- Published on Monday, 14 January 2013 13:54
Makers leverage the consumer and security product industries, and established industrial network to grow line.
Backed by a strong electronics manufacturing industry, Shenzhen remains one of the major sourcing centers in China for car safety electronic systems. This city in Guangdong province hosts more than 1,000 suppliers of different in-vehicle security products, representing about half of the country’s entire maker population in the category.
In particular, Shenzhen leads other provinces and regions in car black box R&D and output. The area’s 600 manufacturers of the line account for approximately 70 percent of the nation’s yield. This leading position stems from companies’ strong background in consumer electronics, where most enterprises are from. Their technical know-how and years of production experience enable them to finish a new model in a couple of weeks or complete a four-digit order within 10 days. Public molds are widely popular, although private designs are also on offer.
Shenzhen is likewise driving China’s car rearview system and parking sensor industries. In the former, the area serves as home to 350 of the 650-strong companies pursuing R&D and manufacture. The 700 to 800 enterprises in the city’s parking sensors category, meanwhile, make up nearly half of the nation’s entire supplier base.
In the car alarms line, Shenzhen represents one third of the nation’s aggregate output. The majority of players also offer vehicle central locking systems, remote starters, sirens and tire pressure monitoring systems. A growing number of enterprises are developing in-vehicle GPS trackers and automotive diagnostic systems, which are increasingly becoming popular.
Car safety electronic system manufacturers in Shenzhen take advantage of the area’s established technical and production infrastructure for many security devices such as CCTV cameras and surveillance devices. Further, they tap the network of raw material and component providers, itself buoyed by the robust consumer electronics and security equipment industries in Shenzhen in particular, and Guangdong in general.
The low entry threshold is encouraging more companies to join the industry. The rapid expansion of the supplier base is, however, fueling a price war. This is exacerbated by most enterprises concentrating on low-end and midrange aftermarket products, where cost considerations are limiting differentiation efforts to export quotes.
Rising manufacturing outlay amid domestic inflation is denting margins further. Some makers are considering updating their lineups to boost sales. Many are setting their sights on other overseas markets amid slow demand in traditional destinations. As such, shipments to the Middle East, Eastern Europe and South America are expected to climb in months ahead.
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Note: This article "Robust supply chain strengthens Shenzhen hub for car safety electronic systems" was originally published by Global Sources, a leading business-to-business media company and a primary facilitator of trade with China manufacturers and India suppliers, providing essential sourcing information to volume buyers through e-magazines and trade shows.
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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