Automobile Electronics Market Growing Quickly
China's automobile electronics market is growing quickly due to the rapid development of the automobile industry and automobile products upgrading. The sales revenue of the automobile electronics market reached 121.57 billion Yuan, up more than 40% over 2006.
The characteristics of China's automobile electronics market
1. Popularization of Existing Products Being the Main Driving Force
More than a half of domestic cars, SUVs, MPVs have installed gearboxes, and more than 90% of cars are equipped with safety airbags. In addition, demands on vehicle body and vehicular electronics keep increasing. Popularization of such automobile electronics is the main driving force behind rapid market growth.
2. Proportion of Automobile Electronics in Total Cost Increasing
The electronics equipping proportion of domestic middle-end cars has approached advanced international levels. For example, JAC is releasing a car with a price of 120 thousand Yuan, which is equipped with almost all automobile electronics.
3. Popularization of Automobile Electronics Benefiting from Mature Products and Technologies
Popularization of automobile electronics depends on market demand. Hence, popularization of automobile electronics is benefiting from mature products and technologies.
In the application structure, power control and chassis control & safety systems are the main automobile electronics, taking a share of 31.7% and 27.0%, respectively. Besides, the market share of onboard electronics has increased due to the popularization of audio products and portable GPS products.
In products structure, EMS still takes the largest market share, although it has been decreasing in recent years. The market share of ABS and safety airbag products and audio products has also decreased slightly. The market share of the rest of automobile electronics has kept increasing, taking a market share of nearly 20%.
Domestic Automobile Electronics Industry Rising, and Supply and Demand Tending to be Balanced
China's automobile electronics industry has shown following features in recent years:
1. Industry transfer synchronizes with development of the domestic automobile industry, and the share of domestic automobile electronics keeps increasing. Abroad automobile brands begin to adjust the supply chain of automobile parts, components, and electronics to meet the request of localization. Besides, automobile manufacturers need more local providers to reduce costs due to a more competitive market. The share of domestic automobile electronics in domestic automobiles keeps increasing, especially for brands such as Volkswagen, GE, Toyota, Honda, and other brands that enter China's market earlier.
2. Some automobile electronics tend to be export oriented. China's automobile electronics industry started relatively late. However, some automobile electronics, such as audios, air conditioning, car security, portable GPS, and other products with lower technology levels develop rapidly, along with the development of the domestic automobile manufacturers. The sales revenue of car audios, GPS, and securities reached 12 million, 8 million, and 11 million, respectively. It is possible China will be one of the main automobile electronics production bases in the near future.
