Robotics is emerging as a second growth engine for automotive parts companies.
"We have stated internally that we must spare no effort in terms of manpower and capital to build intelligent robotics into a 'second Chaoda,'" said Chen Cunyou, Chairman of Chaoda Equipment (301186.SZ), during a recent investor communication meeting.
Originally starting as a manufacturer of automotive interior and exterior molds, the company underwent a significant strategic shift over the past year—transitioning from a sole mold supplier to a new energy vehicle industry chain solutions provider centered on precision manufacturing, with integrated capabilities in molds, inspection tools, and tooling. In 2025, while mold operations still accounted for approximately 60% of Chaoda Equipment's revenue, new energy battery casings and intelligent agricultural robots have become key growth areas.
The intelligent agricultural robot marks Chaoda Equipment's initial entry into the robotics sector. Targeting the Xinjiang cotton field market, the product utilizes core technologies such as AI visual recognition, centimeter-level high-precision navigation, and variable-rate spraying, achieving a daily operational efficiency of 800 to 1,000 mu, which is 5 to 8 times higher than traditional manual methods.
Chaoda Equipment's transformation is not an isolated case; it reflects structural changes across the entire automotive parts industry. In recent years, declining profit margins in the automotive sector have increased cost-reduction pressures upstream. As competition among vehicle manufacturers intensifies, parts companies are exploring new avenues, with robotics becoming a common direction for collective transformation.
Both Shuanglin Co., Ltd. (300100.SZ) and Xinquan Automotive Trim Co., Ltd. (603179.SH) have publicly stated their intention to develop robotics as a second growth curve for their companies. Joyson Electronic (600699.SH) has officially upgraded its strategic positioning from "Automotive Tier 1" to "Automotive + Robotics Tier 1." Joyson Electronic's Chairman, Wang Jianfeng, believes that the transformation of the automotive industry will see electrification in the first half, followed by intelligence and robotics in the second half.
"Robotics" has also become a buzzword in the 2025 annual reports of automotive parts companies. For instance, Tuopu Group (601689.SH) stated in its annual report that the company has established an independent robotics actuator division with a separate management structure; regarding robotics electric drive actuators, it will iterate and upgrade based on customer demand and move into mass production as soon as possible.
The collective shift of automotive parts companies toward robotics is underpinned by clear technological commonalities. Wang Feili, China Industrial Analyst at UBS Securities, noted in a recent interview that automotive parts companies possess two inherent advantages in venturing into humanoid robotics: first, supply chain management—automotive parts far exceed robotics in quantity and complexity, giving automakers rich experience in supply chain integration; second, software and hardware technology synergy—automotive intelligent driving and humanoid robotics share high compatibility in areas such as perception and control.
In addition, the market potential for robotics is substantial. Morgan Stanley's "Robotics Yearbook," released in December 2025, forecasts that global robotics hardware sales will grow from approximately $100 billion in 2025 to $500 billion by 2030, $9 trillion by 2040, and $25 trillion by 2050. According to SPDB International Securities research, core upstream components account for about 60% to 70% of the total cost in the humanoid robotics industry chain, an area where automotive parts companies excel.
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