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just-auto.com: Auto Components Sector Will Boom

8 September 2000

just-auto.com: Auto Components Sector Will Boom

    LONDON, Sept. 8 Research undertaken by the
Economist Intelligence Unit (EIU) and carried on the just-auto.com website
concludes that the global auto components industry faces strong growth in the
medium and long-term.  The EIU forecasts strong demand through 2005 for
adaptive cruise control (using radar and sensors), keyless entry systems,
air conditioning, cabin filters, fuel filters, entertainment systems, seat
comfort features, electronic braking systems, and automatic transmissions.
    The report at http://www.just-auto.com/features_detail.asp?art=268 says
that higher replacement demand, more OE activity and upgrading standard
spec vehicle content all play a role.  This will be driven by a number of
factors, including:

    *  Higher replacement demand reflecting the 10% increase in global
       vehicles in use - from 525m cars in 1999 to 578m by 2005.

    *  Growth in world car output of 15% over the same period to 40m,
       which will support OE demand.

    *  More extensive roadworthiness tests including regular emissions
       testing.

    *  A progressive upgrading of standard vehicle specifications to include
       items such as satellite navigation systems, side airbags, electronic
       stability programmes, and high intensity discharge headlamps.

    just-auto.com's Managing Editor, David Leggett, commented:
"The global components industry is going through major restructuring, but we
should not lose sight of the fact that output will be growing in the future.
Huge commercial opportunities will open up in this sector."

    Click here for the full story:
    http://www.just-auto.com/features_detail.asp?art=268

    just-auto.com is the premier online portal for automotive industry
professionals worldwide.  Targeted specifically at industry and business
professionals the site provides a single point of reference for independent
automotive industry information.