Japanese auto component suppliers are increasing their investments in China, following a boost in local vehicle production.
Responding to Honda’s announcement that it will increase Accord production by 60 percent to 50,000 units annually at Guanghzhou, Guangdong, in 2001, Keihin Corporation is to build an engine fuel injection system production line with the capacity to assemble 30,000 to 50,000 units per year.
Keihin already operates several factories in China serving the motorcycle sector, in which Honda is a leading player, but this move marks its entry into the Chinese car components market.
Showa Corporation, another Honda supplier, is to double shock absorber production to 400,000 units per year by 2005 at its joint venture based in Guangzhou. This will accommodate larger orders from Honda and also prepare for higher local car production levels by other automakers.
Toyota‘s suppliers are also expanding. Tokai Rika is starting production of door switches in Tianjin and seatbelts in Wuxi, Jiangsu Province next year, at the same time Toyota begins building compact cars.
Tachi-S is readying a car seat production venture in Xi’an, Shaanxi Province, for operations in July. The company will initially supply 10,000 seats per year, rising to 50,000.