Automotive switches

	Ningbo Forward's 40A High Power Automotive PCB Relay (4120) model is available in sealed and unsealed versions with an SPNO or SPDT contact arrangement.

Units are becoming more powerful and compact to support the rising number of in-car electronics. Several are meant specifically for EVs.

China suppliers of automotive switches, fuses and relays are closely following trends in the vehicle industry to ensure steady sales. In the interest of keeping selections up to date, many are allocating at least 5 percent of their annual profit for R&D. Additionally, some makers are cooperating with academic institutions.

Responding to the growing, popularity of in-car electronics, product development efforts at most companies revolve around 14 to 42V models, which can support high-power applications. More than 50 percent of existing designs now have a rating that exceeds 24V. Previously, the majority ranged from 12 to 24V.

Such components are often in compact constructions, allowing greater quantities of them to be fitted in a vehicle. In relays, for instance, recent releases are smaller than 20x15x20mm.

Aesthetics also factor in R&D. Several makers are releasing units that match the color and style of new cars.

In terms of the shape, safety is a major consideration as well. The latest switches, in particular, have round instead of square or rectangular buttons, eliminating edges that may cause injury.

Several companies are developing models specifically for electric and hybrid vehicles. These suppliers consider the line a high-growth segment, since such conveyances are becoming more popular amid heightened environmental consciousness.

To stimulate demand further, suppliers intend to keep quotes stable for the next six months. Current prices are 10 to 20 percent lower than levels 12 months ago, as companies passed on savings on raw material costs to buyers.

At present, automotive switches are available starting at $1.20. Relays range from $0.50 to more than $1, while fuses often do not exceed $0.10.

For many manufacturers, however, keeping quotes at these levels might prove to be a challenge, since spending for certain production inputs is on the upswing.

Nickel, in particular, is already 60 percent more expensive than it was at the beginning of 2009 at $9.20 per pound. Meanwhile, copper rose 50 percent to $2.80 per pound. Rates of these and other types of metal are expected to go up further in the months ahead, together with the anticipated recovery of the economy.

As regards plastic, a surge in cost is projected as well. This is primarily due to the fact that crude oil has increased to $70 from $50 per barrel half a year ago.

ABS is currently purchased at $1,700 to $1,800 per ton. Versions of the material for low-end and midrange products are sourced domestically, while those adopted in upscale models are procured in Taiwan or South Korea.

Suppliers offer switches, fuses and relays for various automotive applications, including headlights and auxiliary lamps, power doors and windows, and locking systems. Models are primarily made of metal with an insulating material or housing in plastic.

In switches and relays, copper, iron and silver alloys are the main options for the contact points. Switches come with nylon or PP coating, while relays have nylon, PP or ABS housings.

Most fuses, on the other hand, adopt terminals made from a combination of tin, lead, bismuth and cadmium. In the high end, designs employ versions in a tin, lead and indium alloy.

Models for export are typically unbranded and meant for the aftermarket. OE products are primarily for domestic carmakers.

Of the units that are shipped overseas, approximately 35 percent go to Asia. North America absorbs 20 to 30 percent, while Europe takes up to 20 percent.

Among China 9,000 suppliers of automotive parts, an estimated 200 offer switches, fuses and relays. Small and midsize companies account for 90 percent of the industry, while the rest consists of large plants, which are often joint ventures or foreign-invested entities.

Manufacturers operating on a small scale are characterized by annual sales not exceeding $1 million. In addition, they typically assign fewer than five employees to product development and QC.

Midsize enterprises generate revenue of up to $5 million each year. At their factories, teams in charge of R&D and quality management consist of 10 to 20 workers.

The majority of suppliers can be found in Guangdong and Zhejiang, which have strong transport facilities and other trade infrastructure. The two provinces contribute 60 percent to China output and exports of automotive switches, fuses and relays.

Models from Guangdong are primarily for the midrange and high end, as there are several large companies in the area with a long history of manufacturing automotive parts. In contrast, designs from Zhejiang are mostly for the low end and midrange, since most suppliers are small or midsize. Further, upscale products from the province are generally priced lower than those from Guangdong because labor and other production inputs cost less.