Zongshen enters the auto parts market to grab the German rice bowl
In the early 2000s, Zongshen Jin made a bold move into the auto parts industry, leveraging its competitive advantages to challenge German manufacturers in the market. While Lifan and Loncin were busy building their own vehicles, Zongshen quietly positioned itself as a key player in the automotive sector. Recently, the Zongshen Group announced that its patented "Automobile Inlet Plastic Manifold" has successfully passed national evaluation, marking a major milestone in its journey toward becoming a leading supplier of auto components.
This development highlights how Zongshen managed to capture market share traditionally dominated by German suppliers. With its own intellectual property and cost-effective production, the company has now become a major supplier to South Korean automakers like Hyundai. According to insiders, Zongshen imported a state-of-the-art plastic intake manifold production line from South Korea back in 2002, filling a domestic gap and even supplying parts to Hyundai. Some of its models are already being used in Hyundai’s production lines.
Compared to traditional metal components, plastic parts offer numerous benefits such as improved fuel efficiency, better engine performance, quicker start-up, and reduced noise. International carmakers like BMW and Nissan have already adopted similar technologies in their new models. Zongshen's export price for Hyundai parts is just $18 per unit, significantly lower than the German alternatives—making it a preferred choice for South Korean automakers.
So why did Zongshen choose to focus on auto parts rather than full vehicles? According to company officials, entering the vehicle manufacturing sector directly would be too risky, especially with global giants already dominating the market. Instead, Zongshen opted to become a reliable supplier, gradually building up its expertise and brand reputation. The company believes that the heart of any car lies in its engine, and developing key engine components with independent intellectual property is a crucial step toward eventually producing complete vehicles.
Currently, several models, including Wuling Zhiguang, Hafei Zhongyi, and Changling Wang, are already using Zongshen’s auto parts. This strategic move not only strengthens Zongshen’s position in the supply chain but also lays the foundation for future expansion into整车 (complete vehicle) manufacturing. As the company continues to invest in R&D and expand its market presence, it’s clear that Zongshen is no longer just a supplier—it’s becoming a serious player in the global automotive industry.
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