The era of low-altitude economy is approaching, and the automotive parts industry is ushering in a second growth curve

The automotive industry has a development history of over 120 years and is a pillar industry of the national economy. Over the past few decades, the development of China's automotive industry has been astonishing. Currently, it has ranked among the top in the world in terms of production and sales volume for 15 consecutive years, and has ranked among the top in the world in terms of production and sales volume of new energy vehicles for 9 consecutive years.

The development of the automotive industry is inseparable from the development of related supply chain industries such as automotive parts. Along with the growth and expansion of China's automotive industry and the improvement of automotive electrification and intelligence levels, the value and demand of the automotive parts industry have significantly increased. Meanwhile, the emergence and commercialization of the low-altitude economy concept have brought a second growth curve to the automotive parts industry, and the investment opportunities in related industries are worth paying attention to.

The policy side has been continuously exerting efforts, and the low-altitude economy has drawn much attention

Low-altitude economy refers to a comprehensive economic form that mainly relies on civil aircraft and is driven by multi-scenario low-altitude flight activities such as carrying people, goods and other operations, radiating and promoting the integrated development of related fields. In recent years, various regions have successively introduced policy measures to promote the development of industries such as low-altitude economy and general aviation. This year at the National Two Sessions, the low-altitude economy was included in the government work report as one of the new growth engines, drawing attention from all sectors. Globally, the low-altitude economy is also becoming a focus of attention for many countries. The United States, the European Union, Japan, South Korea and many other countries or regions have successively launched development plans related to the low-altitude economy.

Low-altitude economy is an important way to achieve short-distance urban transportation and an essential part of the urban intelligent transportation system. It has the advantages of low carbon and environmental protection, low noise, and no need for runways. It is expected to alleviate traffic congestion in large cities and has great commercial potential. Currently, it is in a stage of a "blue ocean". The domestic auto parts industry is expected to enter the industrial chain through the research and development of major downstream customers and embark on a second growth curve.

The domestic automotive industry chain has made considerable progress in the recent wave of electrification upgrades. Its capabilities in large-scale production, collaborative research and development with downstream customers, and cost control all possess strong competitive advantages on a global scale. Against the backdrop of downmarket automakers actively entering the eVTOL industry for exploration, upstream component manufacturers are expected to enter the low-altitude economy industrial chain and achieve a second growth curve by following major clients and other means to carry out related component research and development.

The CSI Auto Parts Theme Index selects 100 listed companies covering auto parts fields such as automotive system components, interior and exterior trims, electronics, and tires as samples, which can reflect the overall market performance of the auto parts theme. At present, from the perspective of valuation, the auto parts theme index is at a historically low level. As of April 17th, the rolling price-earnings ratio of the index was approximately 23.2 times, reaching the 15.3% percentile since the base date.