Given the deplorable state of the downstream sectors, the overall growth of China’s automotive electronics market slowed in 2008, when entertainment electronics and active safety equipment had become the major driving force of the market. China’s automotive electronics will deliver stable growth in the next few years because the industry has only just begun gaining ground and there is still plenty of room for it to grow.
1. The overall growth of the market has slowed down
The rapid increase in output of automobiles in China is one of the major forces that drive the rapid growth of the country’s auto electronics market, on which there has been an negative impact caused by the slowdown in the output of automobiles. Rough data showed that China’s output of automobiles was 9.42 million units in 2008, up by only 6.0% year-on-year. Of the total, the output of basic passenger vehicles??cars, in which auto electronics is most extensively used??was 5.02 million units, accounting for 53%, up by about 6.2% year-on-year, dwarfed by the over 20% year-on-year increase in 2007. As a result, the growth of auto electronics market slowed significantly in China in 2008.
2. Entertainment electronics and active safety equipment have become the major growth fields in China’s auto electronics market
In 2008, many top-end auto electronics products continued to dive into the low-end auto field, helping the popularization of auto electronics.
The popularization of active safety systems in chassis control has also significantly impacted market growth. China so far has basically finished the upgrade of the EBD (Electronic Brake-force Distribution) and CBC (Cornering Brake Control) for automobiles. In addition, active safety systems such as the EBA (Electronic Brake Assist), ASR (Acceleration Slip Regulation), ESP (Electronic Stability Program) and CCS (cruise control system), are also being equipped in cars. For example, ESP was mainly installed in top-end cars like BMW, Chrysler and Lexus. But as the market keeps growing and prices falling, ESP system started showing up in 2008 in mid-priced cars such as Roewe 750, Camry and even some compact cars, like Besturn. ESP has delivered fast growth since mid-priced and compact cars are the major force in China’s car market.
Vehicle-borne electronics is another hot field of China’s auto electronics market in 2008, thanks to the strong demand for, and rapid development of, auto entertainment electronics. Although CD and multi-CD players are still the dominators in the auto audio/visual market, DVD players are gaining ground at striking speed. In addition, other auto visual products, such as visual parking system and mobile navigation system, are also becoming popular.
3. Energy conservation products fuel new growth of the market
Since China’s tight supply conditions of energy sources won’t be able to change in the near future, the country’s government is tightening its emissions rules. Therefore automobiles are driven towards energy conservation, which will become a hot field for auto electronics.
As for power control, throttle/direct-injection engines, intelligent turbo, electronic valves, advanced transmission systems and hybrid power systems will be more popular. And as for energy efficiency and management, new products such as kinetic energy recovery systems, heat transforming, electric fuel pumps, and LED illumination systems will help popularize electronic equipment.
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As the automotive industry continues to struggle in a poor economy, manufacturers’ and dealers’ have made significant cuts to their advertising budgets. These companies who were once upon a time some of North America’s leaders in terms of marketing expenditures, are now looking to reduce this high expense in search of lower cost means that can produce similar returns on investment. In addition today’s new car sales have become so poor that a greater emphasis has been placed on their pre-owned inventory. Used cars and used trucks today offer many of the advantages of buying new and are a much more affordable option. For consumers trying to buy a used car or used truck the difficulty comes in finding one that meets their specific needs. Unlike a new car purchase, with a used car you can’t pick colour, interior, kms, engine size or options. These specifications could only have been made when the vehicle in question was being purchased new. Therefore, people looking to buy a car typically just won’t go to one dealership, instead they want to comparison shop and the most popular means of buying a used vehicle has been through using online automotive marketplace’s as well as free classified sites. These online methods allow buyers to search and or browse through thousands of ads in search of the used car, truck, motorcycle, boat, snowmobile, ATV or collector car that’s right for them.
Today with the rise of the pre owned vehicle, more Canadian then ever before will search province or even nation wide for the used vehicle that’s right for them. It will be imperative for car dealers and boat dealers to have a presence on each and every popular online interface. As more consumers then ever before will search online for used cars in Canada, it will be imperative from a marketing stand point that a dealers’ inventory is seen by the masses. Online automotive marketplaces offer a low cost, high return means of advertising. Dealers can’t afford to miss out on a potential client to another dealership who is advertising the same vehicle. Comparison shopping is here to stay and it will critical that dealers make their inventory available on a variety of websites.
One site that seems to becoming quite popular is vehiclegateway.com, which is owned by Vehicle Gateway Corp. They’re an Ontario based company dedicated to an honest approach in buying and selling used vehicles. Sellers can sell a car for free; the opportunity to post an ad for free will attract thousands of sellers as they can finally attain nation wide exposure, free of charge with respect to a true vehicle marketplace. All sellers are required to provide an abundance of information about their respective vehicle(s). This information will allow buyers searching for a car to make a more informed decision, which in turn will make their time spent online more efficient and effective. The average buyer spends over a half an hour online and this provides a perfect opportunity for any type of advertiser attempting to sell their used vehicle. Vehiclegateway.com is the new name in the online vehicle market as their interface combines the advantages of the popular free classified sites with that of a true automotive marketplace. Buyers can search nationwide as they search to ultimately buy a car, buy a sedan, buy a luxury car, buy a truck, buy a SUV, buy a van, buy a pick up truck or buy a convertible. Vehicle Gateway Corp is the perfect place to find and buy a car in Ontario as well as to sell a car in Canada. Make sure to visit Vehicle Gateway as it tailored to the buyer in helping then find the used autos that are suite their individual needs. Go to vehiclegateway.com to sell your used vehicle for free, comprehensively search Canadian used car ads as well as used trucks in Canada. Also at vehiclegateway.com users can browse through vehicle categories similar to a free classifieds site, any users can browse through cars, trucks, boats, motorcycles, snowmobiles, green vehicles, ATVs, and Collector Cars.
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Classic car buffs rally for ‘legendary’ parts store
Hundreds of classic car buffs rolled into Puyallup on Saturday to help save a business that keeps them on the road. Hagen’s Auto Parts in Puyallup had a huge fire sale after a massive blaze destroyed most of the historic business in December. Chrysler Announces Closure of All Auto Plants, “This is a Very Very Grave and Serious Development in the Auto Industry”
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