Factors Contributing to the Development of Chinese Automobile Seat Industry, 2012

CRI-report) – Nowadays, the development of Chinese automobile seat industry is influenced by many factors.

Firstly, the favorable factors for the development of Chinese automobile seat industry are as the following aspects: first and foremost, the automobile industry has become the pillar industry of the national economy and it can give supports to the development of automobile-related industries. The sales of Chinese automobiles accounts for 27% of the total value of societal consumer goods. Therefore, the automobile industry plays an increasing import role in increasing national economy and people’s living standard, as well as driving the consumption. In recent years, the government issues a series of industrial promotion policy to forcefully promote the automobile sale. Under the support of national industry policies, Chinese automobile and parts industries will maintain a steady increase.

Moreover, the sound macro-economic situation provides substantial increase foundations for the automobile and its parts industries. The development of Chinese automobile industry is closely related with the momentum of macro-economy. It is predicted that from 2010 to 2020, the Chinese GDP will still keep at the increase speed of over 8%. The continuous development of macro-economy will provide substantial economic foundation for the growth of automobile industry.

In addition, China has entered a golden period with the fast growth demands for automobiles, and it is with the large space. Currently, the retain number per capita of automobiles in China is relatively low. In 2009, the retain number every 1000 people of China was 33.4, which had a great gap compared with the international average retain number every 1000 people of 96. Seen from the experiences of the developed countries, when the retain number every 1000 people is less than 140 to 150, the sales increase speed of automobiles will keep at a relative high position; and then the increase speed of production and sales will slow down.

Last but not least, the rapid development of independent brands vehicle factories is conducive to the growth of Chinese automobile seat enterprises. In recent years, the performance of the domestic independent brands is outstanding and the market share of it increases steadily. Under the influences of the geographic factor, costs and product structures, etc., most of the suppliers of seat functional devices of independent brand vehicle factories are domestic enterprises. In the cooperation for several years, vehicle factories establish the steady supply chain, and integrate and perfect the business system. It forms a domestic automobile industry group centered by vehicle factories and surrounded by core suppliers. The rapid development of vehicle factories of independent brands will directly spur the development of the whole group, providing a huge development space for the domestic seat enterprises. On the other hand, the domestic seat enterprises also make a big progress with time goes by, and lessen its gap with overseas advanced enterprises, promoting the development of vehicle factories of domestic independent brands so as to push forward the development of domestic seat enterprises themselves.

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