Albany, NY -- (SBWIRE) -- 01/15/2015 -- Airbag fabric is mainly used to produce automotive airbag. Affected by technology, certification and supply chain relationship, there are higher barriers to entry for new manufacturers. Globally, the supply of airbag fabric is monopolized by the manufacturers from Japan, Europe and America. Similarly, the supply of airbag yarn (raw material for airbag fabric) is also in a state of oligopoly, basically controlled by American INVISTA, German PHP, Japanese Toray and several other companies.

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Benefiting from a burgeoning automobile market in China, the demand for airbag increases rapidly, with domestic demand for airbag fabric reaching 28.94 million meters in 2013. As China introduces more and more laws and regulations about safety products, automotive airbag grows popular and installation rate rises gradually, the demand for airbag fabric in China will be huge, expected to stand at 43.86 million meters in 2018.

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In 2014, major airbag fabric producers in China included HMT (Xiamen) New Technical Materials Co., Ltd, Marui Weaving (Nantong) Co., Ltd., Jiangyin DUAL Automotive Textile Co., Ltd., Shanghai Porcher Industries, Ltd., Kolon (Nanjing) Special Textiles Co., Ltd., Toyobo Automotive Textiles (Changshu) Co., Ltd., and N.I. Teijin Airbag Fabric (Nantong) Co., Ltd.

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HMT (Xiamen) New Technical Materials Co., Ltd is one of airbag fabric and airbag suppliers that early realized commercialized mass-production of airbag fabric in China. As of 2014, the company's major customers included Yanfeng Key (Shanghai) Automotive Safety Systems Co., Ltd., Autoliv, GST Automotive Safety (Changshu) Co., Ltd., Jinzhou Jinheng Automotive Safety System Co., Ltd. and BYD Co Ltd.

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China's automobile industry has ushered in an explosive growth since 2000, with car ownership rising to 137 million by 2013, second only to the United States. According to an estimated average car scrappage deadline of 10-15 years, China will see the first car scrappage peak in 2015.

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China's overall automobile scrap rate was only 4% in 2013, far lower than 6%-8% of developed countries, mainly because national policies on motor vehicle liquidation are still unclear and the industry still desires to be regulated. At the same time, China's low capacity to formally dismantle and process end-of-life vehicles (ELVs) is far behind the needs.

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A motor controller is a device that serves to govern energy transmission between traction power source and the motor, being one of the core components of electric vehicle. With the development of electric vehicle market, the demand for EV motor controllers in China has been on the rise. In 2013, China's EV motor controller demand approached 18,000 sets, with the market size reaching RMB331 million. It is projected that by 2017 this figure will rise to 280,000 sets and that the market size will hit RMB4.6 billion, with an AAGR of as much as 93%.

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At present, China's EV motor controllers are at the initial stage, but the market demand showed a sound development trend, with a higher profitability. Take example for Shenzhen Inovance Technology and Shenzhen V&T Technologies, whose gross margins are over 45%. As the EV market size expands, the profit margin for EV motor controllers is facing certain downward pressure. But in the short term, it will be at a relatively higher level. Considerable profitability and fast-growing market demand drive a number of domestic enterprises to speed up the construction of related projects.

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