AUTOMOTIVE INTELLIGENCE FOR PROFESSIONALS
China AutoBook 2019 PREVIEW
China AutoBook 2019 WELCOME!
China is the world’s largest automobile market, Outsourcing, localization and business both in terms of production and consumption. development In 2018, the country produced and sold approximately 27 million passenger cars, MPVs The information was compiled from research of automotive and SUVs driven by increasing urbanization and companies, organizations, industrial estates with the support of the associated rise in demand in the Tier 3 and business associates and is intended to support: Tier 4 cities. 1) Business Development - managers who look for potential China’s global share on new vehicle production customers and sales opportunities in China. has also been increasing year after year from 2) Outsourcing – local and international purchasing managers, who 3.5% in 2000 to more than 35% are looking to source automotive components from China. in 2018. 3) Localization – managers desiring to expand their market and The government backed China Association of Automobile set up a footprint in China for distribution or local production. Manufacturers (CAAM) is optimistic about future growth, especially in the secor of electric vehicles, where China strives to become a leader - not only in consumption, but also in design and manufacturing. Focus on contacts To make your work easier, we have included QuickLinks to access The key driver of sales was the reduction in value-added tax web sites, Google Maps locations and social media sites of the (introduced in October 2015) on purchases of new cars with engines featured companies and their representatives: of up to 1.6 liters. In 2015 and 2016, VAT was levied at 5 percent instead of the normal 10 percent. The tax break was continued in 2017, but with a smaller reduction (7.5 percent). I am sure this book will give you lots of information and enable you to China represents a massive opportunity for the auto industry and if do more business in China. you want to learn more about it, then this e-book is the perfect place to start. Bangkok, January 2019
Ulrich Kaiser Publisher
ii Chapter 1 Introduction
Photo: Beiqi Section 1 Introduction
AT A GLANCE 2017 experienced a general shift between the passenger car segments in the People’s Republic of China. With growth of a good 13%, SUV sales showed above- 1. The auto industry is highly protected by average expansion and totaled 10.3 million units, accounting for 42%of the entire the government through forced JV market. In contrast there were losses in the sales of basic cars (-2% to 11.8 million structures for OEM car makers. units) and of MPVs (-17% to 2.1 million units). Domestic production accounts for 2. The preferred segments are sports utility more than 90% of the total motor vehicle market share. vehicle (SUVs), multipurpose vehicles China is the world’s largest passenger car market, and also leads in registrations of (MPVs) and small engine cars due to electric cars and plug-in hybrids. In 2017, 581,300 EVs were sold in China, 72 % more government policies. than in 2016. The share of the overall market going to electric cars increased from 1.4% in 2016 to 2.4%. 3. Domestic brands are gaining more popularity. In 2017, the Chinese Government set a quota for EVs, which obligates manufacturers to produce e-cars or 4. A large part of the industry still relies plug-in hybrids. From 2019 onwards, OEMs heavily on the import of technologies and will have to meet certain minimum targets know-how. for the proportion of alternative powertrains in production and 5. Low vehicle penetration rate of about sales. 140 vehicles per 1,000 inhabitants versus 910 per 1,000 in the United States. This will be controlled through a complex system of points. Any manufacturer not satisfying the requirements will have to buy points from other manufacturer or else face fines.
Page 4 Chapter 2 Statistics 6 Chapter 3 OEM Section 1 Audi
AT A GLANCE Audi in China consists of two companies in three locations: Audi China in Beijing; FAW-Volkswagen (FAW-VW) in Changchun 1. AUDI AG is now represented in China by a (production and Audi sales division); and FAW-VW Foshan plant joint venture and a fully owned subsidiary. (production started in 2013).
