Chinese Car Audio Market Expected To Expand
We all know that Chinese are buying more and more vehicles every year. With the economy of the giant of a country becoming better and better, more and more consumers can afford vehicles manufactured by General Motors, Ford, Chrysler, Toyota, Nissan, and Honda. Meanwhile, an individual who cannot afford vehicles made by large automakers still has choices. There are Chinese automakers that specialize in creating cheap cars. It is undisputable that the Chinese auto market is growing.
And with more cars on Chinese roads, more auto parts are also needed for repairs and for the replacement of auto parts. This creates a huge chance for companies to enter the Chinese auto parts market. The demand for automotive accessories is also increasing of course. And for those who want to cruise around on their BMW clones while listening to their favorite music, a car audio system is essential.
Research and Markets recently studied the Chinese car audio market and came up with these figures: “The output and sales volume of automobile in China in 2006 reached 7.2797 million units and 7.2160 million units respectively, each up by 27.32% and 25.13%, which indicated that China has become world second-largest automobile consumer market next to US, and the domestic automobile sales in 2007 is expected to grow at around 15%, exceeding 8 million units. The rapidly growing automobile market of China activates the whole automobile industry chain; car audio sector sees a good momentum, and its before-market penetration has reached 100%.”
According to the report, the car audio market is divided into two parts. The first one is the OEM market. In this market, automakers equip their vehicles with car audio systems from a certain OEM brand. The second one involves the retail market. In this market, car owners buy their car audio systems from independent manufacturers. According to the report, the Chinese car audio market is dominated by the first market. Last year, it is reported that 7.2 million sets have been ordered by automakers from OEM. It is expected that by the turn of the decade, the demand will reach 10 million.
The reports projected that the Chinese car audio market will grow by ten percent over the next four years. Although the OEM market is bigger than the retail market, it is expected that the latter will grow considerably in the near future. The reason for that is more and more consumers are looking to upgrade their stock car audio systems.
