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09-05-2007
SHENZHEN
Haitian Shikai Co Ltd's General Manager Wang
Yi is happy to talk about last year's business
performance.
The
auto parts maker's sales doubled to four million
yuan (US$519,000) last year on the strength
of more exports.
"We
expect revenue could rise another 50 percent
this year as overseas auto makers have more
interest in sourcing mainstream lineups because
the savings could be huge even on a single model,"
Wang said.
Haitian
Shikai, which produces compressors, evaporators,
condensers and expansion valves, is among the
growing number of domestic component makers
for small auto vehicles that are eager to grab
a bigger slice of booming auto parts exports.
Sourcing
parts made in China is a new trend for many
overseas auto makers after they shifted production
to developing countries when intensified market
competition and price increases for raw materials
started putting pressure on profits.
The
United States, the world's largest auto market,
imported US$6.9 billion worth of auto parts
from China last year, an increase of 28.1 percent
from 2005, according to the United States Department
of Commerce.
Meanwhile,
China's auto components exports soared 36.3
percent during the same period, surpassing the
total vehicle market's growth of 25 percent.
China
is one of the hottest sourcing destinations
not only due to its rapidly expanding vehicle
market, but also due to its huge market potential
and lower labor costs that may be as much as
30 percent.
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