BEIJING, July 12 /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), predicts that a greater variety of products will emerge in China's fast growing auto electronics market in the future.
According to a report by Li Shuchong, CCID's Semiconductor Industry Research Center, in 2006, China's auto industry again showed a fast growth momentum. Auto output in the whole year reached 7.28 million units, up by almost 20% over 2005.
For Fig. 1, China's Auto Output and Growth, 2003-2006, please refer to http://www.ccidconsulting.com/upload_fr/07071201.jpg . (Source: CCID Consulting, January 2007)
Driven by a fast-growing auto industry, auto electronic product sales revenue reached 86.76 billion Yuan, up by almost 40% year-on-year.
For Fig. 2, Size and Growth of China's Auto Electronics Market, 2002-2006, please refer to http://www.ccidconsulting.com/upload_fr/07071202.jpg . (Source: CCID Consulting, January 2007)
In terms of prodcuts, power and chassis control systems and safety systems accounted for 28.5% and 29.2% of China's auto electronics market in 2006. In the same year, EMS was basically used in all automobiles produced in China. Product demand growth slowed down. By comparison, chassis control system upgrading gathered pace. In terms of market share, chassis control systems also overtook power control systems for the first time. In addition, in-board electronics saw its market shares rising. This was mainly because the upgrading of such products as in-board sound systems and the application of some new in-board electronic products.
For Fig. 3, Application Structure of China's Auto Electronics Market in 2006, please refer to http://www.ccidconsulting.com/upload_fr/07071203.jpg . (Source: CCID Consulting, January 2007)
In addition to fast-growing auto output, the main factor that pushed forward the fast growth of China's auto electronics market in 2006 was a steady rise in the percentage of cars in the total auto output. Not only that more passenger vehicles were produced, the overall level of electronization for these cars have also been notably increased. Traditional auto electronic products were still the main support for the market. Chassis control systems and safety systems were the most powerful driving forces for the development of China's auto electronics market in 2006.
Table 1 Ratio of Pre-Installation Equipment of New Chassis Systems
in Homemade Cars, SUVs and MPVs in 2006
Tractive Braking Vehicle Body
EBD Control Assisting Stabilizing
System System System
Homemade Cars 81.9% 12.9% 19.5% 9.6%
SUVs 83.6% 34.8% 29.0% 6.5%
MPVs 69.7% 29.3% 13.1% 8.6%
(Source: CCID Consulting, January 2007)
In 2006, in-board electronics market grew by over 45% in size over 2005. In the in-board electronics field, in-board sound systems and in-board GPS continued to take up most market shares. Despite the high penetration rate, large-scale product upgrading of in-board sound systems continued to be the main driving force behind the market growth, with in-board CD more widely used in passenger cars. In addition, in-board MP3 also started to penetrate into homemade cars. On the other hand, with Japanese automakers' "GPS navigates cars" product roadmap, local China enterprises such as Chery and Geely joined the ranks of GPS pre-installation. Driven by these enterprises, China's in-board GPS market grew fast in 2006. In addition, China's portable GPS navigation market also rised gradually. Currently, it has become a promising market of high attention in the industry.
Table 2 Pre-Installation Equipment of In-Board Sound Systems in
Homemade Cars, SUVs and MPVs in 2006
Pre-Installation CD DVD MP3
Equipment Ratio
Homemade Cars 76.2% 8.6% 12.8%
SUVs 80.6% 8.3% 11.3%
MPVs 83.2% 12.0% 9.5%
(Source: CCID Consulting, January 2007)
On the whole, China's auto electronics market will maintain its fast growth momentum in the next few years, driven mainly by passenger vehicles. However, application and product structures will change in varying degrees.
Firstly, backed by a fast-growing auto industry, China's auto output has increased. Homemade cars also have a higher level of electronization. The class of the electronic products equipped is being enhanced. This will push forward the development of China's auto electronics market.
Secondly, with the continuous emergence of new applications, the auto electronics market will be upgraded. In the next few years, new auto electronic products will become new hotspots in the market. In the chassis control field, tractive control systems, braking assisting systems and vehicle body stabilizing systems will gradually be used in homemade automobiles. In the vehicle body electronics field, the level of electronic control over automobiles will be raised, and intelligent vehicle lamps and more comfort regulating products will enter a stage of large-scale application. In the in-board electronics field, integrated in-board electronic products and various in-board network communication products will become hotspots for development in the future.
To sum up, China's auto electronics market will continue to maintain its fast growth in the next few years. More and more new auto electronic products will be used in homemade automobiles. The market is expected to reach a size of some 240 billion Yuan in 2011.
For Fig. 4, Forecast for Size and Growth of China's Auto Electronics Market, 2007-2011, please refer to http://www.ccidconsulting.com/upload_fr/07071204.jpg . (Source: CCID Consulting, January 2007)
About CCID Consulting
CCID Consulting Co., Ltd. (also known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: HK08235), is a direct affiliate of the China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen and Harbin, with over 300 professional consultants and industry experts. The Company's business scope has covered over 200 large- and medium-sized cities in China. Apart from home market development, CCID Consulting is establishing international cooperation links across the United States, the Asia-Pacific region and Europe, by setting up 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 of powerful data channels, industrial resources, intense knowledge and deep understanding of information technology, CCID Consulting provides customers with consulting, research and IT outsourcing services covering strategy planning, IT application, marketing strategy, human resources and information technology outsourcing. Our customers range from industrial users in IT, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks.
CCID Consulting is committed to becoming the No. 1 brand for strategy consulting, the No. 1 consultant for enterprise management and the No. 1 expert in market research. For more information, please visit our website at http://en.ccidconsulting.com/ .
