While the US Delphi is still trapped in the bankruptcy ordeal, Delphi China is moving ahead and accelerating its local business. Delphi is gradually banking more on this rapidly developing market, becoming a magnet for large auto parts supplier from abroad.
Localization is one of Delphi's strategies here. The second phase construction of Delphi China R&D center, located in Shanghai, is scheduled to be completed at the end of this year. Delphi plans to transfer its core technology into the Chinese facilities. Apart from that, Delphi will launch four or five new joint ventures this year.
"Delphi's development in China is significant to the company," said Dr Choon T. Chon, President of Delphi Asia Pacific and Delphi China. Delphi has invested over $500 million since entering into the Chinese market. It has established 17 economic entities including 13 joint ventures and sole investments. "We are targeting 19 joint ventures and 14 sole investments across 9 nations in the Asia Pacific area," said the optimistic head.
Delphi has gained $1.92 billion in the AP region, which is equivalent to a 47 percent increase Y/Y. The regional orders have reached $5.4 billion, exceeding the expected growth rate of 59 percent.
Delphi is making wave in the Chinese market, thanks to the booming economy and the support from the government. According to the industry authorities, China plans to increase its export income of automobile and auto parts from $11 billion to $120 billion within the coming decades; the auto parts exported from China will account for 10 percent of the global market.
