The precision forged gears are smaller in size, higher in strength, and longer in service life than gears that are machined, and are in line with the trend toward lighter weight in automobiles. The domestic precision forging gear technology is mostly applied to passenger car differential bevel gears and transmission combined gears, roughly estimating the market demand for automotive differentials and transmission precision forgings exceeding RMB 22.9 billion.

In Japan, Europe and the United States, the average precision forging parts of each automobile is about 56kg, while the application of precision forging parts in automobiles produced in China is less than 20kg. The domestic precision forging gear still has a large space for development.

Precision forging technology accounts for approximately 30% of domestic passenger car differential bevel gears and is the largest supplier of precision forged gears for passenger vehicles in China.

For the automotive precision forging gear industry, the entry barrier for the international mold and the general secretary of the Hardware & Plastics Industry Suppliers Association, Luo Baihui, believes that entering the automobile precision forging gear supporting market requires: advanced precision forging die design and production technology; purchasing expensive forgings, Heat treatment equipment; mature production process; rich design and production of human resources reserves; through the long-term strict certification of vehicle companies. The competition in the domestic automobile precision forging gear industry is mainly carried out between foreign companies such as Germany, Japan and South Korea and a few domestic companies. Domestic product prices are about 20-30% lower than those of foreign companies, and they have strong price advantages.