I. Basic Overview of the Industry

Automotive filters, also known as automotive filtrators or oil-fluid-gas filter screens, are devices designed to filter out impurities, gases, and other substances. As crucial components of automobiles, they offer advantages such as long service life, easy assembly and disassembly, good water resistance, and high filtration performance, effectively filtering toxic gases and bacteria. Classified by application, automotive filters can be divided into fuel filters, air filters, oil filters, and air conditioning filters.

II. Market Development of the Industry

Automotive filters are essential automotive components. The automotive component industry serves as the foundation and a key part of the automotive industry. As a core link supporting and influencing the development of the automotive industry, under the new requirements of "Made in China 2025" and the automobile power strategy, automotive components will play a pivotal role in building an automotive technological innovation system, promoting the transformation, upgrading, and sustainable development of the automotive industry.

In recent years, China's automotive component supply system has been gradually improved. Currently, it has been deeply integrated into the global supply chain system and become an important production and supply base. Data shows that in 2021, the revenue scale of China's automotive component manufacturing enterprises reached 4,066.8 billion yuan, a year-on-year increase of 12%. In 2022, it was approximately 4,195.3 billion yuan, and it is expected to further grow to 4,408.6 billion yuan in 2023.

As an important type of automotive component, automotive filters have achieved rapid progress after years of development and occupy a certain market position. Meanwhile, with the continuous in-depth and extensive advancement of technological progress in the automotive filter industry, products have made significant strides in lightweight, energy conservation, environmental protection, multi-functionality, systematization, and modularization. The filter system plays an increasingly important role in influencing automotive performance and reducing energy consumption and emissions, thus enhancing its significance in automobiles. According to the calculation standards of the China Association of Automobile Manufacturers, based on the consumption amount of 120 yuan for 5 filters, it is estimated that the market size of China's automotive filter industry grew from 12.72 billion yuan to 38.28 billion yuan between 2011 and 2022, with a Compound Annual Growth Rate (CAGR) of 10.5%.

At present, China's automotive filter industry has a high degree of industrialization, and clustering is a major feature of its development. In recent years, with the continuous improvement of technological innovation capabilities of local enterprises, the intelligent and high-end development of automobiles, and the shortened update cycle of automotive component products, low-end products have gradually withdrawn from the market. This has significantly improved the output and quality of China's automotive filters, increased the industry concentration, and gradually formed five major industrial clusters in Qinghe (Hebei), Rui'an (Zhejiang), Shanghai, the Pearl River Delta (Guangdong), and Bengbu (Anhui).

Industry statistics indicate that there are currently over 2,000 filter manufacturers in China. Among them, 11 enterprises have annual sales revenue exceeding 100 million yuan (included in industry statistics), and more than 20 enterprises have sales revenue exceeding 50 million yuan. Eighty-five percent of these enterprises are concentrated in six major filter production clusters, with multiple economic sectors coexisting, including state-owned, private, joint-venture, and foreign-funded enterprises. Major domestic automotive filter manufacturers include Hebei Yili Rubber & Plastic Group Co., Ltd., Zhejiang Global Filter Co., Ltd., and Shanghai Fleetguard Filter Co., Ltd.

III. Demand Market Situation of the Industry

The market demand for automotive filters is correlated with the number of automobiles in use. In recent years, with the improvement of people's living standards, automobiles have become an indispensable part of people's lives. China currently has the largest number of automobiles in use globally. According to the latest data released by the Ministry of Public Security on October 10, 2023, by the end of September 2023, the total number of motor vehicles in China reached 430 million, including 330 million automobiles and 18.21 million new energy vehicles (NEVs). The number of motor vehicle drivers stood at 520 million, among whom 480 million are automobile drivers.

Benefiting from the continuous prosperity of the automotive industry, the market demand for automotive filters in China has become increasingly strong, and the industry's development space has continued to expand. Although the market demand was weak from 2017 to 2020, with production and sales volumes showing a downward trend, China remains the world's largest automobile market. Since 2021, with the normalization of domestic and foreign epidemic prevention and control measures, and the combined effect of the national policy of halving vehicle purchase tax and local government policies to promote automobile consumption, China's automotive consumer market has continued to recover, driving up production and sales volumes. Data shows that in 2022, China's automobile production and sales reached 27.021 million units and 26.864 million units respectively, with year-on-year growth of 3.4% and 2.1%.

Since 2023, automobile production and sales have maintained steady year-on-year growth. NEVs have entered a large-scale development stage, with the year-on-year growth rate of automobile exports exceeding 70% in the first half of the year. The automobile market has maintained a stable and positive trend with strong resilience, becoming a bright spot in economic recovery. From January to September 2023, China's automobile production and sales reached 21.075 million units and 21.069 million units respectively, with year-on-year growth of 7.3% and 8.2%.

At the same time, the penetration rate of NEVs is rising rapidly, and the continuous deepening of residents' consumption upgrading has also brought considerable prospects for automotive filter products. After years of development, China's automobile industry is currently in a transition from high-speed development to high-quality development, and the trend of transformation and upgrading is irreversible. Among them, NEVs are the main direction for the transformation and upgrading of the automotive industry. Since the 18th National Congress of the Communist Party of China, the Party Central Committee and the State Council have attached great importance to the development of the NEV industry, making a series of major decisions and arrangements, which have promoted the significant development of China's NEV industry and laid a solid foundation for building an automobile power.

Data shows that in 2023, China's NEV production and sales reached 6.313 million units and 6.278 million units respectively, with year-on-year growth of 33.7% and 37.5%, and the market share reached 29.8%. Among them, in September, NEV production and sales reached 879,000 units and 904,000 units respectively, with year-on-year growth of 16.1% and 27.7%, and the market share reached 31.6%.

Data Source: Compiled by Guanyan Tianxia

Therefore, with the rapid development of the automotive industry, the market demand for automotive filters in China has become increasingly strong. According to relevant data and empirical formulas from the Filter Branch of the China Internal Combustion Engine Industry Association (filter : number of automobiles in use = 5:1) — meaning each automobile replaces 2 oil filters, 1 air filter, 1 fuel filter, and 1 air conditioning filter annually — it is estimated that the demand for automotive filters in China increased from 530 million sets to 1.6 billion sets between 2011 and 2022.

The "Report on China's Automotive Filter Industry Development Trend Analysis and Investment Prospect Research (2024-2031)" released by Guanyan Report Network covers the latest industry data, market hotspots, policy plans, competitive intelligence, market prospect forecasts, and investment strategies. It is also supplemented with a large number of intuitive charts to help enterprises in this industry accurately grasp the industry development trend, market business opportunities, and formulate correct corporate competition strategies and investment strategies. This report is based on authoritative data released by the National Bureau of Statistics, the General Administration of Customs, and the National Information Center, and combines the industry's development environment to conduct market research and analysis from multiple perspectives, including theory to practice and macro to micro.

Industry reports are one of the important decision-making bases for enterprises in the industry, relevant investment companies, and government departments to accurately grasp industry development trends, understand the industry competition pattern, avoid operational and investment risks, and formulate correct competition and investment strategies. This report is an indispensable tool for a comprehensive understanding of the industry and investment in this industry. Guanyan Tianxia is a well-known domestic industry information consulting institution with a team of senior experts. Over the years, it has provided professional industry analysis reports to tens of thousands of enterprises, consulting institutions, financial institutions, industry associations, and individual investors. Its clients include leading domestic and foreign enterprises such as Huawei, PetroChina, China Telecom, China State Construction Engineering Corporation, HP, and Disney, and has received wide recognition from clients.