Shanghai, August 28 (Gasgoo.com)--- Zhejiang BoYu Electric Co., a leading supplier of automotive starters and alternators in the aftermarket sector, is now stepping into the more challenging OEM (Original Equipment Manufacturer) business.
As the No.1 aftermarket supplier in the Chinese market, Boyu is going to conclude the two-year period of developing OE alternators for a Canadian automaker and a Chinese automaker.
"We choose Chery as our strategic partner as we believe Chery will grow into a very successful automaker," said Mr. Gaiyun Chang, CEO of Boyu Group, but he didn't reveal the Canadian company's name.
"We started our OEM manufacturing business last year (2007), which is a little bit late but we have every reason for the discretion in the decision-making process," said Chang. He explained that OE manufacturing has higher requirements than the aftermarket business. "You need to be competitive in every aspect, such as the quality, price and service…so we finally turned to OEM business after abundant preparation," Chang said.
Last year, Boyu invested 30 million yuan to build its new OE alternator production lines, and set up a 50-million-yuan plant in Hubei province, central China. This plant has a designed production capacity of 1 million units of starters per year.
The company, now a group of diversified operations, started with automotive electrics as a sideline business, which later on it became a major revenue source. Boyu's current production capacity is around 3 million units, with alternators and starters each to account for half. Last year the company's total sales reached 1.5 million units
Boyu uses double brands: Boyu and Juxiaing for the overseas and domestic markets respectively.
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