DUBLIN, Ireland--(Business Wire)--
Research and Markets
(http://www.researchandmarkets.com/reports/c92369) has announced the
addition of "China: Automotive Components Industry" to their offering.
The report provides an overview of the Chinese market for
automotive components, with focus on six key emerging markets beyond
already established cities such as Shanghai, Beijing, and Guangzhou. A
quick but necessary overview of the demand side (the automotive
market) is also included, as trends in the component market closely
mirror the automotive market.
Summary
China automotive market. China is already the world's third
largest automotive market in terms of domestic production, and the
world's second largest in terms of domestic sales. The market has been
growing at the exceptional rate of about 20% CAGR between 2000 and
2006, with strong growth expected to continue for the next few years.
Production is highly fragmented with many small producers; foreign
OEMs1 dominate the passenger car market but Chinese OEMs are catching
up.
China automotive component market. China's automotive component
market is estimated to be worth about $46 billion (2006), with roughly
similar levels of import and export, but with a different composition
- exports are mostly low-technology products while imports are
generally high-tech products or critical components. Imports of
automotive components nearly tripled between 2002 and 2006, however
the US has only a 5.4% share of total imports. Leading countries are
Germany, Japan, and South Korea. However, exports are already growing
at a faster rate than imports and are expected to overtake imports in
the long run. Components are sold either directly to OEMs or through
distributors.
Key emerging markets. Besides the established Tier I markets,
there are opportunities in rapidly growing Tier II cities such as
Changchun, Wuhan, Tianjin, Nanjing, Shenzhen, and Chongqing, focus of
this report. Changchun, Wuhan, and Tianjin are the biggest production
bases in China for car manufacturing. Nanjing is important for its
proximity to Shanghai and several OEMs (Ford included) are planning
new production plants. Shenzhen is an important market because of its
proximity to the Guangdong production base. Chongqing has relatively
large import volume and OEMs presence. Other emerging markets, not
analyzed in this report, include Qingdao, Dalian, and Hangzhou.
Market access. The key customers of imported components are large
OEMs (mostly foreign) which require parts with a higher level of
technology. Tier I automotive component suppliers are also potential
customers. OEMs' approach for supplier selection also differ, and can
be classified into 4 categories: 1) relationshipdriven, 2)
technology-driven, 3) market-driven, and 4) cost-driven. Best
opportunities for US exporters are to serve American (Ford, GM) and
selected Chinese OEMs (Chery, Geely).
Best prospects. Best prospects for US exporters are usually
high-tech / critical components that Chinese manufacturers are not
able to produce because of lack of technology or economies of scale.
Examples include automatic gear boxes, three-way catalytic devices,
ABS, testing equipment etc. Also good prospects for import are
components that have safety and technological requirements. Other
opportunities also exist in areas such as safety, fuel efficiency and
environment. However, even if imports are still growing, the trend is
toward localization and pure export strategy from US may be difficult
to sustain in the long term.
Key Topics:
- Introduction
- Executive Summary
- The Demand Side: China Automotive Market
- The Supply Side: China Auto Component Market
- Market Overview: Changchun
- Market Overview: Tianjin
- Market Overview: Wuhan
- Market Overview: Chongqing
- Market Overview: Nanjing
- Market Overview: Shenzhen
- Trade Events
- Methodology
- About the Author
For more information visit
http://www.researchandmarkets.com/reports/c92369
Research and Markets
Laura Wood, Senior Manager
Fax: +353 1 4100 980
press@researchandmarkets.com
Copyright Business Wire 2008
