Yongfu Road, a well-known street in Guangzhou, holds a special place in the minds of car owners. The area around it is home to over 1,000 auto parts stalls, one of the largest in China, with rental prices even higher than those at CITIC Plaza. This market offers a "one-stop" solution for all auto parts and supplies. Merchants from East China, Hong Kong, Macao, and even overseas frequently visit to purchase auto components. What makes this area particularly unique is that most of the "gold rush" in the auto parts industry is driven by private business owners. These entrepreneurs have seized opportunities in the automotive consumption market, and under the influence of large automobile manufacturers, they've formed a thriving and healthy industrial cluster.
The auto parts market on Yongfu Road reflects the development of Guangzhou's auto parts industry. As one local observer noted, "Guangzhou’s auto parts market has always been self-driven." In the late 1980s, as imported cars and minivans began to enter the market, demand for auto parts grew rapidly. Initially, small brick-and-cement stalls emerged around Yongfu Road, selling accessories and auto supplies. Over time, these stalls expanded and became more organized. By the mid-to-late 1990s, the industrial and commercial authorities began regulating the auto parts dealers. Today, there are only about 56 professional auto parts markets along Yongfu Road, Hengfu Road, and Guangyuan Road, with over 1,200 individual private businesses operating there.
Private enterprises dominate this market due to their sensitivity and flexibility in responding to market trends. Many successful auto parts entrepreneurs emphasize the importance of "going with the market." Ye Jixian, general manager of Guangzhou Shunye Auto Products Manufacturing Co., Ltd., started as a distributor of auto parts in the late 1980s, selling others’ products. However, he soon realized that without his own brand, he was limited by others. In the late 1990s, he identified an opportunity in auto covers and decided to set up his own factory. In 2000, he launched his own auto parts manufacturing plant, bringing in experts to develop various automotive decoration products. His strategy paid off, and he gained significant profits.
Today, many private companies are no longer satisfied with just making small profits. They are moving toward building their own brands. According to incomplete statistics, only about 20% of auto parts stores on Yongfu Road operate under a "front shop and back factory" model, combining retail with in-house R&D. Some even have PhDs and master's degree holders on their teams. A few have registered trademarks for their products and export them to Southeast Asia and Hong Kong.
Under the influence of major automobile manufacturers like Guangzhou Honda, Nissan, Volkswagen, and Baolong, Guangzhou has developed a comprehensive automotive and spare parts production and distribution chain. Private companies now account for over 90% of the market, including those involved in vehicle sales, maintenance, and spare parts processing. There are 2,101 private enterprises and individual businesses engaged in auto and spare parts production and sales, mainly located in the eastern development zone, Zengcheng, Huangpu, Huadu, and Nansha. These clusters form four major industrial hubs with an annual output value of tens of billions of yuan, creating a pattern of healthy competition and overall growth.
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