From Asiaport Daily News
SHANGHAI — Honeywell International Inc., one of the world’s top 500 companies engaging with aerospace, automation and control, performance materials, power and transportation systems, will bring its automotive maintenance and components businesses to China.
Honeywell Consumer Products Group, an arm of Honeywell International, entered China in 2006 and has brought with a full range of products and constructed complete sales channels, so much so that they pave the way for the company to tap into China’s automobile aftermarket, said Nitin Kulkarni, vice president and general manager of Honeywell’s communications systems arm in Asia Pacific Region.
The company will introduce products such as spark plugs, brake pads, all-purpose antifreeze and oil filters into China to grab the emerging but high-profit market. Fifty to 60 percent of the profit of the automobile market outside China is generated from the service sector and 20 percent generated from the automotive components and parts sector.
China’s automobile aftermarket is just growing but its profit margin is 40 percent, 13 percentage points higher than the U.S.
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