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Research and Markets: China Sourcing Report: Car Electronics 2012: Shipments to the EU and North America to Increase to Less Than 5 Percent

Research and Markets (http://www.researchandmarkets.com/research/q8d6l3/china_sourcing) has announced the addition of the "China Sourcing Report: Car Electronics 2012" report to their offering.

Car electronics suppliers in China are bracing for several challenges to stay on a growth track in the months ahead. Overseas, companies have to contend with demand from the EU and North America remaining weak, although gradually recovering. A number see shipments to the two areas increasing less than 5 percent.

With opportunities in the two major markets constrained by economic uncertainties, many enterprises are looking at alternative destinations to keep revenue on the upswing. South and Central America, the Middle East and Africa are among the targets.

In the endeavor to expand their customer base, maintaining competitive prices without compromising profitability is a key concern. Higher outlay and the appreciation of the yuan are putting pressure on margins, forcing companies to raise quotes and risk their main advantage.

Key findings

1. Suppliers are shifting their sales mix toward higher-value lines to ease pressure on margins. To support this strategy, many enterprises are boosting allocation for product development, putting aside as much as 30 percent of profits to keep selections up-to-date with the latest technologies.

2. In several categories, R&D efforts are geared toward increasing functionality. A host of infotainment, security and safety solutions are being combined in one system for greater user convenience.

3. Various cost-control measures are also being put in place to keep price adjustments to a minimum. Among these are the automation of more processes and the adoption of the yuan in trade settlement.

4. For an added edge, several manufacturers are boosting market recognition of their products and in-house brands via trade shows. Some are doing so by advertising in different media.

5. A number of enterprises are encouraging purchases by having MOQ as small as 100 units. Shorter lead times and product warranties are also being offered.

6. Export projections for the coming months are generally optimistic. Many companies are anticipating growth of more than 10 percent in overseas revenue.

7. North America and the EU are projected to remain key export destinations. Despite the economic crunch, the market for car electronics in the two areas is still large.

For more information visit http://www.researchandmarkets.com/research/q8d6l3/china_sourcing.

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