| 01-12-2006 Growing
sales and production drives demand for active and passive safety systems in China.
Increasing demand for auto vehicles has hiked vehicle production thereby
driving demand for active and passive safety systems to be equipped in passenger
vehicles. The penetration of antilock braking systems (ABS) and airbags systems
further aids the growth of this market. Increasing safety concerns are influencing
market growth to a certain extent, says the analyst of the study. Moreover, prices
of new technology active safety systems such as ABS, electronic stability control
(ESC), and tire pressure monitoring system (TPMS) have been showing a decreasing
trend, which is expected to make them more affordable for vehicle manufacturers
for use in a wider range of passenger vehicles.
Growing demand for safety
comfort, and competitive pricing to boost market revenues.
Despite decreasing
prices of new technology safety systems, the market is still in its growing stages.
The lack of knowledge in Chinese consumers about the importance and benefits of
safety systems hinders market growth to a certain extent. Since price is the key
competitive factor for vehicle manufacturers to sell their products, a majority
are using less expensive safety options to keep vehicle costs under control.
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