By David Reed, UT EditorNorwalk, Connecticut-The automotive components industry in the People's Republic of China grew at an average annual growth rate (AAGR) of 23.7 percent from 1995 to 2003 and, although the rate of growth is likely to moderate in the coming five years, international suppliers and manufacturers are worried, a recent report suggests.Chinese auto components consumption was estimated as $28, 800 million in 2004, according to Business Communications Company, Inc. (BCC), and this is set to more than double by 2009, reaching $58, 800 million, an AAGR of almost 15 percent, the research firm says. Some component sectors will grow at a higher pace, BCC continued, citing electrical systems, where growth is expected to be around 20 percent averaged over the whole period.Given the anticipated growth of the Chinese market, the country's low labour costs, and expected improvements in quality, there have been numerous press announcements regarding plans for greatly increased Chinese automotive components purchasing by global vehicle manufacturers and suppliers, BCC says. These claims, along with China's growing competitiveness, are generating rising concerns by worldwide suppliers and manufacturers, according to the consultancy group.The China Association of Automotive Manufacturers places automotive components into five categories-engine parts, chassis parts, automotive body, electrical systems and general parts-and each of these categories is set for solid growth, BCC continues (see Table below).As foreign vehicle makers stake their claims in China, so, too, have international components suppliers such as Delphi, Bridgestone and Bosch, the market research company says. Strong demand for vehicles in China has led to a corresponding increase in demand for automotive components. American and European components suppliers have been leading the charge, but with Japanese and South Korean car makers setting up recent joint ventures in China, more components players are expected, BCC concludes.The report, RGB-301, China's Role in World Auto Components Market, costs $3950, from BCC at: http://www.bccresearch.com/trans/GB301.htmlTable: Consumption of Chinese-made auto components by category, through 2009, ($ millions)Product 20042009 AAGR%. 2004-2009Engine parts 4,3208,68815.0Chassis parts 14,11227,56714.3Body parts 2,5924,85413.4Electrical systems3,7449,31620.0General parts 4,0327,57513.4Auto components28,80058,00015.0Source: BCC, Inc."
