Small-car sales put the brakes on rising electronics content in vehicles
By Andrew C., 30 Aug, 2010. 0 Comments
The market's preference for small cars is a bane on the semiconductor supplier and electronic Tier Ones due to the reduced demand of electronic content in vehicles, according to consultancy Strategy Analytics Inc. From 2002 to 2008, the average vehicle's electronic control unit content had been increasing steadily from around $550 to $650.
In 2009, however, there had been no growth due to the unprecedented demand for small cars. In a statement, Ian Riches, director of Strategy Analytics' global automotive practice, said that it remained optimistic that the succeeding years would fare much better, as the market swings back to its long-term norms and increased electrification in the powertrain boosts electronic content. Continued after the jump!
Strategy Analytics predicts that in 2013, the average electronic control unit content in a car would hit almost $800 and that global sales of electronic control units will exceed $63 billion.
The reason for the boom in the sales of small cars was the initiative of several governments’ to implement Cash-for-Clunkers programs.
Consequently, sales of luxury vehicles (which would have more electronic-related features) dropped. While the luxury car companies are hurting under the low sales, bearing most of the brunt would be the suppliers of these electronic parts and gizmos, according to Chris Webber, vice president of Strategy Analytics' global automotive practice.
[via autonews]
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