APMA is Canada’s National Association representing 90% of parts production with over $25 billion in sales and 85,000 skilled people.
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Ontario Ministry of International Trade, in cooperation with the Canadian Trade Commissioner Service in China and Automotive Manufacturers’ Association of Canada, is organizing an Automotive Technology Mission to China in September 2017.
You are warmly invited to partake in the mission to exhibit in the Ontario Pavilion at 2017 China International Auto Products Expo (CIAPE) in Shanghai (Sep 21-23, 2017).
In addition to the exhibition in Shanghai, with the support of the Consulate General of Canada in Shanghai, Guangzhou and Chongqing, Ontario companies will also benefit from well-organized business programs in Wuhu, Hefei, Guangzhou and Chongqing where key auto OEMs and parts manufacturers are located (Sep 25-29, 2017).
Tentative Itinerary: (SUBJECT TO CHANGE with notice)
CHINA AUTOMOTIVE MARKET OVERVIEW
China is now the second largest economy in terms of GDP and is also a leading producer and consumer of many different product categories. Automobiles are a good case in point.
The Government of China has viewed its automotive sector, including the auto parts industry, as a pillar industry for many years. The sector is projected to grow rapidly under the government’s latest economic development plans, which devote particular attention to the latest automotive technologies employed in electric and hybrid vehicles.
According to summary data from the China Association of Automobile Manufacturers (CAAM), China’s passenger vehicle segment witnessed growth of 15% in 2016, with more than 24 million units sold, while total vehicle sales rose 14% y/y to over 28 million units. SUVs are a fast-growing segment in China. China’s growth in new passenger vehicle sales and the aging of China’s vehicles will inevitably create an increased demand for both original equipment (OE) parts and aftermarket parts.
The parts industry in China has experienced profound development. Since the mid‐1990s, the Chinese parts industry has gone through technical improvements in terms of production capability, product diversification and management skills. It has also attracted world companies to invest in the Chinese parts market, which is competing with local companies in various parts segments. Experts expect the parts industry to play an increasingly important role in the whole automotive industrial chain. Annual sales revenues from parts steadily increased from 2001 to 2015, when they reached 3.21 trillion RMB, almost 19 times the 2001 figure. This is partly attributed to government support and Chinese economic development, and partly to the development of the automotive market and aftermarket in China.
Parts suppliers on the Chinese market are under huge pressure due to competition for market share. At the same time, their profitability is squeezed to minimum levels because automotive OEMs are eager to transfer their own cost pressure to their parts suppliers. The challenges are even greater for Chinese local parts suppliers, which hardly ever receive large orders from OEMs because they lack sufficient technology and quality. This is a common phenomenon in most core parts industries: Chinese brands lack the core technology and quality that would allow them to compete with foreign parts suppliers. This has led to the dominant position of foreign brands on the Chinese parts market and has left little market share for Chinese players.
OE parts suppliers already in the global supply chain for these vehicle manufacturers could have some advantage in supplying these Chinese plants, but in most cases, the parts will be produced there. For example, Magna, a major Canadian parts manufacturer currently has 42 manufacturing plants and 13 product development, engineering and sales centers in China with plans to increase this further. As the Chinese Government works to reduce pollution and the importation of oil as well as encourage the adoption of EVs, foreign companies that specialize in turbochargers and vehicle emissions controls are in a great position to take advantage of the Chinese market as they have more advanced technology than the Chinese suppliers do.
HIGHLIGHTS OF CHINA INTERNATIONAL AUTO PRODUCTS EXPO (CIAPE)
CIAPE, established by Chinese government, is an international and specialized platform aiming to meet the growing demand of the domestic and international OE market and aftermarket. It is the booster for the improvement of the overall level of the auto industry and the standardization development of the aftermarket. The expo fully satisfies the diversified needs of different exhibitors and professional visitors and creates trade opportunities for enterprises.
Covering 12 sectors of New Energy Vehicles, Auto Parts, Electronics and Information Technology, Auto Maintenance and Diagnosis Equipment, Manufacturing Equipment, Energy and Equipment, Auto Accessories, Tires and Wheel Hubs, Lubricants, Auto Refitting, Motorcycles and Electric Motorcycles, Services including Finance, Insurance, Leasing and Recycling Resources. CIAPE aims to promote the coordinated development of the entire auto industry.
2016 CIAPE At a Glance
WHO SHOULD PARTICIPATE:
Auto parts manufacturers and auto-related companies who own innovative technologies in engine system, chassis system, body & parts system, electronics and information technology system, Auto interior & exterior product, tooling, moulding, 3D printing, machine vision, new energy vehicle, car tuning, repairing, testing, diagnosis equipment, satellite navigation, audio, software, lubricating oil and lubricating grease, engineering & consulting etc.
