Delphi Said Revenue From China Jumped 35 Percent In 2002

Autoparts Report, Jan 17, 2003

Delphi Corp. said that revenue from China soared 35 percent in 2002, reaching $700 million. This is the second consecutive year that Delphi China has reported an annual revenue increase of more than 30 percent.

"China continues to develop into a strong market for Delphi's technology solutions," said Dr. Choon T. Chon, president of Delphi Asia Pacific. "Demand has been driven primarily by stricter exhaust emission standards as well as pressure from foreign competition to diversify product offerings through leading technology, following China's entry into the WTO. China's strong economic performance last year (8 percent GDP growth) further fueled the enthusiasm of consumers for owning cars. This has resulted in record sales of Delphi's advanced technologies."

Delphi China said it has maintained an average annual growth of 24 percent since the company's official entry into the Chinese market in 1994 -- making it the leading foreign invested component supplier in China. "I expect Delphi's leading market position and positive growth trend to continue," said J.T. Battenberg III, chairman, CEO and president of Delphi Corp., "especially as we move to capitalize on the need for advanced electronically-controlled diesel engine management systems in the commercial vehicle sector, which is growing at a double digit rate."

At present, Delphi has established 13 legal entities in China involving a total investment of over $400 million. Eleven of these are manufacturing facilities producing more than 40 categories of products for Chinese automakers and overseas customers, the company said.

Delphi China holds several market leadership positions in China, including the largest wiring harness supplier, the largest catalytic converter supplier and the largest battery supplier in the automotive market, according to Delphi. Delphi is also the only complete engine management system supplier in China with product offerings including air and fuel management components and exhaust after treatment all connected by electrical and electronic distribution and control systems, the company said.

Delphi China said it exported products worth $147 million to major OEMs in Europe and North America. "Meanwhile, Delphi China imported about$125 million and$35 million worth of components respectively from the U.S. and Europe," Chon said.