Mainland China is expected to ship US$1.4 billion worth of brake parts in 2006--up 30 percent from last year. 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. 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 Increasing Prices, Expanding Product Lines. 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% expect to increase prices by over 15%;
3% plan increases of between 10% and 15%;
62% expect increases of 5 to 10%; and 30% plan to raise prices by up to 5%.

Surveyed makers said they are working to improve capabilities in order to attract more overseas orders.

Among respondents:

41% said they are developing wider product ranges;
22% -- shortening delivery times;
16% -- shortening design/development time;
14% -- improving staff training; and
7% -- obtaining certifications/approvals.

Source:佚名