China: 11th Five-Year Program (2006-2010) for auto parts Industry

Chinese companies may not be among the top ten auto makers in the world but China is surely making great strides in the auto parts industry. China Association of Automobile Manufacturers are now serious about making China as one of the top names in auto parts in the next 5 years.

China Daily reported:

The China Association of Automobile Manufacturers has finalized the 11th Five-Year Program (2006-2010) for the country's auto parts industry.

According to the program, the auto parts industry is expected to realize 1.2 trillion yuan (US$154.42 billion) in gross industrial output value by 2010. That includes 630 billion yuan in output value for the original equipment manufacturer (OEM) market, 170 billion yuan in the auto aftermarket and 400 billion yuan from exports.

The program highlights self brands for technological innovation. Efforts will be focused on the improvement of core technologies in engines, transmissions and auto electronics. By the year 2010, spending on research and development is expected to account for 30 percent of total sales.

So, let us what will happen after 5 years.