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Xingbin LI Chief Representative AMT-Beijing Representative Office China Market Update PowerPoint PPT Presentation

Xingbin LI Chief Representative AMT-Beijing Representative Office China Market Update. Market Update Breakfast – China September 8, 2006. CONTENTS. The China automotive industry Production & growth rate Opportunity

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Contents 4979

Xingbin LI

Chief Representative

AMT-Beijing Representative Office

China Market Update

Market Update Breakfast – China September 8, 2006


Contents

CONTENTS

  • The China automotive industry

    • Production & growth rate

    • Opportunity

      • Production capacity (current production, production capacity and expansion plan)

      • Key automakers

  • The China components industry

    • Production & growth rate

    • Opportunity

      • Demands (purchasing plans of major global automakers)

      • New measures and tariff (technical barrier)

      • Key suppliers (global suppliers and domestic suppliers)


Facts

Facts

  • 4th Largest economy in the world in 2005

    • GDP: USD 2.263825 trillion

    • GDP growth rate: 9.9%

  • 2nd Largest auto market in the world in 2005

    • Production: 5.75 million units of vehicle

    • Growth rate: 13.4%

  • The largest machine tool market in the world

    • USD10.9 billion

    • Growth rate: 15%


The china automotive industry production growth rate

The China Automotive IndustryProduction & growth rate


Contents 4979

117 Registered Automakers,

Of which 90 company’s capacities

Are less than 10,000 units a year.

The China Automotive Industry Production & growth rate

Vehicles

(Million of Units)

20022003200420052006

(1 – 6)

Production3.254.445.075.753.63

Changes, %38.836.614.213.428.9

Source: China Auto Industry Year Book


The china automotive industry production growth rate1

The China Automotive IndustryProduction & growth rate

China Car Productions

(Million of Units)

2001 2002 2003 2004 2005 2006e (1-6)

Production0.7 1.09 2.06 2.262.951.80

Change %15.1 55.7 89.0 9.730.546.9


Contents 4979

Production of Top 8 Chinese automakers

from January-June, 2006 (in units)

  • Shanghai Automotive Industry Corp 621,40054.85%

  •  First Automotive Works Corp 562,90023.28%

  •  Dongfeng Motor Corp 454,20026.1%

  •  Chang'an Motor Corp 369,1008.39%

  •  Beijing Automotive Industry Corp 337,10011.94%

  •  Chery Automobile 144,20072.15%

  •  Geely Automobile 105,90055.62%

  •  Guangzhou Automobile 105,700

    (Source: China Association of Automobile Manufacturers)


The china automotive industry opportunity production capacity

The China Automotive IndustryOpportunity – Production capacity

  • Production in 2005: 5.75 million units

  • Production capacity in 2005: 8 million units

  • Production capacity expansion plan: 16 million units by 2010


The china automotive industry opportunity key automakers

The China Automotive IndustryOpportunity - Key automakers


Contents 4979

“A Fragmented Industry”

1,540 Registered Enterprises

3,500-8,500 Non-Registered

The China Components IndustrySales & growth rate

Components Statistics

($ billion)

2002200320042005

Total Sales34.247.962.771.9

Domestic32.342.152.156.1

Imports 3.4 9.311.310.4

Exports 1.9 5.810.615.8

Average Annual Sales Per Supplier:

$5.0 to $10.0 million

Source: China Auto Industry Year Book


The china components industry opportunity demands

The China Components IndustryOpportunity- Demands

  • Daimler-Chrysler (for China operation)

    • To spend $840 million in buying parts in 2008 ($100 million in 2005)

  • BMW (for China operation)

    • To spend $300 million in buying parts in 2007

  • Volkswagen (for overseas operations)

    • To spend $1.0 billion in buying parts in 2006 ($300 million in 2005)

  • Volkswagen (for China operations)

    • To spend $2.5 billion in buying parts in 2006

  • Multinational firms totally (for overseas operations)

