Mobiletron Eyes Tire Pressure Monitoring System Market in China

Taipei, March 11, 2011 (CENS)--Mobiletron Electronics Co., Ltd., a major automotive-electronics parts and system supplier in Taiwan, recently claimed that as China is planning to require all new cars to be equipped with the tire pressure monitoring system (TPMS) as standard equipment, the company is expected to benefit from the increasing demand across the Taiwan Strait.

Mobiletron's chairman Kim Tsai said that the new policy is expected to create lucrative business opportunities of more than NT$20 billion (US$666.7 million) in Chinese TPMS market, in which Mobiletron aims to get at least 10% share.

Tsai pointed out that related rules and regulations concerning the TPMS as a standard equipment is on the drawing board in China. He continued that the policy would require 25% of all new cars sold in China to be installed with TPMS in the initial stage, and then 50% in the second year. Tsai himself is also one of the members setting up the national TPMS standard for China.

Mobiletron has developed its TPMS products for both passenger-car and truck applications, which have tapped into Chinese automakers' supply chains. The Taiwan-based company has also begun small-volume shipments in China.

The Taiwanese automotive-electronic maker has been actively trying to develop sales in the Chinese automotive aftermarket, in which the TPMS sales are expected to rapidly expand as well thanks to the increasing penetration of TPMS on new cars.

Mobiletron has several major product categories, including electronic ignition parts, TPMS, and reverse image systems. The company has been exporting its AM items to the global market and kicked off developing business deployment in China several years ago.

Currently, sales in China account for only about 7% of Mobiletron's overall revenue, but the rate is expected to outstrip 10% this year thanks to an over 50% year-on-year (YoY) sales increase in the big and potential market.

To focus more on the potential automotive-electronic business, Tsai claimed that Mobiletron is planning to spin off its electric hand-tool division by setting up a new company. In 2010, Mobiletron's electric hand-tool business, including making and sales of electric staplers, drillers, impact wrenches etc., generated total revenue of about NT$400 million (US$1.3 million), compared to the firm's annual consolidated revenue of NT$2 billion (US$66.7 million). In addition to its own-brand Durofix, Mobiletron also got authorization from ACDelco to produce tools under the famous brand name.