Parts Maker Delphi taps into China

By Lao Gong (China Daily)
Updated: 2010-11-08 13:57
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SHENZHEN - US auto parts supplier Delphi aims to cash in on China's burgeoning electric vehicle market, which is predicted to grow 10-fold in the next five years.

Delphi said in a press release that the company is working with automakers to develop the market in China by inventing and producing leading-edge technologies to help power electric vehicles and petrol-electric hybrids.

"Delphi has been at the forefront of modern hybrid technology for more than 20 years," said Rodney O'Neal, president and CEO of Delphi Automotive.

"We offer cost-effective hybrid technologies that global automakers are seeking as they move toward electrifying more of the vehicles," he said.

Battery electric and hybrid vehicle sales are expected to increase from 20,000 units this year in China to more than 200,000 by 2015, according to market research firm IHS Automotive.

Delphi predicts that the new-energy vehicles will account for 3 to 5 percent of China's total car market by 2015.

A range of carmakers including Volkswagen, BMW, Mercedes-Benz, BYD, Geely and Chery, all have plans to offer electric vehicles.

Various levels of governments in China began offering subsidies of up to 60,000 yuan this year on battery electric and hybrid cars in some Chinese cities.

Li Ming, chief engineer for Delphi's electric and electronic architecture for the Asia-Pacific, said the subsidy in China is the biggest in world's major markets.

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John Absmeier, a program director of Delphi's electric controls business for the Asia-Pacific, said the acceptance of electric vehicles in China is higher than in the West, signaling good growth potential.

Andrew Brown, Delphi's chief technologist, said "with a global footprint spanning 30 countries, including 15 sites in China, Delphi is well-positioned to help automakers navigate the requirements of the next generation of hybrids and new electric vehicles".

The company is leveraging its experience and existing product portfolio to meet demand for high-value hybrid and electric vehicle technologies and systems in China and across the globe, according to Delphi China.

One of its systems will power the first mild hybrid car from SAIC Motor, the top Chinese auto group.

SAIC, the partner of General Motors and Volkswagen, plans to launch the model under its own Roewe brand at the end of the year.

The mid-sized sedan will twin a 1.8-liter petrol engine with an electric motor to cut fuel consumption by 20 percent, the carmaker said.