Auto electronics industry poised for fast-track growth
- Source: CE.cn
- [08:43 November 23 2010]
- Comments
From the traditional cassette tape player to the increasingly popularized CD, car MP3 and dynamical car GPS navigation device, from the standard configuration of single ABS to the widely used electronic control systems like EBD and ESP, in recent years, China's automotive electronics industry is rapidly emerging with the vigorous development of auto industry.
It is the automobile market with great potential that has laid a strong foundation for the rapid development of China's automotive electronics industry. Driven by the market demands on the auto safety and the regulations regarding energy efficiency and environment protection, the proportion of automotive electronics industry in the automotive industry will increase continuously, which in turn provides a unique market opportunity for the evolution of independent automotive electronics industry.
Continually expanded scale of the automotive electronics industry
Recently, the 2010 China Auto Industry Development Report, which is issued jointly by the Industrial Economics Research Department of the State Council Development Research Center, Society of Automotive Engineers of China and Volkswagen Group (China), shows that in recent years, with the rapid development of China's automobile industry, automotive electronics products are applied more extensively, driving the scale of China's automotive electronics industry to continue expanding.
Statistics show that the sales of China's automotive electronics products in 2007 reached 121.57 billion yuan, up more than 40 percent year on year. It is estimated that in 2012, the scale of China's automotive electronics market will exceed 320 billion yuan. The rapid rise of the automotive electronics industry benefits from the continued growth of China's auto market. In 2009, the production and sales volume of automobiles in China was 13.79 million and 13.64 million respectively, and is estimated to be around 15 million respectively this year. On the other hand, the rapid rise of this industry also benefits from fiercer competition in the auto market and continuous upgrade of automotive products.
"Historically, every time when the automotive technology makes progress in recent 30 years, it's always accompanied by the application of automotive electronics technology. Electronics technology in a sense leads the direction and pace of technological progress of autos, and in the future, the competition in automotive technology will also be increasingly reflected in the competition in automotive electronic technology." Fu Yuwu, Vice Chairman and Secretary General of the Society of Automotive Engineers of China, said in an interview.
It is understood that currently, automotive electronics technology has been widely used in all aspects of cars, such as engine control, chassis control, body control, and fault diagnosis, as well as audio, communications and navigation. "In fact, in the cost of a complete vehicle, the proportion of electronic products will rise up increasingly." Ren Yong, Deputy General Manager of Dongfeng Nissan, show the reporter by calculating: "The cost of automotive electronics equipped for a 1.6 liter-below compact car takes up 15 percent of the total cost, middle and high-end cars 28 percent, and hybrid power cars 47 percent. The future automobiles are the smart ones that run on 4 wheels being driven by the computer. "
Compared to conventional vehicle, electric vehicle is a more important carrier of automotive electronics technology. According to relevant experts, in view of the future development, the automotive electronic technology will play an important role in matching and control technology of power system, management technology of vehicle power battery and other key technologies of electric vehicle. Automotive electronics products will take a larger proportion in the cost of such vehicles, and even more than twice that of traditional cars that are in the same level. This also shows that the development of new energy automotive industry will bring in a more promising market for automotive electronics industry.
Local enterprises are going ahead furiously
China's vast automotive electronics market has long attracted the attention of multinational automotive electronics giants. The Report shows that after nearly 20 years of development, Delphi and other automotive electronics giants have achieved local production, and has begun to establish an independent R&D system.
Closed automobile electronic products matching system is an important restriction for the growth of local automotive electronics industry. "As more than 70 percent of car products in China are produced by the joint ventures, the decision-making power of matching the car electronic products is held by the foreign party of these joint ventures firmly. With the long-term cooperative relations, foreign-invested automotive electronics component enterprises have early had the upper hand in domestic complete vehicle supporting," said Fu Yuwe.
It is thankful that despite of weak basic technology and insufficient accumulation, some domestic auto electronics enterprises are striving forward depending on domestic market and by strengthening independent research and development. For example, Dongfeng Electronics, Zhejiang Asia-Pacific and other enterprises have started to engage in the electronic products regarding automobile control through independent research and development and with existing cooperation relationships with complete vehicle companies; some new entrants, such as Foshan Sanshui Good Helper, Shenzhen Hang Sheng Electronics, have also gained the dominant position in domestic market gradually through focusing on the markets of automatic air-conditioning system, door and window control system, car entertainment system and GPS.
Relevant policy measures have also provided strong supports for the development of local automotive electronics enterprises. It is understood that as early as several years ago, China has begun to support the key projects of automotive electronics by using the special "Double-growth Plan" under the Electronic Information Industry Development Fund. Since 2003, there have been a lot of projects, including "China FAW Group Vehicle Satellite Positioning, Control and Navigation Systems" of Changchun FAW Qiming Information Technology Co., Ltd., that have been supported principally by the "Double-growth Plan" and made a series of encouraging results.
