LinkTech International, a supplier of satellite car-navigation systems on the mainland, has budgeted $100 million for expansion as it sees strong demand for its products.
The company, which produces sophisticated auto-navigation devices using satellite-based global positioning system (GPS) technology for luxury cars, said changes in the behaviour of car buyers on the mainland had opened up a new business opportunity.
'This new business only began to take off last year. We expect to see a big jump this year,' said Chen Xiaoping, managing director and chief executive of LinkTech.
'Just three to four years ago, nobody thought China would have such strong demand for GPS auto-navigation applications. But suddenly, with people's higher income, more and more city residents can afford to buy not only cars but also devices to make their driving more comfortable and entertaining.'
According to ING Financial Markets, sedan sales on the mainland last year surged 75 per cent year on year to 1.95 million units, accounting for 44 per cent of total car sales.
The brokerage expects sedan sales of 2.8 million on the mainland this year.
Ms Chen said mainland sedan buyers were increasingly becoming like their Japanese counterparts in their preference for luxury and comfort. This had spurred demand for electronic gadgets such as GPS navigation devices, she said.