Chinese TPMS market worth 1.5 billion yuan in 2013
The Chinese TPMS market was worth 1.4 billion yuan in 2012, according to research published in 2013. According to Huidian Research, this number is expected to exceed 1.5 billion yuan in 2013. Although China’s TPMS market has maintained rapid growth in recent years in parallel with a booming automotive and following tyre sector, the market scale is still relatively small compared with other automotive electronics products (such as EMS, ABS, automotive audio, airbags and auto instruments) and this industry is still described as being “in the initial stage of development”.
Having said that, as of 2012 there were reportedly 200 TPMS manufacturers in China. As you might expect the level technology is not evenly distributed and only a few manufacturers (which the report names as companies like Baolong, Kysonix, Top Sun, State and Taihao) can achieve mass production. In addition to TPMS, most of the enterprises also produce reversing radars, GPS navigations, alarms, central locking systems and a series of automotive electronics products. The corporate strength, scale, and technology level are different in different areas; most of the enterprises rely on the foreign TPMS development platforms and production lines to carry out production. Less than 20 per cent of the enterprises own independent design and production capacity and rare of them have ability to achieve mass production.
At present, the domestic TPMS assembly rate is still very low – only 9.65 per cent in 2012. As for the TPMS market capacity, the capacity in China’s TPMS market was 340,000 units in 2006, and it increased to 1.86 million units by 2012, the average annual growth rate reached 27.5 per cent. However, with the middle classes growing every year and car ownership increasing as a consequence, there is likely to be more growth ahead.
Huidian Research believes that with the continuous development of China’s auto industry and the gradual strengthening of residents’ safety awareness, coupled with the mandatory policies in the future, TPMS market will usher in a great market opportunity. In the second half of 2013, the growth rate of auto market is expected to come in as lower than the growth rate in the first half, but the overall market is expected to maintain a steady growth, and the assembly rate will be obviously higher than 2012, which is expected to exceed 10 per cent.