2013/05/02 Chinese Auto Systems Demand To Double To US$69.5B By 2020

Boston, MA - April 26, 2013 - In its analysis of the recent 2013 Auto Shanghai show, Strategy Analytics highlights the increasing availability of electronic features on newly launched models, from both foreign and Chinese auto makers.  Details are noted in the recent report, Shanghai 2013: Foreign Auto Makers and Suppliers Raising Their Profiles, Chinese Players Reposition Strategies. 
As the Chinese market matures further, the Chinese consumer is increasingly aware of the technologies and trends taking place in automotive.  While this raises demand levels for automotive electronics, foreign players ha
ve invested in local technical centers to gauge demand more accurately and develop products specifically to suit Chinese consumers and thus gain an advantage over rivals.  Foreign auto makers are no longer withholding features, such as ADAS (Advanced Driver Assistance Systems), from the Chinese market.  Concept vehicles specifically designed for the Chinese market were also previewed at the Show.

"These developments by foreign players, combined with increasing production capacity, means that competition will increase exponentially for Chinese auto makers," says Kevin Mak, analyst for the Automotive Electronics Service at Strategy Analytics.  "The response has been to discontinue unworkable car brands, such as Riich by Chery; raise R&D and design effort, by making their cars look less like imitations; redirect their powertrain focus from electric vehicles to more affordable hybrids and raise electronic features on their models, such as passive entry systems."

"As a result, global Tier 1 vendors are raising their product offerings to the Chinese market in an effort to assist Chinese auto maker strategies to remain competitive.  The Tier 1's will be important for the survival of indigenous auto makers since Ford, General Motors and the market leader, Volkswagen, have all recently announced expansion plans for the country," Mak added.