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


Introduction

Desay SV Automotive


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


Automotive

Electronics

New Energy

Technology

Audio &

Video

Mobile

Communication

IC Design

Opto-

Electronics

Our Products


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.


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.


CD Radio 6CD Radio Radio Only

Display Radio Navigation Telematics

Radio and Navigation


4-Zone FATC 1-Zone FATC Integrated Ctr. Stack

2-Zone FATC ETC

MTC

Rear Seat Controller

Black Box

Climate Control


Passenger Vehicle

Traditional

Passenger Vehicle

TFT Reconfigurable

Passenger Vehicle

TFT

Commercial Vehicle Construction

Machinery Traditional

Construction Machinery

Monitor

Driver Information


Passenger Car

Global OEMs

Commercial

Vehicle&

Construction

Machinery

Passenger Car

Local OEMs

Major Domestic OEM Customer in China


Major Overseas OEM Customer


Automotive Market China


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


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.


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%.


Globalisation


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.


Paradigm Shift


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.


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).


From this ….

… to this (in 6 weeks).

Our first overseas production line


DESAY SV Automotive

First Customization

Radio Navigation

Production Line

DESAY SV Automotive

Overseas expansion.

First Radio Navigation

Production Line In Our

Partner Plant.


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

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