Auto Ancillary Market in China 2011

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Auto Ancillary Market - China
August 2011
2
Market Overview
Foreign Trade
Drivers Challenges
Trends
Government Regulations
Competition
Key Takeaways
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AUTO ANCILLARY MARKET IN CHINA 2011.PPT
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Executive Summary
? Auto Ancillary market is highly fragmented with
the presence of a manufacturers
? Of the a manufactures b are private
enterprises and c are joint venture entities or
wholly
owned foreign enterprises?Market has grown at d
between 2005 and 2010
Market
Drivers
Challenges
?Increasing income?Rising auto sales
?Weak Research Development Capabilities
Drivers Challenges
?Under-penetrated market?Cost Advantage
?Safety Reputation
?Players facing profitability issues
?Opportunity in auto aftermarket
?Rising competition in spare parts market
?Trade Fairs and Exhibitions?Players making
inroads to India?Merger and Acquisitions? PE
Investments
Trends
? Auto ancillary market is a diversified sector
with the presence of many players with a wide
rangeof products
Competition ? Major players in the industry
include Player 1, Player 2, Player 3, Player 4
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AUTO ANCILLARY MARKET IN CHINA 2011.PPT
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Auto ancillary market is growing at an impressive
rate
supported by strong demand from OEMs
Overview - Auto Ancillary Market
Market Size Growth
Auto Ancillary market is highly fragmented with
the presence of a registered enterprises and e
USD bn
unregistered companies
300 d
ag
? Most of the registered manufacturers are g or h
sized enterprises
200
afae
? Of the a manufactures b are private
enterprises and c
ad
ac
are joint venture entities or wholly owned
foreignenterprises
100 ab
It derives i of demand from the OEMs and the
rest from aftermarket
0
20--
20-- 20-- 20-- 20-- 20--
Market Segmentation
USD bn
e an
600
amal
Product 1 Product 2
400
aj akai
ag
200
Product 3
0
20--
20--e 20--e 20--e 20--e 20--e 20--e
Product 4
Product 5
Source
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AUTO ANCILLARY MARKET IN CHINA 2011.PPT
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Absolute value of exports of auto parts from
China is much
bigger than imports to China
Export - Overview
Continent-wise exports
USD bn
t bd bc
40
Continent 1Continent 2Continent 3Continent
4Continent 5Continent 6
Country 1, Country 2, Country 3, Country
4accounts for z, y,x
N
30
ba
M
20
vI5 u
and 3, respectively, of total exports
10
o
0
20--
20--
20--
Import - Overview
Continent-wise imports
USD bn
q ceca cd
20
Major countries fromwhere China imports are
Continent 1Continent 2
15
WS
Country 5, accountingfor q of total imports,
10
T Continent 3
Country 6, accountingfor p of total imports
5
and Country 7
0
accounting for r of total imports
20-- 20--
20--
Source
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AUTO ANCILLARY MARKET IN CHINA 2011.PPT
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Market Overview
Foreign Trade
Drivers Challenges
Trends
Government Regulations
Competition
Key Takeaways
6
AUTO ANCILLARY MARKET IN CHINA 2011.PPT
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Drivers Challenges - Summary
Drivers
Challenges
Increasing income
Weak Research Development Capabilities
Rising auto sales
Safety Reputation Issues
Under-penetrated market
Depleting Profit Margins
Cost Advantage
Opportunity in auto aftermarket
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AUTO ANCILLARY MARKET IN CHINA 2011.PPT
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Trends - Summary
Trade Fairs and Exhibitions
Rising Competition in Spare Parts Market
Players Making Inroads to India
KeyTrends
Mergers and Acquisitions
Private Equity Investments
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AUTO ANCILLARY MARKET IN CHINA 2011.PPT
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SAMPLE
Product Portfolio Matrix
Key Players
Company
Ownership
Product Portfolio
Company 1
Type 1
Product 1, 2,3,4
Company 2
Type 2
Product 1, 2,3,4
Company 3
Type 3
Product 1, 2,3,4
Company 4
Type 2
Product 1, 2,3,4
Company 5
Type 3
Product 1, 2,3,4
Company 6
Type 1
Product 1, 2,3,4
Company 7
Type 2
Product 1, 2,3,4
Company 8
Type 3
Product 1, 2,3,4
Company 9
Type 2
Product 1, 2,3,4
Company 10
Type 1
Product 1, 2,3,4
Company 11
Type 3
Product 1, 2,3,4
Company 12
Type 1
Product 1, 2,3,4
Company 13
Type 2
Product 1, 2,3,4
Company 14
Type 3
Product 1, 2,3,4
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AUTO ANCILLARY MARKET IN CHINA 2011.PPT
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Players are strategizing to overcome the
challenges and to
take advantages of the pool of opportunities
available
Auto parts market is witnessing significant
opportunities while trying to overcome the
challenges by taking key initiatives
Opportunities in the market
Market Size
Initiatives by players
Disposable income isrising at an impressiverate
which is providingroom for people to buy
USD bn USD bn 15
am
Players are takingsteps to upgrade thequality
of their
32 ag al
ak
af ai aj
ad ae ag ah
ab ac
products in order toinnovate them
vehicles creating demandfor auto parts
20-- 20-- 20-- 20-- 20-- 20-- 20-- 20-- 20--20--20
-- 20--
20--
Companies in Chinaare forming jointventures and
Rising demand fromOEMs and replacementmarket is
providing apool of opportunity forthe companies
acquiring foreignfirms to improve
thetechnological
Challenges
standards of theproducts
Weak Research Development CapabilitiesSafety
Reputation Issues
Chinese auto part makersenjoy an edge over
costcompared to its peers inother nations. This
givesthem the power to keepthe prices low
Suppliers arevisiting expos to
Shrinking Profit Margins
form partnershipswith peers
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AUTO ANCILLARY MARKET IN CHINA 2011.PPT
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