China: auto sector evolution makes new billionaires image

After China in 2013 became the first market in the world to best the 20 million units sold, the implications go as far as transforming some of its businesses into billion ones.

For example, automotive accessories manufacturer Ningbo Joyson Electronics, which almost doubled its value since January, has made its chairman, Wang Jianfeng – a new billionaire.

Ningbo Joyson, which was founded in 2004, has made a big acquisition in 2011 – allowing it to expand into Europe, as well as in its home market – after taking control of Germany’s Preh GmbH.

“Localization of Preh’s products and technology in China is the largest source of growth at Joyson,” Wang Yanxue, a Beijing-based analyst at Huachuang Securities said in a research note.

Joyson now makes various automobile parts for such companies as BMW, Volkswagen, Ford and General Motors. According to the state-backed China Association of Automobile Manufacturers in 2013 the automotive sector in China outgrew the second biggest, America, by 15% to achieve passenger vehicles sales (excluding trucks and buses) of 17.93 million units. The forecasted increase for 2014 is a little more reclusive, at 9 to 11% – but would still imply huge revenues for both automakers and auto parts producers.

Via Bloomberg