Car Security. China Sourcing Report. Essential sourcing intelligence for buyers.

Transcription

1 Car Security China Sourcing Report October 2004 US$645 Sichuan Zhejiang Fujian Taiwan Guangdong Hong Kong Car security products supply centers Essential sourcing intelligence for buyers China manufacturer profiles Detailed profiles of 71 suppliers, including findings from in-person tours of 31 factories Product & pricing forecasts Prices and specifications for 212 top-selling export products Supply centers & market trends Coverage of leading and emerging supply centers, plus insight into capacity, output and R&D

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3 INDUSTRY OVERVIEW CAR SECURITY PRODUCT MANUFACTURING IN MAINLAND CHINA AND TAIWAN A ground level view of supplier capabilities and product trends in mainland China and Taiwan s car security manufacturing industry EXECUTIVE SUMMARY Mainland China is the world s fourth biggest car producing country, and the third biggest in terms of domestic demand. In 2004, its car production is projected at 5.1 million units and actual sales may breach the 5 million mark. With such a big domestic market to serve, its car security industry segment has also grown, serving not only the domestic market but the overseas market as well. Taiwan, on the other hand, has scaled down in its production of basic car security products, moving most of its production to the mainland. However, it has significantly stepped up its efforts to provide total car security solutions and meet specific requirements of car manufacturers. To prepare this report, Global Sources gathered production- and export-related data from 71 car security makers in mainland China and Taiwan. Of these, Global Sources visited the factories of 31 makers, 21 in the mainland and 10 in Taiwan, to observe their manufacturing, QC and R&D practices. Among the findings of this report are: The growth in the domestic demand for car security products in China is seen to be sustainable through Attracted by the growth of the car manufacturing and car security industries, international players will continue to bolster their presence in mainland China. Manufacturers in both mainland China and Taiwan have penetrated and are prepared to serve the car security OEM market. Several car security makers work hand-in-hand with car manufacturers not only in their respective domestic markets but in overseas markets as well. For specific product lines, significant findings include: The electronic car alarm systems line in mainland China exported $62 million worth in Exports are estimated at a conservative $87 million in 2004 and $109 million in The parking sensor line in the mainland is the most active and shows the highest level of competition. It is expected to produce up to 18 million units in Though a small segment now, the Monthly production mix of manufacturers in this report, as of September 2004 Central locking systems Auto horns/sirens Electronic car alarms Car security parts/accessories Parking sensors Motorcycle alarms GPS/pagerbased systems Car radar detectors Keyless entry/ remote starters 0 500,000 1,000,000 1,500,000 2,000,000 Units GPS/pager-based car security line and its variant products will become the next growth driver of the car security industry in both mainland China and Taiwan. Central locking systems are the biggest product line of the car security industry in mainland China in terms of production volume. Exports of these systems reached $11.7 million in 2003 and are projected to reach $22 million in Makers in the motorcycle security line, while expanding their market share, have also entered the car security line. Over the next months in 2004 and through 2005, manufacturers will cope with macro developments, including: The plan of mainland China s national government to slow down the country s heating economy. The push by big car manufacturers for ISO/TS accreditation of their OEM suppliers. The introduction in mainland China and in other overseas markets of new telecommunication systems that affect communication and vehicle positioning. Convergence of car security and car entertainment products. Exports, according to 37 percent of companies included in this report, are expected to record an increase of between 50 percent and 100 percent in A significant 18 percent of manufacturers expect exports to post growth of more than 100 percent. Among the buyers and brands served by these companies are: Amatal Co., Best, Brant, Citroen, Cyber, Cyclone, Data, Dynamic & Safe, GE, Honda, Honeywell (US), Krypton, Mitsubishi, Nissan, PG Trading Co. (Russia), Smart Technology (Jamaica), Space, Steelmate, Subaru and Volvo. IN THIS REPORT 31 In-depth Supplier Profiles 40 Supplier Briefs and Tables Product Comparison Tables for 108 Electronic car alarms 6 GPS/pager-based systems 64 Parking sensors 6 Rearview systems 9 Central locking systems 5 Keyless entry & remote starters 10 Car security parts and accessories 4 Motorcycle alarms Market Intelligence: Car Security 3

