Chinese auto ancillary market set to explode: report

An India-based automotive consulting firm has released a new report documenting the dramatic rise of the auto ancillary market in China.

The report, by Netscribes (India) Pvt. Ltd., describes the auto ancillary market as “growing at an exceptional rate.”

It says the strong OE and aftermarket business there is generating huge demand for the auto ancillary products, and it predicts that the market is “expected to witness impressive growth over the next five years.”

The report, called “Auto Ancillary Market in China 2011,” begins with a market overview section which discusses the present and forecasted market size and growth. An analysis of the drivers influencing the industry growth includes rising income levels, rising auto sales, under-penetrated market, cost advantage, opportunity in the auto aftermarket. The key challenges identified include weak research and development issues, safety and reputation and players facing profitability issues.

The report covers the important rules and regulations and initiatives concerning the auto ancillary sector in China. It also illustrates the current market trends as auto parts manufacturers participating in trade fairs and expositions, players making inroads to India, mergers and acquisitions, PE investments and rising competition in spare parts market.

A “competition” section provides a product portfolio matrix of the players. The section also provides brief profiles of the major players which incorporates their financials and business highlights.