Parking sensors

	Shenzhen Chelong makes model CL-080RF parking assist system that detects front and rear obstacles to within 0.1 to 0.8m and 0.1 to 1.5m, respectively. The model comes with a tricolor mini LED display and eight dual CPU sensors.

Located at the center of China's electronic components industry, Shenzhen in Guangdong province remains one of the key hubs for vehicle parking sensors in the country.

The city has a strong supply chain, enabling the roughly 200 makers there to easily procure various parts and modules locally and roll out new designs faster. Some smaller companies, in fact, outsource practically their entire component requirement, performing only assembly in-house.

Shenzhen's annual output of parking sensors reaches 12 million units, accounting for about one-third of Guangdong's production and approximately 20 percent of China's total. This translates to revenue of roughly $300 million, of which 70 to 80 percent is from exports. The main markets are the US, the EU, Asia and the Middle East.

The solid local supply network also facilitates product development. Interviewed makers ViewTech Electronic Technology Co. Ltd and Shenzhen Chelong Electronics Technology Co. Ltd, for example, collaborate with their solution design providers to improve R&D and in-house designing capability.

Moreover, compared with makers in other areas, Shenzhen manufacturers offer a broader selection of parking sensors, including wired and wireless versions, and voice- and rearview camera-assisted systems.

Currently, wired models that support voice alerts dominate production.

Wireless systems account for less than one-third of the city's turnout, although more companies, attracted by greater margins, are exploring the line. Wireless parking sensors are priced 10 to 20 percent higher than wired versions.

Signal transmission remains a challenge for this particular segment, prompting makers, including Shenzhen Botrs Electronics Co. Ltd, to direct product development toward this performance aspect.

Multiple functions, higher video quality and Bluetooth connectivity, meanwhile, are highlighted in upcoming releases from Shenzhen DSUS Technology Co. Ltd and Shenzhen Cisbo Technology Co. Ltd.

Generally, parking sensors from Shenzhen come with four or six sensors. Each extra sensor adds $1 to the unit cost.

Prices range from about $10 to $100. Models that support voice alerts are between $10 and $25, while car rearview systems are $50 to $80. Models under the latter category have a 2.8 to 3.5in TFT screen and a CMOS camera. Versions with monitors 7in or bigger for trucks and larger vehicles are also available.

High-end systems integrated with GPS, Bluetooth and other add-on functions start at $80 and exceed $100.
Cautiousness amid tough times

Although Shenzhen's manufacturing pool has remained quite stable in recent months, dwindling demand for parking sensors, caused by slumping new-vehicle sales, has driven some companies to shut down. Others, meanwhile, have shifted to more profitable lines.

The downturn is likely to continue, given the current economic climate, prompting suppliers in this heavily export-oriented industry to be conservative with their projections.

Shenzhen DSUS said sales in 2H09 might not match the growth rate of previous years while ViewTech expects stable business. Shenzhen Cisbo, on the other hand, is optimistic that exports will begin to recover in the next six months.

Another challenge that makers in the city are facing is liquidity. Shenzhen Botrs said recent economic challenges have forced some of its clients to delay payment on orders.

Fifty percent of parking sensor manufacturers in Shenzhen are small, earning less than $10 million a year. They have fewer than 100 employees, five of whom are R&D personnel.

Midsize suppliers comprise about 40 percent of the industry. They generate roughly $10 million to $50 million in sales annually.

Only a handful of companies in the city can be considered large. Operations at such enterprises are manned by more than 500 workers, including 20 to 30 in the R&D department. Revenue exceeds $100 every year.

Regardless of size, operations are primarily OEM-oriented, although large makers can also offer models under in-house brands. Only a few specialize in parking sensors. The line, in fact, usually accounts for 10 to 60 percent of output. Other in-car electronics such as DVD players, alarms, GPS devices, and light bulbs and assemblies represent the rest.