4 INDUSTRY OVERVIEW Contents INDUSTRY OVERVIEW Introduction... 7 Mainland China Exports...7 Export Orientation Trade Show Presence...11 Manufacturing Capability In-house vs. Outsourced Processes...13 Vertical Integration Product Mix of Related Products...16 Manufacturing Experience...18 Capacity Utilization...19 Factory Sizes...20 Production Workforce...21 QC & R&D Technology Partners...22 Management Quality Systems Product Quality Approvals QC & QA Workforce...25 Estimated Investments in R&D R&D Workforce...27 Product and Price Trends Price Differential Table...29 Outlook for 2004/ On the Move: Capacity and Capability Build-up Export Forecast...32 Capital Outlay...33 Methodology Location Map Suppliers at a Glance SUPPLIERS In-depth Supplier Profiles Altrusty Enterprise Co. Ltd Asian East Technology Co. Ltd Big King Horn Electronic (Shanghai) Co. Ltd Brains Master Corp Fujian Quanzhou Fada Electronics Co. Ltd General Security International Corp Giordon Audio & Alarm Equipment Co. Ltd Guangdong Sansong Technology Co. Ltd Guangzhou Panyu Jinxinbao Electron Co. Ltd Guangzhou Yi Tai Electronic Fty Hangzhou Mobile Electronics Co. Ltd Huge Technology Co. Ltd Jingyeda Technology Development Ltd Koway Electronics Co. Ltd LFF Security Equipment Co. Ltd Lighting Tech Co. Ltd Company financial data in this report were provided by the companies. Copyright 2004 Trade Media Ltd. All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of Trade Media Holdings Ltd and Trade Media Ltd is prohibited. Price: US$ 645 Published by: ASM Business Services Limited (on behalf of Trade Media Limited) P.O. Box 219 GT, Strathvale House, North Church Street, George Town, Grand Cayman, Cayman Islands c/o 22/F Vita Tower, 29 Wong Chuk Hang Road, Aberdeen, Hong Kong Printed in Singapore ISBN Longhorn Industrial Co. Ltd Ningbo Poly Technology Co. Ltd Shanghai Steel Tower Alarm Equipment Co. Ltd Shenzhen Carscop Electronics Co. Ltd Shenzhen Leadway Automobile Science & Technology Co. Ltd Shenzhen Wit Group Technology Co. Ltd Spacekey Auto Electronics Co. Ltd Steelmate Co. Ltd Sysage Technology Co. Ltd TungThih Enterprise Co. Ltd Win Far Technology Co. Ltd Yisen Technology Co. Ltd Zhongshan FAMA Electronic Technology Co. Ltd Zhongshan Hongmao Electronics Co. Ltd Zhongshan Thor Security Science & Technology Co. Ltd Supplier Briefs Supplier Tables PRODUCT COMPARISON TABLES Electronic car alarms GPS/pager-based systems Parking sensors Rearview systems Central locking systems Keyless entry & remote starters Car security parts & accessories Motorcycle alarms Supplier Index by short name Supplier Index Disclaimer: Any recommendation contained in this report may not be suitable for all investors or businesses. Moreover, although the information contained in this report is obtained from sources believed to be reasonably reliable, the accuracy or completeness of such information cannot be guaranteed. The author and the publisher of this report (and the publisher's affiliates, agents, sales representatives and service contractors) do not make any representation or warranty whatsoever (whether express or implied) in relation to any of the contents of this report (including any information, opinion, recommendation or conclusion contained in this report) (collectively, "Contents"), whether as to the accuracy, completeness, quality, fitness, suitability or reliability of such Contents (or any portion thereof ) or otherwise, and shall not be liable under any circumstances whatsoever for any error, omission, defect or deficiency in, or for any use of or reliance on, such Contents (or any portion thereof). Market Intelligence: Car Security 5

