China Car-Parts Market Booms; Global Manufacturers Try to Match Expansion Of Top Automobile Makers

Mr. [Timothy R. Donovan], whose trips to China this year have hit double digits, says sales for the country rose 87% in the first six months from a year ago. He predicts Tenneco's China revenue will continue to grow between 25% and 30% annually for the next three years. By 2006, he says, China...

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Bibliographic Details
Published inThe Wall Street journal Asia
Main Author Peter Wonacott and Owen Brown
Format Newspaper Article
LanguageEnglish
Published Victoria, Hong Kong Dow Jones & Company Inc 07.11.2003
Subjects
Automobiles
Automotive parts industry
Factories
Suppliers
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Summary:Mr. [Timothy R. Donovan], whose trips to China this year have hit double digits, says sales for the country rose 87% in the first six months from a year ago. He predicts Tenneco's China revenue will continue to grow between 25% and 30% annually for the next three years. By 2006, he says, China will account for about 6% or 7% of Tenneco's world-wide revenue, from low single digits now. Tenneco reported $915 million total revenue in the third quarter of 2003, up from $856 million the same period last year. The growth has created stratospheric projections for China's auto industry, and has turned the country into a target for suppliers that might be struggling in home markets. "China is the key to the automotive industry," said Mr. Donovan of Tenneco, which has seen shrinking revenue in North America for equipment and after-market sales. "There is some overcapacity," Delphi's Mr. [Chen Jinya] says. "But it is on the Chinese side and its obsolete capacity."
ISSN:0377-9920