Delphi to make hybrid products in China

BEIJING -- Delphi Corp. will start producing hybrid and electric vehicle parts and systems in China in late 2009, says John Absmeier, manager of Delphi's Asia Pacific Power Electronics and Hybrid Electric Vehicles.

Delphi will initially make products used in micro and medium hybrids for customers in China in its electronics manufacturing facility in the east China city of Suzhou.

These products include DCAC inverters, DCDC converters, battery packs, controllers and integrated systems.

A micro hybrid offers a stop-start system, which cuts off the engine when the car stops, for instance, at traffic lights. A medium hybrid provides a stop-start system as well as brake-energy regeneration and acceleration assistance.

Delphi has started supplying demonstration integrated systems to Chinese automakers, says Absmeier. He declines to name the automakers.

Absmeier says he expects to see strong demand in China for micro and medium hybrid products over the next two years.

"As the market matures, we will supply full hybrid, plug-in hybrid and electric vehicle components from our local manufacturing base," he adds.

Compared with vehicles powered by traditional fuel, micro hybrids can reduce fuel consumption by 4-6 percent, while mild to medium hybrid can cut save fuel by 10 to 25 percent, says Absmeier.

Domestic Chinese automakers such as Chery Automobile Co. and Chongqing Changan Automobile Co. have developed hybrid cars on their own. But the production volumes of these cars are still very limited.

But once they start mass producing hybrids, Chinese automakers will need to source from suppliers to ensure product consistency, says Duan Chengwu, a Shanghai-based analyst of Global Insight.

Duan says domestic automakers are still weak in some key technologies of medium hybrids, such as batteries, motors and controller modules. They need to collaborate with global suppliers, he adds.