Yongfu Road, a well-known street in Guangzhou, holds a special place in the eyes of car owners. It is not just a regular road but rather a hub of high-value auto parts trade. The surrounding area is home to over 1,000 auto parts stalls, one of the largest such markets in the country. The rent here is even higher than that of CITIC Plaza, highlighting its importance and demand. This market offers a "one-stop" solution for all auto parts and supplies, attracting merchants from East China, Hong Kong, Macao, and even foreign countries who come regularly to purchase goods.
What makes this area particularly unique is that most of the businesses are run by private entrepreneurs. These individuals have seized opportunities in the booming auto consumption market, and under the influence of large automotive companies, they have created a vibrant and healthy industrial cluster. The auto parts market on Yongfu Road is a microcosm of Guangzhou's auto parts industry, which has developed entirely organically.
According to an industry insider, the market began to take shape in the late 1980s when imported cars and minivans started entering the city. With Guangzhou’s opening up, the demand for auto parts grew rapidly. Initially, small brick-and-mortar stalls emerged around Yongfu Road, selling auto accessories and supplies. As the automotive market expanded, these stalls gradually connected and formed a more structured network.
By the mid-to-late 1990s, the industrial and commercial authorities began to regulate the auto parts dealers. Today, only about 56 professional auto parts markets have been established along Yongfu Road, Hengfu Road, and Guangyuan Road, with over 1,200 individual private stalls operating there. Private enterprises dominate the market due to their flexibility and ability to quickly respond to market changes.
One successful example is Guangzhou Shunye Auto Products Manufacturing Co., Ltd. Its general manager, Ye Jixian, started in the late 1980s by distributing auto parts at Yongfu Road. However, he soon realized that relying on others’ products limited his growth. In the late 1990s, he identified an opportunity in the auto cover market and decided to establish his own factory. By 2000, he had launched his own auto parts manufacturing business, investing in R&D and creating a range of decorative products that captured the market and brought significant returns.
Today, many private businesses are moving away from just reselling and are focusing on branding and innovation. According to incomplete data, about 20% of the auto parts stores on Yongfu Road now operate a "front shop and back factory" model, combining retail with in-house production. Some even have PhDs and master's degree holders in their R&D teams, and some have registered trademarks for their products, exporting them to Southeast Asia and Hong Kong.
With the influence of major automotive companies like Guangzhou Honda, Nissan, Volkswagen, and Baolong, Guangzhou has developed a comprehensive auto parts production and distribution chain. Over 90% of the market is dominated by private companies involved in vehicle sales, maintenance, and spare parts. There are 2,101 private companies and individual businesses engaged in the production and sale of automobiles and spare parts, mainly located in the eastern development zone, Zengcheng, Huangpu, Huadu, and Nansha. These clusters have created a pattern of healthy competition and overall growth, contributing billions to the local economy and employing tens of thousands of people.
Source: Guangzhou Daily
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