HIGHLIGHTS OF THE MISSION:
Exhibition (maximum 9 firms)
Each participating company has an exhibition counter in the Ontario pavilion and shares meeting area with 8 other automotive firms from Ontario. It’s a great opportunity to showcase and enhance your company profile, brand name as well as products/technologies/services.
Technical Seminars (subject to change with notice)
Technical seminars are organized during outreach trips to provide excellent opportunities for information exchange, business development and network establishment. Each participating Ontario firm has opportunity to present company profile and innovative products/technologies/services to selected local audience consisting of local government officials, key industry experts, leading medical device firms and distributors.
Market Briefings (subject to change with notice)
Market briefings are an integral part of the business program providing in-depth market intelligence and expert assessment on market opportunities. Feedback from previous missions proves that most delegates benefit from the briefing as well as interacting with Canadian trade commissioners who are seasoned experts in their respective sectors and territories.
B2B Meetings (subject to change with notice)
B2B Meetings are pre-arranged for participating firms with qualified local companies to meet your partnership and business development objectives. Contacts and business leads established at B2B meetings are valuable outcomes that may eventually bring you real business results.
Site Visit ((subject to change with notice)
Site visits is arranged to provide participating Ontario firms a chance to visit key industry players and/or local industry parks to learn about local sector competitiveness, sector trend and opportunities. For some delegates, this is an eye-opening experience.
PARTICIPATION FEE & EARLY BIRD RATE:
Option 1 – CIAPE & Shanghai Program (Sep 19-23):
$1,200 per company. Early Bird Rate of $1,000 applies if payment is received no later than Friday, July 14. This option entitles participating company to participate in the program in Shanghai and to have shared exhibition space in the Ontario Pavilion at the 2017 CIAPE. Due to space limitation, exhibition application may be closed early when all 9 spaces are taken. Waitlisted companies will be notified if extra space becomes available.
Option 2 – Wuhu/ Hefei/ Guangzhou/Chongqing Program:
$800 per company. Early Bird Rate of $500 applies if payment is received no later than Friday, July 14, 2017. This option entitles participating company to participate in all aspects of the business program in all four cities.
Option 3 – Full Participation
$2,000 per company. Early Bird Rate of $1,500 applies if payment is received no later than Friday, July 14, 2017. Full participation entitles each participating company to have shared exhibition space in the Ontario Pavilion at the 2017 CIAPE, and to participate in all aspects of the business program in Shanghai, Wuhu, Hefei, Guangzhou and Chongqing.
Funding support opportunity:
Export Market Access (EMA) is an initiative of the Ontario Chamber of Commerce, with support and funding from the Government of Ontario. It is designed to assist small to medium size organizations (SMEs) to access and expand their growth in foreign markets. Companies with annual sales of $500,000 or more may qualify for a grant covering up to 50% of the direct costs of accessing and expanding into export markets (up to C$30,000). For more details and to apply, please visit http://exportaccess.ca/en/home
Early Stage Exporter (ESE) Recognizing that some companies naturally have a global mindset early on in their development, the Early Stage Exporters fund has been created to assist Ontario small to medium-sized enterprises (SMEs) to develop and grow their export markets, obtain new sources of capitalization/funding, and increase export sales of Ontario goods and services. The Early Stage Exporters fund is administered by the Ontario Chamber of Commerce (OCC) with the support and funding from the Ontario government. For more details and to apply, please visit: http://www.occ.ca/programs/early-stage-exporters/
Ontario Exporters Fund (OEF) has been established to assist small and medium-sized enterprises (SMEs) to become export ready and help them gain/increase access to international export markets. The fund will be administered by the Ontario Chamber of Commerce (OCC) with the support and funding from the Ontario government. The Ontario Exporters Fund is intended to help SMEs better understand their export capacity and thereby improve their ability to access foreign markets, encourage SMEs to develop focused export market access strategies and to assist businesses realize their export sales objectives. For more details, please visit http://www.ontarioexporters.ca/home/
CanExport, a new federal funding program announced on January 5th, 2016, will provide up to $50 million over five years in direct financial support to small and medium-sized enterprises (SMEs) in Canada seeking to develop new export opportunities, particularly in high-growth priority markets and sectors. Please consult the applicant guide to determine your eligibility. (http://www.international.gc.ca/canexport/applicant-guide-requerant.aspx?lang=eng )
EXPRESSION OF INTEREST & REGISTRATION:
If you are interested in participating in the mission and would like to receive the complete registration package, please confirm your interest by email to email@example.com. Registration is open between June 23 – July 28, 2017 unless otherwise specified.
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Area Director for China
Ministry of International Trade
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