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

The automobile industry has a history of more than 120 years and is a pillar industry of the national economy. In the past few decades, the development of China's automobile industry has been breathtaking. At present, the production and sales volume of China's automobile industry has been in the forefront of the world for 15 consecutive years, and the production and sales volume of new energy vehicles has been in the forefront of the world for 9 consecutive years.

The development of the automobile industry is inseparable from the development of auto parts and other related supply chain industries. With the development and growth of China's automobile industry and the improvement of automobile electrification and intelligence, the value and demand of the auto parts industry have increased significantly. At the same time, the birth and commercialization of the concept of low-altitude economy has brought a second growth curve to the auto parts industry, and investment opportunities in related industries are worthy of attention.

The policy side continues to exert strength, and the low-altitude economy has attracted much attention.

Low-altitude economy refers to a comprehensive economic form that is dominated by civil aircraft, with multi-scene low-altitude flight activities such as manned, cargo and other operations as traction, and radiation drives the integration and development of related fields. In recent years, various localities have introduced intensive policies and measures to promote the development of low-altitude economy, general aviation and other industries. At the National Two Sessions this year, the low-altitude economy was written into the government work report as one of the new engines of growth, which attracted attention from all walks of life. Globally, low-altitude economy is also becoming the focus of attention of all countries. The United States, the European Union, Japan, South Korea and other countries or regions have successively launched low-altitude economic-related development plans.

2. the commercialization of eVTOL continues to advance, the future market space continues to improve.

Low-altitude economy is an important way to realize urban short-distance transportation, and it is also an important part of the urban smart transportation system. It has the advantages of low-carbon environmental protection, low noise, and no runway. It is expected to alleviate the problem of traffic congestion in large cities and has great commercialization potential. It is currently in the stage of a "blue ocean. The domestic auto parts industry is expected to cut into the industrial chain through the research and development of downstream large customers, opening the second growth curve.

At the industrial level, eVTOL(Electric Vertical Takeoff and Landing, or electric vertical take-off and landing aircraft), an important carrier of the low-altitude economy, continues to make commercial breakthroughs. Xiaopeng, Geely, GAC and other car companies actively plan the layout of low-altitude economy, launched a variety of forms of eVTOL products. For example, in October 2023, Xiaopeng Huitian made public for the first time on Xiaopeng's "1024 Science and Technology Day" the brand-new product under development-the "Land Carrier" flying car, in which the flying body part can realize vertical take-off and landing to meet the needs of low-altitude flight. In the future, it is expected that more and more eVTOL products will enter the mature stage, promoting the acceleration of commercialization of low-altitude economy, and the global market scale is considerable. According to Markets and Markets Research, the global eVTOL market space will reach US $23.4 billion by 2030, corresponding to a compound annual growth rate of more than 53%.

3. the eVTOL industry chain and the car highly overlap, the auto parts industry advantage manufacturers are expected to cut into the supply chain.

The eVTOL-related industrial chain is long, with a large degree of overlap with the electric vehicle industry chain, and the domestic industry chain has a good foundation for the development of the industry chain. According to the aviation industry network combing, eVTOL core industry chain includes batteries, power systems, communication systems, flight control systems, navigation systems and so on. Among them, the battery and power system are very important to the endurance of eVTOL. There are higher requirements for the battery rate, power, motor power density, electromagnetic torque and other performance of the power system, which requires multiple upstream and downstream links in the industry chain. Cooperate.

The domestic automotive industry chain has made great progress under the wave of electrification upgrades in recent years. Large-scale production, downstream customer collaborative research and development, cost control and other capabilities have strong competitive advantages on a global scale. In the context of the exploration of the eVTOL industry by downstream car companies, upstream parts manufacturers are expected to carry out research and development of related parts by following large customers, cutting into the low-altitude economic industry chain, and obtaining the second growth curve.

The CSI Auto Parts Thematic Index selects 100 listed companies in the automotive system components, interiors and exteriors, electronics, tires and other auto parts fields as a sample, which can reflect the overall market performance of the auto parts theme. At present, from a valuation perspective, the auto parts theme index is at a historically low level. As of April 17, the rolling P/E ratio of the index is about 23.2 times, which is in the 15.3 percentile since the base date.

In the long run, the auto parts-related industry is expected to usher in development opportunities with the promotion of beneficial policies and the acceleration of the commercialization of eVTOL products.