Chinese Brake Market Booming

Mainland China is expected to ship US$1.4 billion worth of brake parts in 2006, up 30 percent from last year, according to Global Sources’ China Sourcing Report: Brake Parts.
The report indicates buyers sourcing brake parts from Mainland China can expect higher prices, wider product ranges and faster design/delivery times in the coming months.
These findings are based on in-depth manufacturer interviews, factory visits and surveys.
“About 80 percent of mainland China’s brake part exports are intended for the aftermarket,” said Global Sources’ general manager of Content Development Michael Kleist. “Less than 20 percent go into assembly lines due to the challenge of meeting stringent international certification requirements. In addition, most top carmakers already have long-standing relationships with established brake part manufacturers.”
Mainland China brake part makers are also increasing prices, and expanding product lines.
Kleist said: “Due to the higher cost of metal and oil-based raw materials, all surveyed makers said they expect to raise prices in the next 12 months. However, most plan to limit price increases to prevent losing market share in this fiercely competitive industry.” Among surveyed manufacturers:
5 percent expect to increase prices by over 15 percent; 3 percent plan increases of between 10 and 15 percent;62 percent expect increases of 5 to 10 percent; and 30 percent plan to raise prices by up to 5 percent.
Surveyed makers said they are working to improve capabilities in order to attract more overseas orders.
Among respondents: 41 percent said they are developing wider product ranges; 22 percent shortening delivery times;16 percent shortening design/development time;14 percent — improving staff training; and 7 percent obtaining certifications/approvals.
The 126-page China Sourcing Report: Brake Parts includes detailed profiles of 81 Mainland China manufacturers.
It features a product gallery with 192 top-selling brake part exports.
It also includes production and pricing forecasts as well as in-depth reports on major and emerging brake part supply centres in Mainland China.
Global Sources is a leading business-to-business (B2B) media company and a primary facilitator of two-way trade with Greater China.
The core business is facilitating trade from Greater China to the world, using a wide range of English-language media.
The other key business segment facilitates trade from the world to Greater China using Chinese-language media.