China’s automotive parts industry is poised for an uptick in the business cycle. After the 17 drop in export revenue last year, most suppliers are anticipating at least 10 percent growth for the coming months.

Customs statistics for the first quarter of 2010 already indicate better sales, with earnings from overseas shipments rising 44 percent year on year to exceed $5.6 billion. If exports continue to accelerate at this rate, the sector could break $29 billion by the end of the year.

Among the factors fueling the industry’s optimism is the China-ASEAN Free Trade Area agreement, which came into force January this year. Demand from ASEAN members is expected to grow, as CAFTA eliminates import tariffs on more than 7,000 products, including vehicles and related parts.

This report covers automotive lights, brakes, tires, electronic components, and engine and mechanical parts.