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Global Sources: China Car Electronics Suppliers Turn to New Markets in 2012 [Travel & Leisure Close - Up]
(Travel & Leisure Close - Up Via Acquire Media NewsEdge) China suppliers of car electronics are moving upmarket by releasing more models that harmonize with trends in vehicle infotainment, navigation, digital broadcasting and mobile Internet connectivity, it was announced. Even as prices head upward, manufacturers are expanding their sales reach by cultivating new markets.
This is according to Global Sources' China Sourcing Report: Car Electronics . The Report covers the major products of China's car electronics industry, namely car audio, car video and DVD players, car monitors, car safety electronic systems, and accessories.
Publisher of the Report, Livia Yip, said, "After carving a niche for lower-priced models, China's car electronics exporters are emphasizing value add-ons, as they deepen their global share for midrange and high-end designs."
China Sourcing Report, Car Electronics indicates that features integration is the key strategy for products upgrade. The latest in- car multimedia players boast GPS and wireless technologies that enable emergency services such as contacting rescue units after a road accident. New models also use 3G mobile networks to support e- mails and e-books.
The integration trend is evident in other segments as well. CD players incorporate Bluetooth technology for connection to the iPod and iPhone. In-vehicle PCs now go beyond Windows to support digital TV and Wi-Fi communication. iPod connectivity, meanwhile, is standard among car monitors. Some in-dash models can also support Wi- Fi.
China suppliers see new markets as fuel for greater growth
China's car electronics manufacturing industry continues to grow steadily, with sales for 2011 estimated to reach $19.2 billion. Ninety-three percent of suppliers surveyed said they anticipate increased sales in 2012, with nearly three-fourths of respondents projecting revenue to rise by 10 percent or more.
The Report also reveals that alternative destinations are expected to play a significant role in sales expansion. Makers intend to augment business by cultivating opportunities in the Asia- Pacific region, the Middle East, Russia and South America. The US and the EU are expected to remain key markets, despite economic sluggishness there.
Manufacturers' optimism comes amid looming price increases. More than half of companies said export quotes are expected to go up to compensate for the 10 percent jump in labor and raw material costs, and the Yuan's 7 percent appreciation against the US dollar in recent months.
Yip said: "Among nearly two-thirds of suppliers, price increases are expected not to exceed 10 percent. To help keep quotes affordable, companies are adopting measures to optimize production efficiency."
Other industry trends indicated by China Sourcing Report: Car Electronics include:
-88 percent of suppliers plan to raise capital expenditure to sharpen competitiveness
-27 percent of manufacturers see price competition as their biggest challenge
-More manufacturers are improving customization on designs and components to gain an edge
Supplier profiles, price forecasts, and the latest car electronics for export
The 114-page China Sourcing Report: Car Electronics provides detailed profiles of 59 suppliers with verified manufacturing and export credentials, plus contact details of 21 more suppliers. It also includes a Product Gallery featuring 141 export models, with key specifications and full-color pictures.
The Report's survey, price trends and supply forecasts aim to help buyers make better-informed purchasing decisions.
Global Sources is a business-to-business media company and a primary facilitator of trade with Greater China.
More Information:
www.globalsources.com
((Comments on this story may be sent to newsdesk@closeupmedia.com))
(c) 2012 ProQuest Information and Learning Company; All Rights Reserved.
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