Taiwanese producer Laster tech is optimistic with the market of automotive exterior LED lights14-02-2017
Taiwanese producer Laster tech is optimistic with the market of automtove exterior LED lights
The LED light industry is fighting fiercely, but automotive LED light company Laster Tech that reported strong revenue growth during the first three quarters of the year 2016, a extraordinary contrast in an industry where most companies suffered losses.
According to Laster Tech, more vehicles are choosing auto LED lights for illumination solution. The company estimated its revenue growth in 2017, and maintaining gross margins at the same levels as 2016.
When automotive exterior LED lights was still uncommon, the company started to enter the related field. Most Taiwanese LED factories have entered the interior automotive LED lights at the time because of its lower entry level and difference in profits. Laster Tech, however,entered into the more technologically challenging industry of exterior automotive LED light, such as LED taillights, LED direction lights, LED headlights, and other niche car LED markets.
The most important clients of Laster Tech cover large Chinese automakers, top carmaker Great Wall Motors alone amounted to 40% of it revenue. Another major automotive manufacturer Shanghai Koito Automotive Lamp, is a specialty automotive lighting manufacturer. Other major clients include Guangzhou Koito and BYD.
More than 90% of Laster Tech revenue is from car LED lights, which is estimated to steadily increase over the next few years.
In addition to Chinese vehicle producers, Laster Tech also bought Italian automotive LED light manufacturer OLSA and stepped into supplier list of Benz . It acquired models for three consecutive car models, mainly featuring LED direction lights, LED fog lights, and daylight running LED lights (DRLs). It also acquired small volume of headlights, showing its moving towards high-end market step by step.
It is estimated that LED lights ratio in global automotive exterior LED lights market reached about 30% to 40% in 2016. By 2020, the market penetration rate climed to 60% to 70%, with automotive LED headlights presenting the greatest growth space. Automotive lighting change to LED lamps will become a gradual trend that will continue well into 2017 , moreover, the high technology entry level prevents competitors from entering this particular market too much. Although, terrible price competition is less intense compared to other LED market sector.