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Delphi to build new half-shaft plant

By Yu Qiao (China Daily)
Updated: 2006-12-22 14:02

Asked why Delphi is still investing in non-core businesses in China, he told China Daily: "Before any divestiture of our non-core businesses happens, we need to ensure an increase in their value and competitiveness, especially in growing markets like China."

Delphi have been performing "very well" in China in recent years with an annual sales growth of more than 30 per cent on average, he added.

Demand for spare parts in China is growing rapidly, boosted by strong vehicle sales.

Sales revenue in the spare parts sector surged by nearly one-third year-on-year to 325.2 billion yuan (US$41.6 billion) in the first three quarters of 2006, according to data from China Association of Automobile Manufacturers.

Meanwhile, the sector reported 19.9 billion yuan (US$2.5 billion) in profits, up 35.9 per cent year-on-year.

However, the sector is highly fragmented, with some 5,000 spare parts companies. All of world's major parts makers have built plants in the nation.

From January to November this year, sales of China-made vehicles grew by one-quarter to 6.45 million units.

Full-year sales are predicted to surpass 7 million units.