5 INDUSTRY OVERVIEW INTRODUCTION MAINLAND CHINA The car security industry in mainland China is growing, driven primarily by domestic demand for cars. According to the China Automobile Industry Consultation Development Corporation, 3.28 million cars were sold in the mainland during the first eight months of the year. It is projected that actual sales in 2004 will exceed 5 million units, a 14 percent growth year-on-year over the recorded sale of 4.39 million units in The National Bureau of Statistics forecasts the domestic demand for cars to exceed 5.5 million units in 2005, a conservative 10 percent year-on-year growth. Domestic demand is seen to further strengthen as mainland China fulfills its commitments to WTO by Among the commitments are to abolish import quota for cars, which stood at 120,000 units in 2003, and reduce customs duty from 43 percent to 25 percent. as well. The tie-up between the car manufacturing and car security sectors, previously dominated by local manufacturers on the car security side, loosened up. Today, the tie-up has a more international than local flavor, and many new entrants in the car security industry have to prove their worth before they can establish such a cooperative undertaking with car manufacturers. Mainland China car alarm exports By destination North America 13% Middle East 11% An industry ready for OEM buyers Given the very competitive environment in the car security sector, many displaced and new manufacturers turned their attention to the international markets. The overseas car aftermarket became the initial target of mainland manufacturers. Today, many players in the car security sector devote a greater part, if not all of their production, to the export market. South/Central America 2% Asia 31% Strong international influence The last three years comprised the critical period in the development of the car security industry. Bent on curbing car theft, the mainland China government warranted every new vehicle in the country to be adequately secured. Consequently, local governments encouraged and supported local car security manufacturers to cooperate with car assemblers an opportunity that was seized by the car security industry. This period is characterized by vigorous investments in R&D and manufacturing in the car security sector. The opportunity in both the car manufacturing and car security sectors did not go unnoticed in the international business community. As foreign capital flowed into both sectors, foreign car security manufacturers entered the marketplace Source: China Customs Statistics Jan 03-Jul 04 $ million Western Europe 13% Source: China Customs Statistics Others 30% A S O N D J F M A M J J Market Intelligence: Car Security 7

6 SUPPLIER PROFILES Altrusty Enterprise Co. Ltd Founded more than 20 years ago in 1979, Altrusty Enterprise Co. Ltd has a long experience in the production of electronic consumer products. It mainly offers 20 different items that hold patents in Taiwan, mainland China, Japan and the US. Its car security products include alarms, electronic security systems, parking sensors and pager-based GPS receivers. Also available are central locking systems, motorcycle alarms, horns, sirens, radar detectors, keyless entry and remote starters. Based mainly in Taipei, Taiwan, the private company is wholly owned by mainland China investors. It exports all car security products to Europe, the US and South America. It hopes to raise overseas shipment from last year s total of $1.8 million to $2.5 million by year-end Altrusty recognizes the important role trade exhibits and conventions play in the industry s continued growth. This is why it makes it a point to attend many of the major trade shows including the Hong Kong Electronics Fair, the Taipei International Electronics Show, and the Automechanik in Frankfurt, Germany. Manufacturing capabilities Altrusty has a 2,000sqm factory in Taipei but it has plans of further expanding its production area. It also maintains an ISO 9002-certified facility in mainland China. Its machines and equipment are estimated to have a total value of $1.5 million. It has invested a total of $500,000 on equipment upgrade in recent months, and is ready to pour in another $1 million on new machine acquisitions and refurbishments in the coming months. The company performs all aspects of production from design to mold making, plastic injection molding, SMT, PCB sub-assembly, final assembly, and QC and R&D in-house. It has a workforce of 45 employees of which 35 are directly engaged in production work. Design is performed by a group of five workers, while mold making is assigned to 10 workers. Plastic injection is done by four workers, while five more carry out SMT. There are 17 workers who are assigned to man the PCB sub-assembly, other assemblies and the final assembly lines. The total in-house and subcontracted capacity of the company is 200,000 units monthly. QC and R&D Altrusty applies various QC measures using several testing equipment to ensure the quality of its products. Items Supplier profile Main car security product Car alarms & electronic security systems Other related products Central locking systems, car security parts & accessories, keyless entry & remote starters 2003 sales of main product (US$) 1,800,000 Target sales of main product in 2004 (US$) 2,500,000 Total employees 45 Manufacturing Index Year established 1979 Head office location Taipei, Taiwan Factory location Taipei, Taiwan Total factory space (sqm) 2,000 Estimated value of machines and equipment (US$) 1,500, expenditure on production equipment (US$) 500,000 Number of production workers 35 R&D and Quality Index R&D budget (% of sales) 50 Management/systems quality standards ISO 9002 Product quality standards CE, E-mark, FCC Number of QC workers 5 Number of R&D workers 5 Export Capability Index Buyer s label business Yes 2003 exports of all products (US$) 1,500,000 Target exports of all products in 2004 (US$) 2,800,000 Main export markets Europe, South America, US Export ports Major trade shows attended with RF transmitters and remote controllers undergo inspections using a spectrum analyzer. Oscilloscopes, voltmeters and 10MHz to 1GHz signal generators are likewise employed during product testing. Reliability tests are regularly conducted. Any irregularities found during the test runs are immediately documented and reported to the production engineer assigned to the shift. All finished products have gone through a rigid QA sampling system and pass the CE, FCC and E-mark standards. The R&D of new products and of the manufacturing system itself is likewise given much importance. Each year, almost half of earnings from sales go into the various R&D projects of this ISO 9002 company. Taiwan Automechank (Frankfurt), AMPA (Taipei), HK Electronics Fair 44 Market Intelligence: Car Security

