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Parts makers call for government help
By Jin Jing |
June 22, 2010, Tuesday
|
Online Edition
Online Edition
PARTS makers attending Auto Components Shanghai 2010 have called for more government support after subsidies were offered to car manufacturers for rolling out new-energy vehicles.
Most components makers believed the growing number of green cars would generate more market demand for related spare parts. But they are concerned about high costs that prevent green technologies from being rapidly commercialized.
Zheng Yi, sales account manager at Shanghai Valeo Automotive Electrical System Co Ltd, said the company's restarting motor, which could save fuel by 5 percent, cost 40 percent more than a normal motor.
"Green cars are the trend and demand may soon pick up next year," Zheng said. "But companies can't digest the cost of development themselves. Without government help, development of green car technologies will hit the slow lane."
Auto parts makers are following car makers by investing in green technologies as China plans to have 500,000 new-energy cars on roads by 2012. The government has offered subsidies of up to 60,000 yuan (US$8,785) to electric car makers to cut production costs.
Zheng said his company is negotiating with car makers to share the benefits.
Lans Huang, sales director of Taiwan-based K.S Terminals Inc, which produces sensors and connectors, also said many Chinese firms copy overseas rivals for high-end spare parts.
"New-energy vehicles have higher standards for auto parts, prompting car makers to source pricy parts from international rivals. Financial support to parts makers would bring opportunities to China's home-grown companies for technology innovation," Huang said.
Although auto parts makers pinned high hopes on government subsidies, industrial analysts said chances are very small because the segment is highly fragmented and lacks quality standards.
Auto Components Shanghai 2010 has a focus on fuel efficiency and safety this year. The exhibition, which attracted 300 exhibitors from nine countries worldwide, will close today at Intex Shanghai.
Most components makers believed the growing number of green cars would generate more market demand for related spare parts. But they are concerned about high costs that prevent green technologies from being rapidly commercialized.
Zheng Yi, sales account manager at Shanghai Valeo Automotive Electrical System Co Ltd, said the company's restarting motor, which could save fuel by 5 percent, cost 40 percent more than a normal motor.
"Green cars are the trend and demand may soon pick up next year," Zheng said. "But companies can't digest the cost of development themselves. Without government help, development of green car technologies will hit the slow lane."
Auto parts makers are following car makers by investing in green technologies as China plans to have 500,000 new-energy cars on roads by 2012. The government has offered subsidies of up to 60,000 yuan (US$8,785) to electric car makers to cut production costs.
Zheng said his company is negotiating with car makers to share the benefits.
Lans Huang, sales director of Taiwan-based K.S Terminals Inc, which produces sensors and connectors, also said many Chinese firms copy overseas rivals for high-end spare parts.
"New-energy vehicles have higher standards for auto parts, prompting car makers to source pricy parts from international rivals. Financial support to parts makers would bring opportunities to China's home-grown companies for technology innovation," Huang said.
Although auto parts makers pinned high hopes on government subsidies, industrial analysts said chances are very small because the segment is highly fragmented and lacks quality standards.
Auto Components Shanghai 2010 has a focus on fuel efficiency and safety this year. The exhibition, which attracted 300 exhibitors from nine countries worldwide, will close today at Intex Shanghai.
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