On November 18th, China's auto parts sector showed divergent trends, with many core targets experiencing adjustments. According to sector market data, the three types of auto parts indices monitored on that day all declined. One of the indices opened at 8,006.71 points and closed at 7,913.43 points, a decrease of 1.16%, with a trading volume of 36.2696 million lots and a transaction value of 45.358 billion yuan; another index fell by 1.04% with a transaction value of 41.533 billion yuan. The overall transaction volume of the sector remained at a high level.

From the recent trend, the sector saw a slight recovery on November 17th, with some indices rising slightly by 0.13%, but fell back into adjustment on the 18th. Industry analysts believe that the short-term fluctuations of the sector are mainly affected by market sentiment and short-term capital flows, but it still has supporting logic in the long run. On the one hand, the high growth of NEV exports has driven up the demand for core parts; on the other hand, the technological upgrading of automakers has promoted increased R&D investment by parts enterprises. Segmental leaders with core technologies are still promising in the long term. In the follow-up, attention should be paid to industry orders and policy implementation.