According to a GlobalSources.com report, Chinese cabling harnesses businesses are upping their R&D efforts to deliver a high product performance-to-price ratio in order to help them compete with international players operating in the country’s lucrative automotive sector.
The growth of automobile production in China has been spectacular.
Since the 1990s development has been rapid and China is now the world’s largest production base.
Last year, the country produced 18.4 million units, according to the China Association of Automobile Manufacturers.
Wiring harnesses are a key part of automotive production and the supply of consumable materials, connectors, cable and relays.
According to GlobalSources.com, Chinese makers of cabling harnesses are looking to enter the supply chain of global automotive firms, such as Kunshan Huguang, that are operating in the country.
Localized firms are finding they are able to acquire a foothold in the giant market thanks to the expanding application base, driven by the growing popularity of hybrid and electric vehicles.
However, this is offset by the presence of major firms in the entry and mid-level brackets, in accordance with the piece.
“At present, domestic enterprises concentrate on commercial vehicles such as trucks and coaches, and the maintenance and repair service industry,” the report said.
“Some, however, have begun supplying wire harnesses to China’s car brands, including Chery, Geely, BYD and JAC.”
“To broaden this market base, manufacturers are directing future development efforts toward integrated modular production to keep up with changes in automotive engineering and realise a shorter turnaround time.”
China’s wire harness sector
About 300 firms make up China’s automotive wire harness sector, GlobalSources.com stated, located in the Yangtze River and Pearl River Delta regions – where the majority of car-makers are also based.
“The HB Group, Kunshan Huguang, Nantong Unistar, JAC Xinfa and Brilliance Taian are the key players,” the report said.