Issue: Oct 2011


Gateway to still accelerating Chinese market



by Clinton Wright

Asia’s largest trade fair for automotive parts, accessories, equipment and services continues to grow as it mirrors the expansion and diversification of the Chinese automotive market.

In 2010, China’s automobile market saw the highest ever annual sales in global history with 18.06 million vehicles registered. As a result, China’s automotive products market exceeded RMB500-billion (US$78-bn) in 2010. For 2011, the China Association of Automobile Manufacturers predicts that car sales in China will grow by 10%. Industry analysts expect the automotive product market to be worth RMB650-bn (US$102-bn) - and reach RMB1-trillion (US$157-bn) within three years. In addition, the automotive electronic products market is estimated to reach RMB240-bn (US$97-bn). with an annual growth of 26%. Automotive safety systems, car-care and maintenance services are predicted to witness an even bigger growth.

The Chinese government is taking green initiatives in its 12th five-year plan which involves investments of RMB4-trillion (US$470-bn) to support the development of nine industries, including alternative energy vehicles and environmentally friendly new materials. By 2012, automobile production in China is expected to exceed 20 million units, with alternative energy vehicles accounting for 10%, or more than two million units of total production. To encourage the use of green and sustainable vehicles in Beijing, the Vehicle and Vessel Tax Law has been revised. From January 1, 2012, electric vehicles, plug-in hybrids and fuel cell vehicles will be exempt from tax and conventional hybrids will also qualify for a 50% exemption.

In addition, the National Development and Reform Committee (NDRC) of China launched a pilot program to promote the country's automotive parts remanufacturing industry to help establish a sustainable economy. Included in the remanufacturing list are engines, transmissions, generators, starters, steering, compressors, oil pumps, water pumps and transmission shafts.

Much of the technology needed to drive this growth will be on show at Automechanika Shanghai 2011, which will run from December 7 to December 10 at the Shanghai New International Expo Center. The fair is expected to attract 3,600 exhibitors, which is 15% more than at the 2010 edition of Automechanika Shanghai. Having gained a strong foothold in the automotive industry, the 2010 show drew 50,561 visitors representing 130 countries and regions, an increase of 31% compare to 2009. 

Exhibitor numbers rose by 29% with 3,115 exhibiting companies from 27 countries and regions showcasing their latest automotive products and services in 138,000 square meters covering 11 permanent and six temporary halls. 

This year, the show has received strong support from the China Aftermarket Forum or CAF, an industry group consisting of Automotive Aftermarket Suppliers Association (AASA) and the Motor & Equipment Manufacturers Association (MEMA) members with operations in China.

Companies like Affinia, Arvin Meritor, Brembo, BorgWarner, Bosch, Continental VDO, ContiTech, Corghi, Dana, Dayco, Delphi, Febi Bilstein, Federal Mogul, Graco, ITW, Liqui Moly, Mahle, Mann+Hummel, NTN-SNR, Osram, Panasonic, PCL, Philips, Schaeffler, SPX, Stanley, TRW Automotive and ZF have confirmed their participation in Automechanika Shanghai 2011, according to the organizers. 

The vibrant automotive sector in China has seen numerous companies investing in the country. Recently, the Volkswagen Group received the go ahead for two more plants at Yizheng in Jiangsu Province in eastern China and Foshan in Guangdong Province in southern China. Each plant will have an annual capacity of 300,000 vehicles and production is due to start in 2013.

This year, Automechanika Shanghai will feature a new automotive accessories product hall to meet an increasing domestic demand resulting from the booming car sales in China. “Exhibitors will showcase their latest products ranging from vehicle electrics and electronics, car care and lubricants to decoratives and tuning. In addition, to help exhibitors explore the potential of the fast growing eco-friendly vehicle and renewable energy markets under the strong support from the Chinese government, this year’s show will set up remanufacturing and new energy vehicle product zones,” says Messe Frankfurt, the show organizers.

Automotive Industries (AI) asked Fiona Chiew, group manager, trade fairs, Automechanika, what makes Automechanika Shanghai so important to automotive companies.

Chiew: Automechanika is a trusted trade fair brand for the automotive industry. Within a short span of eight years, we have built up Automechanika Shanghai to be the largest automotive trade fair in China and Asia. It is now the annual trading and sourcing platform for global automotive companies who want to do business in China.

AI: What are some of the new features of the 2011 show?

Chiew: This year, in addition to the established parts and maintenance equipment sectors, we will have a new hall dedicated to accessories, tuning and car care. We will also have a “remanufacturing pavilion” fully supported by the Automotive Parts Remanufacturers Association (APRA) and The China Resource Recycle Association Remanufacture Committee (CRRARC), plus a “new energy zone” reflecting the new industry trends.

AI: Tell us a little about the growing number of exhibitors at Automechanika Shanghai – what do you attribute the increase to?

Chiew: We expect to have 3,600 exhibitors this year. This is a 15% increase compared to the last show. There are various areas where we see the increase in exhibitors numbers: Firstly, more overseas companies joining us – we will have first time pavilions from Japan and India. Secondly, more world leading brands are joining us - BorgWarner, Mann+Hummel, NTN-SNR, Osram, Panasonic and Philips are all first time exhibitors. Lastly, we have more exhibitors from the repair and maintenance sector, as well as the accessories and tuning sector. 

AI: How many visitors are you expecting at this year’s event? 

Chiew: We expect to have more than 60,000 professional buyers visit the show this year.

Automechanika Frankfurt

Automechanika Shanghai is one of 13 global Automechanika fairs held in Asia, Europe, North America, South America and Africa. The fair is organized by Messe Frankfurt (Shanghai) Co Ltd and the China National Automotive Industry International Corporation or CNAICO. 

Messe Frankfurt is already gearing up for the 2012 edition of Automechanika which will be held in Frankfurt from the 11th to the 16th of September, 2012.
Registration is open for next year’s show.

 



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