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China Automotive Market: The Ultimate FAQ Guide

If you’re starting an automotive shop or, you may want to import from China automotive market.

Or, you would like to explore and find reliable suppliers in the automotive market in China.

If that’s the case, then you’re in the right place.

Because this guide will help you find suppliers, understand the market and save time when importing from China automotive market.

Let’s dive right in.

How Big is China Automotive Market?

China automotive market tops the world.

It’s estimated to hit an output of 30 million and 35 million by the year 2020 and 2025 respectively.

2018 saw China selling over 27 million Chinese vehicles not only to Local markets but also internationally.

The steady growth can be attributed to the increasing living standards which have lead people into acquiring items that were previously out of reach.

The automotive sector stands to be one of the leading pillars of the economy in China through which several people have gained employment.

Which are the Best Chinese Car Brands?

China being the leading automotive market globally, expect to find several varieties of car brands.

Some of the best Chinese car brands are not limited to;

  • BYD
  • Chery
  • Wuling
  • JAC
  • Changan
  • Great Wall
  • Baojun
  • Roewe
  • Lifan
  • Zotye
  • Ranz
  • Hafei
  • Geely
  • Brilliance
  • Qoros
  • JMC
  • Maxus
  • Haima
  • Gonow
  • Englon

What are the Benefits of Buying from the China Automotive Market?

There are several reasons why most automotive importers choose to buy automotive from the China Automotive market.

Let’s have a look at some of the benefits below;

  • Cost-effective – Cars in the China automotive market are sold at relatively affordable prices as compared to other countries.

This is because of the cheap labor forces and the presence of many factories.

In addition to that, the favorable import policies and availability of raw materials also contribute to the cost-effective prices.

  • Availability of a wide range of spare parts – Most if not all spare parts of vehicles can be found in the China automotive market.

Not to mention that most countries have shops that specialize in selling Chinese spare parts.

Therefore, you won’t have to worry about lacking spare parts as seen with some car designs.

  • Modern design –Chinese manufacturers ensure that they keep up with emerging trends and produce the best card designs.

To achieve this, they compile parts from well-known cars and come up with a unique result.

  • Good basic equipment in the cars– Regardless of the cheap price of a car, it might have functional features such as air conditioning, airbag, heated seats, and power windows. This not only makes it convenient but also practical.
  • Wide variety – China automotive market offers a wide variety of automotive selections including spare parts.

Therefore it’s a great one-stop market for everything you will need for your automotive business.

  • The flexible import policies in China facilitate easy and smooth importation from China’s
  • automotive market.

Which Automotive Parts can you Import from China?

If you’re planning to import all your automotive parts, China would be the ideal place.

Whether used or brand new you can easily find the best automotive parts from China automotive market.

Some of these parts are not limited to;

  • Axle
  • Car batteries
  • Brakes
  • AC compressor
  • Pistons
  • Fuel injector
  • Spare Tire
  • Clutch
  • Radiator
  • Engine fan
  • Sensors
  • Optics
  • Engine and drivechain
  • Filters
  • Chassis
  • Steering system
  • Rubber mount
  • Belt
  • Gaskets and seals
  • Shock absorbers and lifters
  • Driveshaft and axle
  • Muffler
  • Starter and alternator
  • Glow plug and spark plug

Can you Import Used Vehicles from China?

Yes.

Used vehicles are readily available in the China automotive market and you can import at reasonable prices.

Can you Import used Automotive Spare Parts from China?

Yes. Several auto dealers specialize in used automotive spare parts and therefore importing shouldn’t be much of a hassle.

However, you need to keenly assess the automotive spare parts before purchasing as some might either be faulty or counterfeit.

What are the Challenges when Importing from China Automotive Market?

Just like any other import-export business, importing automotive from China could be challenging at some point.

Let’s have a look at some of the challenges you should be prepared for below;

  • Language barrier –English is not an official language in China and therefore communication might be a huge challenge.

To overcome this, you might choose to seek the services of a sourcing agent.

  • Quality issues – Before finalizing your order, ensure that you have received a sample and confirmed that it meets the expected quality standards.

