Automotive Lights. Essential sourcing intelligence for buyers

Transcription

1 Essential sourcing intelligence for buyers Guangdong Jiangsu Zhejiang China manufacturer profiles Detailed profiles of 36 suppliers with verified manufacturing and export credentials Product & price trends Prices and specifications of 75 top-selling export products Automotive lights supply centers Supply centers & market trends Coverage of leading and emerging supply centers, plus insight into capacity, output and R&D June 2008 US$445 wwwchinasourcingreportscom

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3 EXECUTIVE SUMMARY AUTOMOTIVE LIGHTS Supplier capability in China EXECUTIVE SUMMARY China s automotive lights export industry is on track for another strong year in 2008 This comes as export volume continues to rebound from the slump that hit the industry about four years ago Outbound shipments between January and April 2008 have exceeded 630 million units, representing a 3 percent increase over volume from the last four months of 2007 And while marginal when taken on its own, this figure already matches the growth rate for the whole of 2006 and indicates an increase of more than 30 percent year-on-year Companies are optimistic that export volume will continue to rise even amid high product prices, which have, in the past, driven the surge in revenue from outbound shipments Combined 2007 customs figures for lighting assemblies and filamenttype automotive bulbs, for example, indicate that sales soared nearly 62 percent as the average per-unit-value jumped 47 percent Under efforts to boost exports further, suppliers will be strengthening their presence in the North America and European markets Demand for aftermarket parts in both regions is expected to intensify as guidelines regarding the use of generic automotive lights in authorized repair centers relax The following are some of the key developments we see in China s automotive lights industry: Some companies will be enhancing their capability to manufacture according to OEM requirements and aligning operations with stringent standards such as ISO/TS Expansion into the OEM segment will provide suppliers with specifications of the latest and upcoming vehicles, spurring R&D, which relies heavily on trends in the automotive market Price adjustments in coming months will generally be slight despite the rising cost of key materials such as ABS and aluminum To keep price increases within 5 percent, companies will be lowering production costs Many suppliers will be doing so by minimizing losses caused by defects and material wastage Makers will be preparing for the anticipated rise in demand by boosting capacity, some by as much as 50 percent This report covers the main categories of vehicle lighting in China The Products & Prices section groups together head, tail and auxiliary lights under assembles, while halogen, HID and LED lamps are classified as automotive bulbs The section describes each category according to the materials and components used, which are the key factors determining product performance and pricing The Industry Overview discusses issues affecting production and exports, and the strategies suppliers are implementing in the face of these challenges In addition, this section describes the composition of the automotive lighting supplier base in China, and the key characteristics of small, midsize and large makers The various processes involved in manufacturing lighting assemblies and halogen, HID and LED bulbs are discussed here as well To remain consistent with the structure of the industry, more than 90 percent of the companies in this report are based in Guangdong, Zhejiang and Jiangsu, the centers of automotive lights production in China Details about each province s manufacturing and exporting industries are also discussed Nearly 90 percent of interviewed makers have direct exporting capability while the rest are trading companies In this report 17 in-depth company profiles 19 short company profiles 75 top-selling export products Supplier demographics Supplier survey Industry statistics & charts METHODOLOGY To produce this report, Global Sources surveyed a wide range of suppliers Rather than focus simply on high-profile makers, we compiled a representative sample of large, midsize and emerging manufacturers All profiled companies are export-oriented professional suppliers that may or may not be clients of Global Sources The selection of suppliers is designed to reflect the composition of the industry in China in terms of geographic spread, business type and company ownership For each company profile, our research teams interviewed senior executives and export managers who discussed their recent performance and provided price, R&D, production and export forecasts for the next 12 months The interviews were done in person, by phone or In each case, companies were required to answer specific questions designed to verify their manufacturing and export credentials, including their production and export statistics, and a breakdown of exports by product type and market Our production checklist details the product-specific manufacturing capabilities of each supplier All suppliers participated in a survey designed to provide insight into product and price trends, and challenges facing the industry in the next 12 months All survey questions are single choice Results were calculated based on the actual number of valid responses to each question wwwchinasourcingreportscom 3

