The upstream of the automotive cable industry chain is raw materials

From the cost structure of automotive cables, raw materials account for the main cost component, with a proportion of over 90%. In terms of raw material costs, copper is the main source of cost, accounting for about 90%. Specifically, copper rods account for about 77.95% of the raw material cost in copper materials, while copper wires account for about 12.59%. Together, they constitute the main material expenditure in automotive cable production.

Since the 21st century, with China's accession to the WTO, the country's economy has rapidly risen, and per capita disposable income has continued to increase, driving the rapid development of the automobile industry. China's automobile production and sales have been ranked first in the world for many consecutive years. During the period of 2018-2020, China's automobile production and sales volume showed a downward trend due to multiple unfavorable factors such as the economic downturn and Sino US trade. However, in 2021, with the comprehensive development of the new energy vehicle industry, China's automobile production and sales volume resumed its growth trend. In 2022, the development continued to improve, with a total annual production and sales volume of 27.021 million and 26.864 million vehicles, with year-on-year growth rates of 3.4% and 2.1%, respectively. In 2023, with the continuous efforts of car companies to reduce prices and promote consumption policies, China's automobile production and sales have achieved significant growth overall, reaching 30.161 million and 30.094 million vehicles respectively, an increase of 11.6% and 12% year-on-year, setting a new historical high and achieving double-digit growth, and ranking first in the world for 15 consecutive years. In 2024, under the combined effects of favorable policies, abundant supply, price reduction, and continuous improvement of infrastructure, China's automobile production and sales reached a cumulative total of 31.282 million and 31.436 million units, an increase of 3.7% and 4.5% year-on-year, respectively. The production and sales volume reached a new high and continued to maintain a scale of over 30 million units. From January to October 2025, the automobile market continued to develop well, with China's automobile production and sales reaching 27.692 million and 27.687 million respectively, with a year-on-year growth rate of over 10%. As a key component of the automotive electrical system, the market demand for automotive cables is closely related to the overall development trend of the automotive industry. In the future, with the continuous growth of China's automobile production and sales, especially the increasing penetration rate of new energy vehicles and the accelerated popularization of intelligent networking functions, the degree of vehicle electrification and electronicization will be significantly improved, and the amount and value of single vehicle cables are expected to further increase. This will directly drive the steady expansion of the automotive cable market and provide sustained growth momentum for enterprises related to the industry chain.