The continued downturn in the European auto market and the continued growth of the Chinese auto market have prompted transnational auto parts companies to further increase their investments in China.
“We are concentrating resources to further expand Foglia’s scale in China. Last year, Faurecia opened 5 new factories in China and will add 5 factories each year for the next 4 years. Our master plan is until 2016. The number of factories in China will increase from the current 35 to 55.†Yan Desheng, president of the French spare parts company Foglia, told this reporter. Faurecia expects sales in China to reach 3.3 billion euros by 2016, which is more than double the 1.5 billion euros in 2012.
In 2012, Marelli's business turnover in China was less than 300 million Euros. Although it accounted for only 2.78% of its total global operating volume, its major global business growth was aimed at China in the future. "The European market has been declining, completely offsetting the growth of the US market. The rate of increase in the future will come mainly from China's Asia-Pacific market,†said Zheng Xiancong, president of Marelli China, who told the “First Financial Daily†reporter that his mission is to double Marelli’s sales in China in the next two to three years, quadrupling it within four years. It is hoped that in 2018, the turnover in China will reach 1 billion euros.
For the Chinese market, there are more than just Folgaria and Marelli which have such an ambition. German multinational auto parts companies, such as Bosch, Continental Auto and Delphi, which have taken root in the Chinese market, continue to invest in the Chinese market. Beno, president of French auto parts company Valeo China, expects to double its annual sales in China by 2015, and China will become its largest global market. In 2012, Valeo's sales in China exceeded 10 billion yuan, accounting for 10% of global sales.
With the technological upgrading of Chinese auto brand manufacturers and adapting to the rapidly changing consumer demand in the Chinese market, these multinational auto parts companies are far from enough to invest in building production bases in China. They also need to accelerate the progress of domestic R&D in China and the decision-making process. localization.
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