The global auto parts and supplies industry is one of the busiest and most in demand. In the U.S. alone, sales in the auto parts industry reached $16 billion in the first half of 2021. This clearly shows the value of auto parts globally. That number is expected to rise a bit more before December hits.
Car service is a part of life for most car owners, and finding the right provider can be the difference between saving money and going broke. So, where exactly do you import cheap but high-quality auto parts for your needs? We’ll explore how to import auto parts from China and mention some of the top suppliers that should be on your list.
WHY WE PURCHASED FROM CHINA
There is a reason why people import auto parts from China and not from other parts of the world. If you are a car owner or looking to get into the wholesale business of selling auto parts, then here are the reasons why you should buy auto parts from China.
Affordable: Auto parts from China are very affordable, especially if you are trading in bulk. Chinese auto parts makers have the resources to get raw materials cheaply, and mass production makes parts cheap when you factor in labor availability.
Effortless Shipping: China has a huge market presence on every continent, which makes it easy for auto parts to be shipped anywhere on the planet on a daily basis. This makes auto parts available at any time of the year without any significant price impact.
Diversification: Auto parts from China can meet all the needs of global car owners. Most auto parts are manufactured for all car brands, which provides solutions for all types of cars. This variety makes their auto parts reliable and nothing goes to waste.
DURABLE: These parts are made from inexpensive materials, but are manufactured with durability in mind. This ensures users get a good number of years out of a part before they start thinking about replacing it.
Compatibility: Chinese companies are known for producing GM parts that are compatible with various cars at a lower price. This is to make them more accessible to owners who may not have the cash to buy the real brand but can use the generic one.
PRODUCT FROM CHINA
Auto parts come in different shapes, designs and brands depending on your needs and the type of car you use. When importing auto parts from China, the first thing you need to know is what you are looking for. The most common imported parts include the following.
MODERN
These are the parts used in some of the most modern cars around. They’re hard to find in the general market, and hard to stock in any store unless you’re making to order. Often, when a new car is released, auto parts related to that model can only be found in the country of origin for the first few months. It takes time for these parts to circulate globally to where they are in high demand. This is where Chinese auto parts makers come in, as they can manufacture them quickly and ship them directly to where they are most needed after an order is placed.
CLASSIC
Vintage car parts are the hardest to find because most are out of production. A classic car is any car that has been out of production for at least 20 years. This means that not only is it impossible to find parts that fit, but you may have to design new ones because the company behind them no longer makes them. However, auto parts manufacturers in China can do the work for you for a fee. It all depends on the complexity of the part.
HARD
These are auto parts that cannot be found for a number of reasons. Production of the car in question may have been permanently scrapped, with the few remaining parts bought and used. The import of components may also be subject to a ban if the country of origin imposes a trade embargo or sanctions on it. Your best bet is to rely on Chinese auto parts manufacturers to provide identical copies to fill this gap.
OEM AUTO SPARE
OEM parts are car accessories made by the company behind the car model in question. Most markets are supplied directly by the original manufacturer, but this can come at a very high cost due to the quality of the materials used and the expertise in them. But this is by no means the only solution. You can always buy generic parts, most Chinese auto parts manufacturers make versions that are as good as the originals for a fraction of the price. This makes sense if access to the OEM is restricted.
AFTER-SALE
These are auto parts not made by the original manufacturer. Instead, they’re created by other manufacturers who specialize in remanufacturing the parts down to every detail so they can be used more cheaply. Aftermarket auto parts have been saving people time for years, and if your budget doesn’t allow for genuine parts, you should consider opting in with them. In the hands of the best auto parts manufacturers, it can be difficult to even tell the difference between the two.
CUSTOMIZED
Custom car parts are some of the hardest to find because of the many mods and changes they have undergone. They are unique, and most of the time, only the expertise of the original manufacturer can be relied upon to make them. However, most Chinese auto parts manufacturers are able to replicate these custom parts for far less than original parts. If you’re working on custom cars or running a custom auto parts shop, this is the option you should be pursuing.
