Selected articles on industrial development in emerging economies

China: SAIC promotes auto parts remanufacturing business

In 2009, SAIC mapped out the scope of products for pilot remanufacturing with engine and automatic transmission at the center, and enhanced synergy between its auto parts remanufacturing unit and auto makers. Several enterprises under the group are dedicated to auto parts remanufacturing.

CHINA ECONOMIC NET

Thailand exports rose the most in more than 18 years on auto parts

Thailand's exports rose the most in more than 18 years to surpass the record value set before the global financial crisis, adding to evidence of the economy's resilience to Europe's debt woes and domestic political unrest.

Bloomberg

China: GM sells steering unit to Chinese firm

REUTERS

India: Global auto parts companies ask suppliers to get India edge

Global auto component companies are talking their suppliers into setting up base in India in an attempt to fully leverage the low-cost advantage to cut operating costs and competitively price their products across markets.

The Economic Times

The Philippines can become a hub for auto parts

Automotive assemblers say the new Motor Vehicle Development Program (MVDP) will make the Philippines a major player in assembly in Asean and turn it into a hub for parts and components manufacturing.

Malaya Business Insight

China: Auto parts profits soar, but domestics lag in technology

The profit margin of China's car industry doubled in 2009 to reach 9 percent, the largest in the world, according to a report by US consulting firm AlixPartners. The report is based on surveys of 50 major domestic auto part producers.

Alibaba.com

India: Local auto component makers face China threat

Indian auto parts suppliers, struggling to meet a surge in demand due to capacity constraints, are ceding ground to aggressive Chinese suppliers. Some fear this may be permanent.

livemint.com / Wall Street Journal

India: Tata may source auto parts from Bangladesh

Auto giant Tata Motors has indicated interest in sourcing auto components from Bangladesh. According to Nitol Motors, Tata's local business partner, a technical team from Tata will carry out a survey within the next two months for assessing the possibility of manufacturing auto components in Bangladesh.

The Economic Times

India: China factor makes auto parts makers see red

According to The Automotive Component Manufacturers Association of India, imports of components from China has registered a 97 per cent compounded annual growth rate over the past seven years. The reason is simple: The 12,000-odd auto parts companies in China are far more competitive than the 5,000-plus companies in India due to several factors, including lower wages, steel price, power tariffs and taxes.

Business Standard

Thailand: FTAs force closures of auto-parts firms

Local auto-parts manufacturers are being forced out of business by increased competition from free-trade agreements including the Asean Free Trade Area. Fewer than 10% of first-tier parts suppliers are wholly owned Thai companies at present compared with 80% a decade ago, according to the Thai Auto-Parts Manufacturers Association. 'The only advantage of the Thai auto-parts industry is skilled labour; the country lacks raw materials and technological know-how.'

Bangkok Post

China: Ningbo auto-parts industry soars on strong auto demand

At the end of 2008 the city of Ningbo, in Zhejiang Province, had 624 auto-parts companies with 89,112 employees. Compared with a year earlier, these figures represented increases of 73 and 11,069, respectively.

CENS.com

China sets sights on expanding auto-parts exports globally

Where car sales boom so will the auto-parts segment. Such truism was played out in China in 2009 with its auto-parts makers posting a banner year, thanks to the official subsidies that drove up new car sales and hence also fueling downstream demand for auto-parts. Sales not only surged in China, but also in North America and Europe where markets started to rebound mid-summer.

CENS.com

China: Share of Chinese auto-parts in Indian market to reach USD 6.85 bn

The share of auto parts imported from China in the Indian market is expected to increase by 12-fold to USD 6.85 billion by 2012-13. According to an industry chamber report, 'The import of auto parts from China have been rising at an alarming rate of 88 per cent annually; at this growth rate, the Chinese share in the Indian auto parts market would increase from 2.7 per cent to 15.6 per cent by 2012-13'.

The Economic Times

Thailand: Auto parts industry to benefit hugely from AFTA

Thailand is set to benefit tremendously from the elimination of import duties on automobiles and parts under the Asean Free Trade Area scheme.

THE NATION

India: Global auto parts makers eye Pune

Several global auto-component manufacturers are looking at Pune as part of their India plan even as the domestic auto-component industry in the region continues to reel under recession. According to principals, there is a strong focus on the localisation of parts, resulting in the cost advantage to customers.

DNA

Thailand: Asean integration aids parts makers

Asean integration should help not hinder Thai auto parts makers but the government needs to quickly clear hurdles to growth, according to industry executives. The government needs to accelerate revamping the tax structure and allow the establishment of an upstream steel facility to ensure the competitiveness of local parts makers down the road.

