China's Auto Parts Suppliers Poised for Humanoid Robotics Growth

In a recent report published on June 18, 2025, Morgan Stanley analysts have projected that Chinese auto parts suppliers could emerge as significant players in the burgeoning humanoid robotics market. The report, authored by lead autos analyst Adam Jonas, industrial analyst Sheng Zhong, and hardware technology analyst Andy Meng, suggests that as the demand for humanoid robots increases, these suppliers will gain a competitive edge similar to their previous advantages during the rise of electric and smart vehicles.

The analysts highlighted that the humanoid robotics sector is anticipated to bring a third wave of growth for auto parts suppliers, allowing them to capture between 47% to 60% of the expenditures related to humanoid production. This translates to an estimated contribution of around $15,000, or 60%, of the total costs associated with each humanoid unit. Morgan Stanley estimates that the global humanoid market will reach $5 trillion by 2050, with China alone expected to account for approximately $800 billion.

Historically, the auto parts industry has benefited from the technological advancements in vehicle manufacturing. For instance, the initial surge in electric vehicle production provided a significant boost to component suppliers, which adapted their offerings to meet the new demands of electric drivetrains. Similarly, the emergence of humanoid robotics is set to create new opportunities for these manufacturers, especially those specializing in parts like actuators, which are fundamental to both vehicles and humanoid robots.

One of the key players identified in the report is Sanhua, a company that is set to list on the Hong Kong Stock Exchange, alongside its existing presence on the Shenzhen exchange. The analysts upgraded Sanhua's rating to 'overweight', citing stronger-than-expected revenue growth projections for 2025 and an anticipated increase in electric vehicle adoption worldwide. Furthermore, the report indicates that as Sanhua expands its operations into Thailand to mitigate geopolitical risks, it could significantly benefit from the rising demand for humanoid actuator modules, which represent nearly half of a humanoid's production costs.

In addition to Sanhua, Morgan Stanley pointed to Tuopu and Xusheng as key contributors in this sector. Tuopu, which manufactures actuators that facilitate mechanical movement, has been assigned a price target of 63 yuan, reflecting a potential upside of nearly 39% from its current trading levels. The firm underscored the growing market for humanoid actuator models, projecting a 57% annual growth rate in this segment through 2030.

Xusheng's role in this evolving landscape is also notable. The company supplies casting and torso structural components for humanoids, and while Morgan Stanley has upgraded its rating, there are concerns regarding potential revenue declines from established customers like Tesla.

Despite the promising outlook, the analysts caution that the transition from traditional automotive parts to humanoid components may not be seamless. Several uncertainties loom over the speed and scale of the humanoid robotics industry, particularly in light of ongoing U.S.-China tensions, which could lead to increased costs and complications for Chinese suppliers competing against international firms.

In conclusion, while the future of humanoid robotics presents substantial opportunities for Chinese auto parts suppliers, the industry must navigate both market fluctuations and geopolitical challenges. Analysts recommend a cautious yet optimistic approach, focusing on established manufacturers that demonstrate versatility and adaptability in their production capabilities. As the humanoid robotics market continues to evolve, suppliers who can swiftly pivot to meet new demands stand to gain the most from this technological revolution.