7 SUPPLIER PROFILES Currently, the R&D department is focused on improving the assembly phase of production including the assembly skills of its workers. It is also carefully assessing the quality level of components suppliers. The development of new products is another important aspect and spans several stages. It covers design development and documentation, circuit design, dummy production, and pilot production. Research into market response is also part and parcel of the whole process. The company, which is open to both OEM and ODM orders, improves on its core technologies through continuous R&D work and by partnering with industry experts and leading suppliers. It currently has five workers assigned to perform QC, and another five to handle R&D. Products and prices Altrusty, which will soon put up a foreign office in mainland China, is looking at a hefty 15-percent jump in the price levels of its car security products in the coming months. The increase is predicted to result from inflation and the continuing rise in the cost of raw materials. It, however, remains confident that demand will be unaffected by rising prices and will continue to be robust. Last year, it released a 9V to 15V car alarm model that is equipped with window, door, pressure, and shock sensors. Model RCA-001, which sells for $16, FOB Taiwan, features sound, a flashing light, warning signals and status indicator. It has a one-way transmitter with a 250-m range, automatic central lock, remote trunk release, and valet mode among others. It comes with a one-year warranty. Several parking sensor models were also released last year. These are the KA-900, which sells for $21 FOB, and the AT-800, which is available for $14 per unit. Popular export models Image filename RCA-001 Image filename KA-900 Image filename AT-800 Model name RCA-001 FOB price (US$) 16 Release date August 2003 Minimum order (units) 1,000 Guarantee/Warranty 12 months Key features and specifications Type of sensor/s Door, window, shock, pressure Alarm response Sound, flashing lights, pre-warning signal, status indicator Specifications 9V to 15V voltage, 20mA static current, 433MHz frequency Transmitter features One-way, LCD, 250m transmission range Model name KA-900 FOB price (US$) 21 Release date August 2003 Minimum order (units) 500 Guarantee/Warranty 12 months Key features and specifications Type of sensor/s Door, window, shock, pressure Alarm response Sound, flashing lights, pre-warning signal, status indicator Specifications 9V to 15V voltage, 20mA static current, 433MHz frequency Transmitter features One-way, LCD, 250m transmission range Model name AT-800 FOB price (US$) 14 Release date August 2003 Minimum order (units) 700 Guarantee/Warranty 12 months Key features and specifications Alarm response Sound, wireless cutoff relay Specifications 9V to 15V voltage Transmitter features One-way, LCD, antiscan protection Market Intelligence: Car Security 45

8 PRODUCT COMPARISON TABLES Electronic car alarms Company Model FOB Type of Alarm Transmitter name price sensor/s response (remote control) (US$) features Agilon AL-V6 Shock Sound (optional), One-way, 100m pre-warning signal transmission range AGILONV6 Agilon AL-AS Shock Sound (optional), Two-way, LCD, 1,500m pre-warning signal, transmission range AGILONAS LED status indicator Altrusty RCA Door, window, Sound, One-way, LCD, 250m shock, pressure flashing lights, transmission range, valet pre-warning signal mode, anti code-copy, rca001 code-learning Altrusty KA Door, window, Sound, One-way, LCD, 250m shock, pressure flashing lights, transmission range, valet ka900 pre-warning signal, mode, anti code-copy, status indicator code-learning Altrusty AT Door, window, Sound, wireless One-way, LCD, 250m shock, pressure cut-off relay transmission range, at800 anti-scan protection Altrusty IMO-2000 Door, window, Status One-way, 250m shock, pressure indicator transmission range, imo2000 emergency override, anti-hijack Information not disclosed 118 Market Intelligence: Car Security

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