Failure to this might result in disappointments after production.

  • Scammers –There exist several scammers in the market and therefore you need to very vigilant when carrying out your deals with different auto dealers.

Confirm that they are legally authorized before initiating any purchases.

  • Middlemen – When working with middlemen, be prepared to be presented with higher prices. Therefore, if you want to get the actual price consider working directly with the company or hire a certified agent.
  • Finding a suitable supplier –With the huge saturation of suppliers in China, it might be difficult to identify the ideal one for your products.

In this case, you could consider working with a sourcing agent.

  • Delays in delivery- Apart from National holiday’s delays in delivery could also as a result of emergence of a more profitable order.

As such, the manufacturer is likely to concentrate more on that and delay your order.

To prevent such instances, always provide accurate time schedule for your production before it starts and ensure that you conduct regular follow ups.

How much Duty will you Pay to Import Automotive Products from China?

Duties and taxes are part of any form of importation and the cost might vary depending on the country of importation.

The value of imports and weight are some of the factors that will determine the amount of duty you will pay.

That said, you need to confirm with your country’s customs authorities on the applicable duty for your China imports.

Which are the Leading Automotive Markets in China?

Automotive markets in China are located in cities such as Yiwu, Guangzhou, and Shenzhen among others.

Some of the leading automotive markets in China are not limited to;

  • Yiwu Automobile Accessories Wholesale Market
  • Guangzhou wholesale market
  • Bagualing car accessories market
  • Yiru autoparts market
  • Yiyou market
  • Guangzhou automobile components market
  • Sanyuanli Auto fitting Foreign Trade market
  • Xinguangcong Automobile parts city
  • Guangdong Express Automobile Accessories market
  • Yi Yun International Automobile Accessories Plaza

How do you get the Best Prices when Importing from China Automotive Market?

Getting the best prices for your automotive requires you to know the tricks on how Chinese suppliers and manufacturers operate.

Let’s have a look at some tips below;

  • Bargain –Bargaining is an important aspect of any successful purchase.

Chinese suppliers and manufacturers are aware of this and that’s why you should never settle on the actual prices.

Just by bargaining, you will be surprised at how much less you will buy the same product.

  • Make bulk purchases –A simple trick that most big businesses use is buying in bulk.

The reason being most if not all suppliers are willing to offer large discounts on bulk purchases as compared to smaller purchases.

  • Buy directly from the factory – If you want to increase your profit margin further, consider purchasing your products directly from the manufacturer.

Not only does this reduce the number of middlemen but also puts you in a better chance to establish lasting business bonds with the manufacturer.

Keep in mind that the more the middlemen involved the higher the price of commodities.

  • Hire a sourcing agent – Sourcing agents will not only identify a suitable supplier for your products but also bargain on your behalf.

This way you reduce the probability of being scammed and eliminate the language barrier.

Not forgetting landing at unbeatable prices from the best suppliers.

Therefore if you are a newbie in the business it would be of great help working with a sourcing agent.

Which Quality Standards should Automotive Products in China conform to?

Every automotive product should conform to the set quality standards to ensure proper functioning and safety of the vehicle.

The automotive products should be designed in a manner that;

  • They last longer without wearing out.
  • They function effectively with other car components without difficulties.
  • They withstand harsh environmental conditions

That said, here are some of the quality standards to look out for when importing automotive products from China;

  • ISO 6518-2 – For auto-ignition parts and systems
  • CPA 101-102 covers external parts that are made of plastic, panels, fenders, grilles, door shells, and bezels just to mention a few.
  • ISO 8984 defines the standards required to assess the performance of fuel injectors.
  • SAE J1684 for radiator hoses and their respective electrical conductivity.
  • AS 1566 covers requirements for copper alloy materials that are used in the manufacturing of auto.
  • ISO 27667 for braking components and systems
  • ISO 45001 for health and safety
  • ISO 9001

How do you Ship Product from China Automotive Market?