2. The new plant in Foshan and the History of Audi in China expansion of the Changchun plant increased Audi’s annual production The foundation for the presence of the AUDI AG in China was laid in 1988. After capacity in China to 700,000 vehicles negotiations lasting one year, the first joint venture agreement was signed with Chinese First Automobile Works (FAW), based in the province of Jijin in Northeast China. This was followed by another important milestone. In 1995 – the inclusion in the FAW- Volkswagen joint venture, which is now the China FAW Group Corporation (FAW), established in 1991. AUDI AG has a 10% share in the joint venture. Audi (China) Enterprise Management 3-6 floor, (Designer Building), Block B6, No.797 Inside Zhengdong Group Yard, Chaoyang, Beijing, 100015 Tel: +86 10 6531 5008
Carlo Dall’Angelo Purchasing Manager
Reinhold Mueller Manager
Kai Klostermann Director Audi Tooling
Carlo Dall'Angelo Supply Chain Manager
Page 8 Audi China Production Coordination Asia Audi China teams develop tooling suppliers in Asia, support the global AUDI AG logistics network, and Audi China was established in Beijing in 2009, as a fully owned offer production ramp-up and planning services for China and subsidiary of AUDI AG. The company coordinates business additional Asian locations. This includes the evaluation of production cooperation between AUDI AG, the FAW Group, and Joint-Venture scenarios as well as the implementation of new products at current FAW-Volkswagen. In addition, Audi China supports global activities of production facilities. The engineers work in close cooperation with AUDI AG, especially in Asia. Joint-Venture FAW-Volkswagen and the global production teams of AUDI AG is now represented in China by a joint venture and a fully AUDI AG. owned subsidiary. Together with joint venture partners Volkswagen Production and the Chinese company, First Automotive Works (FAW), Audi produces in Changchun the Audi A4 L, Audi A6 L, Audi Q3, and Audi The production of automobiles by the joint venture in Changchun Q5 models. The Audi A3 Sportback and the Audi A3 Saloon have been includes the four major areas of car manufacturing: press shop, body being manufactured in Foshan since 2014. The A6 L and Audi A4 L shop, paint shop and assembly. Audi’s annual production capacity at have an extended wheelbase and were developed especially for FAW-Volkswagen in Changchun has been expanded in recent years to China. 450,000 automobiles. At present, the plant produces the models Audi A4 L, Audi A6 L, Audi Q3 and Audi Q5. Production at the joint venture Audi China has about 600 employees. Their tasks include product meets the standards set by AUDI AG for all of the company’s global management, market research, support for the sales network, train- plants. Audi had already brought ultra-modern automotive and the-trainer programs, and trend-scouting. The brand marketing team manufacturing technology such as laser welding and hot-wax flooding organizes brand and driving events and operates Audi City, the first to China in the late 1990s. And in 2012, the brand with the Four Rings digital showroom of Audi in Asia. They expect to open about 500 was the first car manufacturer to integrate lightweight components in dealerships in China by 2017. local production with the new Audi A6 L. The new plant in Foshan and the expansion of the Changchun plant is The FAW-Volkswagen plant completed in Foshan in southern China expected to increase Audi’s annual production capacity in China to produces the Audi A3 Sportback and the Audi A3 Sedan. It is the first 700,000 vehicles. Audi is the most fuel efficient premium vehicle in plant in China in which models are built on the basis of the new MQB China. Audi in 2012 over-met its weight-based Chinese fuel platform. The Audi facility in Foshan can be ramped up to a capacity consumption regulations by a larger margin than any other premium of between 150,000 and 200,000 automobiles per annum. brand. In 2013, Audi achieved a 20% reduction in the average fuel consumption of its locally built models. The flexible plant structure allows ongoing gradual capacity expansion. Depending on the market, Audi will be able to expand its With the market introduction of the Audi Q3 and the Audi Q5, Audi is total production capacity in China (Changchun and Foshan) to the first manufacturer to equip every locally built model in China with 700,000 automobiles per annum by 2018. efficient start/stop technology and a brake energy recovery (recuperation) system.
