Automotive wiring harness highly depends on automobile industry. At present, most automobile brands have mature and complete supply chains. Automotive wiring harness manufacturers have closer cooperative relationships with automobile enterprises.
In global automotive wiring harness market, Japanese enterprises Yazaki, Sumitomo, FujiKura and Furukawa account for more than 60% of the market share; South Korean Comba, Yura and Youjin accounted for about 15% of the market share; the rest of market share was partitioned by LEONI, Delphi, Lear, PKC, KROMBERG-SCHUBERT and Coroplast in Europe and America.
Highly-Centralized Automotive Wiring Harness Suppliers of Main Whole Vehicle Enterprises
Most of the domestic large automobile OBM have specialized supporting plants producing automotive wiring harness. For example, wiring harness of Great Wall cars is provided by Baoding Mande Auto Spare Parts Co., Ltd. owned by Great Wall Motor Co., Ltd.; that of BYD cars is supplied by the No.15 Division of BYD; that of Geely cars is supplied by Geely Haoda Automobile Electrics Parts. However, foreign-owned vehicle manufacturers and joint ventures choose to cooperate with sole proprietorships or joint ventures owned by international giants in China for their high-quality demands for wiring harness. For instance, Zhurun Wiring Systems supports Guangqi Honda, Dongfeng Motor and Honda while Nantong Youxin supports Ford.
Competition Structure of China’s Automotive Wiring Harness Industry
Automotive wiring harness manufacture has high requirement on the supporting capability of connectors. Requirements of producing automotive wiring harness have decreased as automotive wiring harness manufacturers are less dependent on their own connector technologies under the influence of increasing supplies of high-quality connectors. At present, many great original enterprises producing automotive wiring harness spring up in China， such as THB Group, KunShan HuGuang, Liuzhou Shuangfei and AvicFanhua.
Although there are a great number of automotive wiring harness manufacturers in China at present, most of them are characterized by small scale, weak R&D capability, outdated equipment, poor quality, incomplete supporting vehicle types and are mainly supporting OBM. Most of the domestic wiring harnesses are provided for low-end vehicles, therefore there are large market demands for f high-end and superior wiring harness.
Comparison between R&D Capability of Domestic and Foreign Automotive Wiring Harness Enterprises
Automotive wiring harness market is closely related to the development of automobile market. It is estimated by industry experts that the cost of automotive wiring harness per car is about CNY 3,500 at present; the market of automotive wiring harness will reach CNY 100 billion if China’s automobile sales volume can reach 30 million by 2020. According to the statistics from Industry Information Website of China, the penetration rate of automotive wiring harness OBM was about 10% in 2015. Assuming the penetration rate of automotive wiring harness OBM grows to 20% in 2020, the market of automotive wiring harness OBM will rise from around CNY 8 billion to CNY 20 billion.
The development of China’s automobile industry also promotes the development of domestic automotive wiring harness enterprises.