There are four main methods through which you can ship your products from China automotive market;

  • Airfreight -Air freight is the costliest shipping method while at the same time the fastest. It’s suitable if you are shipping urgent and less bulky products.

Most importers prefer not using this method due to the high costs involved.

  • Sea freight –Sea freight is the commonly preferred shipping method.

This is because it is cost-efficient and suitable for shipping bulky products.

Nevertheless, you will need to wait longer for your products to be delivered.

The brighter side is that you will save on costs which in turn increases your business profit margins.

  • Rail freight – Rail freight would be another alternative option for sea freight more so if you’re shipping to countries connected to China by rail transport.

Not only is it faster than sea freight but also less costly as compared to air freight.

Not forgetting it’s also suitable for shipping bulky products.

  • Door to door shipping – If you want to save on cost, effort, and time then the door to door shipping would be the ideal choice.

With this method, your products will be shipped directly to your doorstep and therefore it saves you from a lot of inconveniences.

Which Incoterms can you use when Importing from China Automotive Market?

There are several incoterms available and therefore your choice will be determined by your import needs.

FOB and EXW are some of the suitable incoterms to use when importing from China automotive market.

EXW is ideal if so you are looking forward to saving on your costs.

Other available incoterms are not limited to;

Why should you Hire Freight Forwarder when Importing from China Automotive Market?

Hiring a freight forwarder is always quite advantageous in several ways.

Freight forwarders smoothen your importation process as outlined below;

  • Custom clearance – Custom clearance is one of the difficult processes for any importer since it involves a lot of documentation.

A freight forwarder is accustomed and has experience in this job and will do it in a short period without much hassle.

  • Identifying warehouse for your products –A Freight forwarder will identify and secure suitable storage for your products.
  • Freight forwarders also help in loading and offloading your goods.
  • Timely delivery of goods –freight forwarders work on a strict schedule to ensure that they deliver their clients’ goods at the expected time.
  • Cost-effective – Due to their experience in the field, freight forwarders have established networks with several couriers.

For this reason, they easily get to negotiate on prices and offer you the best prices available for your shipment options.

  • Efficiency – Freight forwarders are skilled in quickly adapting to sudden changes made during the shipping process.

Can you Import Automotive Products from Alibaba?

Yes, you can easily import automotive products from online platforms such as Alibaba.

Other online platforms that you could as well consider include; Global sources Made in China, and DH Gate.

 Which are the Leading Automotive Trade Shows in China?

To get the most out of your importation, attending trade shows would be of great significance.

It will broaden up your knowledge of the specific products you intend to purchase.

Not forgetting that you might easily bump into a suitable supplier for your future purchases.

Here are some of the leading automotive trade shows in China;

  • China International Auto parts expo
  • The Chengdu International Trade Fair for automotive parts and aftermarket services
  • Bi-annual Canton Fair
  • China international auto modification and accessories expo
  • Guangzhou International automotive fair
  • Auto Maintenance and Repair Expo
  • Beijing International Automobile Exhibition

What are the Benefits of Working with China Automotive OEM Suppliers?

Several benefits come with partnering with China automotive OEM suppliers.

With OEM the products produced by one company will be used by another company to manufacture finished goods.

Let’s have a look at some of the benefits of OEM suppliers;

  • Customization –Working with an OEM supplier allows you to customize your products to suit your specifications.
  • Direct shipping options – You will have the option to directly ship to your customer when working with China automotive OEM supplier.
  • You as the buyer will own the intellectual property of the products.
  • Working with China automotive OEM suppliers guarantees you support when the need arises.
  • Ensures the smooth flow of business – It’s easier and faster to replace parts as the supplier already has your product specifications.

Who are the Leading Automobile Manufacturers in China?

Some of the leading automobile manufacturers in China are not limited to;

  • FAW
  • SAIC Motor Corporation
  • Chang’an automobile Co.
  • Brilliance automotive
  • Guangzhou Automobile Group
  • Geely
  • Beijing automotive group
  • BYD Auto Co.Ltd
  • Dongfeng Motor Corporation
  • Baoding Great WallSutomobile Holding Co.
  • Lifan group
  • Green Field Motors

How do you Identify Fake Automotive Products from China?