HOW TO FIND THE STIABLE SUPPLIER
Getting the right auto parts that are reliable and compatible with your car is no easy task. There are many factors that must be paid attention to, or you risk losing your money. Here are some of the ways you can find a reliable China auto parts supply.
Reputation: Check the reputation of the suppliers you are dealing with to determine if you are dealing with a company that produces genuine and reliable parts. There are many fake entities pretending to be real manufacturers making inferior parts that could cause your car to break down if used.
Ease of Shipping: Shipping varies from place to place, from one company to another, depending on the demand for auto parts. If demand is high, shipping will be faster because more people are being catered for. However, if you are the only customer then shipping may take longer as it does not make economic sense to import parts in small quantities.
Online Presence: Viewing parts beforehand is one way to determine if your purchase is genuine. Only deal with companies that have an online site where you can view their catalog and choose what you want. They should also have a quick contact line where you can email and ask as many questions as you want.
After Sales Service: A supplier who follows up on their sale to you with other services is a better supplier than a supplier who just ships the finished product to you and disappears. After sales service includes handling returns of faulty parts as well as follow-up help with installation and other tips for getting your car parts to fit perfectly.
Dealer Era: Compared with upstarts, suppliers who have been in the industry for a long time are more trustworthy. Their experience in the business means they are knowledgeable and they will be in the best position to give the best advice while providing you with reliable auto parts. Always choose a vendor that has been in the game for at least a decade.
Location: It is best to have a supplier in your local area as this makes the logistics easier and reduces the final price of the auto parts. Another advantage of being close to the supplier is the ability to return any faulty parts within the same day for a quick replacement. These perks are not available to you if you are dealing with a supplier located on another continent.
Parts Variety: Find suppliers who can make a wide variety of parts for the various vehicles you are most likely to have in your local area. Suppliers dealing with one type of auto part are good in terms of specialization, but severely limited in terms of diversity, which is the most important thing in this industry.
Product quality: Regardless of whether it is original or not, every auto part manufactured must meet the safety standards established for vehicles, because they are related to the safety of human life. Check the quality of the auto parts your supplier supplies to you, and if they are below average, switch to another who knows what they are doing.
PURCHASED AGENT
Finding the right auto parts supplier is half the battle; you have to find a good sourcing agent to handle most of the work on your behalf. Buying agents have the ability to deal with suppliers, and they do the legwork for you, connecting you with reliable auto parts. Here are the top sourcing agents you should be dealing with.
AUTO SPARE SHOW
Attending an auto show is another way to network with great auto parts suppliers. This is the only place where you can easily find the latest accessories at low prices. As a car owner or auto parts retailer, attending an auto parts expo is the best way to stay abreast of the latest happenings in the market, which can help keep your inventory updated.
HOW TO MAKE SURE THE QUALITY?
Determining the quality of auto parts from Chinese suppliers is not easy given the number of quality producers available, but it can be done. There are a number of techniques you can use to make sure you’re getting the genuine product and not a knockoff. They include the following.
Factory Audit: This is where auto parts manufacturers conduct testing to ensure that every piece of equipment that leaves its assembly line complies with international standards and meets all safety requirements. Every auto part that undergoes this test must be accompanied by a sticker verifying this information in detail. Always keep these in mind when choosing auto parts.
Certifications: These are standardized marks that companies receive after meeting certain quality standards during the manufacturing process. The same applies to the manufacture of auto parts, which also come in the form of labels indicating the level of quality. When choosing an auto parts supplier, check the number of certifications under their brand before making your final decision.
Third-Party Audits: Another way to determine the quality of an auto part in question is to seek a third-party opinion. This could be in the form of an individual who has experience handling auto parts and is able to tell a real product from a fake by one look. They’re not cheap, but they’ll save you the hassle of dealing with unscrupulous dealers.
