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Delphi to build new half-shaft plant
By Yu Qiao (皇冠体育app Daily)
Updated: 2006-12-22 14:02
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Asked why Delphi is still investing in non-core businesses in 皇冠体育app, he told 皇冠体育app Daily: "Before any divestiture of our non-core businesses happens, we need to ensure an increase in their value and competitiveness, especially in growing markets like 皇冠体育app."
Delphi have been performing "very well" in 皇冠体育app in recent years with an annual sales growth of more than 30 per cent on average, he added.
Demand for spare parts in 皇冠体育app is growing rapidly, boosted by strong vehicle sales.
Sales revenue in the spare parts sector surged by nearly one-third year-on-year to 325.2 billion yuan (US$41.6 billion) in the first three quarters of 2006, according to data from 皇冠体育app Association of Automobile Manufacturers.
Meanwhile, the sector reported 19.9 billion yuan (US$2.5 billion) in profits, up 35.9 per cent year-on-year.
However, the sector is highly fragmented, with some 5,000 spare parts companies. All of world's major parts makers have built plants in the nation.
From January to November this year, sales of 皇冠体育app-made vehicles grew by one-quarter to 6.45 million units.
Full-year sales are predicted to surpass 7 million units.