    • To spend $35 billion in buying parts by the end of 2007


The china components industry opportunity new tariff

The China Components IndustryOpportunity– New tariff

Cars

Displacement200120022003200420052006

<3.0 L7043.8538.234.230.2825

>3.0 L8050.74337.630.328.25

Parts & Components

20012002200320042005200610


The china components industry opportunity new measures

The China Components IndustryOpportunity– New measures

  • “Measures for the Administration of Import of Automobile Components and Parts Featuring Complete Vehicles”

    • Promulgated by the Customs of China, MOC, MOF and NDRC on April 1, 2005

    • Go into effect on July 1, 2006


The china components industry opportunity new measures key points

The China Components IndustryOpportunity– New measures – Key Points

  • Article 21 - Under any of the following circumstances, the imported automobile components and parts shall be considered bearing the features of a complete vehicle:

    • Importing CKD or SKD to assemble automobiles.

    • The total price of the imported components and parts is not less than 60% of the total price of the complete vehicle type.

    • If, within the scope as prescribed in Article 4 of the present Measures:

      • Importing both the vehicle body (including the cab) assembly and engine assembly to assemble vehicles;

      • Importing either the vehicle body (including the cab) assembly or engine assembly and 3 or more other assemblies (systems) to assemble vehicles;

      • Importing 5 or more assemblies (systems) other than the vehicle body (including the cab) assembly and the engine assembly to assemble vehicles.


The china components industry opportunity new measures key points1

The China Components IndustryOpportunity– New measures-Key points

  • Article 22 - under any of the following circumstances, the imported automobile components and parts shall be considered bearing the features of an automobile assembly (system)

    • Importing whole sets of KD components and parts to assemble an assembly (system)

    • Importing key components and parts or sub-assemblies to assemble an assembly (system), and the import of key components and parts or sub-assemblies reaches or exceeds the specified quantity.

    • The total price of the imported components and parts is not less than 60% of the total price of the assembly (system)


The china components industry opportunity new measures1

The China Components IndustryOpportunity– New measures

“Measures” REALLY means that

  • Discouraging automakers from using imported car parts for vehicles they assemble in China and making car by CKD & SKD increases production cost (from 10% to 25%)

  • Creating an incentive for car parts makers to shift production to China


The china components industry opportunity changes for global suppliers

The China Components IndustryOpportunity – changes for global suppliers

  • From shareholding to share controlling

  • From JV to WOFE

  • From market penetration to market monopoly


Where are the major component suppliers located in china

MAP OF CHINA

Where are the Major Component Suppliers Located in China?

Northeast

(Jilin, Liaoning)

Greater Beijing area

(Beijing, Tianjin)

Yangtze river delta

(Shanghai, Jiangsu, Zhejiang)

Middle China

(Hubei)

Southwest

(Chongqing, Chengdu)

Pearl river delta

(Guangdong, Fujian)


The china components industry opportunity key suppliers

Major global suppliers

ASIMCO

Eaton

Delphi

Dana

TRW

Visteon

Lear

BorgWarner

Johnson Controls

Bosch

Siemens VDO

ThyssenKrupp

GKN

Freudenberg

Faurecia

Valeo

Aisin Seiki

Yazaki

Denso

ArvinMeritor

Autoliv

Magna

Major domestic suppliers

FAW Fawer Auto Parts Co.

Dongfeng Motor Co., Ltd Parts & Components Business

Wanxiang Group

Sanhua Holding Group

Wanfeng Auto Holding Group

The China Components IndustryOpportunity– key suppliers


Global suppliers in china

Global Suppliers in China

ASIMCOParkview Center, 4/F, 2 Jiangtai Road (s), Chaoyang District 100016, P. R. China

(86)10-6438-2750, www.asimco.com

  • Asimco Meilian Braking System (Langfang) Co.Langfang, Hebei ProvinceAir-compressor, brake

  • Asimco International Costing Co.Jiang County, Shanxi ProvinceCasting for engine block and head

  • Beijing Asimco Tianwei Fuel Injection Pump & Nozzle Co.BeijingFuel injection pump, oil nozzle

