In-Car Entertainment

Source in-car entertainment products from China's main supply centers of Guangdong, Zhejiang, Jiangsu and Shanghai more effectively with this report.
You'll benefit from a comprehensive overview of China's competitive in-car entertainment export industry, with analyses of key issues impacting product pricing, quality and supply.

You'll also get deep profiles of leading manufacturers, that you can use to evaluate new producers to visit on your next trip to China and to benchmark existing ones.

Plus, you'll reach the right person every time you need to contact a new supplier, with full phone numbers, e-mail addresses and website URLs for every featured manufacturer.

What you'll get

In-depth profiles of 24 major producers, focusing on product offerings, manufacturing capabilities and future plans. Based on factory tours and interviews with senior managers, this information is available nowhere else.

Short profiles of an additional 36 suppliers with key facts such as production checklists, export ratios and major export markets

A detailed product comparison table with color images and key specifications, so you can compare 190 popular car CD players, car DVD players and in-car TVs

Information that lets you identify key suppliers of in-car entertainment systems for leading OEM/ODM buyers such as Auchan, Audiovox, Carrefour, Volkswagen and Toshiba

How you'll benefit

Learn about issues affecting the growth rate of China's in-car entertainment industry and how intensified competition could cause a drop in the prices you are offered

Get details on suppliers' company backgrounds, export and production capacities, and full contact information

Identify the China manufacturers that have top-of-the-line, in-house R&D and design capabilities

Know suppliers' future product and output plans before the market does

Executive summary

Car audio and video electronics is one of mainland China's fastest-growing and most dynamic industries, with many of the current players joining the line only in the last five to eight years. Manufacturing is clustered mostly in the south, specifically in Shenzhen, Guangdong, where there is strong industrial support in terms of SMT, mold-making and plastic injection subcontractors. Other strong production centers are located along the eastern seaboard, including Shanghai and Jiangsu.

Shipments of car CD players, car DVD players and in-car TVs generated about US$800 million in export earnings for China last year, according to the China Audio Industries Association (CAIA). Together with domestic sales in 2003 of nearly US$320 million, mainland China's car A/V line has grown into a billion-dollar industry. Export growth in 2004 is projected at a healthy range of 40 percent to 68 percent at minimum, while sales within China are likely to grow another 12 percent to 15 percent.

Including small-scale firms and nonexporters, there are roughly 1,600 car A/V makers in mainland China, 15 percent of which are considered active makers. About half of these — or 130 companies — manufacture and export car CD players, car DVD players and in-car TVs. CAIA data and Global Sources research indicate these companies' domestic and worldwide sales totaled between 9.3 million and 10 million units last year, and could hit anywhere from 13 million to as much as 16 million units this year. In revenue terms, the industry is looking at combined domestic sales of US$370 million this year and export earnings of US$1.35 billion.

No wonder competition within the industry is becoming more intense. The number of players is forecast to grow by about 85 percent this year, and those that are already in the line are boosting production capacities, planning to double their outputs and roll out more and more models.

In car CD players, cosmetic design, wireless access and other value-added functions are where R&D is focused at the moment. For car DVD players, DivX playback is in development and new releases will likely sport GPRS wireless internet access, memory-card slots and touch-screen control. For incar TVs, buyers can look forward to fully-automatic models with GPS navigation functions and super-thin, anti-glare coated monitors ranging in size from 5.6 to 15 inches and up.

Industry overview

Demand for in-car entertainment products such as car CD and DVD players, in-car TVs, and car speakers and amplifiers, is increasing at a phenomenal pace worldwide. Several factors lie behind this growth — the steady rise in vehicle sales, freer markets due to the impact of globalization, lower prices as the supplier base expands, and increasing incomes in large developing economies like mainland China and India.

Automobile industry analysts predict total world car sales in 2004 will reach 48.5 million units, rising further to 52.9 million units by 2008. For makers of car A/V products, this can only mean one thing: The pie will continue to get bigger. Market researchers Freedonia Group estimated that the aftermarket for light vehicle components — which includes electronics, auto-sound and security products — will reach US$53 billion in 2006 the North America alone. Additionally, in many developing economies, consumer buying power is climbing, which means products such as cars, white goods and electronics are now affordable to most.

