The Chinese Automotive Supplier Report China
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IHS AUTOMOTIVE The Chinese Automotive Supplier Report China 2016 edition supplierbusiness.com REGIONAL REPORT China SAMPLE IHS Automotive SupplierBusiness | The Chinese Automotive Supplier Report Contents Macroeconomic Overview 6 Economic review 7 Economic outlook 8 Light vehicle sales review and outlook 10 Market review: developments and policies 11 Congestion and pollution regulation 11 Market Outlook 14 Geography of demand 15 Shifting tastes and pricing 15 Consumer preferences 16 Light Vehicle Production Review and Outlook 17 China car industry roots 18 Overcapacity risk? 19 Production Outlook 20 Evolving geography of Chinese car production 21 Outlook for exports 22 OEM activity and supplier management 24 Changes in market structure 25 Private enterprises 25 First-movers 26 – Ford 27 – Premium OEMs’ activity 27 – Japanese carmakers 27 – Renault-Nissan 28 – Chrysler-Fiat 28 – Hyundai-Kia 28 Increasing OEM fragmentation 29 Sourcing from an underdeveloped supply base 30 Structural changes 31 Sourcing from the local supply base 31 Domestic carmakers’ sourcing 32 Foreign OEM sourcing 32 Imports 33 Top-10 OEM Overview 34 VOLKSWAGEN 35 CHANGAN (including Ford)SAMPLE 37 DONGFENG (incl. Renault-Nissan and PSA) 39 SAIC-GM-WULING 42 GENERAL MOTORS 43 HYUNDAI-KIA 44 IHS™ AUTOMOTIVE | SUPPLIERBUSINESS COPYRIGHT NOTICE AND DISCLAIMER © 2016 IHS. For internal use of IHS clients only. No portion of this report may be reproduced, reused, or otherwise distributed in any form without prior written consent, with the exception of any internal client distribution as may be permitted in the license agreement between client and IHS. Content reproduced or redistributed with IHS permission must display IHS legal notices and attributions of authorship. The information contained herein is from sources considered reliable, but its accuracy and completeness are not warranted, nor are the opinions and analyses that are based upon it, and to the extent permitted by law, IHS shall not be liable for any errors or omissions or any loss, damage, or expense incurred by reliance on information or any statement contained herein. In particular, please note that no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on, any projections, forecasts, estimates, or assumptions, and, due to various risks and uncertainties, actual events and results may differ materially from forecasts and statements of belief noted herein. This report is not to be construed as legal or financial advice, and use of or reliance on any information in this publication is entirely at client’s own risk. IHS and the IHS logo are trademarks of IHS. © 2016 IHS 2 2016 edition IHS Automotive SupplierBusiness | The Chinese Automotive Supplier Report BEIJING AUTO (incl. Beijing-Benz) 45 TOYOTA 47 FAW 49 GREAT WALL 52 Recent Developments and Outlook for the Chinese Supply Base 54 Profitability under attack 55 Supply base structure 55 Foreign suppliers 56 Challenges 57 M&A activity 58 Supplier Profiles - Global Tier-1 China Operations 59 Aisin Seiki 60 Autoliv 68 Bosch 79 Continental 89 Delphi 101 Denso 111 Faurecia 121 GKN 133 Johnson Controls 146 JTEKT 156 Lear 162 Magna 170 Magneti Marelli 181 MAHLE 189 Sumitomo Electric 200 Valeo 211 Yazaki 218 ZF 224 Supplier Profiles – Local Companies 237 Changchun Bulb 238 China VIE 239 China Wheel 243 Dong’An Power 244 Dongfeng Technology 245 Double Coin 251 Double Star 255 Fangda Tegang (formerly Jiangxi Changli) 259 FAWAY 263 FAWER 269 Fengfan 276 Foshan Lighting SAMPLE280 Fujian Longxi 284 Fuyao 288 Greatoo 293 Guangdong Hongteo 294 Guangdong Hongtu 297 Guizhou Guihang 300 Guizhou Tyre 305 Hangsheng Electronics 306 Hangzhou Advance 310 Hangzhou ZhongCe 314 © 2016 IHS 3 2016 edition IHS Automotive SupplierBusiness | The Chinese Automotive Supplier Report Hefei Axle 317 Henan THB 320 Henan Xixia 326 Hengli (Yueuang) 330 Jiangnan MPT 333 Jiangsu Sihong 328 Jiangsu Wenguang 339 Jiangyin Xietong 342 Jinheng 343 Joyson Electronics 348 Kunming Yunnei 352 Linhai 356 Liuzhou Lihe 360 Lizhong Wheel 361 Longji Machinery 365 Nanning Baling 368 Ningbo Huaxiang 372 Ningbo Shenglong 377 Ningbo Shuanglin 380 Ningbo Swell 384 Ningbo Tianli 387 Ningjiang Shanchuan 388 Pacific Forging 389 Prestolite 390 Qingdao Yellowsea 394 Quanchai 396 Shandong Houfeng 400 Shandong Huijin 403 Shandong Laidong 404 Shandong Linglong 407 Shandong Sangong 408 Shandong Tongchuang 411 Shandong Xinya 412 Shye Shyang 413 Sichuan Bohong 417 South China Tire 419 Spacekey 421 Wuhu Bethel 422 Wuxi Diesel 425 Xi’an Brakes 426 Yangzhou Shenzhou 429 Yu’an-Sokon 430 Yuhuan Kailing 433 Zhejiang Wanda SAMPLE436 Zhenting Jinggong 440 Figures Figure 1: China Real GDP Per Capita, (USD) and Growth Rate: Real GDP Per