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Strategy Analytics Catalogs Top Chinese Automotive Electronics Market Vendors
Vendors Need To Make Vital Changes To Remain Competitive in $11.4 Billion Market
Boston, MA - 27 March 2008 - The Strategy Analytics report, "Chinese Automotive Vendor Profiles," reveals that despite the presence of foreign vendors, Chinese vendors are also enjoying increased business on the back of the growing Chinese car making industry.
However, Chinese vendors are still very small and lack high levels of expertise in comparison to their foreign competitors. They are now facing a tougher market environment as raw material prices and labor costs grow. Simultaneously, increasing price competition is putting pressure on profit margins, which may jeopardize their ability to invest in developing new technologies.
According to the author of this Viewpoint, Kevin Mak, Industry Analyst of the Strategy Analytics Automotive Electronics Service, "Chinese vendors need to act quickly to remain competitive. Some of the new privately-owned companies have adopted inventory management and follow foreign vendors by focusing on a single application area, such as anti-lock brake, engine management, power steering or ventilation systems. Yet there are still a lot of other state-owned companies that are poorly managed, with inefficient plants, that find it difficult to hire skilled staff. This will result in consolidation in the industry with the remaining companies developing electronic solutions that are suitable for the rapidly growing Chinese market. Already, foreign vendors have centralized their joint venture activities to realize cost savings."
"Longer term, Chinese vendors will need to develop the technologies to compete on the international stage, and offer competitive solutions to global automotive manufacturers," added Ian Riches, Director, Automotive Electronics Service.
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