I have begun partnering with a Chinese company that is a combination magazine/analyst/Web site/event company called Gong Kong (roughly translated as industrial automation). Can’t say that journalism standards are the same as here–or even Europe. And it seems to be riding the same trend that we are noticing about analyst firms in the US–“news” stories with no facts. But the view from another country that until fairly recently was pretty much closed is interesting.

In this item, Gong Kong notes that automobile manufacturing is expected to jump 17 percent this year, and therefore automation components sales are also expected to rise. Haven’t seen news like that over here in many years.

From a release sent to me:

Automotive Industry Is a Major Driving Force for Recent Growth of Safety Products

By gongkong

Spurred by the resurgence of Chinese economy and influenced by the implementation of some policies proposed by the Chinese government such as encouragement of automobile consumption and programs boosting automobile industry and so on, more domestic demands for the Chinese automotive market are created. Moreover, it is anticipated that in the next year, the Chinese automotive industry will remain a growing need for automation products, which can be attributed to the following aspects:

First, there exists a great demand for the Chinese automotive market. In accordance with the market performances of Chinese automotive manufacturers in 2009 and the production and marketing targets announced by some of them in 2010, it is predicted that Chinese domestic vehicle sales volume may exceed 16 million, increasing about 17%.

Second, as the automotive industry is technology intensive, the automation of its manufacturing process is a critical factor for auto manufacturers to improve quality standard, decrease costs and enhance competitiveness. Confronting the great need for Chinese automotive market, various auto manufacturers need more and more advanced production facilities and systems to expand their production range, enhance efficiency and cut down costs, so as to increase brand share and vehicle sales. As a result, while the Chinese wide automobile consumption market is creating wealth for automobile manufacturers, it provides huge market space for automation products as well.

Additionally, impacted by the financial crisis, worldwide automotive industry was restructured accordingly. Under such a condition, Chinese automobile manufacturers merge or acquire others famous in the world. In the meantime China is stepping towards auto manufacturing powers, the automation level of Chinese local automobile manufacturing will inevitably be improved and the need for automation products accelerated. As it is the automotive industry that requires highest for safety components, this industry will for sure become one of the major driving forces for the growth of Chinese safety component market in the coming three to five years.   


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