HID conversion kits

	Oulondun adopts bulbs rated at 2,500 to 3,500 lumens. The color temperature ranges between 3,000 and 30,000K.

Expertise in ballast design and production enables the city’s suppliers to move higher up the value chain.

Drawing on its technological foundation in ballasts, Guangzhou’s HID conversion kits industry is shifting upmarket to keep exports strong amid myriad challenges. This city in Guangdong province accounts for 25 percent of China’s outbound shipments, with sales reaching $75 million annually.

Many of the 65 suppliers in Guangzhou entered the line over the past six years, relying heavily on their experience with ballasts, the lamp’s electronic control gear. Operating on a medium or large scale, these companies continue to design and produce the component in-house and usually assemble it with bulbs, relays, igniters and harnesses from outside sources.

Such expertise is playing a key role in suppliers’ bid to broaden their selections of upscale models. High-value production has been gaining ground in the hub as cutthroat price competition and rising material and labor costs squeeze profit margins to a minimum.

With more than 10 percent of revenue allocated to R&D, Guangzhou makers are directing efforts toward compact digital ballasts. This configuration helps them meet demand for midrange and high-end units that are durable, energy-efficient and easy-to-install.

To ensure ballast reliability, critical components such as MOSFETs, ICs, capacitors and discharge tubes are often purchased from reputable providers in the US, Germany and Japan. For PCB packaging, several companies subcontract SMT to specialists in Guangzhou or the nearby cities of Shenzhen and Dongguan.

Manufacturers also aim to lower defect rates through the procurement of high-grade relays, igniters and harnesses from Guangzhou’s established supplier network. The hub has more than 200 companies offering components of HID conversion kits.

Bulbs, meanwhile, are sourced from Zhejiang and Jiangsu, two of the biggest exporting provinces for automotive lamps.

Equipped with quality components, HID conversion kits from Guangzhou are priced 10 percent more than those made in Zhejiang. Currently, midrange models that use xenon bulbs start at $43, while versions for the high end exceed $60. Products are commonly rated at 35W and can last beyond 3,000 hours. Most adhere to TÜV, CE and E-Mark standards.

As they move up the value chain, Guangzhou suppliers are hoping to stimulate orders from the US and the EU, which absorb the majority of their shipments. Demand in both markets has been sluggish during past months, slowing export growth.

To boost sales, a number of companies are also starting to penetrate South America and Russia. Seventy percent of shipments from the city are under OEM contracts. ODM and OBM orders each represent 15 percent.

Guangzhou suppliers are bolstering R&D and QC to support their upscale shift.

Klarheit (Germany) Technology Co. Ltd invests up to 20 percent of sales in product development. Its latest releases include 35W models rated at 3,200 lumens. These last for more than 3,500 hours.

At Guangzhou Lingxiang Auto Assembly Co. Ltd, annual R&D spending reaches $1.4 million. The supplier has launched HID conversion kits that last at least 3,200 hours and have a 3,000 to 25,000K color temperature.

Guangzhou Jinnuo Electronic Technology Co. Ltd has come up with designs suitable for specific vehicle brands.

By importing ballast components, many suppliers are also able to gain access to the sophisticated technologies needed for performance upgrades.

Guangzhou Rixing Electronic Technology Co. Ltd turns to US-based Fairchild Semiconductor and Texas Instruments for MOSFETs and ICs, respectively. Discharge tubes are sourced from Germany’s Epcos.

Guangzhou Dinghong Electronic Technology Co. Ltd employs Japan-made Rubycon capacitors and Siemens discharge tubes from Germany. International Rectifier of the US provides the MOSFETs.

An eight to 15-member group typically handles R&D at Guangzhou companies. Countersamples are created in three to six months.

For QC, suppliers are hiring personnel with more than 10 years of industry experience. The team attends external training programs two or three times a year to stay abreast of trends. Manufacturers such as Oulondun Industrial Ltd Co. are also implementing the ERP system to enhance operational efficiency.