Philips headlights in the Chinese market, including the supporting and aftermarket markets, have already achieved a leading position, but they are still growing steadily from their investment development strategies disclosed by their management, with regard to sales, market share targets, and new plant capacity. Philips is also a silent, low-key person, and it is precisely this rigorous business spirit and sound strategy that has made Philips' success in the Chinese market today.
Gasgoo.com: How do you define the role and position of Philips Automotive Lighting in the Chinese automotive market and the role and location of this new plant in the global production system?
Philips: Philips Automotive Lighting has been working in the Chinese market for 15 years. It is the market leader in the mainframe and aftermarket. Our market share ranks first in both markets, but the specific number is temporary. Inconvenient to disclose. We expect the Chinese market will continue to maintain double-digit growth, and by 2015 China's auto production will be comparable to that of Europe as a whole. We hope to grow at least with the same pace as the Chinese auto market.
It is the promising growth potential of the Chinese market that we decided to expand our investment in the Chinese market during the global economic crisis in 2008. Ma Luxin's new plant will be dedicated to the production of high-performance halogen automotive light bulbs. Currently, there are two production lines undergoing intensive testing. We have also set aside production capacity to meet market demand growth during the construction of the factory. The factory's products will be mainly used in the Chinese market, but also consider exporting to parts of the Asia Pacific region.
Gasgoo.com: As a second-tier supplier, does Philips Automotive Lighting have plans to purchase localized products at the new factory, and what localization strategy will your production in China adopt?
Philips: To ensure a very high level of quality, all production equipment and components used to assemble lamplight at the new Malu plant are imported from Germany and other parts of Europe.
Philips Automotive Lighting is part of the entire automotive industry chain. We have moved the assembly and packaging business to China, which is an important step towards localization. We have recruited local production and management talents and conducted rigorous and systematic training on them so as to ensure the quality of our products. We can Do 10 PPMs, or even 0 PPMs.
All of our investment and localization strategies in China will be based on this starting point: we will go further into our customers and respond to customer requests more quickly. We will also think about the further localization of procurement and R&D, but we believe that full localization is not achievable in the short term.
Gasgoo.com: There is a saying in the industry that the Chinese regard the headlights as the eyes of the car, while European consumers think that the windshield is the eyes of the car. Does it mean that Chinese consumers pay more attention to the appearance and function of car lights? ? Does Philips plan to carry out some R&D work in this area to meet such needs?
Philips: In fact, we can't make absolutely absolute divisions of the needs of different markets. Each market will have different segments. According to our understanding, European companies such as Audi and BMW also attach great importance to the design of headlights and pursue a sense of fashion. The Chinese market is developing very fast and customers have also shown multiple segmentation.
Of course, customers in China and Europe do have some differences, so we established the Application Center as early as March 2008 to better understand the needs of local OEMs and equipment manufacturers in order to provide more market-oriented applications. product.
Gasgoo.com: Please talk about the product launch and capacity planning of Philips Automotive Lighting Ma Luxin Plant and Hubei? What is the current sales and market share of Philips headlights in China and what are the future goals?
Philips: The Philips Automotive Lighting Hubei plant is primarily responsible for the production of signal bulbs, while the Malu plant will focus on producing headlamps. The Hubei plant has been operating for 15 years, and parts of the signal lamps have begun to be imported from Asia, or localized in Asia. It is precisely because of this that we need to spend a lot of effort to validate our supplier's qualifications.
We have reservations about the announcement of the capacity of the Malu new plant because I do not want our competitors to know our production capacity soon. So sorry for not being able to disclose it.
We will also keep confidential our current sales and market share and goals. However, I can say that we are the first in the pre-installation and post-installation markets. You can see Philips' headlights on VW, GM, SAIC, Geely, Chery, FAW, Changan, and Wuling. This year, China produced 16.4 million cars, most of which are Philips'.
Gasgoo.com: The first Philips factory in China was built in Songzi, Hubei in 1995. It took another 15 years to build a second factory. Did Philips auto lighting miss the best development opportunity brought by the rapid development of the Chinese auto market?
