Booming auto industry opens doors to European companies

As China's automobile sales continue their healthy double-digit growth, opportunities for the parts suppliers to further invest in China also have grown.

"Following the automakers' capacity expansion and establishment of new plants, we will see heavy investments in the parts industry in the near future," said Jia Xinguang, an independent auto analyst based in Beijing.

Earlier this month, Italian auto parts supplier Magneti Marelli SpA signed a 50-50 joint venture agreement with China South Industries Group to produce headlights and taillights for vehicles in China, with a total investment of 40 million euros.

The venture, Hubei Huazhong Magneti Marelli Automotive Lighting Co Ltd, which will be located near Wuhan, will feature a production facility capable of turning out 5 million pieces a year, starting in 2015.

"Magneti Marelli has been operating in China since 1996 and is currently investing huge amounts of resources to bring all of its key technologies to its Chinese customers and to the various joint ventures set up in that country," said Eugenio Razelli, Magneti Marelli's CEO.

"The joint venture's strategic position on the market offers us the chance to come in contact with some of the best-selling Chinese automotive brands, with whom we can share solutions for the technical evolution of lighting products," Razelli said.