4 CONTENTS CONTENTS INDUSTRY OVERVIEW 7 Supplier summary Export statistics Main production centers Supplier demographics Products & prices 12 Production & exports Price guides Top exporters Supplier survey 16 Export prices, export sales, major challenges, target markets, capacity expansion plans, product trends, efficiency, capability SUPPLIER PROFILES 19 Supplier locations Industry composition Top 20 exporters Supplier matrix Production checklist Supplier profiles PRODUCT GALLERY 73 Top-selling export products SUPPLIER CONTACT DETAILS 89 Copyright 2008 Trade Media Limited All rights reserved Reproduction in whole or in part in any form or medium without express written permission of Trade Media Holdings Limited and Trade Media Limited is prohibited Published by Publishers Representatives Limited (on behalf of Trade Media Limited) PO Box 219 GT, Strathvale House, North Church Street, George Town, Grand Cayman, Cayman Islands c/o 22/F Vita Tower, 29 Wong Chuk Hang Road, Aberdeen, Hong Kong Printed in Singapore ISBN Disclaimer: Any recommendation contained in this report may not be suitable for all investors or businesses Moreover, although the information contained in this report is obtained from sources believed to be reasonably reliable, the accuracy or completeness of such information cannot be guaranteed The author and the publisher of this report (and the publisher s affiliates, agents, sales representatives and service contractors) do not make any representation or warranty whatsoever (whether express or implied) in relation to any of the contents of this report (including any information, opinion, recommendation or conclusion contained in this report) (collectively, Contents ), whether as to the accuracy, completeness, quality, fitness, suitability or reliability of such Contents (or any portion thereof ) or otherwise, and shall not be liable under any circumstances whatsoever for any error, omission, defect or deficiency in, or for any use of or reliance on, such Contents (or any portion thereof) All product images are provided by the companies interviewed and are for reference purposes only Those product images featuring products with trademarks, brand names or logos are not intended for sale Products that are not the specific topics of editorial articles are shown for illustrative and/or demonstrative purposes only We, our affiliates, and our affiliates respective directors, officers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof) which infringe on any intellectual property or other rights of a third party 4 China Sourcing Reports

