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Situations about Automatic Transmissions in China

Situations about Automatic Transmissions in China

According to the statistics from China Association of Automobile Manufacturers (CAAM)

, during the first half of this year, China imported about 2.88 million units of auto transmissions which decreased by 35%. The import value of transmissions reached 3.666 billion U.S. dollars which increased about 101%. This figure is higher than that of other auto parts.

Since 2007, transmission had become the auto part which had highest import value when compared to automobile accessories, engine accessories, and other parts. This change not only reflects the growth of our various types of high-speed automatic transmission market, but also verifies that the localization of high-tech automatic transmissions is low when compared to engines and manual transmissions.

In recent years, the value of imports continues rising. According to the data, in 2005 and 2006, the auto accessories and spare parts achieve the highest import value, their value are 2.9 billion U.S. dollars and 3.2 billion respectively. Over the same period, the import value of transmissions is about 1.2 billion and 2 billion U.S. dollars which have a large distance with that of auto accessories and spare parts. While in 2007, the trend changed significantly. With the decrease of import value of auto accessories and spare parts, the import value of transmission assembly increased sharply to 3.28 billion.

"The import value of transmission is very high. The main reason is that a large part of our automatic transmissions depend on import." said Shi Yaoqun, the Deputy Secretary-General of China Gear Manufacturers Association. The market demand grows rapidly, but the production of automatic transmission in China is not satisfactory. The lack of our own products and the local production of foreign products lead to the large dependence on the imports.Situations about Automatic Transmissions in China


Besides, the key point is that we lack the core technology. Zhang Shulin, the former Vice Chairman and Secretary-General of China Association of Automobile Manufacturers, said that the development of automatic transmission is difficult. It is the hardest task in the vehicle powertrain systems development. Foreign companies strictly blockade on techniques of domestic enterprises.

The lack of the core technology makes China's own production of automatic transmissions become blank. As a result, is can not put pressure on the imported automatic transmissions which enables the foreign-funded enterprises to have more options in the industrial layout. Those companies can also slow down the pace of local production. Meanwhile, they can protect the core technology and keep the high profit.

Situations about Automatic Transmissions in China

By: Lois Ling
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