Editor's note: An earlier version of this story incorrectly referred to Honeywell's two plants in China. The plants are already built.
The push to improve fuel economy has shaken up the auto industry's once-cozy world of turbocharger suppliers.
Traditional suppliers include Honeywell, which says it is the world's leading turbo producer, and BorgWarner Inc., a major supplier in North America, Europe and Asia. But Continental AG and Robert Bosch GmbH have developed turbochargers, and they are getting contracts.
By 2018, 30 percent of light vehicles produced in North America will be turbocharged, up from 16 percent last year, according to LMC Automotive, a suburban Detroit research firm.
Automakers are downsizing their engines -- then turbocharging them -- to improve fuel economy and meet federal corporate average fuel economy standards that rise to 54.5 mpg by the 2025 model year, said LMC analyst Kevin Riddell.
"It's a relatively inexpensive way to get better [fuel economy] numbers," Riddell said. Turbocharged engines are cheaper than hybrid powertrains, he said.