The first installment in this two-part series looks at the factors making the area a key manufacturing center.
Guangdong province is China’s top production hub for car electronic security systems, accounting for more than half of the country’s aggregate output and about 70 percent of exports. The area’s expansive selection is dominated by central locking and keyless entry systems, alarms and remote starters.
The local industry makes at least 50 million sets annually, achieving sales of over $600 million each year. Most factories are located in Guangzhou, Shenzhen, Zhongshan, Foshan, Dongguan and Huizhou.
In 2011, shipments of car and motorcycle alarms from the province reached $110 million, while those of central locking systems totaled $104 million. Japan, the US, Canada and South Korea were among the major export markets. The
Middle East and the EU were also key destinations.
Supporting the sector is a well-established industrial chain comprising makers of various components, including electronic inputs such as PCBs. Providers of mold making, plastic injection and related services are also present.
The supplier network includes multinational enterprises, most of which are in the special economic zones. Another factor contributing to the growth of the industry is the presence of several academic and research institutions. Guangdong is home to a number of universities and colleges, among these Jinan University, South China University of Technology and Sun Yat-sen University.
The province’s transportation infrastructure is an added advantage for makers of car electronic security systems. This includes airports, railways and more than 50 first-class ports.
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Note: This article "Local supply network buoys Guangdong hub of car electronic security systems" was originally
All price quotes in this report are in US dollars unless otherwise specified. FOB prices were provided by the companies interviewed only as reference prices at the time of interview and may have changed.
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