28-12-2006 China's
auto part sector will see more overseas mergers and acquisitions in the years
ahead, as more local manufacturers eye overseas, insiders predicted.
Huaxiang
Group, one of the world's top 500 auto part companies, announced earlier this
month that it had acquired a subsidiary of the world's third largest auto part
maker Lawrence Automotive Interiors with 3.4 million pounds (USD6.69 million).
The deal enables the Zhejiang-based company to take over advanced technology
on making wood veneer and be a supplier of General Motors Corp's Cadillac, Saab
and PSA Peugeot Citroen.
China's auto part industry is facing the trend
of going global, said Chen Qiaoning, analyst with the TX Investment Consulting
Co, Ltd.
Wanxiang Group, the nation's biggest car components manufacturer,
was also reported to be holding talks with a view to buying Ford's assets in its
auto parts sector after failing to reach an agreement with Delphi earlier this
year.
A bulk of China's auto-part makers aim to become the leading part
supplier for the overseas brands, said Doctor Guoyan, with the China Automotive
Technology and Research Center.
Industry figures show world automobile
trade volume is expected to hit 1.2 trillion U.S. dollars in 2010, and up to 35
billion U.S. dollars will flow into China for auto part procurement.
During
the January-November period this year, China's auto production reached 6.59 million
units, a year-on-year increase of 27.92 %, while sal es grew by 25.49 % to 6.45
million units, statistics from the China Association of Automobile Manufacturers
(CAAM) show.
Official with the CAAM predicted the yearly sales will exceed
eight million in 2007.
Shen Ningwu, deputy secretary general of CAAM
warned that the auto-part industry should focus on technology innovation besides
cost-reduction to make sustainable development.
There should be more
products with higher added-value, he said.
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