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The Chinese Automotive Supplier Report

The Chinese Automotive Supplier Report

Price: $8750
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Publication Date: 08/06/2018

The outlook for vehicle production in China remains positive. Although demand will slowdown, it will still remain higher, when compared to other developed markets. IHS Markit expects domestic production to reach the 30 million unit mark by 2020. The main drivers will be shifting production to the non-traditional areas of production, to meet increasing demand from the inland provinces. As logistics costs remain high and pricing pressure continues with increased competition, carmakers will look to be closer to markets and produce vehicles better matched to consumer tastes. Although Chinese carmakers can meet price targets, it is the foreign carmakers or joint-ventures that can meet the quality and price mix even better.

About this Report

China has been an economic juggernaut, having posted strong double digit growth, with some dips, since the 1980s. It remains the second largest economy in the world, accounting for 14.9% of the global GDP, right behind the US. However, the Chinese economy is beginning to slow down and if the country wants to sustain medium-term GDP growth at above 6% per annum, it is going to have to continue its reform process, reduce debt, and increase productivity.

Back in 2012, the Chinese government vowed to double per capita income by 2020. According to the World Bank, per capita GDP in China increased from USD3,471 in 2008 to USD8,123 in 2016. Although income has increased markedly, China remains far behind countries it considers competitors, such as Japan (per capita income of USD38,894) and South Korea (USD27,539). One government objective was to rebalance the economy away from heavy reliance on exports and focus on internal consumption. However, with the economic slowdown now a reality, the Chinese leadership has rephrased this goal to focus instead on higher quality, long-term growth, with no specific numerical growth targets. It can be argued that without specific targets, the government has room to implement some of the much-needed economic, environmental, and financial reforms, which might negatively impact growth. But whether this materializes remains to be seen.

Macroeconomic Overview

Economic Review            
Economic Outlook           

Light Vehicle Sales Review & Outlook

Market review: developments and policies
Congestion and pollution regulation       
Road safety       
New entrants in the new energy vehicle (NEV) market    
Market Outlook               
Geography of demand  
Shifting tastes and prices             

Light Vehicle Production Review & Outlook

China car industry roots               
Overcapacity risk?           
Production outlook        
Evolving geography of Chinese car production    
Outlook for exports        

OEM Activity & Supplier Management

Changes in market structure       
Private Chinese carmakers          
Japanese carmakers       
Increasing OEM fragmentation  
Supplier base growing   
Domestic OEM sourcing               
Foreign OEM sourcing   
Automotive component imports & exports          

Recent Developments & Outlook for the Chinese Supply Base

Profitability under attack             
Supply base structure    
M&A activity     

Top-10 OEM Overview

Volkswagen (including FAW, SAIC and JAC)          
Changan (including Ford, Groupe PSA, Mazda, and Suzuki)
Dongfeng (including Honda, Renault-Nissan and PSA)     
SAIC Motor (including GM and VW)         
General Motors (including FAW and SAIC)            
Hyundai-Kia (including BAIC and Dongfeng)         
Beijing Automotive (including Daimler and Hyundai)        
Toyota
FAW (including GM, Mazda, Toyota and VW)      
Great Wall

From key trends affecting today’s business environment to forward-looking forecasts of future output, SupplierInsight provides the information you need to develop strategy for each of its services.

Staying abreast of automotive sector/topic-specific developments, trends, and competitive activity can be time-consuming. With many sources available, it is often difficult to find critical and reliable market information that stakeholders of the automotive industry need. Conducting business analysis, product, or market strategy assessments without validated market data is risky.

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Services coverage include:

  • Autonomous Driving
  • Infotainment
  • Services, Apps, and Software (SAS)
  • User Interface and Experience (UI/UX)
  • Lighting
  • Electrical/ Electronics
  • Interior Comfort and Passive Safety
  • Thermal Management
  • OEM Strategy
  • Materials and Lightweighting
  • Chassis
  • E-Mobility
  • Powertrain Component

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