Published on : Aug 07, 2015
Last year, China led the automotive market, ahead of U.S., Germany, and Japan, as they contributed more than the other countries. Almost one out of the four vehicles introduced last year, were produced by China. Automotive companies in China, along with other Western participants like China FAW Group and SAIC Motor Corporation, continue to be the backbone of the automotive market in China. However, contribution from domestic companies of China like Geely and Chery Automobile Co., cannot be overlooked. Constant growth of the Chinese companies has motivated the German suppliers to enter into the automotive market.
Just because of the success of the automotive market, many German suppliers have entered China. The automotive market of China has grown fast due to technological advancements. As far as use of complex technology is concerned, local manufacturers of China depend on the expertise from foreign suppliers for certain supplies.
German supplier KSPG presented a report on the total earnings of the company for previous year. The company, which deals into sales of Pierburg and Kolbenschmidt brands, collected $775 million in China, which is almost one quarter of the total earning for the year. KSPG focuses on China’s automotive market as per the area. KSPG depends on China for international orders, mainly for auto parts like slide bearings, pistons, and structural parts for chassis and car body.
German supplier Webasto depends on the China’s automotive market for supplies like roof systems and heating systems. Local Chinese automakers fulfill their needs by providing quality products with modern technology. By considering larger panorama roofs, Webasto is extending its roof system supplies. Webasto largely depend on the Chinese auto manufacturers for their sliding roofs supplies. China’s automotive market is growing fast as they are able to offer attractive automotive supplies to the local and international suppliers as well as the newbies. The role played by the Chinese government cannot be overlooked as they are supporting all auto manufacturers and suppliers to lead the global automotive market.