Car interior decorations

	Jiar makes model 900004, a PU-coated car seat organizer with pockets for CDs and beverage bottles.

This Zhejiang province hub benefits from an accessible supply of plastic and textiles.

The car interior accessories industry in Ningbo benefits from the city’s proximity to key sources of raw materials and its logistical strength.

Located in Zhejiang province, Ningbo is home to one of China’s largest trading hubs of plastic raw materials. Two major suppliers, the Formosa Plastics Group and Zhenhai Refining & Chemical Co., operate production facilities in the Beilun and Zhenhai districts, respectively. These advantages allow suppliers of car mats, organizers and other items made of the material to enjoy relatively constant procurement costs.

Bordering Ningbo to the west is the city of Shaoxing, which is one of China’s top textile manufacturing bases. This neighboring area is an important source of polyester and other types of synthetic yarn. It also hosts the China Textile City, a government-run wholesale market that is the largest in the country.

The Beilun harbor highlights Ningbo’s logistical capability. It is currently the second-largest deep-water seaport in China and, in 2005, was the fourth-busiest in the world. The dock accommodates major shipping lines that convey goods to international destinations. It has a capacity of 10 million tons of cargo.

Ningbo connects directly to Shanghai via the Hangzhou Bay Bridge, a 36-kilometer cable-stayed span that carries six expressway lanes. Compared with the traditional route, it reduces the distance between both cities by 120 kilometers.

Having been a commercially oriented city for more than 100 years, Ningbo is home to nearly 10,000 trading companies involved in various products. Total annual exports amount to $40 billion, ranking the city among the top five in China in terms of export value.

Ningbo also has several universities and technical institutes that fill demand for engineers and designers in R&D departments.

More than 500 exporters of car interior accessories have established factories in the hub over the past 10 years. Of this number, 90 percent are privately owned enterprises. Midsize companies account for about half of all manufacturers and register sales of no more than $20 million. Forty percent of all makers are small-scale and generate orders of $2 million or less.

The latest industry data shows that Ningbo exports $350 million worth of car interior accessories annually and accounts for 30 percent of China’s total exports in the line.

The city emphasizes upscale designs, which are priced about 5 percent higher compared with those coming from other production centers in China. OEM and ODM clients, including Toyota, GM and Volkswagen, absorb 80 percent of Ningbo’s exports. These products are used in new vehicles and also offered in 4S shops.

Since 2005, the industry has recorded annual growth of 30 to 40 percent because of sustained orders from local and foreign buyers. This slowed in the fourth quarter of last year, however, with the economic crunch in the US stifling demand.

To offset the effects of the slump, manufacturers are accepting small orders and, partly because of falling material costs, are keen on slashing prices by about 5 percent in coming months.

Car organizers and steering wheels are among the most popular car interior accessories from Ningbo.

Low-end organizers are manufactured from nonwoven fabric and available in sunshade and seat back designs. These products are $2 at most.

Midrange models come in oxford fabric. They are commonly placed at the seat back or in the trunk. Quotes range from $2.50 to $10.

High-end versions are large organizers positioned inside the trunk. They are made of high-count oxford fabric and go for at least $10.50.

Steering wheels, on the other hand, are mainly made of PU. The presence and type of coating remains the key price determinant.

Low-end models are not coated, and are priced at less than $10. Midrange steering wheels between $10.50 and $20 have PVC coating.

High-end versions feature leather coverings and are quoted at $20.50 or more.