HONG KONG: Despite rising export prices for car electronics, most of China's car electronics suppliers expect to grow sales in the year ahead. This is according to Global Sources' China Sourcing Report: Car Electronics.
The Report covers car audio systems, including speakers, subwoofers and amplifiers; car multimedia players and monitors; car GPS devices, car PCs, car electronic accessories; and car safety and security electronics, including car alarms, parking aids and keyless entry and remote starters.
"Over the past six months, 75 percent of suppliers we surveyed either maintained or increased prices due to rising production costs," said Livia Yip, Publisher of the Report.
"Despite higher prices and slow consumption in some product segments, 65 percent of suppliers foresee export sales increasing, as demand for in-car GPS and entertainment products heats up."
Among surveyed China suppliers:
-- 20 percent predict sales growth by greater than 20 percent;
-- 30 percent expect an increase of between 10 and 20 percent;
-- 15 percent estimate sales to increase by less than 10 percent;
-- 15 percent expect sales to remain the same; and
-- 20 percent foresee sales decreasing.
Suppliers work to control costs, target new markets
Yip said: "Half of suppliers said price competition is their top challenge ahead and this has 65 percent of companies focused on increasing operating efficiency to control costs.
"Companies are also looking to new markets to boost sales. In fact, the Middle East ranked as the top export destination for 30 percent of surveyed suppliers - topping both the traditional markets of North America and Europe.
"As suppliers work to control costs, buyers can continue to expect quality products at low prices from China car electronics suppliers. Buyers from emerging markets can also look forward to new products which are designed to meet the requirements of local consumers."