Bangkok Post

China: Structural adjustment needed in domestic auto parts sector

The progress of parts and components and the development of complete car enterprises are complementary to each other. According to insiders, 'Powerful domestic brands of complete cars will not exist without strong domestic brands of parts and components'. Only domestic parts and components suppliers can achieve the localization needed for Chinese autos to become internationally competitive.

China Economic Net

India: Auto parts makers go slow on expansion

Leading component makers are cautious about committing huge investments for capacity expansions in the face of growing uncertainty over EU emission norms and a possible hike in excise duty on cars. This careful stance by component makers is mainly due to fears that they could be stuck with large liabilities as the government hasn’t yet upgraded refineries to supply eco-friendly fuel.

The Economic Times

India: Ruia takes over troubled German auto parts maker Henniges

The Ruia group, which controls Dunlop Tyres India and Jessop, announced yesterday that it has acquired the assets of bankrupt German auto parts maker Henniges Automotive Grefrath. Henniges had gone into liquidation in 2008 during the global economic crisis.

domain-b.com

India: Auto component companies eye global Detroit's distressed assets

A management team from Delhi-based auto component supplier, Krishna Maruti, is to meet up with Thyssen and BMW to explore the possibility of acquiring their distressed assets. The move marks a growing trend of Indian auto component majors looking at picking up distressed assets of international automakers and ancillary makers. The focus is to access low-cost global manufacturing capabilities and strengthen domestic capacities in a market, which is swiftly getting globalised.

The Economic Times

Malaysia: High-powered auto parts suppliers visiting Germany, France

A high-powered marketing mission of Malaysian suppliers of auto parts and components will be in Germany and France to scout for business prospects, as more and more European car manufacturers seek foreign Original Equipment Manufacturers (OEMs) and Original Design Manufacturers (ODMs).

MYsinchew.com

China: Auto parts makers on the upswing

Several automakers have shifted their purchase and production patterns recently, greatly benefiting the domestic parts industry. 'Ten years ago, we used to source most parts, especially those with high technical difficulties, from foreign auto parts suppliers appointed by Chrysler's headquarters in the US', said Zeng Shuxiang, General Manager of NEA Purchasing Chrysler Northeast Asia Region. 'But things are quite different now. More than 50 percent of parts are bought in China including some key parts such as engines, steering boxes and electronic components', he added.

Alibaba.com

Malaysia: Volkswagen group to make Malaysia auto parts sourcing hub

German auto giant and Europe's largest car maker, Volkswagen Group, is looking at Malaysia as its sourcing hub for auto components in the region to fulfill its worldwide production.

Business Standard

India: Fiat to source components worth USD 1 billion from India

The Fiat Group based in India plans to source auto components worth USD 1 billion from domestic auto ancillaries in 2010. About 70 per cent of the outsourced parts will be solely for the Fiat Group's multiple operations in India.

Business Standard

China drops 25% tax on imported automobile parts

China will abolish the 25 percent tax slapped on some imported automotive parts in accordance with a World Trade Organization (WTO) decision that found the country was in violation of international trade rules. The current policy, implemented in April 2005, assessed a 25 percent tax on imported parts if the number or value of imported parts used in an assembled vehicle exceeded the threshold, which was 60 percent.

Alibaba.com

Chinese auto parts firms could be next global giants

Chinese auto part suppliers, along with the largest global European suppliers, are considered most likely to buy economically-distressed competitors to form giant global companies, according to a new study. Companies on the global top-ten buyer list include Weichai Power Company, a state-owned diesel-engine manufacturer in Weifang, China, and automobile manufacturer Guangzhou Automobile Industry Group, a highly profitable company with 51 per cent government ownership.

CanadianDriver

India: European market revives auto parts business

Indian automotive component makers are getting back into top gear, with European car companies showing a demand revival. They either supply parts to car makers in Europe or to Indian manufacturers for exports there, and have recorded a steady rise of 10-12 per cent in demand during the past two-three months.

Business Standard

Mexico: Canadia firms developing closer ties to Mexico auto parts sector

Developing service centre and engineering relationships in Mexico's fast-growing automotive sector will help solidify the future of Windsor companies and preserve high-tech tool, die and mold-making jobs across the region, said the president of Platinum Tool Technologies.

The Windsor Star

India: Auto parts exporters feel heat

Contraction in automobile sales across Europe and the US has put brakes on the growth of exports of auto components from India that have ended near flat in fiscal 2008-09 after witnessing an over 20% CAGR since 2003.

The Times of India

China: Shandong plans auto behemoth

Three auto parts makers, including a leading engine maker and an earthmover manufacturer, will merge to create an industrial conglomerate in Shandong province with sales projected to exceed 100 billion yuan by 2012, the latest industry consolidation move in China's fragmented auto sector.

