The Mainland's fast growing automotive market presents immense opportunities for Hong Kong's automotive components industry in more ways than one.
Firstly, the Mainland Government is making efforts to upgrade the country's automotive industry and increase the amount of electronic and electrical devices in Mainland-made vehicles. Industry players anticipate electronic components to account for as much as 40% of the cost of a Mainland-produced automobile by 2010. Such a development spells opportunities for Hong Kong, which excels in electronics.
At present, most of the critical automotive parts and components used by Mainland assemblers come from their foreign joint-venture (JV) partners and their Tier 1 suppliers. However, with the removal of import quotas and tariff cuts under the World Trade Organisation framework, JV car assemblers and manufacturers are encouraged to globalize procurement and choose suppliers on the basis of comparative advantages, rather than source from JV partners as a rule. This is opening up new opportunities for Hong Kong suppliers.
Furthermore, with import tariff exemption accorded by CEPA for many Hong Kong-made automotive components, local automotive components manufacturers have an advantage over their overseas peers in the vast Mainland market.
To tap these opportunities to the full, the local industry needs to turn out products with high value-added content, high creative content, high technology content and high IP content. They should also comply with international quality management standards.
To help the industry rise to these challenges, HKPC provides a comprehensive range of consultancy and support services specifically designed for the sector. These services cover:
R&D of Automotive Parts and Accessory Systems
Technology and Product Development
Commercialization of R&D Results
Mainland Market Development
Testing & Certification