Page 9 Audi R&D Beijing Saad Metz Executive Vice President R&D The Audi R&D Center Asia opened in Beijing in early 2013, and is part of the technical development department of AUDI AG. The research Jian Jiang and development teams in Beijing are working on regional product Powertrain Management customization and product testing, closely related to customers in Asia. Furthermore, the R&D teams ensure the integration of innovations and trends from Asia into AUDI AG’s future global products.
Currrent/recent models: Volkswagen produces the models Audi A6 L, Audi A4 L, Audi Q5 and Audi Q3 in Changchun in northern China. The joint venture plant in Foshan in the south of China produces the Audi A3 Sportback and the Audi A3 Sedan.
Review of 2018 The Sino-German auto joint venture FAW-Volkswagen Automotive plans to roll out 16 new Audi models in China this year as sales of Audi vehicles in China hit a new high in 2017, the company announced Friday. A record 595,288 Audi vehicles were sold in China last year, up 1.1 percent year-on-year. Among them, 545,000 were domestically made, while 50,288 were imported. Seeing the huge potential of the luxury car market in China, Audi plans to launch 16 new models, including the AI-embedded A8L and the new generation Q5L, in China this year. Its upcoming full size-SUV, the Q8, will make its world debut in China this year. Jing Qingchun, executive vice-general manager of the company's Audi sales division, said Audi would consider the needs of Chinese customers in its research and development.
Page 10 Section 2 Chinese OEMs
The full version of the China AutoBook includes profiles of the following companies. You can order your subscription to China AutoBook here.
Page 11 Chapter 4 Chinese Tier 1 Section 1 SAIC Fiat Powertrain Hongyan
AT A GLANCE SAIC Fiat Powertrain Hongyan (SFH) is a joint venture founded in 2007 by Saic-Iveco Commercial Vehicle 1. Founded in 2007 and is based in Investing Co., Ltd., Fiat Powertrain Technologies (FPT), and Chongqing. Chongqing Heavy-Duty Vehicle Group (CHVG). 2. One of the largest diesel engine SFH is located in the Huang Mao Ping economic development district in Chongqing manufactures in China municipality, which has advanced vehicle and components industries. The new SFH factory is around 270,000 square meters and began production in October 2008. This 3. Annual production volume of 200,000 factory is planned to include highly automated product assembly lines and engines/components, 100,000 of which manufacturing lines with superior logistics and component supply systems. are for export. In addition to advanced power technologies introduced by SFH from FPT, the company expects to reach an annual throughput of 200,000 diesel engine assemblies, of which 100,000 are designated for export. SFH has introduced advanced power technologies from FPT. Additionally, SFH is implementing an integrated Q&EHS system, and has successfully obtained the ISO14001:2004, OHSAS18001:2007 and the ISO/ TS16949:2009 certificates. SFH currently provides three series of products, SAIC Fiat Powertrain Hongyan which are CURSOR, NEF and F1. Each series B07 Block, Huangmaoping, Chongqing North New Zone, 401122 covers displacement ranging from 2.3L to 12.9L, Tel: +86 23 6321 2888 maximum power ranges from 71kw with 96HP to 353kw with 480HP, and maximum torque ranges Federico Bullo from 240Nm to 2200Nm, all of which will satisfy CEO the substantial power requirement of commercial vehicles with heavy, medium, and light sizes, Junwei Zhou construction equipment, marines, and power Senior Program Management Manager generators.
Xuening Gao Quality Director
Page 13 Section 2 Chinese Tier 1 Suppliers
The full version of the China AutoBook includes profiles of the following companies. You can order your subscription to China AutoBook here.
