The Fluid Transfer Systems business studies, designs, and manufactures liquid or gas transfer circuits for vehicles. Companies work with various materials including elastomers, plastomers, and metals and designs thermal, clamping, acoustic, dynamic, and fluid transfer systems for diesel engines using finite element analysis. The system designs include multi material air system solutions for air ducts with mufflers; the development of diesel particulate filter systems and multi-material solutions for sensor diesel particulate filter hose assemblies; devices for common rail return hoses in rubber or plastic materials; supply and return hoses for diesel applications in metallic, rubber, and plastic as well as material compatible with biofuels; and a range of quick connectors.
With a rapid increase of car ownership in China, the automotive industry has seen a rising demand for products manufacturers. Never before has the automotive industry seen such a demand: over a billion potential consumers, and that is not including BtoB vehicles or professional vehicles (trucks, buses…).
Due to these new markets, manufacturers of automotive components such as fluid transfers, injection parts or fasteners are now in high demand. Quality pieces are also necessary for the automotive industry, as car recalls have reached new records, with the public authorities more watchful than before to avoid incidents or security issues.
Chinese cars in greater numbers than before
Due to the rise of the middle-class, with a rising income, the automotive industry in China has risen sharply, and is now the first country in terms of registrations of new cars. China has indeed passed 23 million new car registrations in 2016.
With the increasing number of cars in China, local companies (such as BYD) are now looking for an increase in production, with an increase of quality as well to compete with foreign companies, known to have a better brand reputation. As such, car parts, such as fluid transmissions systems in China can become a new popular item in cities where car manufacturers have settled.
As the demand for cars in China keeps rising, there are several things to consider. Firstly, Chinese people traditionally buy a car before getting married, as it is considered that the groom is otherwise unable to care for his family. Furthermore, cars are seen as a symbol of wealth and power, meaning brands associated with wealth or high-class will be more sought-after than other brands more democratic.
Car parts manufacturers, especially those specializing in Fluid Transfer Systems will need to take these pieces of information into account, establish a good pricing strategy to better their entrance into the Chinese market.