Capita (%) (2011–2019) 9 Figure 2: China’s Light vehicle Sales forecast by regional origin 14 Figure 3: China light vehicle production volumes and installed capacity 19 Figure 4: Map of China’s five main automotive clusters (North, South, Shanghai, Central, Western) 22 © 2016 IHS 4 2016 edition IHS Automotive SupplierBusiness | The Chinese Automotive Supplier Report Tables Table 1: China Top-10 OEMs by Design Parent Production Forecast (2014–2019) 18 Table 2: Top 24 Light Vehicles Manufactured in China with Forecast (2016–2019) 21 Table 3: Production Capacity for top 10 Municipalities in China 22 Table 4: List of foreign joint-venture partnerships operating in China 29 Table 5: Top 10 Manufacturers in China in 2000 and 2014 30 Table 6: Volkswagen China Light Vehicle Production (2014–2019) 35 Table 7: Changan (including Ford) Light Vehicle Production (2014–2019) 37 Table 8: Dongfeng (incl. Renault-Nissan and PSA) Light Vehicle Production (2014–2019) 39 Table 9: SAIC-GM-Wuling Light Vehicle Production (2014–2019) 42 Table 10: General Motors China Light Vehicle Production (2014–2019) 43 Table 11: Hyundai-Kia China Light Vehicle Production (2014–2019) 44 Table 12: Beijing Auto (incl. Beijing-Benz) Light Vehicle Production (2014– 2019) 45 Table 13: Toyota China Light Vehicle Production (2014–2019) 47 Table 14: Volkswagen China Manufacturers Light Vehicle Production (2014–2019) 49 Table 15: Great Wall Light Vehicle Production (2014–2019) 52 Table 16: Key recent investment events involving Chinese suppliers, including local investments 58 SAMPLE © 2016 IHS 5 2016 edition IHS Automotive SupplierBusiness | The Chinese Automotive Supplier Report CHAPTER THREE Light Vehicle Production Review and Outlook • Following the astonishing growth of 2008-2013, the slowing demand is affecting production levels in the short term with an increasing number of plants operating well below optimal capacity • Continued growth in capacity with foreign and domestic investment despite a slowing market has created concerns about the sustainability of the operations of some automakers and the profitability of car production in China. • Local authorities at all levels have contributed to the capacity growth as they seek to attract automotive investment via various forms of incentives for automakers. Incentives are being offered to both privately owned and state-owned enterprises (SOEs), which in some instances provides some 20% of the carmaker’s bottom line. • Despite short-term concerns and volatility, the outlook to 2020 for light vehicle production remains largely positive as local demand should support the achievement of the 30 million unit threshold by 2020. Increased localization is occurring both in premium segments and at the bottom end of the market as foreign carmakers seek to compete with domestic carmakers in entry-level vehicle segments. • Excess inventory and lack of demand is putting pressure on pricing, therefore forcing carmakers to find every possible cost efficiency such as relocating production to more remote regions of the country, which would also allow to tap demand from emergingSAMPLE cities. • Investment pattern follows proximity to tier three and tier five cities in the west of the country or in proximity to larger municipalities areas. Changsha and Chengdu have recorded a six-fold increase in capacity between 2011 and 2015, also thanks to aggressive incentives being offered to OEMs localizing production there. • Chinese carmakers export operations are being challenged by the lack of demand in key export destinations in Brazil and Russia as well as issues faced in established markets due to recall campaigns and consumer quality concerns (e.g. Australia). Localization of production outside of China to serve foreign markets remains at a larval stage. © 2016 IHS 17 2016 edition IHS Automotive SupplierBusiness | The Chinese Automotive Supplier Report 2011. It will be interesting to monitor whether domestic 2015 and 2018. Despite these positive affirmations of OEMs will pay more attention in the future to capacity OEMs’ commitment to the Chinese market, over-capacity utilization, since history shows many of them have not remains the increasingly dark cloud looming over the learned the lesson. As a result of these low utilisation rates industry. With the growing awareness of this issue in the following the end of the government incentives schemes, industry and production growth rates slowing down in increases in capacity slowed for domestic OEMs, but 2015, IHS expects that capacity utilisation will begin to picked up again in 2014 and 2015 with the completion of a stabilise at around 65% in the medium term. number of investment projects. It is widely expected that domestic OEMs will adopt a more cautious stance on new investment projects, with