In the Chinese car universal joint market where transnational companies dominate, the Chinese domestic supplier Wanxiang Group, which has contracted with Kia Motors to supply constant velocity joints, is trying to expand its market share.
Universal has supplied constant velocity joints to almost all domestic Kia cars.
A source of the Wanxiang Group, who declined to be identified, said: "We will supply constant velocity joints to the two new Kia cars that we are selling in China, Soul and Forte next year."
The constant velocity universal joint is connected at the end of the axle shaft and can transmit power to the wheel from different angles. Constant velocity joints are used on front and all-wheel drive vehicles.
With strong technical expertise, multinational suppliers such as Delphi Corporation and GKN Corporation occupy the majority of China's constant velocity joint market.
Delphi built a second driveshaft production plant in China in May this year, which will increase the production capacity of half axles to 2.8 million units/year (supporting 140 vehicles). Delphi Lingyun Driveshaft Co., Ltd. Executive Li Hui said that at the same time also formulated the next expansion plan to meet the needs of the domestic market and its own export business from 2010 to 2011.
GKN also built a new plant in Wuhan to expand production capacity. The plant will be put into production in January 2009 and will have an annual production capacity of 1 million axles. The plant will supply Dongfeng Honda Automobile (Wuhan) Co., Ltd. and Shenlong Automobile Co., Ltd.
GKN also produces constant velocity joints in factories in Shanghai and Chongqing. Stefan Magirus, president of GKN China, said that GKN supplies constant velocity joints to all major customers in China.
Winning competition at low prices is a universal advantage.
The South Korean supplier Hyundai Mobis had found Wanxiang Group and asked them to develop a special constant velocity joint product line for Hyundai and Kia models in China.
Wanxiang’s news provider said: “We have invested 200 million yuan (US$29 million) in this modern and Kia project in China.â€
In January 2008, Wanxiang began supplying constant velocity joints to China’s Hyundai and Kia models.
Wanxiang also supplied constant velocity joints to Shenlong Automobile Co., Ltd., FAW Haima Motor Co., Ltd. and Chery Automobile Co., Ltd. Wanxiang said that it will supply universal joints for a product code M200 that is still being developed by Shanghai General Motors.
The source said that the universal joint has a total capacity of more than 1 million.
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