CCID Consulting: Current Status of China's Automotive Electronics Industry
With a rapid growth over the last decade, China's auto industry has become a leader in the world in terms of industry size, while in contrast, problems still abound in the automotive electronics industry in terms of its supporting capacity, overall structure and regional development.
China's automotive electronics industry is gaining strength.
In 2011, China's auto production volume topped the world automotive manufacturers for the third consecutive year to reach 18.419 million, accounting for 23.0% of the global total and surpassing the combined production of US and Japan.
Figure 1 Production Volume and Growth of China's Auto Industry, 2005-2011
Source: CCID Consulting, September 2012
The prosperity of China's auto industry directly contributed to the rapid rise of automotive electronics industry. Driven by the continued rapid growth of auto production volume, China's automotive electronics market size reached RMB266.1 billion in 2011, with a year-on-year growth of 21%.
Figure 2 Size and Growth Rate of China's Automotive Electronics Market, 2005-2011
Source: CCID Consulting, September 2012
The quick expansion of demand in the automotive market has not only accelerated the growth of a batch of private enterprises, but also attracted a lot of multinational companies to invest in China by establishing production and marketing centers here. However, the ratio of auto products equipped with electronic devices is still below the developed countries' average.
With the consumers' increasing demand for safety, comfort and entertainment of automobiles, electronic devices have begun to gain great attention. Various electronic control devices such as Onboard Diagnosis System (OBD), Electronic Stability Program (ESP), Global Position System (GPS) and Tire Pressure Monitoring System (TPMS) have become part of the standard configuration for high-end auto mobiles and are penetrating into middle and low-end automobiles.
In addition, the new energy auto industry has also poised itself for promoting the application of the Power Monitoring and Managing System and Motor Drive Control System.
With the gradual increase of electronic products equipped in each automobile, automotive electronics will account for a larger proportion of the auto manufacturing cost, further expanding the size of the automotive electronics market.
China's automotive electronics industry still features a low industrial agglomeration.
The low agglomeration level of China's automotive electronics industry has limited the growth potential of the market. Although most of China's automotive electronics manufacturers are collectively located adjacent to the auto manufacturers, they lack communication with each other and are confronted with fierce competition, making it difficult to achieve a scale effect. Meanwhile, the immature environment for innovations is also hindering the enhancement of the overall strength of China's automotive electronics industry.
About CCID Consulting Co., Ltd.
CCID Consulting Co., Ltd., the first Chinese consulting firm listed in the Growth Enterprise Market (GEM) of the Stock Exchange of Hong Kong (HKSE: 08235) and the first consulting firm which gets ISO 9001 international and national quality management system standard certification, is directly affiliated to China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Xi'an, Wuhan and Nanjing with over 300 professional consultants. The company's business scope has covered over 200 large and medium-sized cities in China. CCID Consulting provides customers with public policy establishment, industry competitiveness upgrade, development strategy and planning, marketing strategy and research, HR management, IT programming and management services, investment and financing, and M&A. The company's customers range from government departments at all levels and diversified industrial parks, to industrial users in strategic emerging industries in new generation information technology, energy saving and environmental protection, biological science and technology, high-end equipment manufacturing, new materials, and new energy. CCID Consulting commits itself to become the No. 1 advisor for urban economy, the No.1 consultancy for enterprise management, and the No. 1 branch for informatization consulting in China.