  • Zhong Ding Automotive Components CoNingguo, Anhui ProvinceRubber products

  • Nanyue Fuel Injection & Pump Co.Hengyang, Hunan ProvinceFuel injection pump

  • Sichuan Dan Chi Industry Co.Sichuan ProvinceTransmissions

  • Hubei Super-Elec. Auto Components Co.Shashi, Hubei ProvinceGenerators, starters

  • Harbin Feibeng Auto-Elec. Co.Harbin, Heilongjiang ProvinceIgniters, ignition coils, relays, switches

  • Asimco Braking System (Zhuhai) Co.Zhuhai, Guangdong ProvinceDisc & Drum type brakes, vacuum boosters

  • Asimco Braking Braking System (Guangzhou) Co.Guangzhou, Guangdong ProvinceDisc & Drum type brakes, boosters

  • Asimco Shuangtai Components (Sichuan) Co.Sichuan ProvinceWheels

    EatonFloor, 300 Huai Hai Zhong Road, Hong Kong New World Tower, Shanghai 200021, P. R. China  

    (86)21- 6278-5090, www.eaton.com

  • Eaton Electrical (Suzhou) Co., Ltd. - EES Suzhou, Jiangsu ProvinceElectrical circuit protection devices

  • Eaton Fast Gear (Xi'an) Co., Ltd. Xi’an, Shaanxi ProvinceTransmissions

  • Eaton Fluid Power (Jining) Co., Ltd. Jining, Shandong ProvinceHydraulic pumps and motors

  • Eaton Fluid Power (Shanghai) Co., Ltd ShanghaiFluid connectors

  • Eaton Senstar Automotive Fluid Connector (Shanghai) Co.ShanghaiFluid connectors

  • Eaton Truck and Bus Components (Shanghai) Co., Ltd ShanghaiTransmissions

  • Hangzhou Switches Power Systems Co., Ltd. Hangzhou, Zhejing ProvinceSwitches

  • Shanghai Eaton Engine Components Company, Ltd. ShanghaiEngine valves and hydraulic tappets

  • Zhenjiang Eaton Electrical Systems Co., Ltd. ZhejiangElectrical devices

  • FAW Eaton Gear-Box Co.Changchun, Jilin ProvinceTransmissions

  • Guangzhou Eaton Piston Ring Co.Guangzhou, Guangdong ProvincePiston rings

  • Ningbo Eaton Shenglong Co.Jingbo, Zhejiang ProvinceHydraulic hose fittings and adapters


Domestic suppliers in china

Domestic Suppliers in China

FAW Fawer245 Shenzhen Street, Economic Development Zone, Changchun, Jilin, P. R. China

(86)0431-4659800, www.fawer.com.cn

  • There are 23 manufacturing divisions/ companies under FAW Fawer Group.

    Dongfeng Motor Co., Ltd Parts & Components Business

    8 dong Bin Gu Tai, Dong Cheng Road, Shiyan 442000, Hubei, P. R. China

    (86)0719-8221934, www.dfap.com.cn

  • There are 17 manufacturing/companies under Dongfeng Motor Co. Ltd Parts & Components Business.

    Wanxiang GroupWanxiang Road, Xiao Shan District, Hangzhou, Zhejiang, P. R. China

    (86)571-82832999, www.wanxiang.com.cn

  • There are 8 manufacturing/companies under Wanxiang Group making auto parts and components.

    Sanhua Holding GroupXinchang, Zhejing, P. R. China

    (86)575-6222768, www.sanhuagroup.com

  • There are 7 companies under Sanhua holding group making auto parts.


New service how amt china helps you

New Service – How AMT China Helps you

China Market Penetration Strategy Development Session

Designed to help those AMT members who are new to China and want to develop their company’s sales & marketing strategy for today’s China


New service how amt china helps you1

New Service – How AMT China Helps you

Review Session for your Existing China Market Penetration Strategy

Designed to help YOU validate and invigorate your existing Sales & Marketing Strategy for today’s China


Contents 4979

Thank you!


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