Deep localization to help foreign parts occupy the market

The expansion of international component giants in the Chinese market is accelerating. On November 30, Bosch also opened its second production base in China in Qingdao National High-tech Industrial Development Zone. In the first half of this year, it also established an automotive electronics joint venture with Chery. Valeo, another European components giant, has set up 22 factories in China.

The multi-dimensional localization of international parts giants has promoted the quality improvement of independent brands. The 2012 China Automotive Performance, Operation and Design Study SM (APEAL) report, released by J.D.Power Asia Pacific on November 30, shows that in the past year. Independent brands have significantly narrowed the gap with international brands in terms of automobile charm index, especially in terms of driving performance and engine and transmission system progress deserves attention.

International component giants expanding in the Chinese market have a clear tendency to rely more and more heavily on the Chinese market. According to Mr.TimManganello, chairman and CEO of BorgWarner, in the past, 55% of BorgWarner's business came from Europe, and in recent years, due to the impact of the European debt crisis, the European business declined by about 8% last year.

The Chinese market is a different story. Despite the downturn in China's commercial vehicle market, which has led to a decline in the segment, overall sales growth remains high and BorgWarner will achieve record sales in China this year. Tan Yuesheng said.

Last year, BorgWarner's annual sales in China reached $500 million, which is completed by four branches in Dalian, Beijing, Shanghai and Ningbo. The Ningbo company was BorgWarner's first wholly owned company in China and quickly became the center of its business in the country. Mr.TimManganello said.

Borgwarner said that the next few years will significantly increase the investment in the Chinese market, Tan Yuisheng said: although the overall Chinese car market in the past two years into a slow growth period, but BorgWarner firmly believes that China has a huge market, BorgWarner is expected to achieve annual growth of 28% in China in the next five years.

Localization preference

In fact, BorgWarner in the first eight months of this year in the Chinese market growth of only 20%, Talk Yuesheng's expectations for the future is much higher than the current growth, its base from BorgWarner in the Chinese market localization strategy.

In October last year, BorgWarner signed a strategic cooperation agreement with Great Wall Motor, and its parts for Great Wall Motor have expanded from the case to the engine field and transmission field. Now our cooperation with Great Wall has involved all BorgWarner products. Tan Yuesheng said.

This all-encompassing collaboration stems from BorgWarner's initial low-profile cultivation. When Tan Yuesheng first arrived in China in 2003, many domestic automobile companies, including the Great Wall Company, made four-wheel drive models and SUVs, and the amount was very small, and almost no multinational companies were willing to support them.