China, India auto part exports to U.S. expected to grow
As auto markets in China and India grow, so will the number of auto parts that companies in these countries send to the United States, says a study by Southfield-based AlixPartners.
The consulting firm, which is known for its restructuring services, released its 10th annual study of the auto industry today. For the study, the company examined financial data of 297 auto suppliers, 51 automakers and 25 heavy truckmakers to evaluate the industry's financial health and identify trends Last year, U.S. companies imported $43.2 billion in parts, with Canada, Mexico and Japan leading the way. China and Germany were tied for fourth place last year, accounting for a little more than 5% of U.S. auto part imports. For the first three months of 2007, China topped Germany.
Auto suppliers in China increased their exports by 38% in 2006 and 30% during the first quarter of 2007.
Meanwhile, in India, the passenger vehicle market grew 27% last year to 1.4 million sales. With that growth, AlixPartners Managing Director John Hoffecker said he expects it to become one of the leading nations to export parts to the United States.
“Over the next seven years, we expect India will pass Italy, France, South Korea, all of them, for parts into the United States,” Hoffecker said at a news conference at the Troy Marriott.
India is expected to be the fifth largest auto market in the world by 2013, outpacing South Korea, France and Brazil, and surging from its 2005 ranking of 15th largest auto market. Detroit Free Press