Thursday, June 07, 2007

Electronic Auto-Components: Opportunities in Outsourcing and the Aftermarket


A recent Indian auto-component industry report suggested that low cost countries, such as India and China, have the potential to meet the outsourcing needs of 20% of the global electronic auto-components market.

An auto-component that is not a core component of a car and has aftermarket replacement opportunities, such as wiper motors, power window components or dashboard displays, is more likely to be outsourced. Electronic components and their parts are not only manufactured at the tier I level but also at a tier II / III level.

This briefing will benefit component manufacturers at both tier I and tier-II / III levels, distributors, and vehicle manufacturers by discussing emerging trends and providing forward projections for the North American electronic auto-component industry.

Highlights of the briefing include: a discussion of auto-components outsourcing, ramifications of outsourcing on the aftermarket and threats as well as opportunities within the different tiers of the market.

"While over the last 10-15 years the prices of cars have remained 'flat,' stricter regulations and demanding consumers have driven the costs up in the North American automotive market," notes Frost & Sullivan Research Analyst Abhigyan Sengupta.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics.