Shanghai, May 29 (Gasgoo.com) With a general slowdown in the Chinese auto market due to fierce competition and rising raw material costs, global auto giants are vying for increasing their local production level in China, according to a Beijing Times report.
PSA Peugeot Citroen announced recently it will purchase annually 650 million euros ($101.6 mln) of auto parts from suppliers in China from 2010 on.
Nissan and its Chinese joint-venture (JV) partner Dongfeng Motor plan to raise their localization rate from 70% in 2007 to 90% by 2012.
Daimler Northeast Asia also said it will, together with its Chinese partners, increase sourcing volumes in China from 2.8 billion yuan in 2008 to 22 billion yuan in 2012.
The report said a drop in gross profits of China's major automakers, with an average decline of 15.5% in the first quarter, prompted automakers to take more effective ways to stay competitive.