National Press Release

BEIJING, June 20 /Xinhua-PRNewswire/ -- CCID Consulting, China's leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (HKSE: 8235.HK), recently released its article on China's automobile electronics market.

Automobile Industry Developing Rapidly

China's automobile industry developed rapidly in 2007. Auto production kept increasing, reaching nearly 9 million, up 22.6% over 2006.

    Table 1. The Output and Growth of China's Automobile, 2004-2007

                              2004          2005          2006       2007

    Automobile Output
    (10,000 Sets)            507.4         609.4         728.0      888.2
    Growth Rate              14.2%         20.1%         19.5%      22.0%

     Source: CCID Consulting, Jan. 2008

The market share of domestic automobiles reached 54.3% in 2007. Rapidly growing demand was the main driving force for the development of the automobile market. Increasing purchasing ability from private consumers will continue the rapid growth of the automobile market.

    Table 2. China's Car Output and Market Share, 2004-2007

                         2004           2005           2006           2007
    Car Output
    (10,000 Sets)       237.5          293.5          383.2          482.2
    Share               46.8%          48.2%          52.6%          54.3%

     Source: CCID Consulting, Jan. 2008

Automobile Electronics Market Growing Quickly

China's automobile electronics market is growing quickly due to the rapid development of the automobile industry and automobile products upgrading. The sales revenue of the automobile electronics market reached 121.57 billion Yuan, up more than 40% over 2006.

    Figure 1. Size and Growth of China's Auto Electronics Market, 2003-2007
    http://www.ccidconsulting.com/upload/13267.jpg

     Source: CCID Consulting, Jan. 2008

    The characteristics of China's automobile electronics market

    1. Popularization of Existing Products Being the Main Driving Force

More than a half of domestic cars, SUVs, MPVs have installed gearboxes, and more than 90% of cars are equipped with safety airbags. In addition, demands on vehicle body and vehicular electronics keep increasing. Popularization of such automobile electronics is the main driving force behind rapid market growth.

2. Proportion of Automobile Electronics in Total Cost Increasing

The electronics equipping proportion of domestic middle-end cars has approached advanced international levels. For example, JAC is releasing a car with a price of 120 thousand Yuan, which is equipped with almost all automobile electronics.

3. Popularization of Automobile Electronics Benefiting from Mature Products and Technologies

Popularization of automobile electronics depends on market demand. Hence, popularization of automobile electronics is benefiting from mature products and technologies.

In the application structure, power control and chassis control & safety systems are the main automobile electronics, taking a share of 31.7% and 27.0%, respectively. Besides, the market share of onboard electronics has increased due to the popularization of audio products and portable GPS products.

Figure 2. The Application Structure of China's Automobile Electronics Market in 2007

    http://www.ccidconsulting.com/upload/13268.jpg

     Source: CCID Consulting, Jan. 2008

In products structure, EMS still takes the largest market share, although it has been decreasing in recent years. The market share of ABS and safety airbag products and audio products has also decreased slightly. The market share of the rest of automobile electronics has kept increasing, taking a market share of nearly 20%.

    Figure 3. Products Structure of China's Automobile Electronics Market
    http://www.ccidconsulting.com/upload/13269.jpg

     Source: CCID Consulting, Jan. 2008

Domestic Automobile Electronics Industry Rising, and Supply and Demand Tending to be Balanced

China's automobile electronics industry has shown following features in recent years:

1. Industry transfer synchronizes with development of the domestic automobile industry, and the share of domestic automobile electronics keeps increasing. Abroad automobile brands begin to adjust the supply chain of automobile parts, components, and electronics to meet the request of localization. Besides, automobile manufacturers need more local providers to reduce costs due to a more competitive market. The share of domestic automobile electronics in domestic automobiles keeps increasing, especially for brands such as Volkswagen, GE, Toyota, Honda, and other brands that enter China's market earlier.

2. Some automobile electronics tend to be export oriented. China's automobile electronics industry started relatively late. However, some automobile electronics, such as audios, air conditioning, car security, portable GPS, and other products with lower technology levels develop rapidly, along with the development of the domestic automobile manufacturers. The sales revenue of car audios, GPS, and securities reached 12 million, 8 million, and 11 million, respectively. It is possible China will be one of the main automobile electronics production bases in the near future.

About CCID Consulting

CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: 8235.HK), is directly affiliated with China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu, with over 300 professional consultants after many years of development. The company's business scope has covered over 200 large and medium-sized cities in China.

Based on major areas of competitiveness: industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrading, development strategy and planning, marketing strategy and research, HR management, IT programming and management. CCID Consulting's customers range from industrial users in electronics, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to becoming the No. 1 advisor for enterprise management, the No. 1 consultancy for government decisions and the No. 1 brand for informatization consulting.

    For more information, please contact:

     Cynthia Liu
     Coordinating Manager
     CCID Consulting Co., Ltd.
     Tel:   +86-10-8855-9080
     Email: liuyan@ccidconsulting.com

SOURCE CCID Consulting Co., Ltd.