Page 14 Chapter 5 European Tier 1 Section 1 Benteler
AT A GLANCE Benteler Automotive provides development, production and services worldwide. Currently the company is owned by the 1. Leader in Automotive, Steel and fourth generation of its founding family. Distribution They are a full-service supplier for practically all large vehicle manufacturers, offering 2. German owned automotive parts customized solutions for a broad range of products in the safety, environmental, and manufacturer efficiency sectors. Integrated lightweight construction is the main focus of their diverse activities. The Structures, Chassis, Modules, and Engine and Exhaust Systems Product Groups and BENTELER Mechanical Engineering, make them one of the leading providers Shanghai BENTELER Huizhong Automotive worldwide. Beyond these spheres of competence, the joint venture BENTELER-SGL Company Ltd. develops, produces, and markets components based on carbon fiber-reinforced Shanghai: Plant (JV) compound materials (CFRP) for the automotive industry. No.251 Wen Shui Road 200072 Shanghai Within its Automotive sector it employs about 20,850 employees worldwide in 20 Tel: +86 2156 0377 71 development and sales offices and has 70 factories in 29 countries, BENTELER Automotive develops and produces ready-to-install modules, components, and parts for Joyce Fang body, chassis, and engine. CFO
Yew-Hee Koh Exec Vice President Asia Pacific
Thomas Bunke Vice President Operation Asia Pacific
Nick Borislavski General Manager
Bobby li Purchasing Director
Page 16 Below are all BENTELER Automotive locations in China. BENTELER Automotive (Shanghai) Co. Ltd. Click here for a list of all global Benteler locations. (WOFE plant) No.1688 HuaLong Road ,Qing Pu District BENTELER Automotive (Changshu) Co., Ltd. 201708 Shanghai Changshu: Plant Tel: +86 2139 7610 88 No.3 Dongzhou Road, Economic and technology zone 215513 Changshu, Suzhou City, Jiangsu Province BENTELER Automotive (Fuzhou) Co., Ltd. Tel: +86 512 5202 3019 Xincheng Road, Qingkou Investment District 350119 Fuzhou Wuhu BENTELER-POSCO Automotive Co., Ltd. Tel: +86 591 2279 6969 Wuhu: Plant NO. 6-8 Hongqi Road, Wuhu Economy&Technology Development Zone 241009 Wuhu, Anhui Tel: +86 553 566 6999
BENTELER Automotive (Chongqing) Co., Ltd. ChongQing: Plant No.886 HaiEr Road, Jiang Bei District 400026 Chong Qing Tel: +86 23 6776 8100
BENTELER CAPP Automotive System (Changchun) Co., Ltd. Changchun: Plant No.588 Yumin Road 130103 Jilin Province, Changchun City Tel: +86 431 8585 8418
Shanghai BENTELER Huizhong Automotive Company Ltd. Shanghai: Plant (JV) No.251 Wen Shui Road 200072 Shanghai Tel: +86 2156 0377 71
Page 17 Section 2 Other European Tier 1 Suppliers
The full version of the China AutoBook includes profiles of the following companies. You can order your subscription to China AutoBook here.
Page 18 Chapter 6 Japanese Tier 1 Section 1 Bridgestone
AT A GLANCE Bridgestone (China) Investment operates as a subsidiary of Bridgestone Corporation and Bridgestone operates 1. A subsidiary of Bridgestone, the world’s eight facilities in China including four tyre manufacturing largest tire and rubber company. plants. 2. Their products that are available in China Bridgestone Corporation, headquartered in Tokyo, is the world’s largest tire and rubber include: Passenger Tires, Commercial company. In addition to tires for use in a wide variety of applications, it also Tires, Industrial Tires, and more manufactures a broad range of diversified products, which include industrial rubber and chemical products and sporting goods. Its products are sold in over 150 nations and territories around the world. Bridgestone Asia Pacific Pte. Ltd. is the regional headquarters for the Company’s operations in China and Asia Pacific. Located in Singapore, it oversees tire production, sales facilities, and supplies its products to over 25 countries in the region. Bridgestone Asia Pacific Pte. Ltd. plays a key role in facilitating this large and growing market which Bridgestone (China) Investment Co., Ltd. contributes significantly to the entire Bridgestone Group. 8/F, No.98 Huaihai Road, Huangpu District, Shanghai, 200021 Tel: +86 21 6132 1888
Howe Yu Director of Administration Division