Cars

US parts giant Delphi ratchets up for growth in Asia-Pacific

By Gong Zhengzheng (China Daily)
Updated: 2011-02-14 14:06

BEIJING - US auto parts maker Delphi expects the fast-growing Chinese market to help it double the share of its global business generated in the Asia-Pacific region over the mid-term future.

Majdi Abulaban, president of both Delphi Asia-Pacific and Delphi China, said in a recent interview that the company's sales revenue in the region will account for one-third of its global revenue by 2017, up from between 15 and 17 percent last year.

Delphi reported $3 billion in Asia-Pacific sales last year, with about $2 billion from China, Abulaban said.

Its China sales revenue surged by 40 percent last year from 2009, much faster than the pace of the overall vehicle market in the nation, he said.

Vehicle sales grew by 32.37 percent year-on-year to 18.06 million in 2010, making the country the world's biggest auto market for the second consecutive year, according to the China Association of Automobile Manufacturers.

"We will continue double-digit growth in China in the coming years as its economy grows steadily," he said.

Delphi now has 16 wholly owned and joint venture plants and a research and development center in the country.

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Last year, the company opened an auto air-conditioner plant in the northeastern city of Shenyang with an expected annual production capacity of 500,000 to 600,000 units.

Delphi also expanded a component plant in Shanghai into its biggest such manufacturing center in the world last year.

Abulaban said the company plans to triple production capacity of an auto wire harness plant in the central city of Wuhan this year.

Delphi is also considering several new wire harness factories in Chengdu and Chongqing in the west to meet growing market demand, he said.

"We are continuing to look forward to rapid growth opportunities in China in the after-market segment in 2011," said Dominic Yuklam Seto, global vice-president of Delphi's product and service solutions division.

Following its global expansion strategy, Delphi will continue to push expansions in "geography, customers, channels and the product portfolio" in China, Seto said.

He added Delphi's expansion will emphasize chassis, thermal converters, electronics and services.

The company now provides 500 categories of products in China.

It has 100 major dealers in tier-one and tier-two cities, Seto said.

"We are also expanding in tier-three cities," he said.