China's auto parts industry covers a wide range of products, of which more than one-third of its revenue comes from electronic components, including batteries, relays, air conditioners, spark plugs, door locks and electric windows, as well as headlight assemblies and car bulbs. The huge accessories market will play a key role in maintaining the growth of China's auto parts exports in the global economic downturn. Customs statistics show that in 2008 China's car lights, automotive electronic components, engines and mechanical parts, as well as total revenue of wheels and tires exceeded 20.6 billion US dollars, an increase of 14%, while total shipments only increased by 3% to 81 Billion sets.
In terms of electronic components, total shipments of Chinese car batteries, relays, air conditioners, door locks, window parts and spark plugs exceeded $8 billion, an increase of 11% over the previous year. However, this is due to the fact that the average price has increased by 19%. It is not due to the increase in orders. In fact, the number of exports has dropped by three percentage points to 4.8 billion units. In contrast, sales in 2007 increased by 25% year-on-year due to a 9% increase in sales. The weak demand for new cars has affected the growth opportunities of Chinese manufacturers, especially in the US market. The United States is the largest exporter of automotive electronics parts in China, accounting for nearly 15% of revenue. Other markets include Japan, South Korea, India and Germany. In order to maintain profitability in the future, manufacturers will continue to focus on the aftermarket and aftermarket, which currently accounts for 80% of shipments.
In terms of car lights, Chinese car light suppliers often only produce car light assemblies or car bulbs, and very few companies produce both products at the same time. The lamp assembly consists of a bridge housing, a lens, a mirror, and other components. These products target the aftermarket, while products for overseas OEMs account for less than 30% of exports.
Even in the economic crisis, the headlight export business continued to be active. In 2008, sales increased by 62% year-on-year to nearly $770 million. The production of headlights exceeded 2 billion sets, 22% higher than in 2007, and the average unit price increase of 32% also played an important role in this strong growth.
The headlight assemblies made in China are mainly taillights and auxiliary lamps such as fog lamps and signal lamps. The production of headlights is difficult and subject to many specifications or requirements, but this market is currently starting with the advancement of manufacturers' technology. expand. Typically taillights cost $7.50, while fog lights and other accessories cost between $6 and $30, and headlights cost between $9 and $230. The price depends mainly on the materials used in the various parts of the lamp assembly and the type of bulb used, which is about 70% of the total cost.
The headlight source mainly uses HID lamps, which are three times the price of halogen lamps, but the energy consumption is 40~50% lower, and the brightness is twice that of the latter, and the life is 10 times that of the latter. There are many reasons for the popularity of HID lamps. One of them is that the cost gap between halogen lamps and HID lamps is shrinking, and suppliers are now able to meet the stringent standards of several markets including the United States and Europe. With the introduction of more vehicles that use this light source, the future HID assembly is expected to continue to grow.
20~35% of the taillights and auxiliary lamps produced in China use LEDs. The energy consumption of such lamps is 50~75% lower than that of ordinary lamps, and the service life is 8~10 times that of other types of lamps. At present, LED is still limited to high-end cars, because LEDs are about 40% more expensive than halogen lamps. However, as the cost gradually declines, the final low-end car will also use this component to replace the traditional light bulb as the main light source for taillights and auxiliary lamps.
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