China's auto electronic industry draws overseas companies
(Xinhua)
Updated: 2004-10-15 01:21

With China's high profits and increasing individual purchasing power, international electronic and automobile giants have chosen to invest in China, one of the world's most promising automobile markets.

 "Auto electronic industry in China has shown the growth momentum of great leap forward," said Percy Lam, Asia General Manager for Motorola Energy Systems Group, "the country's industry has a huge room for expansion since auto electronics account for only 5.8 percent of a car's production costs, compared with the world's average 27.5 percent."

China's automotive market is changing from a seller's market to a buyer's one -- as individual purchasers demand greater comfort and safety features, Lam said at a lecture on China's auto electronic industry given at Qinghua University.

The country's booming auto electronics will increase its proportion in whole car costs by a growth rate of 21 percent in 2004, far above the 4.96 percent of the world's average, according to Lam's estimate.

Lam said the automobile electronics would be another focus of Motorola's business in China, together with broadband communication and digital clan.

Other overseas electronic or auto manufacturing companies such as Intel, Microsoft and Philips have also set up plants in China to produce auto electronic products.

Statistics from China Automotive Industry Association show the country 's total automotive output has reached 3.03 million from January to July in 2004, up 23.5 percent over the same period of last year.

Meanwhile, the Ministry of Information Industry predicted China 's car sales in 2005 will reach 1 trillion yuan (about 120 billion US dollars), of which about 250 billion to 300 billion yuan (30 billion to 36 billion US dollars) will be in automotive electronics.

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