BEIJING, Oct. 24 /Xinhua-PRNewswire/ -- CCID Consulting, China’s leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: HK08235), recently released its article on the main characteristics of the international auto parts enterprises that are investing in China.
The Chinese automobile industry has maintained a strong development growth over recent years. It is forecast that the output will reach 10 million units and China will become the second largest production country by 2010, with the output reaching 20 million units by 2020. Such forecasts see China becoming the largest production country by 2020.
According to the international and generally recognized accounting value, every $1 that the whole vehicle industry produces will bring $0.4 for the parts industry. Therefore the prosperous development of China’s automobile industry will help drive the parts industry’s rapid growth.
More and more parts manufactures are entering into the Chinese market. These include Bosch, Delphi, Denso, AISIN, FUJITSU, Alpine and VALEO. At present, 70% of the top 100 automotive parts manufactures have branches in China, with over 1,200 international automotive parts enterprises already here. The sales revenue of China’s automotive parts reached 403.5 billion Yuan in 2006, and the market share of foreign capital parts accounts for more than 75% of the total market.
CCID Consulting believes the main characteristics of the international automotive parts enterprises in China to be the following:
First, is their insistence in being the sole investors in the R&D of new technology. Currently, when international automotive parts manufactures set up R&D centers in China, they not only provide the product research and technological services for their own products, but they also penetrate China’s domestic market. Delphi Corporation has based its R&D center in the Waigaoqiao Free-trade Zone, Shanghai New Area, and at the third-stage of investment arrives $50 million. MAHLE set up its MTC in Shanghai in 2006; Bosch has set up its R&D centers in Shanghai, Wuxi and Suzhou respectively. Moreover, Visteon, Lear, Magna, Johnson Controls, AISIN, Valeo and BorgWarner have also set up their R&D centers in China. These sole investment R&D centers guarantee their technological advantage, while also denying China’s automotive parts enterprises the opportunity to acquire the advanced technology through joint ventures.
Second, the trend of high-end products tend be in the form of joint ventures. Currently, China’s automotive parts markets include electronic control systems, fuel injection systems, sensors, braking systems, and steering systems, and these markets are monopolized by international enterprises. For example, MAHLE Technologies Holding (China) Co., Ltd. (MTC) was founded in Macheng, Hubei province in January 2007, and MAHLE’s stocks accounts for 60% of the total, and Tri-ring Group Corporation holds the rest; ArvinMeritor and Chery founded a new Joint Venture company -- ArvinMeritor Chassis Systems Wuhu Co. in July 2006, and ArvinMeritor holds 60%; GETRAG CORPORATE GROUP (Germany) and Jiangling Motor Group (China) founded a China-German Joint Venture company in Nanchang, Jiangxi province, in September 2006, GETRAG (Jiangxi) Transmission Co., Ltd, and GETRAG CORPORATE GROUP (Germany) holds 66.7%, while Jiangling Motor Group (China) holds 33.3%.
About CCID Consulting
CCID Consulting Co., Ltd (hereinafter known as "CCID Consulting" or "CCID"), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is directly affiliated to the China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has set up branch offices in Shanghai, Guangzhou, Shenzhen, and Harbin, with over 300 professional consultants and industry experts. The company’s business covers over 200 large and medium-sized cities in China. Apart from home market development, CCID Consulting establishes international cooperation links across the United States, the Asia-Pacific area and Europe with agents in the U.S., Japan, South Korea, Australia, Singapore, Italy and Russia, with the aim of going global.
Based on four major competitive areas: powerful data channels, industrial resources, intense knowledge and a deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategic planning, IT applications, marketing strategies, human resources and information technology outsourcing. Customers range from industrial IT users, telecommunications companies, energy companies, finance companies, and automobile companies, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to be the number 1 consultant in strategic consulting, the number 1 brand for strategic consultancy, the number 1 advisor for enterprise management and the number 1 consultant for government decision-making.
For more information, please contact:
Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd.
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com