Chinadaily.com.cn

2009-05-26

Malaysia hints it may not protect local carmakers in new auto policy

Malaysia removes rules that protect its auto industry from foreign competition. According to Deputy Prime Minister Muhyiddin Yassin, the government hopes to boost investment in the industry. "The automotive industry needs to be energized and revitalized. It cannot continue to depend for too long on government protection. The industry must focus on operations and cost efficiency to reduce cost, increase productivity and sell more through innovative marketing strategies."

Los Angeles Times

Taiwan: No easy ride for China carmakers

In a long-shot bid to become global brands, China's automakers want better technology. Taiwan's advanced auto parts suppliers want further inroads into China's auto market, now the world's biggest. Now that China and Taiwan are drawing closer in their economic embrace, is this a match made in heaven?  Taiwan's Big Three auto parts suppliers — Tong Yang Industry, TYC Brother Industrial and Depo Auto Parts Industrial — are all family-controlled. That means they will not easily cede control or direct stakes to mainland investors, particularly as they already have various joint ventures with mainland automakers.

Forbes.com

India: Auto parts makers to see January-March sales and profits fall

India's auto parts firms will see revenues and earnings falling in the January-March quarter, hurt by slowing demand at home and a bleak overseas market. Broadly, the sector is expected to deliver muted earnings owing to exagerated losses in some of the medium to small ancillary companies, according to a report.

REUTERS INDIA

China takes strategic approach to boost auto and parts exports

China is well established as an auto parts supplier to the world, and its exports of parts and complete automobiles as well soared by 20% last year despite a slowdown in the fourth quarter. China's strategy is for rising exports of whole cars to bring a corresponding increase in shipments of original equipment manufacturer (OEM) parts, which are generally made with a higher level of manufacturing skills than those needed for AM parts. To help foreign buyers save on customs tariffs, Chinese automakers encourage them to purchase auto parts and then assemble them into whole cars in their own home countries.

CENS.com

Taiwan: Auto-parts makers in Taiwan look for calm amid global storm

For Taiwan's auto parts makers, the silver lining in the global economic meltdown could be a redoubled effort by automakers to cut costs, a trend that Taiwan's low-cost, high-quality suppliers are well poised to capitalize on. The outlook seems especially promising in the OE segment. Only about 20% of the locally made auto parts are destined for the OE market, but that ratio has been growing in recent years as producers improve quality and keep prices competitive, qualities that have endeared made-in-Taiwan parts among cost-cutting automakers and tier-one parts suppliers in Europe and the U.S.

CENS.com

India: Auto comp firms to post single-digit growth first time in 10 years

Liquidity crunch, inventory piling up and re-scheduled export orders have taken the sheen off the auto component industry. For the first time in a decade, the sector is expected to clock a single-digit growth or could even register a fall in earnings, with Auto Component Manufacturers Association (Acma) projecting a 6% growth in turnover and 5.5% in export earnings during 2008-09 against 20% and 24% respectively in previous years.

The Economic Times

China: Auto-parts sector in Zhejiang set to weather global slump

Nobody in the auto parts sector worldwide can escape the impact from the global recession. The auto parts sector in Zhejiang Province, China`s foremost production base as well as the largest auto-parts exporter, has also been battered, but fared modestly better than the national figure: exports advanced 34% to USD 2.9 billion in the first three quarters of 2008.

CENS.com

Thai auto, auto parts producers seek government assistance

As Thailand's automobile production and sales are expected to retreat sharply this year due to the global economic slump, four domestic auto and parts institutions has sought government assistance.

MCOT.net

India: Crisil downgrades auto parts companies

Weak demand from vehicle manufacturers coupled with a slump in exports has deteriorated the credit quality of auto component manufacturers in the country. The downgrade comes at a time when component suppliers have sought to cut costs and reduce capital spending to cope with pressure. However, these measures are unlikely to yield results quickly enough to offset the impact on credit quality.

Business Standard

Thailand: 40,000 auto parts jobs face the axe

Up to 40,000 workers in the auto parts industry are at risk of losing jobs as car assembly production dropped by an estimated 40% this month, according to the Industry Ministry.

Bangkok Post

2009-01-15

China: R&D investment to help parts suppliers tide over the crisis

China's auto parts industry is facing tough challenges as the economic downturn puts the brakes to the country's automobile sales growth. This will add to the list of problems the sector already has to deal with, such as industry fragmentation, limited export channels and poor R&D capacities.

People's Daily Online

2009-01-12

Indonesian tyre-makers see flat 2009 output

Indonesia's car tyre production may be weaker than initially expected in 2009 as global economic weakness cools demand for automobiles. Production may this year stay unchanged at 41 million units, according to the Indonesian Tyre Producers Association (APBI).

REUTERS