Honglitronic Ready to Mass Produce Automotive Headlights

Sources from the Honglitronic’s securities division indicated the company is set to mass produce automotive headlights targeting mainly oversea market clients, according to a news report from Chinese-language Grand Wisdom Finance.

The company is also said capable of producing taillights, fog lights and sidelights in the past. However, the technology entry level for headlight is much higher, and it is the most expensive product among automotive lighting products.

FordaLite, a small subsidiary of Honglitronic, is mainly responsible for expanding oversea aftermarket automotive LED lighting business. FordaLite plans to further explore both the domestic and oversea markets to expand the market share.

Honglitronic also said that the company will work on developing Chinese car accessory market recently at an investor interaction platform. The company plans to strengthen cooperation with international brands as an original equipment manufacturer (OEM) or original design manufacturer (ODM), to expand the company’s automotive lighting business.

FordaLite recorded RMB 46.79 million (US $7.52) revenue during 1H14, up 57.6% YoY. LED automotive lighting is expected to grow rapidly in coming years, said Liang Liu, researcher of Industrial Securities (興業證券). Honglitronic’s overall profit will increase as FordaLite gains traction in expanding international automotive lighting market shares.

LED headlights refers to the adaptation of LED light sources in headlights, including low and high beam lights, signal lights, Daylight Running Lights (DRL) and others. Currently, Honglitronic and Xingyu are among the major Chinese LED manufacturers that have the capacity to mass produce LED headlights.

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