China Sourcing Report: Automotive Parts27 May 2011 • by Natalie Aster
China’s automotive parts industry is looking forward to strong sales this year. Many suppliers are optimistic of double-digit gains in coming months as markets continue to recover from the 2008 financial crisis. Customs statistics for the first two months of the year show the country sent abroad nearly $3.7 billion worth of various automotive parts. This is an increase of 33 percent YoY. In 2010, exports rose 42 percent YoY to exceed $22 billion. To ensure they achieve target sales, makers are enhancing cost management to keep prices under control amid rising outlay. Many are also facilitating their shift to higher value production, aiming for long-term competitiveness and viability.
The report “China Sourcing Report: Automotive Parts” by Global Sources covers automotive lights, brake parts, tires, rims, electronic components, and engine and mechanical parts. The categories are discussed in separate sections. For each line, details about the different types offered, their common features and price determinants are provided. The latest trends in product development and manufacturing are also discussed. Information on the supplier base and key hubs can likewise be found.
The Industry Overview elaborates on issues affecting production and exports. It also identifies the common strategies manufacturers are employing to cope with challenges and enhance overall competitiveness.
To reflect the industry structure, the majority of the suppliers featured in the report are local, privately owned enterprises. The rest consists of publicly listed companies, state-invested enterprises and those with financing from foreign, Hong Kong and Taiwan entities.
China Sourcing Report: Automotive Parts
Published: April 2011
Price: US$ 350.00
- Prices of China-made automotive parts are expected to remain on an upward track in the next six months due to higher production outlay and the appreciation of the Yuan. Many suppliers, however, intend to limit increases within the 10 percent range to minimize the risk of upsetting demand and losing orders.
- The movement toward high-value manufacturing will gain momentum as rising expenses and exchange risk limit profitability in the low end. In line with this, allocations for product development and market research are increasing. Several companies are also forging partnerships with academic institutions and overseas counterparts.
- R&D efforts will focus on meeting standards for fuel efficiency and carbon emissions. The development of components for hybrid and all electric cars is also projected to go on a fast track.
- North America and the EU are anticipated to remain key export destinations. Despite the trade barriers and other challenges, these markets continue to attract manufacturers because of their strong consumption.
- Export sales are forecast to grow at least 10 percent in the months ahead. Among profiled suppliers, 47 percent expect the increase in revenue to exceed 20 percent. More than one-third sees gains ranging from 10 to 20 percent.
- Capital investment is on the upswing in anticipation of stronger demand. Many companies are also enhancing production facilities to boost efficiency and generate cost savings.
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