Growth & Globalisation of Chinese Tier-1 Automotive Supplier€¦ · Growth & Globalisation of...
Transcript of Growth & Globalisation of Chinese Tier-1 Automotive Supplier€¦ · Growth & Globalisation of...
Strictly Confidential
- Global Electronics Forum 2014 – 14 March 2014, Singapore
A Ahmad
Growth & Globalisation of Chinese Tier-1 Automotive Supplier
GEF 2014, Singapore 2 IBD – A Ahmad
Content
Introduction Desay SV Automotive
Automotive Market China 2013
Globalisation
Paradigm Shift
Summary
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Automotive
Electronics
New Energy
Technology
Audio/
Video
Mobile
Communication IC Design
Opto-
Electronics
Desay Corporation
• Radio & Navigation
• Telematics System
• Climate Control
• Instrument Clusters
• Driver Information
Display
• Body Control Module
• Primary Lithium battery:
Lithium Iron Disulfide
(Li/FeS2) battery,
• Lithium Manganese
Dioxide (Li/MnO2)
battery etc.
• Rechargeable Lithiumion
battery and cell mobile
phone battery, laptop
computer battery etc.
• Micro-power
management system
• Electric vehicle battery
management system
• High-energy alkali-
manganese battery
• Zinc-manganese battery
• Blu-ray Disc Player
• Blu-ray Home Cinema
• Digital Satellite Receiver
• DVD Player
• HD Media Player
Chairman & President : Mr. Jiang Jie
CL Tan
• 3G Mobiles:TD/EVDO/
WCDMA
• 3G Router
• 3G USB modem
• Information Phone
• DECT
• Bluetooth Products
• Elderly Phone,
Kid Phone
• Police Phone, Rural
Phone, POS
• Lithium battery
protection chip
Mechanism
• Panoramic video system
chip
• Navigation chip
• Giant high-rightness full
color LED display
• Video processor display
control system
• LED Lighting
Q Liu C Zhong P Lei C Zhong Y Wang
Desay Corporation
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Automotive
Electronics
New Energy
Technology
Audio &
Video
Mobile
Communication
IC Design
Opto-
Electronics
Our Products
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Desay SV Automotive at a glance
Desay Corporation: Sales approx. USD 2 billion (2013).
Desay SV Automotive: Sales approx. USD ??? million (2013).
CAGR > 25%.
Main Plant at Huizhou, Guangdong Province, China.
100% state owned through Desay Corporation.
Employee approx. 2,000 with more than 800 R&D engineers.
Established in 1986 (Desay – CAE – Philips Car Systems).
Significant change in 2002 : Desay – Siemens VDO.
Independent since 2009 after separation from Siemens VDO.
Production capacity at 3 million units (radio, multimedia, navigation,
instrument clusters, climate control, etc.)
Fully automotive qualified (ISO9000, ISO14000, ISO18000, TS16949,
ROHS, etc.)
Capabilities: design, manufacture and supply of automotive interior
electronics products as tier-1 supplier.
Purchasing Volume of more than USD 180 million (with more than USD 50
million semiconductor devices).
Aspire to triple its sales turnover within the next 5 years.
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Huizhou/
Shenzhen
Singapore
India
NAFTA
Planning
Latin. A
Planning In Progress
Japan
Our Global Presence
Germany
A strategic step-by-step global expansion plan in progress.
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CD Radio 6CD Radio Radio Only
Display Radio Navigation Telematics
Radio and Navigation
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4-Zone FATC 1-Zone FATC Integrated Ctr. Stack
2-Zone FATC ETC
MTC
Rear Seat Controller
Black Box
Climate Control
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Passenger Vehicle
Traditional
Passenger Vehicle
TFT Reconfigurable
Passenger Vehicle
TFT
Commercial Vehicle Construction
Machinery Traditional
Construction Machinery
Monitor
Driver Information
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Passenger Car
Global OEMs
Commercial
Vehicle&
Construction
Machinery
Passenger Car
Local OEMs
Major Domestic OEM Customer in China
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18.41 19.27
22.11
14.48 15.52
18.08
-
5.00
10.00
15.00
20.00
25.00
2011 2012 2013
Total Vehicle Produced Passenger Vehicle
4.7%
14.7%
7.2%
16.5%
Million Units
2011~2013 Production Trend for China Auto Market
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12.10 1.32
3.03
1.64
Units (Million)
Sedan MPV SUV Cross Passenger
2013 Auto Production Breakdown – Passenger Vehicle
Total Production : 18.08 million
Highlights:
Sedan leading the
pack with nearly 67%
share of the total
passenger market.
SUV coming in
strongly next with
nearly 16.7% market
share.
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Y2011 Y2012 Y2013
自主品牌 4,357,141 6,476,418 7,096,311
日系 1,996,909 2,544,326 3,117,171
欧系 2,062,241 3,397,939 4,051,085
美系 1,181,749 1,764,400 2,231,638
韩系 852,141 1,340,575 1,589,008
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000 单位:辆
Y2013 广义乘用车分车系产量图Production Breakdown 2013
Note: Total production in 2013 is at 18,085,213 units
Independent
Japanese
European
US
Korean
2013 Market Share Analysis
Car production increases
by 16.5%, of which US by
26.5%, Japanese by
22.5%, European by
19.2%, Korean by 18.5%
and Independent by 9.6%.
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Localization and Globalisation
The need to meet global standards is imperative …’Globalising local’.
Localization of
Global Customers in China
Impact
European :
USA:
Japanese:
1. Still need to meet requirements set by
home country. E.g. VW unit to be
released in Worfsburg, Germany.
2. Product development process has to
meet global customer’s expectation.
3. To qualify, will also need to participate in
global RFQs of customer.
4. Quality expectation is no different from
global tier-1.
5. Local overseas support is also expected
for global RFQ.
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Change in doing our business
We shall tap and capitalise external expertise to catapult our growth.
Technology Business
Corporation and partnerships.
Double Tuner / 3G, 4G NAD
Infra red touch display
Electronics components
Partnerships in the emerging
markets.
Russia
Malaysia
Indonesia
Iran
India … and many more in the pipeline.
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An example of our success
Started 18 months ago in mid 2012.
Today, 2 production lines have been installed.
3rd production line is now in planning.
Each line is able to produce 200K radios, climate control and
instrument cluster panels.
Target is to produce 500K radios by end of 2014.
What do we gain? Speed. Time to market.
Market Share (almost immediate).
Immediate customer access.
Local service support.
Low investment (borne by local partner).
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From this ….
… to this (in 6 weeks).
Our first overseas production line
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DESAY SV Automotive
First Customization
Radio Navigation
Production Line
DESAY SV Automotive
Overseas expansion.
First Radio Navigation
Production Line In Our
Partner Plant.
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What’s next?
Now in discussion to replicate in 2 other locations.
2nd location to be ready by Q4 2014.
3rd location to be ready by Q2 2015.
We hope to achieve 5 locations globally by end 2016 in
meeting our customer expectation for a localised production
operation.
Each location may have more than one production line.
2014 2015 2016
2nd 3rd 4th 5th