The Concept

According to a report from the US Commercial Service, China is set to become the world’s second largest new automobile growth market by the end of 2006, following the US market. This growth is spurring demand for US 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. US 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.

New vehicle sales in China have grown 40% to an expected USD7million total by 2006-year end. As the total number of vehicles in China continues its double-digit growth, analysts expect China to become the number one growth market by 2015.

Key factors for this growth include:

• A decrease in prices for vehicles and automotive parts due to increased competition and China’s compliance with WTO regulations
• An increase in number of new vehicle models spurring consumer purchases
• A continued rise in income of Chinese consumers
  

A Snapshot (from the US Commercial Service)

East China and the Automotive Sector (2005) Population:    202 million 16% of total GDP:                25% of total Exports:         37% of total Imports:         34% of total FDI:                  45% of total East China Auto Parts Manufacturing Revenue % of China total:     44% % in Shanghai:       21% % in Zhejiang:         16% % in Jiangsu:            7%

With growth potential like this, it is imperative for all stakeholders to know the latest in auto manufacturing, sourcing, procurement and logistics so as to develop the optimal supply chain network to reach the international market. All these issues and more will be addressed at the Auto Logistics and SCM Summit 2007.

If you would like to be part of Auto Logistics and SCM Summit 2007 or have suggestions for speakers or topics, please contact Stella Teo, General Manager on tel: +65.6322.2737 or email at stella.teo@terrapinn.com