Global auto parts giants: 75% Chinese parts market share

To date,  up to 70% of global auto parts suppliers have expanded their business in China. The number of foreign enterprises in China has exceeded 1,200.

Chinese auto parts sales revenue has reached 403.5 billion yuan in 2006,  majority of which comes from foreign enterprises (sole and holding), with domestic enterprises accouting for only 20% -25%.

"We plans to invest an additional 620 million euros in China between 2006 and 2008, equivalent to the group's accumulated investment in China previously." Global auto parts giant Bosch said recently. Auto parts giant Delphi has also announced it will build two new auto part plants in China.

It is clear that foreign enterprises in automobile parts industry has become the focus of the industry, not only hold most of market capital, but also take core technology.

Foreign enterprises has gradually become the focus of the auto parts industry in China, providing both capital investment and core technology expertise

the industry believe, cooperation between foreign enterprises and domestic vehicle manufacturers are going further, but the concrete plan and strategy are made originally from oversea headquarters.

Industry experts believe that in order to keep up with the rapid growth in China, many foreign enterprises will adopt localization as part of their corporate strategy, giving them the competitive advantage.

Experts also suggested that the relevant policies should be introduced to encourage collaboration among domestic enterprises, capitalizing on China's low cost labor to achieve breakthroughs in key areas.