 billion market golden track: the size of China's automotive lighting industry is expected to reach 64.3 billion in 5 years.


Headlights are the golden track in auto parts. Under the trend of continuous upgrading of light source technology and intelligence, the scale of China's headlight industry is expected to reach 64.3 billion yuan in 2023. In this issue of Auto Parts Watch, we will review with you the history of the evolution of headlights and discuss the technology trends and the space for future development.

Investment points

The lamp industry is a golden track with hundreds of billions of space. The value of the lamp system is the highest among auto parts, second only to the engine, transmission and seat, and the value of the mainstream configuration varies from 1500-3000 RMB. There are 6 of the TOP 100 global auto parts companies mainly engaged in the auto lights business. In order to meet the continuous improvement of consumers' demand for safety, value and intelligence of headlights, the future headlight technology will continue to upgrade in terms of light source, atmosphere creation and intelligence, and its single-vehicle value volume still has huge room for improvement. 2018, the global headlight market size was $31.7 billion; according to the authoritative research institute Global Market Insights, the global automotive headlight market in 2024 is predicted to space is expected to reach $42.6 billion.

Last week's market review. Last week the auto parts index fell 4.09%, the CSI 500 index fell 4.75%, the CSI 300 index rose 1.01%, and the CITIC Auto index fell 3.13%. Automotive sector rose in 29 primary industries ranked 11th. Auto parts industry valuation level (TTM) 23.4 times PE, currently at 0.72 standard deviation position below the historical valuation pivot.

Risk factors: automotive industry demand does not meet expectations; end price competition intensified, resulting in profitability pressure to parts and components enterprises; parts and components exports fell sharply.

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