Hushan Autoparts has built a thriving business in the competitive automotive aftermarket (AM) by specializing in a seemingly minor yet essential component: car door handles. While industry giants focus on high-volume sales, Hushan has carved out a profitable niche by emphasizing quality, precision, and durability, earning the trust of both AM customers and original equipment (OE) manufacturers.
The global AM sector is fiercely competitive, with major players such as Taiwan's Tong Yang, TYC Brother Industrial, and DEPO Auto Parts, as well as large-scale manufacturers from China and Thailand. Rather than engaging in direct competition, Hushan strategically entered a niche market often overlooked by bigger competitors and has become the world's largest supplier of car door handles.
Hushan Chairman YC Chen acknowledges that the automotive industry has a history of over a century, with many well-established companies in Japan and Germany, some operating for over 100 years and generating annual revenues in the billions. Even in Taiwan, competition remains fierce, highlighting the industry's persistent growth potential.
However, car door handles are not a billion-dollar market, making them unattractive to large AM manufacturers due to their lower production value. Yet, Chen saw an opportunity where others did not.
A single car requires at least eight door handles, inside and out, with variations in color, material, and components such as springs, pins, and washers. This complexity transforms a seemingly simple part into a true test of manufacturing expertise.
If a door handle breaks within 3-5 years after a car's delivery, the business typically goes to OE manufacturers. However, failures occurring between 7 to 15 years are Hushan's domain. Chen even jokes that he has developed an instinct for predicting when a door handle will fail.
Unlike businesses that prioritize fast turnover, Hushan's goal is to create durable, high-performance door handles. In some cases, Hushan's products have even outlasted OE parts, extending the lifespan of what is traditionally considered a wear-and-tear component to 10 years or more.
A major shift in the AM sector is now benefiting all players in the supply chain. In recent years, US insurance giant State Farm has begun allowing AM parts for claims, a move that is reshaping the industry.
With modern vehicles incorporating more electronic components, collision repair costs have surged, particularly when cameras or radar systems are involved. To manage expenses, State Farm has started covering AM parts—a shift that Chen believes is not just a short-term trend but a fundamental industry transformation.
Article edited by Jack Wu
