As a huge automobile consumption market, by the end of 2015, the number of automobiles in China has reached 172 million, and it continues to show a rapid growth trend. It can be predicted that China's demand for auto parts and after-sales service market will increase significantly in the next few years, and the automotive lighting market also has huge development potential.

However, at present, in China's automotive lighting supply chain, from components, to modules, to lamps, joint ventures and foreign-invested manufacturers occupy most of the market share, and Chinese local manufacturers are still unable to compete with them.

Local packaging companies set foot in the automotive LED market, but still focus on retrofitting

On the device side, the current device suppliers are dominated by international manufacturers such as Osram, Nichia, and Lumileds, and most of the headlights of the whole vehicle use their devices. In addition, Everlight, Tongliang, etc. are also actively expanding the market, mainly grabbing shares in the fields of taillights.

Since OEMs usually have high requirements on the product quality, technology and certification of automotive lighting suppliers, and the core technology of automotive lighting is relatively closed, there are very few local Chinese mainland device manufacturers entering the vehicle supply chain. Big factories can't speak the same thing. However, China's major packaging companies are also making efforts in the automotive lighting market in various ways, trying to gradually break the monopoly situation.

Anrui Optoelectronics is a joint venture company established by Sanan Optoelectronics and Chery Automobile in 2010. In July 2015, Anrui Optoelectronics signed a cooperation agreement with BAIC Yinxiang, a subsidiary of BAIC Group, to produce automotive lights and LED products for automotive applications for BAIC Yinxiang, mainly including tail lights, signal lights, interior lights, etc. And the share of Anrui Optoelectronics in the projects provided is not less than 70%. In addition, Anrui's customers also include Chery, Beiqi Foton, Zotye and so on. In 2014, the revenue of Anrui Optoelectronics was RMB 80 million.

In 2013, Hongli Optoelectronics entered into the automotive LED market with 100% holding subsidiary Foda Signal. Foda Signal's main products include car signal lights and headlights, some of which use Hongli LED devices. At present, the main customers are still the foreign aftermarket market, and they have not yet entered the vehicle supply chain.

In addition, other Chinese device manufacturers such as Ruifeng are also gradually developing automotive LED product lines, but they are still mainly after-installation, and their market share is relatively small. It will take time to enter the front-installation market.

Mainland Chinese and Taiwanese manufacturers share the market of automotive lamp modules

On the module side, there are only a handful of large-scale local manufacturers in the Chinese market. BYD has its own complete industrial chain, so the lamp modules in its brand models are self-produced. In addition, Shanghai Chenlan Optoelectronics, a wholly-owned subsidiary of Shanghai Shenglan Industrial, in which Feile Audio holds more than 90% of the shares, is also a relatively large-scale local module manufacturer. In 2015, the revenue of automotive lighting business exceeded RMB 600 million.

Chenlan Optoelectronics, a subsidiary of Shenglan Industrial, was established in 2004. At present, all products are supplied to the original car factory, and are compatible with larger auto lamp factories such as Guangzhou Stanley, Changzhou Damao Werico, Shanghai Magna Donnelly, and Tianjin Stein. Lei, Wuhu AL, Changzhou Xingyu, Changchun Hella, Zhejiang Tianchong, Fuzhou Koito Dayi, etc. cooperate closely, and the products are used in FAW-Volkswagen, Shanghai Volkswagen, FAW Audi, Shanghai GM, Guangzhou Honda, FAW Toyota, Changan Ford, Chery , FAW Car, Zhonghua, Great Wall, Jianghuai and other brand cars. The main products include tail lights, brake lights, fog lights, turn signals and interior light modules. In addition, the company also acts as an agent for Osram's automotive light bulbs. In 2014, the company produced and sold more than 80 million sets of headlights.