Philips: On the contrary, the establishment of a new Malu plant is exactly the result of the management’s decision to see the huge potential of the Chinese market to invest and build factories in China. In the long-term, localized production is our future development trend. In the direction, it should be said that the establishment of a second factory is a sign that we are constantly adapting to this changing market. On the other hand, investing in factories is a complex and huge project. We need to do a lot of research and investigations from inside and outside. So, from the official launch of the entire project to the opening of today, we have experienced a lot. Long process.
Gasgoo.com: At present, there are many counterfeit Philips products including car lights on the Chinese market. What are your strategies or plans to reduce the negative impact of this phenomenon?
Philips: This is arguably our biggest competitor and it is indeed an existing problem. The first thing I want to say is that this phenomenon illustrates the market's recognition of Philips brand products from the other side. In fact, this phenomenon is more concentrated in the aftermarket. Because in the front-loading or the host-matching market, this is unlikely to happen because the automakers are paying great attention to the quality of their products and will not allow counterfeit products to be installed in their own vehicles, especially when it comes to Safe-moving products, once they send quality accidents, may bring about a very negative and negative impact on themselves.
In the aftermarket service market, this phenomenon does have a bad effect on our sales. In fact, Philips has always had the act of counterfeiting, but this requires a long process, and it is not one side's power that can be changed. We also hope that the government will have more countermeasures in market supervision.
Gasgoo.com: The rapid development of China's automobile market can be said to have become a place for Chinese international manufacturers to make a golden carnival. Does Philips have plans to acquire and integrate upstream companies, such as whole machine factories, to seek greater profits?
Philips: No. We will adhere to the development strategy of being a secondary supplier. The acquisition of the upstream company and our original customer to become competitors are not within the scope of our consideration.
Gasgoo.com: It is reported that by the end of November, China will cancel preferential policies for foreign investment. Will this affect Philips' future investment plans?
Philips: Regarding the special treatment of foreign capital, this is not the main reason for our investment, nor is it the main driving force. We believe that the Chinese auto market will continue to develop. Therefore, we decided to participate in such a market development process. This is the main reason for our investment.
Gasgoo.com: How do you define the role and position of Philips Automotive Lighting in the Chinese automotive market and the role and location of this new plant in the global production system?
Philips: Philips Automotive Lighting has been working in the Chinese market for 15 years. It is the market leader in the mainframe and aftermarket. Our market share ranks first in both markets, but the specific number is temporary. Inconvenient to disclose. We expect the Chinese market will continue to maintain double-digit growth, and by 2015 China's auto production will be comparable to that of Europe as a whole. We hope to grow at least with the same pace as the Chinese auto market.
It is the promising growth potential of the Chinese market that we decided to expand our investment in the Chinese market during the global economic crisis in 2008. Ma Luxin's new plant will be dedicated to the production of high-performance halogen automotive light bulbs. Currently, there are two production lines undergoing intensive testing. We have also set aside production capacity to meet market demand growth during the construction of the factory. The factory's products will be mainly used in the Chinese market, but also consider exporting to parts of the Asia Pacific region.
Gasgoo.com: As a second-tier supplier, does Philips Automotive Lighting have plans to purchase localized products at the new factory, and what localization strategy will your production in China adopt?
Philips: To ensure a very high level of quality, all production equipment and components used to assemble lamplight at the new Malu plant are imported from Germany and other parts of Europe.
Philips Automotive Lighting is part of the entire automotive industry chain. We have moved the assembly and packaging business to China, which is an important step towards localization. We have recruited local production and management talents and conducted rigorous and systematic training on them so as to ensure the quality of our products. We can Do 10 PPMs, or even 0 PPMs.
All of our investment and localization strategies in China will be based on this starting point: we will go further into our customers and respond to customer requests more quickly. We will also think about the further localization of procurement and R&D, but we believe that full localization is not achievable in the short term.
