Albany, NY -- (SBWIRE) -- 03/31/2015 -- The rapid growth of China's automobile production helped propelled the fast-growing expansion in market size of spare parts including shock absorber. In 2014, the demand for automotive shock absorbers in China reached 173 million units, up 10.2% from a year earlier.

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China's domestic shock absorber demand comes mainly from two sources: OEM market and after-sales maintenance market. And the demand for supporting shock absorbers varies according to auto production. In 2014, China's auto production rose 7.3% year on year to 23.7229 million units. Accordingly, the number of supporting shock absorbers changed, with 2014's demand for the supporting shock absorbers reaching 95.96 million units. The aftermarket is closely related to the vehicle ownership. In late 2014, the vehicle ownership in China amounted to 154 million units, up 12.4% from a year earlier. If it is calculated that two pairs of shock absorbers are replaced every eight years, the after-market demand in 2014 would reach 77 million units. Hence, the domestic demand approximated 173 million units in 2014.

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Automotive shock absorber industry enjoys high marketization, with sufficient competition but low concentration. Automotive shock absorber manufacturers in China can fall into three types: The first are the sole proprietorship or joint ventures in China of the world-renowned auto/parts enterprises, mainly including Tenneco, ZF, KYB, Hitachi, Showa, and Mando, etc. They primarily provide the supporting offerings to the well-known foreign branded automakers, and supply OEM spare parts to the aftermarket. The second are some joint ventures and bigger domestic enterprises. They offer supporting products or services to domestic automakers and export these offerings to the developed countries like Europe and the United States. Their products are positioned as mid and high-end ones. Some enterprises with comparative advantages supply products via OEM/ODM to the world's famous shock absorber manufacturers, mainly including Nanyang Xijian, ADD Industry (Zhejiang) Corporation, Jiuding, etc. The third are the small and medium-sized privately owned enterprises that conduct scattered small-scale production. Their products, mainly targeted at aftermarket, are exported to emerging countries or regions, etc.

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