Analysis of China's Auto Parts&Components Market

In recent years, with national policies stimulus and auto enterprises’ own efforts, auto parts&components enterprises are getting stronger in production capacity, product quality, development and service level. In order to support the development of the auto industry, the state launched a series of stimulus policies for the revitalization of auto industry, The development of autos and parts are both important, some experts say that if parts industry is strong ,then CKD industry will be stronger. The Government attaches great importance to the development of parts&components industry, recently, a number of international auto parts&components enterprises have entered China’s market, which are good opportunities for China’s parts&components industry.

With China's auto parts&components industry becoming stronger, international auto parts&components giants all tries to seek fortune in China. And they shift their business centers to China, and set up factories in China. Recently, there has been news that in December 2009, Jinggong Group and Zhejiang Wanda Group will fund 60% and 40% of total investment in the construction of a new factory in Zhejiang Province, which is special for producing mass low-cost auto direction booster system for China's auto manufacturers, and provide low-cost auto parts&components for China's newly emerged auto manufacturers.

In May 20, BorgWarner Double-joint Transmission System Co, .Ltd, which was funded by the United States Borg Warner Company and China zhongfa Investment Co,. Ltd. started construction in Dalian Development Zone Co., Ltd. It’s the most important auto parts&components project that Dalian has introduced, with a total investment of 200 million U.S. dollars, mainly produce and sell auto dual-clutch gearbox. Dalian autos have also made preparations for attracting CKD projects.

IAC, which is top 13 of U.S. auto parts&components supplier, will establish a new factory in Fuzhou, and the new products in Fuzhou will mainly match Vito business models of Fujian Daimler Motor Company (FJDA), including the supply of door panel and wall linings, floor and roof and other components. This will be the 4th factory established by IAC in China, currently there are one in Chongqing and one in Wuhan, and one in shanghai with engineering research and development center.

U.S. Visteon, which is one of the world's top 500 enterprises, ranks 2 in the global auto parts&components industry .It cooperates with Dongfeng and sets up Dongfeng Visteon's new plant in Wuhan in 17. It is located in Wuhan Economic and Technological Development Zone, covers an area of 138 mu (23 acres), and mainly produces inside and outside accessories for autos, including the instrument panel, auxiliary facia consolt, indoor frame cover, bumpers and soft interior products. After the completion of the new plant, Dongfeng Visteon match production capacity will increase to 300,000 units every year.