5 INDUSTRY OVERVIEW INDUSTRY OVERVIEW OEM capability among automotive light suppliers in China is expanding as intensifying competition squeezes profit margins in the aftermarket and domestic carmakers strengthen their presence within the country and overseas Companies entering the OEM segment are hoping to boost recognition of their brands in the replacement market This is because solid OEM capability enhances the overall image of a company and customers perception of the quality of its products In addition, expansion into this segment is advantageous in terms of R&D as suppliers will have easy access to the specifications of new and upcoming vehicles At present, about 20 percent of automotive lights suppliers in China can create designs in-house based only on various vehicle parameters Most of these companies are large locally owned or foreign-invested manufacturers that have their own R&D centers and spend more than $1 million annually on product development A few are midsize makers investing $500,000 to $1 million a year and have 10 to 20- member research teams Large and midsize suppliers usually adopt CAD, CAM, CAE, UG, Pro/E, Moldflow, CAXA and ASAP software in design work Molds are produced using CNC machines, 3-D coordinate measuring centers and deep-hole boring and low-speed line cutting machines In contrast, small makers typically collaborate with clients for product parameters and technological support China suppliers of automotive lights need about three years to prepare for OEM production Most of this time will be spent boosting automation, strengthening R&D and aligning manufacturing systems with the ISO/ TS standard, a task that HID bulb maker CNLight estimates will require $7 million This substantial investment is prompting about 70 percent of the supplier base to remain focused on the aftermarket The dominance of foreigninvested joint ventures and stateowned enterprises in the sector is also discouraging the majority of makers in China from entering the OEM segment, even domestically This is because foreign companies already have long-term relationships with major vehicle manufacturers in and outside of China, creating a high barrier for new entrants Export update China s exports of automotive lights are still on the upswing According to customs figures for lighting assemblies and filament-type bulbs, the total value of shipments in 2007 soared by more than 60 percent to reach $476 million This is after the industry posted $295 million in export revenue in 2006 for 25 percent growth Trade statistics for January to April 2008 point to another strong year with exports climbing 16 percent from shipments in the last four months of 2007 Moreover, the latest figures, totaling $2195 million, are 90 percent higher than revenue between January and April 2007 High prices is the primary factor driving the increase in sales Quotes for lighting assemblies in particular have gone up by an average 45 percent in each of the past two years and are still rising In fact, the line s average per unit value of $241 in January to April 2008 is 66 percent higher year-on-year Suppliers are projecting that prices will remain in an upturn as the cost of materials, especially ABS and aluminum alloy, remain high Even so, companies are optimistic of further growth Export volume, although not rising as rapidly as value, has actually recovered from a two-year slump After a marginal 3 percent increase in 2006, the combined Supplier summary Suppliers surveyed 36 Export sales $2001mn Export ratio 65% OEM business 56% Capacity utilized 85% Annual R&D spending $555mn Full-time employees 15,671 Data: All surveyed suppliers volume of lighting assemblies and filament-type bulbs rose 11 percent the following year In addition, exports in the first four months of 2008 have already exceeded 630 million units Shipments to North America and the EU will continue to increase as policies regarding the use of generic repair and replacement parts become more favorable The two regions absorb onethird of China s automotive lighting exports, with shipments growing by more than 10 percent in the past several years Many companies consider the EU as their primary target market This is because more dealers, repair bays and insurance companies there are taking advantage of the Block Exemption Regulation 1400/2002/EU to adopt competitively priced aftermarket parts The BER is designed to promote competition in vehicle sales and the provision of aftersales services and parts It allows authorized dealers and repair service centers of vehicle makers in the EU to procure spare parts and components of equal or superior quality from independent or non-oem suppliers This creates opportunities for independent parts distributors and consequently allows China makers of aftermarket products to expand their customer base in the region Projections of stronger demand from the US are being fueled by the fact that more insurance companies there are allowing the use of aftermarket parts for collision repairs The US currently accounts wwwchinasourcingreportscom 7

6 SUPPLIER PROFILES 911 (Ningbo) Safety Signal Equipment Co Ltd Known formerly as China Self Photoelectron Technology Co Ltd, 911 specializes in auxiliary lights such as warning and signal lamps that bear the E-Mark and are CE-certified In 2007, total sales amounted to $3 million, 93 percent of which came from exports Revenue is expected to grow by more than 60 percent this year More than 100 models of auxiliary lights designed for police cars, ambulances, and firefighting and road maintenance vehicles are available Products are fitted with three to 256 high-power LEDs sourced mainly from Cree, Inc and Philips Lumileds Lighting Co of the US, and Taiwan s Everlight Electronics Co Ltd Models have aluminum alloy housings, PC covers and PMMA lenses On average, service life is about 50,000 hours Models come with a five-year warranty and meet GB and SAE J595 standards Production is done in the 5,000sqm factory with a mold-making workshop that houses milling and punching machines, lathes and WEDMs It also has six lines for PCB and final assembly Products undergo vibration, high/low temperature, humidity, rainwater and candlepower distribution curve tests to ensure quality 911 invests $100,000 in product development annually It has nine R&D personnel who create samples in three to seven days for models with e xisting designs Those that require new molds may be completed within six weeks The company has six customer service employees who respond to buyers inquiries within 24 hours Five representatives in the US handle orders there To keep abreast of the trends and explore more markets, 911 will attend the Hong Kong Electronics Fair in October 2008 and the Exhibition on Police Technology & Equipment in Munich, Germany in April 2009 Production units/mth Sales Capacity Output Exports $mn/year Total sales Sales (automotive lights) Exports (automotive lights) 100,000 60,000 56, Profile Company facts Year established 2002 Business type Manufacturer Company ownership Mainland China-owned Head office location Ningbo (Zhejiang) Factory location(s) Ningbo (Zhejiang) Total factory area 5,000sqm No of full-time employees 100 Annual sales (all products) $30mn Annual R&D spending $010mn ISO certification Yes Sales & output: Automotive lights Annual sales $30mn Share of total sales 100% Annual export sales $28mn Total monthly capacity 100,000 units Average monthly output 60,000 units Capacity utilized 60% Average monthly exports 56,000 units Export ratio 93% OEM % of exports 60% ODM % of exports 30% OBM % of exports 10% Contact details Business contact CAI Susan Phone (86-574) Fax (86-574) sales@911signalcom sl-strobe@globalsourcescom URL www911signalcom wwwglobalsourcescom/sl-strobeco Address Chenpodu, Yinzhou, Ningbo, Zhejiang, China 26 China Sourcing Reports

