Dublin, Ireland-based technology analyst firm Research and Markets announced the addition of the Global and China Automotive Wiring Harness Industry Report, 2010-2011 report to its offering. According to the report, the automotive wiring harness market touched bottom in 2009, as the automotive industry suffered a downturn from August 2008 - July 2009, but started to recover at the end of 2009. On strength of this dynamic, the report states that the global automotive wiring harness market size reached $21.9 billion in 2009, but increased by 32.2% to $29 billion in 2010.
The analysis further states that Sumitomo Electric, with copper resources, experienced the highest growth among the top 11 manufactures in 2010, getting closer to first place Yazaki and farther from the third place Delphi. Sumitomo has 11 production bases in China, the most among all major wiring harness manufacturers. Its production bases mainly address the Chinese market, while Yazaki's are mostly export-oriented.
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The report explains that Delphi settled most of its production bases in Changchun, Baicheng and Shanghai, and few in other regions, but the automotive giant has no presence in the Pearl River Delta region -- where Japanese automobile manufacturers are clustered. Delphi reportedly occupies a very small proportion in the supply chains of Japanese enterprises, while Sumitomo, Yazaki and Fujikura hold a very large proportion of the supply to American and German automakers. For example, Fujikura gains 25% of its revenue from Volkswagen, notes Research and Markets.
Among the market's other leaders, the firm's analysis states that Leoni is mainly oriented to German and French markets, and makes 47% of its revenue from Mercedes-Benz, BMW, Audi and PSA; and that its revenue increased 41.5% in 2010 by virtue of the soaring sales volume of luxury cars in China. In the first quarter, a traditional off-season, China's luxury car market continued its rapid growth, so did Leoni's revenue, with EBIT growing by 270% year on year in the first quarter of 2011.
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The analysis goes on to state that although Furukawa boasts its own copper resources, it has focused its investment on power cable and electronics industry products instead of automotive wiring harnesses. Therefore, its revenue from automotive wiring harness saw limited growth in 2010. LEAR is a large seat maker focusing on North American market, and has only one base in Wuhan, China. Kyungshin Industrial is an enterprise with 50% stake held by Sumitomo Electric; it's also the largest automotive wiring harness enterprise in South Korea.
The report concludes that small automotive wiring harness producers are much weaker than large manufacturers in terms of competition, and are usually the third or fourth suppliers, with rates of growth that are "not so fast."
SOURCE: Global and China Automotive Wiring Harness Industry Report, 2010-2011 (researchandmarkets.com)
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