List of products that were deregulated by the Chinese Government as of October 2008.
China has become the second largest auto consumption market in the world in 2006, with China automobile sales volume reaching seven million1 units. China’s auto industry experienced steady growth in the past year and the import volume accounted for 3% of the total China market.2 According to 2006 customs statistics, from January to October, China imported 181,000 autos, an increase of 41% over the same period in 2005.
China’s vehicle exports are expected to outpace imports again in 2006 despite the higher excise tax that fueled explosive growth in car imports during the first quarter. In terms of volume, exports will continue to surpass imports in 2006 as
more Chinese automakers eye selling low-priced cars to the huge overseas market.
China is set to become the world’s second largest new automobile growth market by the end of 2006 and this growth is spurring demand for U.S. automotive parts, services, and aftercare products. The East China region in particular has tremendous opportunities as new car drivers become more sophisticated and demand better vehicle quality and better repair and maintenance service. U.S. exporters should be aware that while industry revenue is increasing, profit margins are slowly falling to international averages. Infringement of intellectual property remains a very serious issue.
The Hong Kong automotive parts and components market is small, US$ 410 million, which is about 2% of the Mainland China market. Hong Kong has no automotive manufacturing and thus all vehicles are imported. Automotive parts and components
demand is limited to aftermarket supply for maintenance and repair. There are limited export opportunities for U.S. exporters because European and Japanese suppliers dominate the vehicles and the corresponding parts and components market. That being said, there are export opportunities for auto-related technology to Hong Kong as Hong Kong’s automotive parts manufacturers, who focus on high value-added products for local and export markets, are hungry for new technology and manufacturing processes. In addition, there are also opportunities for U.S. exporters to sell high technology auto accessories and gadgets, which are in demand by Hong Kong consumers.
Vehicle customization has been growing rapidly in China, industry insiders estimate the Chinese specialty-equipment market is at approximately $12.5-$15 Billion USD. With 1.3 Billion in its population, vehicle sales reaching 93% of the U.S. passenger vehicle sales, according to data provided by JD Power & CAAM in January of 2009. SEMA has developed a new list of trade leads available to SEMA members online at www.sema.org/international. The Chinese government has begun to legalize specialty products for use in China. This is an initial list of approved products.
To assist our members in identifying the key media contacts in China, SEMA has compiled a list of top media editorial contacts in China. Media database is available online for members at www.sema.org/international. For more information on the SEMA report on the Chinese Specialty equipment Market contact Yvonne Wang.
As the global economy changes, many SEMA-member businesses are taking advantage of new business opportunities. To help its member companies discover the most viable regions for growth, SEMA has developed a system of international programs that provide the groundwork for global expansion. SEMA works with organizations all over the world to promote automotive specialty-equipment businesses using everything from market reports and news releases to vehicle databases and networking.