China is a country saturated with both quality and fake products.

Meaning, having the skill to quickly rule out between the two is critical.

You hack this and your business is set for impressive growth. To identify fake products;

  • Check the pricing -Too good to be true prices should be a red flag.
  • Inspect the branding and confirm the labeling and packaging details.

Most fake products will have names that appear similar to real brands to fool customers.

Also, a fake product won’t fit well in the packaging provided.

Not forgetting spelling mistakes on the products.

  • Take an old part and compare the two side by side.
  • Be on the lookout for products that lack labels or any identification numbers as they might be counterfeit.

Why Import Directly from Automotive Factories in China?

If you ask several automotive importers where they purchase their products from most will mention buying directly from factories.

This is because of the following reasons;

  • Importing directly from the factory allows you to build solid bonds with the manufacturer for future business.
  • You get huge discounts when you purchase directly from the automotive factories.
  • Most if not all manufacturers will be willing to offer you customization services.
  • By importing directly from the automotive factories you curb the chances of being scammed.
  • Most factory manufacturers in China are conversant with English and therefore language barrier wouldn’t be a challenge.

Are there Special Requirements when Importing Automotive Products from China?

Yes, there are special requirements when importing automotive products from China.

First, your automotive products need to meet the quality requirements. Some of these include;

  • ISO 8984
  • CPA 101-102
  • ISO 6518-2
  • AS 1566

In addition to that, you need to have a license when importing automotive products from China.

Ensure that you have all the required import documents to avoid inconveniences during your importation process.

How do you Package Automotive Parts in China Ready for Shipping?

Different automotive parts will require different types of packaging for proper protection.

Some of the packaging items you will require for your automotive parts include;

  • Foam
  • Taped plastic film
  • Cushioning
  • Padding
  • Bubble wrap

You can package your products in plastic or metal wired boxes that can bear the capacity, tensile strength, and are durable.

Also, triple-walled corrugated boxes and honeycomb protective packaging would be good packaging options.

Keep in mind the thickness, size, and design of the packaging will be determined by the type of automotive part.

Can you Find a Warehouse when Importing China Automotive Market?

Yes, there are several warehouses in China owing to the presence of various businesses.

However, sometimes you might find it challenging to locate a suitable warehouse for your products.

In such instances, freight forwarders would be of great help.

They have experience in this field and can easily identify an ideal warehouse for your automotive products.

Is there MOQ when Importing from China Automotive Market?

Yes, different suppliers will have different MOQs for their products.

The Minimum Order Quantity will also be determined by a couple of factors such as;

  • Sizes of the product – Smaller-sized products often have a higher MOQ as compared to huge products.
  • Size of the factory –Big factories will have a higher MOQ owing to the overheads that need to be covered.
  • Customization – The more the customization the higher the MOQ.
  • Raw materials and parts – When selecting your raw materials, you should keep in mind that costly or rare materials will raise the MOQ of your products.

Which Documents do you need to Import from China Automotive Market?

There are several documents that you need to have before commencing your importation process.

Some of these documents will be determined by the custom requirements of your country or the type of product part that you are importing.

Let’s have look at some of the needed documents;

  • Packing list
  • Import license
  • Import declaration
  • Commercial invoice
  • Bill of lading
  • Bill of entry
  • Insurance certificate
  • Import declaration
  • Country of origin certificate
  • Technical write-up

Is there Right Time to Import from China Automotive Market?

Yes, there is an appropriate time to import from China’s automotive market.

Before indulging in your importation take proper notice of the public holidays.

Most businesses remain closed during such occasions and therefore it would be the worst time to import from China.

Keep in mind that certain Chinese holidays such as the Chinese new year lasts for weeks.

Avoid making orders a few weeks to or a few days after the Chinese holidays.

The best part – Tj chinafreight will help you import all automotive products from China to your destination.

Whether you’re importing car parts from China, automotive engines, or vehicles, we will facilitate everything for you.

Contact Tj chinafreight today for all your freight forwarding needs.