Shock Absorber Development Prospects

Automotive parts manufacturers are increasingly separating from vehicle manufacturers and forming specialized parts groups. This is a growing global trend. Nearly all internationally renowned automotive and parts companies have established joint ventures or wholly-owned subsidiaries in China, with over 1,000 joint ventures introducing new technologies. A number of high-tech, high-performance, and large-scale domestic automotive and parts companies are gradually emerging. As the international automotive industry implements a "global sourcing" strategy for parts and multinational automakers pursue localization strategies, a significant gap in parts and accessories will emerge in the domestic market. By 2010, the domestic output value of China's automotive parts industry is expected to reach approximately 700 billion yuan. This presents a broad production outlook and enormous potential for growth.