The new Multec 3 injector unveiled in US and Europe last year will be produced at Delphi Shanghai Dynamic and Propulsion Systems Co Ltd in September to supply the Asia Pacific market.

Five special production lines will be added to the facility, Delphi's wholly owned plant located in Pudong's Waigaoqiao Free Trade Zone, according to the company.

The investment will enable Delphi China to upgrade the technology standard of its product, said William Pfarrer, general manager of Delphi Shanghai.

"Our customers need world-class technologies to differentiate their vehicles in this competitive market," he said.

A fuel injector is the core component of a vehicle's engine management system. The need for the component has been growing dramatically since last year after the Chinese government issued the stricter environmental protection "Euro II" emission standard.

Last year, Delphi's China revenue surged 35 percent year-on-year to US$700 million. The increase was attributed to the strong demand driven by the stricter emission standard and frequent new model offerings from domestic automakers.

Meanwhile, Visteon Corp, the world's third-largest maker of auto parts, will move its Asian headquarters to Shanghai from Tokyo to take advantage of the fastest-growing local auto market, the Financial Times reported.

The company, which was spun off from Ford Motor Co three years ago, said it plans to increase its investment in China, the newspaper said.

Chinese automakers and their overseas partners such as General Motors Corp, Ford Motor Co and Volkswagen AG, are selling more vehicles in China as rising incomes make private vehicles affordable.

China's passenger car output in May jumped 89.9 percent from a year earlier to 158,600 units, according to the National Bureau of Statistics. Auto sales in the first five months of 2003 rose by half year-on-year to 177 billion yuan (US$21 billion).

(eastday.com June 26, 2003)