When you realize that the average worker in China makes $900 *A YEAR*, you will realize that there is no possible way in hell that you're going to be able to compete with them in terms of price.
You can try to go the conventional route and compete with better products, but nowadays your "better product" will be instantly copied by your overseas competitors.
The only way you'll be able to compete is if you have enough money and power to be able to shut down these foreign companies who illegal copy your products, and I doubt any small business like an aftermarket parts maker has that kind of pull in a foreign government.