In 2008 aftermarket sales accounted for most of the company's sales with a mere 20 percent attributed to OE sales. But with the aftermarket slumping amid the global economic downturn, CNC is quickly turning to concentrate on the OE market in China. In 2009, OE sales will account for 43 percent of annual sales of around 120 million yuan ($17.6 million).

Total sales in 2008 were also around 120 million yuan, said executives, speaking to Automotive News China at the Automechanika trade fair in Shanghai. The company did not grow this year "because we are affected by the overseas aftermarket sales in Europe, US, Middle East and Russia," said Gary Zeng, overseas sales manager at CNC. But as CNC concentrates more on China's OE market than the global aftermarket, sales in 2010 are expected to rise.

"Our biggest customer is General Motors," said Ken Yuen, business development manager at CNC. The company supplies clutches and clutch covers for Shanghai GM Wuling Automobile Co., and Shanghai General Motors. The company will supply clutches for the B10 and NGS 1.4 engines.

The B10 is the small engine used in the SGMW mini vans. The NGS 1.4 engine will be used in a new SGM small car to be launched in 2010, according to industry sources. 

CNC has also won orders to supply clutch discs and covers to BYD Automobile Co., for its small cars the F0 and F3.

To meet its growing OE business, the company is also expanding capacity.

"We have invested 10 million yuan ($1.5 million) this year to increase production capacity," Yuen  said. "We will increase capacity from 800,000 clutches to 1.5 million clutches."

As Chinese automakers continue to grow, and with government subsidies for small cars set to continue into 2010, CNC expects to be producing at full capacity next year.