According to statistics from the China Association of Automobile Manufacturers (CAAM), the cumulative production and sales of automobiles in China exceeded 13 million units in 2009, with a year-on-year growth record high, making it the world's largest producer and consumer of automobiles. After becoming the world's largest automobile market in 2009, China achieved a growth of 32% in 2010, with production and sales reaching 18.06 million vehicles respectively, becoming the world's largest automobile market in history. In 2011, although China's automobile production and sales ended two consecutive years of high-speed growth due to various unfavorable factors such as increased macroeconomic regulation and the introduction of dividend policies related to automobiles, achieving 18.4 million units of automobile production and sales throughout the year. However, the decline in 2011 basically met expectations and still achieved certain growth.
Correspondingly, the rapid growth of the domestic automotive industry in the past three years has driven the market demand for upstream domestic automotive connectors. In 2011, the market demand for automotive connectors reached 4.1 billion units.
Electronic connectors are essential components for all point related products. The domestic automotive connector wiring harness industry undertakes capacity transfer, with an annual growth rate of over 15%. The transfer of automobile manufacturing has brought about a demand for localized procurement, with domestic automobile sales exceeding the global average by 5% -10%; Overreliance on foreign manufacturers for bankruptcy and localization demand, with domestic manufacturers accounting for only 30% -40% of the market share; The demand for electronicization of domestically produced medium and low speed cars will double the number of connectors used in single cars from a few hundred to thousands in the future.
At present, the demand for connectors in the Chinese market is as high as 10 billion US dollars per year, and has been growing at an average annual rate of about 20% in recent years. It is expected that this growth trend will continue in the next 5 years.
