Delphi Corp has Eyes Set on Fourfold Business Growth in China
Published By : 12 May 2014 | Published By : QYRESEARCH
Delphi Corp has its sight set on aggressive growth figures in China, and plans to increase its business fourfold in the world’s second-biggest economy by the 2020 from its revenue figures of USD 2.28 billion in 2012. The American automotive parts manufacturer is confident about its business prospects in China, it announced during an event in Beijing.
Currently, the company earns 16% of its global business from China. It now wants to scale up this ratio to 25%, said the company’s Asia-Pacific region president Majdi Abulaban.
The company’s policy is simple. It plans to move beyond simply expanding business in China. The goal is to keep growth rates higher than what prevail in the market on an average. Company officials said that this long-term goal of the company in China will help it achieve sustainable growth.
In China, Delphi reported 2013 sales revenue of over USD 2.6 billion. This marks an 18.14% spike in revenue as compared to 2012.
According to Abulaban, the auto market in China will comprise nearly 35% of the global market by 2020. Delphi expects its income levels to keep pace with the growing automobile and automotive market in China.
According to projections by the China Association of Automobile Manufacturers, 23 million vehicles will be sold in China in 2014 alone-marking growth of nearly 8% to 10% as compared to the previous year. In 2014, the company’s targets are even higher. Interestingly, all of the top ten automobile manufacturers in China are clients of Delphi.
However, expectations of growth are also accompanied by the need to invest more in the Chinese market-this is being realized by the company via investments in new facilities here.