Who can dominate the domestic automotive connector market

The rapid development of the Chinese economy has led to a historic leap in the electronics industry. Reform and opening up have opened up China's economy, as well as its electronics industry! Connectors in the electronics industry not only connect circuits, but also connect China and the whole world! How will the development path of Chinese connectors be carried out, and who will dominate Chinese automotive connectors? At first, China's connector production was mainly military connectors, which were equipped in the Chinese military during the war. After China implemented the reform and opening up policy, many manufacturers began to produce connectors in various industries closely related to electricity, such as small household appliances, large household appliances, white electricity, black electricity, communications, automobiles, etc. There are nearly 1000 enterprises engaged in the production of different types of connectors in the the Pearl River Delta, but only a few dozen enterprises are engaged in the production of automobile connectors, and even fewer of these dozens of enterprises have a large production scale! The development of the Chinese economy has made cars no longer a luxury item for people to boast about, and Chinese car manufacturers are like bamboo shoots after rain! China's automobile connector manufacturers are all concentrated in the Yangtze River Delta and the Pearl River Delta, especially in Zhejiang Province, where nearly two-thirds of China's automobile connector enterprises are located. Similarly, foreign-funded enterprises account for at least 40% of the local automotive connector production enterprises. In recent years, the size of China's automotive connector market has exceeded 3 billion yuan, with a shipment volume of 800 million units, accounting for 8% to 10% of the total connector industry market in China, which is lower than the global average of 15% for connectors in the automotive connector application field. In recent years, most cars in Chinese Mainland are imported from Europe and the United States, Japan and South Korea. Foreign brands account for 60% to 70% of the market share of local car connectors, while domestic connector accessories only account for 30% to 40% of the market share. The connectors purchased by Chinese automobile manufacturers mainly come from foreign companies such as AMP, Delphi, Yazaki, KET, Molex, etc. The rapid growth of China's automobile production has also stimulated the import quantity of automotive connectors. At present, China imports approximately 2 billion yuan worth of automotive connectors annually, accounting for about 25% of the total import volume of the Chinese connector market. Chinese automotive connectors are mainly imported from countries such as the United States, Germany, France, Italy, Japan, and South Korea; In terms of exports, mainly foreign-funded enterprises such as Shanghai Delphi Parker, Hangzhou Xinchi, and Shanghai Yilisu are the main ones, and local enterprises are rarely focused on exports as their main business direction. This provides a great development space for three types of capital and foreign-owned enterprises. There are nearly a hundred types of connectors required for general automobiles, and there are about hundreds of connectors used for a single vehicle model. So so many types also limit local enterprises without economic and technological strength. In recent years, with the increasing demand for safety, environmental protection, comfort, and intelligence in automobiles, the application of automotive electronic products has been on the rise, such as car audio systems, car navigation systems, airbags, ABS systems, and in car fiber optic networks. This will lead to an increase in the number of applications for automotive connectors. It is estimated that in the future, each car will use 600-1000 electronic connectors, far exceeding the number currently used. At present, global automotive connectors account for about 15% of the connector industry, and in the future, they are expected to have a larger proportion driven by automotive electronic products. In terms of product cost structure, the average cost of connectors used in each car in China is only a few hundred yuan, which is about $125 to $150 per car compared to foreign countries. Therefore, the Chinese automotive connector market still has great potential for development. China is expected to become an important production base for global automotive connectors in the future. In addition to the existing well-known international factories, other manufacturers who have not yet set up factories in China will gradually establish production bases in China to supply the needs of local automotive component manufacturers due to factors such as increasing local demand, localized procurement, and cost advantages. Therefore, in the future, the Chinese automotive connector industry will be a highly competitive market between foreign-funded enterprises and local Chinese enterprises! China will also become one of the important production countries for automotive connectors under the development of foreign-funded and local enterprises. It remains to be seen who will become the dominant force in Chinese automotive connectors in the future, including local enterprises, foreign-funded enterprises, and foreign-funded enterprises!