WUHAN, China -- International suppliers predict their next sales boom in China will come as the country's struggling domestic brands race to add advanced technologies and shore up sliding market share.
Today, the big global parts makers, such as Continental AG of Germany and Lear Corp. of the U.S., generate the majority of their China business from non-Chinese automakers building cars there.
But increasingly, more business will come from Chinese brands, executives say.
Those such as Chery, Geely and Great Wall are desperate for the advanced technology offered by international suppliers because local parts makers can't compete on the latest safety systems and fuel-efficient drivetrain technologies.
Overseas suppliers already are ramping up investment to tap that demand. Continental, for example, is investing $1 billion in China during the next five years. Lear plans to open four new plants and expand five more in China during the next two years.
For local brands, the impetus to upgrade is urgent. Through September, international brands' market share climbed to 62.4 percent, up 2.5 percentage points from the year-earlier period, slicing the domestic brands' share to 37.6 percent.