China's exports of automotive lights are on an uptrend. In 2005, total shipments of vehicle lighting equipment and filament-type light bulbs grew 24 percent in terms of value, reaching more than US$234 million. Trade statistics for the first eight months of 2006 point to another strong year for these lines, with exports already 28 percent higher than the same period in 2005.
The continuing surge in export sales is due mainly to the higher value of units being sent overseas rather than a larger volume.

Outbound products in 2005 were worth about US$0.16 per unit, 23 percent more than the average value of products shipped in 2004. Exports in the period January to August 2006 were valued at US$0.19 per unit, 28 percent higher than that of the previous period.

In fact, growth in terms of volume, which is much lower than the value growth rate, has slowed considerably from 2004. In 2005, the country exported 1.5 billion automotive lights and filament-type bulbs, an increase of only 4 percent, in contrast to the 16 percent gain in 2004.

Nevertheless, the export growth rate is expected to rise during the remaining months of 2006 and through 2007. In the first eight months of this year, shipments have already increased about 7 percent year-on-year.

Exports to North America and the EU, in particular, are expected to increase steadily as policies regarding the use of generic repair and replacement parts become more favorable. The two regions currently account for about 25 percent of automotive lighting exports, but the total number of units being shipped to these markets has been growing more than 10 percent in the past two years.

The EU is seen as a market with high growth potential mainly because of the increasing number of dealers and repairers, as well as insurance companies taking advantage of Block Exemption Regulation 1400/2002/EC to use more competitively priced aftermarket parts. Designed to promote competition in vehicle sales and the provision of aftersales services and parts, the BER allows authorized dealers and repair service centers of vehicle makers in the EU to procure spare parts and components of matching or superior quality from independent or non-OEM suppliers. This creates opportunities for independent parts distributors, and consequently China-based makers of aftermarket products to expand their customer base in the region.

At present, exports to the EU constitute about 16 percent of China's automotive lighting shipments. Major markets in the region are Germany, Italy, the UK, Spain and Finland.

Get the complete version of this report.

All information contained in China Sourcing Reports is the result of exclusive, ground-level and definitive research conducted by Global Sources' analysts. Companies featured in these reports may or may not be clients of Global Sources.