Analysis of Development of Automotive Wire Harness Products in China in 2010

The automotive wiring harness is known as the "blood vessel" of a car and is usually considered to be the central nervous system of a car. It connects the on-board computer with various related functions on the vehicle. The content and quantity of electronic technology in automotive wiring harnesses have gradually become an important indicator for evaluating automotive performance. As China's auto industry continues to grow, the automotive wire harness industry has also developed rapidly.

I. Rapid increase in automobile output drives the rapid development of the automotive wiring harness industry in China

In recent years, China's automobile industry has developed rapidly. The automobile output has grown from 8.89 million units in 2007 to 13.79 million units last year, and in particular, the output of automobiles in 2009 has increased by 48.2% over the previous year. It is estimated that by 2010, China’s automobile production will exceed 15 million vehicles. The factors that drive the development of automobile wiring harness industry in China still exist.

According to the conservative estimate of the China Electronic Component Industry Association, if the average vehicle needs to use 65 sets of harnesses, the demand for automotive wiring harnesses in 2009 will be 89.65 million sets (excluding the need for new and old vehicle maintenance). The value of the wire harness is 4,800 yuan. In 2009, the automotive wire harness market had reached a scale of 66.2 billion yuan (excluding the need for new and old vehicle maintenance). It is estimated that in 2010, China’s auto production will reach 15 million vehicles, requiring about 1.02 billion sets of automobile wiring harnesses (calculated as an average of 68 sets of wiring harnesses per vehicle), and the market size will reach 67.5 billion yuan (the average value of the bundles per vehicle is 4,500 yuan. Meta-calculation).

Second, the increasing demand in the international market to promote the export of automotive wiring harness products in China

As China's auto wire harness industry continues to grow in demand from the domestic market, the global automotive wire harness market is becoming more attractive to Chinese auto wire harness companies. According to statistics from Gasgoo.com, in 2009, international buyers issued a total of 1208 frequency of automobile wiring harness purchases through Gasgoo.com, a 45.7% increase over the 656 frequency in 2008.

Third, domestic automotive wire harness manufacturers face enormous challenges

In the automotive wire harness industry, the appearance of in-vehicle electronic products and devices has become increasingly complex, resulting in increasingly complex products. In this area, despite the production of labor-intensive products, it is faced with frequent changes in product styles and how to cultivate skilled operators has become a topic. Judging from the main bases for the production of automotive wiring harnesses, most of the bases are concentrated in coastal cities in terms of logistics conditions and ensuring workforce considerations.

The labor cost based on the automotive wire harness industry accounts for a high proportion of manufacturing costs. At the same time, China has a global advantage in this area. Since the mid-1990s, large global suppliers have accelerated the transfer of manufacturing operations to China.