IMPORTANT ADVISE
As with anything related to importing, rules and regulations must be followed. Anything that traverses ocean waters must obey the rules of each region they pass through. Here are some important things to know when importing auto parts from China.
QUANTITY
When setting up auto parts orders, they must be mass produced throughout the operation for importing goods from China into your region to make any economic sense. When you bulk import projects, you can gain several benefits, including the following.
Overall, it’s cheaper to order in bulk because you’ll be bringing in more auto parts this way while paying a flat shipping fee. If you’re an auto parts retailer, this increases your margins compared to importing individual items.
Bulk importing can get you great discounts from suppliers, which can help you save some money that can be redirected to other projects. You can even increase the number of car parts you bring.
The greater the number of auto parts you import, the greater the variety. If you’re a retailer, this allows you to cater to a wider range of customers. The bottom line here is that importing in bulk is more beneficial in the long run.
PAYMENT
After building trust with your supplier, it’s time to agree on the best payment method. Considering that you may be doing business with foreigners, you will have to work with foreign currency and exchange rates. This means you must choose a payment method that is supported by both parties. This can be in the form of a letter of credit, open account transaction or documentary collection. The important point here is that the payment must be settled according to the agreement you may have with the supplier.
TAX
Import duties and other related taxes cannot be avoided and the amount paid depends on the rules of the destination. As an importer, it is your responsibility to meet your tax obligations to avoid dealing with the authorities. The last thing anyone wants is a court case involving tax fraud. Be aware of import duty rules and the amount you must pay to clear your account and release your auto parts consignment as quickly as possible.
LOGISTIC AGENT
Freight forwarders play a very important role in the import of bulk items such as auto parts. It involves the planning, logistics and execution of the movement of goods in international waters on behalf of shippers. They also take care of negotiating freight rates, container tracking, shipment consolidation, customs documentation, and many other tasks that would be too much for a supplier or importer. Freight forwarders have the expertise to handle any surprises that may arise along the way.
INSURANCE
Anything can happen at sea, and due to rough and unpredictable seas, there are many shipments that never reach their destination. The only way to ensure compensation for those involved is to purchase cargo insurance. This is a mandatory commitment for anyone who takes imports seriously. When choosing an insurance partner, pay close attention to the terms of each transaction to ensure you are properly compensated should something go wrong during shipping.
PACKAGE
Everything of importance must be packaged according to the laws governing importation. Labeling must be done accurately to allow customs officials to process items quickly and avoid delays. This includes displaying the weight, name, nature of the product in question, and many other important information. If you don’t have any experience in handling such jobs, then you will have to hire specialists who can handle all of them quickly, for a fee.
TAX REFUND
Once all required taxes have been paid and all dues cleared, the goods must be cleared from customs. This is an operation that can take anywhere from a few hours to a few days, depending on the efficiency of the customs office and the number of imports coming in at a given port. The best thing to do here is to have everything in place to help the process and make it faster
TRANSPORTATION
There is a lot going on between the delivery of the goods and the goods that arrive together at their destination. You have to figure out how to get the goods to you once they arrive at the port. Depending on your budget and how urgently you need auto parts, you’ll have to choose from three options.
By Sea: If your area has inland waterways, it makes sense to continue the entire process by sea. However, this is only useful if you are not in a hurry to have the goods delivered to you. But it is much cheaper than using air freight.
Air Freight: This is the fastest and most expensive shipping method. The advantage is that you will receive an item on time, allowing you to start shipping right away.
Road and Rail: Road and rail are the cheapest modes of transportation but can be unreliable due to traffic restrictions and frequency of accidents. Using road and rail lines is also very slow as the cargo is usually heavy which affects speed.
CONCLUSION
Getting the right auto parts for your business or car is very important as it directly affects the performance of the vehicle involved. There are many suppliers in China producing reliable, high-quality goods that deserve your attention. Always do your due diligence before committing your money. To learn more about auto parts, where to buy them, and how to maintain them, check out our website early.