subject: Auto Part Industry in China saw a robust growth in the past few years [print this page] Auto Part Industry in China saw a robust growth in the past few years
Emerging Markets Direct released their latest China Auto Parts Industry Report 1H11. China overtook the US as the world's largest automotive market in 2009. The Chinese market was expected to grow by 24% to 17 million vehicles in 2010. Boosted by the overall development of the automotive industry, the auto parts industry has been experiencing rapid growth and changes in the past few years. Ever since China's accession into the WTO, foreign auto giants have flocked to China to secure the market share.
ASEAN, and other Asia-Pac countries together take up China's largest components. In the first quarter of 2010, it went up to USD1.8 billion, which constituted 30% of total exports. North America continues to hold the top ranking for brakes,tires and other mechanical parts which generated around one-forth of the aggregate sales in the first three months of 2010. While EU was the second largest market for brakes and electronic parts, just behind North America and Asia-Pac.
For the period between 2002 to 2008, auto parts manufacturers registered an annual growth of 20% per annum, while the total value output of auto parts reached RMB1.2 trillion, up 26.7% from 2008. The strong growth in the industry has attracted a pool of companies to join the arcade and has resulted in foreign companies accounting for seven out of the ten biggest component companies operating in China. The manufacturers sprout out in almost every part of the country and widely dispersed.
The government encouraged the overall growth of the automotive sector and laid out the "Automotive Industry Development Policy" and 11th Five-Year Plan, targeted to consolidate the auto parts companies and boost up the industry to international standard. Our analyst thinks that parts productions in China are still lagging behind the development of vehicle production, with weak R&D skills in terms of new technologies development and production systems management. Greater initiative is required to promote mergers and acquisitions, as a solution for large component groups to reach out and upgrade the product and managerial skills.
What are the challenges facing the industry? How about the outlook? Want to get hold of the policy put forward by the government? What are the trade conditions for different auto parts?
The answers are here in our latest in our latest number. Complete with full analysis (SWOT analysis) of key industry players of China Auto Parts Industry including:
-Weifu High-Technology Co., Ltd
-Weichai Power Co., Ltd
-WanXiang QianChao Co., Ltd
-FuYao Glass Group Industries Co., Ltd
-Ningbo Huaxiang Electronic Co., Ltd
Profit now from our China Auto Parts Industry Report:
