China Sourcing Report: Vehicle Security & Accessories21 Oct 2011 • by Natalie Aster
China suppliers of vehicle security systems and other accessories are strengthening eff orts to expand market reach. Although most are confident of sales remaining on an upward track in the months ahead, decelerating growth and increasing competition are prompting them to explore various areas for additional orders.
Overseas, makers are looking at both developed and emerging economies. In terms of demography, low- to high-end segments are being given due attention. To achieve targets, manufacturers are enhancing cost management to ensure price competitiveness, particularly against other low-cost production centers in Asia. Many companies are also adjusting the sales mix to keep increases in quotes to a minimum in their basic and midrange segments.
The report “China Sourcing Report: Vehicle Security & Accessories” by Global Sources covers the major products of China’s vehicle security and accessories industry, namely security and safety systems, interior and exterior add-ons, and garage and tire repair equipment. The categories are discussed in separate sections. For each line, details about the different models offered, their typical features and price determinants, and the supplier base are provided. The latest trends in product development are also discussed.
- Quotes for China-made vehicle security systems and other accessories are expected to remain on the upswing in the next six months. Prompting increases are higher raw material and labor costs, and the appreciation of the yuan.
- To ensure price competitiveness, however, many suppliers intend to limit increases within the 15 percent range. In line with this, various cost-reduction measures are being implemented, including the adoption of locally made components.
- The movement toward highvalue manufacturing will also gain traction as makers look for sustainable growth and long-term competitiveness. Consequently, buyers will see smarter multifunction units among electronic accessories, while nonelectronic types will be more visually appealing and user-friendly.
- The US and the EU are anticipated to remain key export destinations. Despite the economic contraction, the customer base in the two areas remains large, contributing 30 percent to overseas revenue.
- Many companies also consider the ASEAN and BRICS as attractive markets, with China suppliers enjoying preferential trade policies stemming from bilateral agreements.
- Export sales of vehicle security systems and other accessories are forecast to continue increasing at double-digit levels in the months ahead. Growth, however, is projected to be more moderate than in 2010.
China Sourcing Report: Vehicle Security & Accessories
Published: September 2011
Price: US$ 350.00
Report Sample Abstract
Supplier profiles: ATrack Technology Inc.
Established in 2010, Taiwan-based ATrack generated sales amounting to $10 million last year. Exports of vehicle safety systems accounted for the entire revenue.
Operating at 43 percent capacity, the maker rolled out an average of 13,000 units monthly. The EU absorbed 35 percent of deliveries, while the Asia-Pacific region took in 28 percent. The rest of the products were distributed to the Middle East, Africa and North America.
ATrack invested $500,000 in product development and related activities last year. Production took place at the company's factory in Hsinchu, Taiwan.
In coming months, ATrack expects revenue from overseas shipments to increase more than 20 percent. North America will be its primary target market.
More information can be found in the report “China Sourcing Report: Vehicle Security & Accessories” by Global Sources.
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