Home
Global Supplier Directory
APPLIANCE Engineer
Supplier Solutions
APPLIANCE Line
Whitepaper Library
Calendar of Events
Association Locator
Contents Pages
Market Research
Subscription Center


 
Daily News

China's Home Appliance Makers to Enter the Automobile Industry
Oct 28, 2003
 Printable format
 Email this Article
 Search

Several of China's home-appliance companies have announced their intentions to enter the automobile industry.

Midea, one of the country's major air-conditioner makers, has signed an agreement with the local government of Kunming, capital of Southwest China's Yunnan Province, to invest 2 billion yuan (U.S. $241 million) in an automobile project during the next 5 years.

Midea, based in Guangdong Province, will merge three small bus plants in Kunming into one entity. The project's annual sales are expected to exceed 5 billion yuan ($604 million) over the next 5 years. Midea is also reportedly in negotiations to acquire a bus plant in Central China's Hunan Province; and in talks with Wuling Motor, in South China's Guangxi Zhuang Autonomous Region, to acquire a stake.

Sanxing Aux, another air-conditioner company in East China's Zhejiang Province, aims to have a controlling stake in one of two automobile companies in central Jiangxi Province. The two are Jiangxi Isuzu, Japanese firm Isuzu Motor Co's joint venture producing pickup trucks; and Jiangxi Fuqi, a local light sport utility vehicle producer. The company reportedly will set up a subsidiary specializing in the auto business. Sanxing Aux is also in negotiations with Nanjing Automobile Industry Corp in East China's Jiangsu Province. Other companies such as Hong Kong-listed home-appliance giant Greencool, refrigerator manufacturer Xinfei Electric, and Chunlan have also jumped on the bandwagon.

According to the China Daily, the average profit margin of the home-appliance sector in China is less than 5 percent, compared with 10-20 percent in the auto industry. In addition, profit margins in many home-appliance segments, such as color television sets and air-conditioners, have been shrinking as a result of fierce competition for many years. For example, the net profit in the air-conditioner segment—which has 400 makers—fell 30 percent last year from 2001.

Back to Daily News

 

Daily News

...........................................................

Oct 21, 2014: AHRI Annual Meeting Registration Remains Open

Oct 20, 2014: Electrolux 3Q Operating Income up 29%

Oct 17, 2014: Whirlpool completes purchase of majority interest in Indesit

Oct 17, 2014: Corrected: AHRI Annual Meeting Registration Remains Open

Oct 17, 2014: Walmart will moderate brick-and-mortar growth and increase capital spending on e-commerce capabilities

More Daily News>>

RSS Feeds
.........................................................
Appliance Industry
Market Research

...........................................................

September 2014: Appliance Industry Focus: HVAC
June 2014: Appliance Magazine Market Insight: April 2014
May 2014: Appliance Magazine Market Insight: March 2014
April 2014: Appliance Magazine Market Insight: February 2014




 
Contact Us | About Us | Subscriptions | Advertising | Home
UBM Canon © 2014  

Please visit these other UBM Canon sites

UBM Canon Corporate | Design News | Test & Measurement World | Packaging Digest | EDN | Qmed | Plastics Today | Powder Bulk Solids | Canon Trade Shows