1、 Development environment: National policies strongly support the rapid development of the automotive connector industry

Automobile connector is a component that electronic engineering technicians often come into contact with. Its role is simple: to build a communication bridge between blocked or isolated circuits in a circuit, to circulate current, and to enable the circuit to achieve predetermined functions. The upstream of the connector industry chain is the raw materials for producing connectors, including metal materials, electroplating materials, plastic materials, and structural materials. The midstream is the connector components and cables. The downstream is the connector application fields, including automotive, communications, consumer electronics, industry, transportation, and other fields. In September 2022, the State Council issued the "14th Five Year Plan" for the Development of the Digital Economy, proposing to focus on improving the supply level of basic software and hardware, core electronic components, key basic materials, and production equipment, and enhancing independent capabilities - with sufficient key products.

2、 Development status: The increase of new energy vehicles and the expansion of the market scale of the automotive connector industry

With the continuous and rapid development of China's economy and the continuous improvement of people's income level, more and more people will be able to purchase private cars. China's automobile production is also increasing year by year. In 2021, the scale of China's automotive connector market was 65.3 billion yuan, an increase of 1.35% over the previous year. It is estimated that the market size of China's automotive connector market will reach 69 billion yuan in 2022, and the market size is also expanding year by year. In 2021, the scale of China's new energy vehicle connector market is 9.8 billion yuan, accounting for 15% of the vehicle connector market. It is expected that the market size of new energy vehicle connectors will reach 16.1 billion yuan in 2022, accounting for 23% of the market size of vehicle connectors.

3、 Enterprise structure: The domestic automotive connector market share is small, and the market share needs to be improved

Among the global automotive connector manufacturing countries, the United States and Japan are the dominant ones. Tyco has long held a dominant position in the United States, accounting for 39.1% of the market share, followed by Yazaki and Amboff, which are ranked second and third, with market shares of 15.3% and 12.4%, respectively. The main manufacturers of automotive connectors in China include Youchangying Precision, Derun Electronics, Ruikeda, and Lyme Co., Ltd. In the first half of 2022, Yingying Precision achieved an operating income of 7.079 billion yuan, a year-on-year increase of 56.55%; Derun Electronics achieved operating revenue of 3.665 billion yuan in the first half of 2022, a year-on-year decrease of 1.74%; In the first half of 2022, Ruike achieved operating revenue of 734 million yuan, an increase of 112.75% year-on-year; In the first half of 2022, Lyme achieved operating revenue of 405 million yuan, a year-on-year increase of 24.23%.

4、 Development trend: favorable policies for industry development, broad connector market

In recent years, China's automotive connector industry has received high attention from governments at all levels and strong support from national industrial policies. China has also issued a series of guidelines to promote the development and innovation of the automotive connector industry. The connector market has broad development space. Policy driven and downstream demand jointly promote the acceleration of domestic substitution. As the global manufacturing industry shifts to Chinese Mainland, the global connector production center also shifts to Chinese Mainland. China has become the world's largest connector production base Domestic leading enterprises are also accelerating their catch up and narrowing the gap. The localization rate of automotive connectors has continuously increased, accelerating the development of the industry.