The growing number of OEM warranties expiring in China from earlier new vehicle sales is proving to be a boon for auto parts maker Sorl.
The need for replacements helped generate higher aftermarket sales for the company, which is based in Zhejiang province, eastern China.
Sales revenue from the domestic aftermarket went up 70.5% in the second quarter to $42.8m (€37.6m), compared with the same period last year.
Revenues from Sorl’s domestic OEM customers rose from 35.0% to $62.6m, and commercial vehicle production also increased.
“The Chinese government’s increased support for public transportation due to greater urbanisation expanded Sorl’s bus aftermarket sales,” the company said, while announcing its second-quarter financial results.
[mpu_ad]International sales revenue rose 13.9% year-on-year to $23.1m mainly thanks to a larger customer base.
Overall turnover in the second quarter was $128.5m, up by 40.1% on the corresponding period in 2017 and net income went up 13.6% to $6.7m.
Chief executive officer and chairman Xiaoping Zhang said: “Our sales are outperforming the markets as we continue to increase our market share and profits.”
Among Sorl’s products are air brake systems, tubes and fittings, power steering pumps, electrical parts and new energy parts.