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10-07-2007
China
Auto parts market is witnessing a gradual boom.
Auto parts exports in China have witnessed a
more than six-fold increase in the last five
years from 2002-2006, almost touching $1 billion
in April 2007 and arising among the rapidly
growing category of Chinese industrial product
sold overseas. Over half of these auto parts
are exported to US followed by Europe and Japan.
The
increase in China's auto parts exports is an
aspect of a broader scenario. China is shifting
its focus from producing essential goods such
as shoes; textiles and toys towards producing
high-value industrialized goods as the production
of high-value goods provide better wages.
Rising
output levels at Chinese auto assembly plants
are generating a huge demand for auto parts
and creating the economies of large-scale production
which was earlier possible only in North America,
Europe and Japan. Chinese auto parts would soon
find a demand in overseas markets not just in
crates but also as part of fully assembled auto
vehicles as several Chinese automakers are planning
to export in the coming few years.
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