Researchmoz added new research report on "Vehicle Retarder Industry in China 2015-2020" to it's huge collection.
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8.1.1 Company Profile
Founded in October 2000, Shenzhen Terca Technology Co., Ltd is an earlier private high-tech enterprise engaged in the research, development, production and sales of Vehicle eddy current retarders in China, and also the earliest national-level high-tech enterprise conducting the research, production and sales of vehicle auxiliary brake products in China.
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Terca's eddy current retarders are invented in China, owning independent intellectual property rights. Terca has received 22 national patents, including three invention patents. In addition, four invention patents and four utility model patents have been filed in State Intellectual Property Office, and its electrical control technology etc technologies have reached the international advanced level.
The company has developed three major series of eddy current retarders ranging 500NM to 3500NM, totaling 18 specifications and more than 40 varieties. It has realized matching installation for 8 to 12 meter-long vehicles and completed product matching certifications with domestic major vehicle axles and gearbox manufacturers. Product performance and service quality have received a favorable comment from end user and social professionals. Terca has set up more than 20 offices national-wide and brings convenient and fast services to the majority of users.
The company started marching into oversea market from the second half year of 2006, products can be exported through agencies and automobile factories, and now its products have been exported to Thailand, Taiwan, Philippines, South Korea, Vietnam, Australia, Italy, Ghana, Cuba, Turkey and Oman etc.
In October 2007, the company's factory in Guanlan has put into use, covering an area of 28000 square meters and the building area of 34000 square meters.
8.1.2 Business Performance
Influenced by national policies on new energy vehicles, the existing eddy current retarder businesses were impacted severely, seeing from the Terca's financial data, sales have been declining.
In 2014, Terca's business revenue was CNY 261 million, decreasing by 20.18% over last year; the net profit was CNY 14 million, decreasing by 48.56% over last year.
Fig. 16 Business Revenues of Terca, 2010-2014
Source: Huidian Research
As a leading enterprise in retarder industry in China, by virtue of its high cost-effective products, excellent marketing and after-sale service, the company has been taking the market shares of 30%-40% in recent years. The company and the foreign company Telma accounts for over half of retarder market shares in China.
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Fig. 17: Net Profit of Terca, 2010-2014
Source: Huidian Research
At the first half year of 2013, Terca's products were mainly sold in East China and South China, accounting for 59.35% and 30.28% of total revenues respectively.
Fig. 18: Components of Terca's Regional Revenues in 2014
Terca's competitiveness is mainly in the following aspects:
1). R&D Advantage
Currently the company's product varieties are complete, covering three series, 18 specifications and more than 40 varieties of eddy current retarder. Its excellent R&D ability is manifested in both electronic controller and the heat dissipation performance of and mechanical part. Through nearly 10 years of industry experience, the company obtained a valuable experimental data and terminal consumers' feedback, product quality is improved constantly:
a). Differ from other enterprises who use the traditional relay control. Terca is the only enterprise that uses MOSFET control retarder in world.
b). Its R&D strengths and excellent manufacturing process is also manifested in the superior heat dissipation performance of the mechanical part of retarder.
2). Cost Advantage
The company has strong advantages of scale and anti-risks. Except the production of electronic controllers, the casting and machining of the company are outsourced. To some extent, the use of external resource advantages can transfer part of the risks. In addition, the leading market shares in industry ensure the strong bargaining power between the company and its suppliers. The company masters all the intellectual property rights and processing technology of the core part-electronic controller. Software design, debugging, MOSFET circuit design and packaging are conducted by the company independently, which effectively reduce the cost and ensure high gross profit.
Fig. 19: Gross Profit Ratio of Terca's Retarder, 2010-2014
Source: Huidian Research
3). Channel Advantage
As the earliest enterprise that entered in vehicle retarder industry, Terca has accumulated 10 years of technology and development experience, which brought Terca rich consumer resources. Now it has completed the work matching with the major domestic auto parts manufacturers' products. It also has supporting cooperative relations with major large and medium-sized manufacturers.
8.1.4 Future Development Strategy
Facing the opportunities and challenges, in the spirit of "making human transport life safer", taking the market as orientation, technology as drive and performance as goal, Terca explores deeply potential customers' demands. Through the scientific process of IPD, Terca transforms customers' demand into competitive products, meanwhile, constantly optimizes the product delivery process, further improves product quality, reduces production and management costs and improves service levels, thus the company's position is ensure in this industry.
The corporate visions are that to develop itself into the largest leading enterprise of eddy current and hydraulic retarder in world and gradually become automotive parts enterprise integrating machines, electricity and hydraulic pressure.
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