As China secures the throne of the world’s largest automobile production and sales power, and many other global automotive markets have not yet fully recovered, multinational auto parts companies have begun betting on the Chinese market, capital increase, new production base or R&D center, etc., hoping to cut it. To bigger cakes.
“At the Shanghai Auto Show that ended last month, in addition to Bosch and other large multinational auto parts manufacturers, some small and medium-sized component companies in Europe and America also exhibited.†Xu Baoping, president of Brose China, told China Business News, “China The market is becoming more and more important. If you get this market project, you will be able to return to markets in Europe and the United States and get more competitive."
In China, R&D continues to be localized. “At the Shanghai Auto Show this year, more and more multinational component exhibitors do not hesitate to promote themselves and increase the area of ​​exhibitors. All they do is because they are optimistic about the Chinese market and want to be in the Chinese car market. Get more profits," said Rao Da, chairman of the National Passenger Vehicles Association.
According to statistics from the Institute, at the Shanghai Auto Show in 2009, there were only three companies such as Continental Automotive Group in the press conference, but more than 12 multinational auto parts companies held a press conference this year at the Shanghai Auto Show.
Brose Group is one of the 12 companies. Brose, a supplier of electromechanical systems and motors, entered the Chinese market in 1995. At present, Asia is the fastest growing region in Brose. In 2010, Brose Asia had sales of approximately 500 million euros, an increase of 70% over the previous year. Among them, the largest contributors to growth are Brose’s five companies in China in Shanghai, Wuhan and Changchun.
Previously, the president of Brose Asia, Schrober told reporters: "This year we plan to invest 720 million yuan in China, and build new factories while expanding our existing factories, especially in Shanghai, Beijing and Chongqing." Brose’s new Asia headquarters in Shanghai is also under construction.
Bosch, the world's largest auto parts company, invests even more in China. Philip Bachbach, chairman of Bosch Group, stated that in 2011, Bosch will invest 3.4 billion yuan to strengthen its business expansion in China. Bosch's sales in China's auto business reached 23.3 billion yuan in 2010, an increase of 38% over the previous year. In the past four years, Bosch has achieved an average annual growth rate of 30% in the Chinese market.
Chen Wenkai told us that German auto parts suppliers have developed particularly fast in China in the past two years. "As of 2010, German auto parts suppliers have set up 180 production plants in China (including wholly-owned, joint venture or holding factories), and German suppliers will continue to expand production capacity in China," said Chen Wenkai.
Compared with the investment made by international suppliers of parts and components in China, foreign-funded vehicle companies have a relatively low level of localization in R&D. At present, more and more foreign-invested vehicle manufacturers have built or commissioned R&D centers in China to develop more products that meet the needs of the Chinese local market, and even compete with low-priced cars made by Chinese domestic brands.
Harman, an automotive entertainment system provider, set up an automotive division in China specifically for this purpose. Micahel Mauser, co-president of Hamann's automotive division, said: "In cooperation with local customers, we need to develop and customize products that meet the requirements of the Chinese market." Currently, Hamann has production and R&D centers in Shanghai, Suzhou and Shenzhen. Invested 100 million U.S. dollars in China to establish a new factory in Dandong to enhance its production and R&D capabilities in China.
A growing number of multinational car parts such as Aisin Seiki, Valeo and Foglio are also increasing localized R&D. "Since this year, Aisin Seiki will focus on China, and this year it will set up three companies in China, moving from sales, production, and research and development to China.
Aisin Seiki will set up an R&D center in the country to strengthen localization and increase the speed of the corresponding OEMs. "Aisin Seiki Tianjin Trading Co., Ltd. Deputy General Manager San Tsuda and Hiroshi told reporters.
The background of multinational auto parts companies rushing to invest in the Chinese market is that China has become the world’s largest auto market since 2009.
“At the Shanghai Auto Show that ended last month, in addition to Bosch and other large multinational auto parts manufacturers, some small and medium-sized component companies in Europe and America also exhibited.†Xu Baoping, president of Brose China, told China Business News, “China The market is becoming more and more important. If you get this market project, you will be able to return to markets in Europe and the United States and get more competitive."
In China, R&D continues to be localized. “At the Shanghai Auto Show this year, more and more multinational component exhibitors do not hesitate to promote themselves and increase the area of ​​exhibitors. All they do is because they are optimistic about the Chinese market and want to be in the Chinese car market. Get more profits," said Rao Da, chairman of the National Passenger Vehicles Association.
According to statistics from the Institute, at the Shanghai Auto Show in 2009, there were only three companies such as Continental Automotive Group in the press conference, but more than 12 multinational auto parts companies held a press conference this year at the Shanghai Auto Show.
Brose Group is one of the 12 companies. Brose, a supplier of electromechanical systems and motors, entered the Chinese market in 1995. At present, Asia is the fastest growing region in Brose. In 2010, Brose Asia had sales of approximately 500 million euros, an increase of 70% over the previous year. Among them, the largest contributors to growth are Brose’s five companies in China in Shanghai, Wuhan and Changchun.
Previously, the president of Brose Asia, Schrober told reporters: "This year we plan to invest 720 million yuan in China, and build new factories while expanding our existing factories, especially in Shanghai, Beijing and Chongqing." Brose’s new Asia headquarters in Shanghai is also under construction.
Bosch, the world's largest auto parts company, invests even more in China. Philip Bachbach, chairman of Bosch Group, stated that in 2011, Bosch will invest 3.4 billion yuan to strengthen its business expansion in China. Bosch's sales in China's auto business reached 23.3 billion yuan in 2010, an increase of 38% over the previous year. In the past four years, Bosch has achieved an average annual growth rate of 30% in the Chinese market.
Chen Wenkai told us that German auto parts suppliers have developed particularly fast in China in the past two years. "As of 2010, German auto parts suppliers have set up 180 production plants in China (including wholly-owned, joint venture or holding factories), and German suppliers will continue to expand production capacity in China," said Chen Wenkai.
Compared with the investment made by international suppliers of parts and components in China, foreign-funded vehicle companies have a relatively low level of localization in R&D. At present, more and more foreign-invested vehicle manufacturers have built or commissioned R&D centers in China to develop more products that meet the needs of the Chinese local market, and even compete with low-priced cars made by Chinese domestic brands.
Harman, an automotive entertainment system provider, set up an automotive division in China specifically for this purpose. Micahel Mauser, co-president of Hamann's automotive division, said: "In cooperation with local customers, we need to develop and customize products that meet the requirements of the Chinese market." Currently, Hamann has production and R&D centers in Shanghai, Suzhou and Shenzhen. Invested 100 million U.S. dollars in China to establish a new factory in Dandong to enhance its production and R&D capabilities in China.
A growing number of multinational car parts such as Aisin Seiki, Valeo and Foglio are also increasing localized R&D. "Since this year, Aisin Seiki will focus on China, and this year it will set up three companies in China, moving from sales, production, and research and development to China.
Aisin Seiki will set up an R&D center in the country to strengthen localization and increase the speed of the corresponding OEMs. "Aisin Seiki Tianjin Trading Co., Ltd. Deputy General Manager San Tsuda and Hiroshi told reporters.
The background of multinational auto parts companies rushing to invest in the Chinese market is that China has become the world’s largest auto market since 2009.
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