Gasgoo.com: There is a saying in the industry that the Chinese regard the headlights as the eyes of the car, while European consumers think that the windshield is the eyes of the car. Does it mean that Chinese consumers pay more attention to the appearance and function of car lights? ? Does Philips plan to carry out some R&D work in this area to meet such needs?
Philips: In fact, we can't make absolutely absolute divisions of the needs of different markets. Each market will have different segments. According to our understanding, European companies such as Audi and BMW also attach great importance to the design of headlights and pursue a sense of fashion. The Chinese market is developing very fast and customers have also shown multiple segmentation.
Of course, customers in China and Europe do have some differences, so we established the Application Center as early as March 2008 to better understand the needs of local OEMs and equipment manufacturers in order to provide more market-oriented applications. product.
Gasgoo.com: Please talk about the product launch and capacity planning of Philips Automotive Lighting Ma Luxin Plant and Hubei? What is the current sales and market share of Philips headlights in China and what are the future goals?
Philips: The Philips Automotive Lighting Hubei plant is primarily responsible for the production of signal bulbs, while the Malu plant will focus on producing headlamps. The Hubei plant has been operating for 15 years, and parts of the signal lamps have begun to be imported from Asia, or localized in Asia. It is precisely because of this that we need to spend a lot of effort to validate our supplier's qualifications.
We have reservations about the announcement of the capacity of the Malu new plant because I do not want our competitors to know our production capacity soon. So sorry for not being able to disclose it.
We will also keep confidential our current sales and market share and goals. However, I can say that we are the first in the pre-installation and post-installation markets. You can see Philips' headlights on VW, GM, SAIC, Geely, Chery, FAW, Changan, and Wuling. This year, China produced 16.4 million cars, most of which are Philips'.
Gasgoo.com: The first Philips factory in China was built in Songzi, Hubei in 1995. It took another 15 years to build a second factory. Did Philips auto lighting miss the best development opportunity brought by the rapid development of the Chinese auto market?
Philips: On the contrary, the establishment of a new Malu plant is exactly the result of the management’s decision to see the huge potential of the Chinese market to invest and build factories in China. In the long-term, localized production is our future development trend. In the direction, it should be said that the establishment of a second factory is a sign that we are constantly adapting to this changing market. On the other hand, investing in factories is a complex and huge project. We need to do a lot of research and investigations from inside and outside. So, from the official launch of the entire project to the opening of today, we have experienced a lot. Long process.
Gasgoo.com: At present, there are many counterfeit Philips products including car lights on the Chinese market. What are your strategies or plans to reduce the negative impact of this phenomenon?
Philips: This is arguably our biggest competitor and it is indeed an existing problem. The first thing I want to say is that this phenomenon illustrates the market's recognition of Philips brand products from the other side. In fact, this phenomenon is more concentrated in the aftermarket. Because in the front-loading or the host-matching market, this is unlikely to happen because the automakers are paying great attention to the quality of their products and will not allow counterfeit products to be installed in their own vehicles, especially when it comes to Safe-moving products, once they send quality accidents, may bring about a very negative and negative impact on themselves.
In the aftermarket service market, this phenomenon does have a bad effect on our sales. In fact, Philips has always had the act of counterfeiting, but this requires a long process, and it is not one side's power that can be changed. We also hope that the government will have more countermeasures in market supervision.
Gasgoo.com: The rapid development of China's automobile market can be said to have become a place for Chinese international manufacturers to make a golden carnival. Does Philips have plans to acquire and integrate upstream companies, such as whole machine factories, to seek greater profits?
Philips: No. We will adhere to the development strategy of being a secondary supplier. The acquisition of the upstream company and our original customer to become competitors are not within the scope of our consideration.
Gasgoo.com: It is reported that by the end of November, China will cancel preferential policies for foreign investment. Will this affect Philips' future investment plans?
Philips: Regarding the special treatment of foreign capital, this is not the main reason for our investment, nor is it the main driving force. We believe that the Chinese auto market will continue to develop. Therefore, we decided to participate in such a market development process. This is the main reason for our investment.
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