Following implementation of wide-ranging market reforms and its entry into the World Trade Organization (WTO) in 2001, mainland China appears to have transformed itself overnight. In just a few years, it has become the world's biggest sourcing center for manufactured products, and is well on its way to becoming its single biggest market as well.

Strong export growth seen
Mainland China makers of mobile electronics have made their mark on the export market. China Audio Industries Association (CAIA) data, customs statistics and research conducted by Global Sources show that the country's exports of car DVD players in 2003 totaled about US$250 million and are forecast to touch US$400 million this year. Car CD player exports in 2003 amounted to US$250 million and are expected to increase by 80 percent this year. Car TV exports generated revenues of US$300 million last year, and are predicted to bring in another US$500-million this year.

As of end-2003, CAIA estimates that the mainland's car CD/DVD/TV industry comprised about 130 players, with a combined annual manufacturing capacity of up to 20 million car CD players, 10 million car DVD players and about 5 million car TVs. The industry's vibrant performance both in the domestic and export markets is bringing in newcomers by the dozens. CAIA expects that by the end of 2004, the industry will have grown to about 250 players, with roughly 60 percent of these producing car DVD players.

Samples of supplier profile

Baotian Technology Co. Ltd
Baotian Technology Co. Ltd, a subsidiary of Hong Kong car A/V product manufacturer Digitmax Electronics Group, focuses on low-end and mid-range car entertainment systems. Digitmax started development of car DVD players in 1992, ahead of the explosive growth period in the DVD market. Baotian Tech has concentrated on developing and manufacturing car DVD/CD players and in-car TVs since its establishment in 2001.

The company maintains a 50:50 split between exports and domestic sales. In 2003, it exported five out of 10 car DVD players and car TVs, selling the remainder to the local market. Western Europe and the US absorbed 50 percent of these exports, with the remainder going to Indonesia, Malaysia, Japan, Taiwan, Hong Kong and South Africa.

Baotian Tech emphasizes its R&D strengths to potential OEM customers. For 2004, it plans to develop car entertainment systems with computer interfaces, GPRS wireless Internet access, touch-screen controls and card-reader capabilities.

Manufacturing capability
Production takes place in a three-story building located in Dongguan's Zhangmutou Town. The factory is located midway between Guangzhou and Shenzhen and is approximately 30 minutes by train from either city.

Baotian Tech's surface-mounting requirements are handled by Digitmax's SMT factory in Xinhui City, Guangdong. Metal-stamping and plastic injection services are provided by another Digitmax subsidiary in Dongguan.

At the Zhangmutou factory, the Global Sources team noted two assembly lines manned by a total of 200 staff. There was one manual insertion-and-soldering line staffed by 100 workers equipped with a wave soldering machine and a Glenn GRFD5180 reflow soldering machine. Total factory area is 12,000 square meters. The plant is ISO 9002-certified and products made here carry TUV, FCC, E-mark and FDA approvals.

Fifty workers handle QA and QC, using a variety of oscilloscopes, multimeters, DC power supplies, vibration testers, test TVs and amplifiers. The factory has a temperature and humidity chamber, where all products are subjected to a 24-hour aging test. New products are further tested under temperatures ranging from -30° to 85° Celsius, while standard models are tested at between -20° and 65° Celsius. Humidity testing levels are from 0 percent to 100 percent. Drop testing, vibration testing and functionality test — the latter includes EMI or electromagnetic interference testing — are also done.

Baotian Tech's quality control system includes 10 staff who handle IQC for materials and components. Five workers perform IPQC by visually inspecting products and doing functional testing. Five workers handle online QC, and final QA is handled by 10 staff to MIL-STD-105E standards.

Sample of product gallery

Car CD Players Company:Baoling Model name/ number:BL-990C Formats supported:CD, cassette tape Other key features:Auto-reverse cassette tape player; AM/FM PLL electronic tuning; 12 AM/18 FM preset stations

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