7 SUPPLIER PROFILES Capability Popular export models Production checklist R&D/design staff 9 QC staff 6 Makes molds in-house Yes Leak test system Yes Die-casting machines Plastic-injection machines 4 Photometric testers 3 Auxiliary light Model Minimum order Packaging type Delivery time Indicated price F910 1 unit Buyer-specified 7 days Exports by product Headlights Taillights Auxiliary lights 100% Halogen bulbs HID bulbs LED bulbs Exports by market North America 65% European Union Europe (non-eu) 20% Asia/Pacific 10% Middle East Other 5% Outlook Export prices Increase Export price increase More than 15% Export sales Increase more than 20% Target market Europe (non-eu) Production capacity Increase more than 50% Major challenge Design copying/piracy Export capability Shorten design/development time Major product trend LED or HID lamp technology Description: Lightbar; aluminum alloy housing; PC cover; 150 1W LEDs; 160W output power; 12V input voltage; red, yellow, blue, white, green; 100,000 hours service life; SAE Auxiliary light Model Minimum order Packaging type Delivery time Indicated price F211 1 unit Color box 3 days Description: Dashboard light; ABS housing; PMMA lens; nine 1W LEDs; 12W output power; 12V input voltage; red, yellow, blue, white, green; 100,000 hours service life; SAE Auxiliary light Model Minimum order Packaging type Delivery time Indicated price F213 1 unit Buyer-specified 3 days Description: Strobe light; ABS housing; PMMA lens; aluminum alloy thermal conduction base; three 1W LEDs; 3W output power; 12 to 30V input voltage; red, yellow, blue, white, green; 100,000 hours service life; SAE Information not disclosed wwwchinasourcingreportscom 27

8 PRODUCT GALLERY PRODUCT GALLERY Head & taillights Congua Junhao (profile page 60) Model: JHZ014 Minimum order: 300 sets Packaging type: Carton Delivery time: 15 days Description: Headlights; ABS/AS housing; 35W output power; 12V input voltage; 3 to 5 years service life Congua Junhao (profile page 60) Model: JHB01 Minimum order: 300 sets Packaging type: Carton Delivery time: 15 days Description: Taillights; ABS/AS housing; 35W output power; 12V input voltage; 3 to 5 years service life Jucar (profile page 65) Model: FLS-07 Minimum order: 500 sets Packaging type: Carton Delivery time: 30 days Description: Headlight; PC housing; 3 years service life; for 4x4 vehicles Jucar (profile page 65) Model: LET-1/2 Minimum order: 500 sets Packaging type: Carton Delivery time: 30 days Description: Taillights; PC housing; 100,000 hours service life; water-resistant Ningbo Motor (profile page 46) Model: NM Minimum order: 200 sets Packaging type: Color box Delivery time: 30 days Description: Headlights; ABS housing; PC lens; 12V input; for Toyota Land Cruiser Shangyu Groupstar (profile page 50) Model: GS-LTLRARW Minimum order: 500 units Packaging type: Double blister Delivery time: 25 days Indicated price: $2500 Description: Taillight; UV-resistant PC lens; ABS housing; 12 LEDs; 30mA current; 10 to 30V input voltage; E-Mark Information not disclosed wwwchinasourcingreportscom 73

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