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DENSO speeds up localization

By Dai Yan (chinadaily.com.cn)
Updated: 2006-12-06 08:46

Special coverage: Auto China 2006  Related publication:        Related readings: Automobile design going local DaimlerChrysler ramps up local production Honda backs local development drive

Japan-based DENSO Corporation, a leading global automotive technology and component supplier, has established ten new facilities in China over the past two years and 55 percent of its products have been manufactured here, which shows DENSO's efforts to pick up the pace in localization in China.

DENSO lagged behind BOSCH and Delphi with much less investment and sales revenue two years ago. Insiders thought DENSO's performance in China did not match its position on the global market.

In 2004, only 30 percent of DENSO's products sold in China were localized, mainly including resin and plastic components. DENSO began producing foundry, pressing, cutting, forging and rubber parts in China in 2006. The corporation has raised the proportion of its localization in China to 55 percent at present and the figure is expected to reach 70 to 80 percent in 2008, according to Noboru Yamada, president of DENSO (China) Investment Co. The ultimate goal is 100 percent localization, he added.

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The full text is available in the December Issue ofAutoChina.