The technologies that enable Chinese automakers to meet stringent Euro 4 and Euro 5 emission standards will become potential growth points for global component suppliers with proprietary technologies.
Frank Rehfeld, general manager of Shanghai Haila Electronics Co., Ltd., predicts that local automakers expect to achieve Euro 4 and Euro 5 emission standards, bringing growth to the company of approximately 20% to 30%.
Shanghai Haila Electronics Co., Ltd. is a wholly-owned subsidiary of Haila Group, a European auto parts supplier.
Hella's electronic accelerator pedal is entering the local vehicle manufacturing company, such as Zhejiang Geely Automobile Company. Rehfeld said: "Geely started to use our products a little this year."
Chery Motors is also its customer. In 2008, Chery ordered 15,000 electronic accelerator pedals from Hella.
In addition, turbochargers have also grown significantly, and Hella expects CIPOS sensors to start selling to China. This sensor is a contactless position sensor installed at the throttle, which can ignore changes in temperature and vibration and measure changes in stroke and angle.
Rehfeld said that these are all dependent on the stringency of China's implementation of emission standards.
Similarly, Bosch also stated that “the Chinese market demands that parts and components can help automotive manufacturers meet the demand for Euro 4 and Euro 5 standards.†This is what Helen He, spokesperson of Bosch (China) Investment Company in China, said .
Bosch has a wide range of technology products that support emissions reductions and energy savings such as direct gasoline injection, diesel common rail systems and hybrid electronic start/stop systems.
He said, "All these products meet the Euro 3 and Euro 4 standards and can be easily upgraded to Euro 5 products."
Delphi is also an example. Kevin Quinlan, head of Delphi Drive Systems Asia Pacific, said that there has been a significant increase in demand for products such as gasoline direct injection injectors, multi-port fuel engine management systems, and transmission management systems.
Delphi expects that by 2015, the penetration rate of gasoline direct injection injectors (GDI) on Chinese gasoline engines will increase from the current 3% to more than 10%, and variable valve timing will increase from 50% to 65%.
Delphi said that cars equipped with automatic transmissions are expected to grow to 50% of the market in the next decade.
Mahler Technology Holdings (China) also hopes to benefit from it. With the government's stricter emission standards for cars, “make us have an advantage when competing with local companies because we already have mature products developed in other markets,†said Kun Hu, general manager of the company.
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