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Mechanical Parts Supplier Courts Tesla, BMW

Watch the video with Andrew Stotz or read a summary of the World Class Benchmarking on Hota Industrial Manufacturing Company Limited.


Founded in 1966, Hota Industrial Manufacturing Company Limited is a producer of gears, shafts, axles and other parts for automotive, agricultural and medical industries.

The company also produces electric wheelchairs through its medical division.

Hota Industrial Mfg supplies gears, shafts, and axles to #Tesla and #BMW among others

Some of Hota’s biggest clients are Tesla, BorgWarner and BMW.

Tesla’s new Model 3 is expected to be a major boon for Hota, which is thought to be supplying as much as 50% of component parts. It was the principal supplier for the Model X and Model S as well.

Business Description

Hota operates through three main divisions.

The transmission division produces several types of transmission shafts, water pump gears and transmission components for cars, trucks, motorcycles and agricultural machinery.

US makes up 65% of revenue, some of its biggest clients are #Tesla and #BorgWarner

The machinery division, through the brand HARTECH, manufactures gear tooling machines. Those include machines controlled by computer, such as CNC high-precision gear shaving, hobbing and deburring machines. HARTECH supplies most popular car manufacturers, such as BMW, GM, Ford, Nissan, Porsche, Ducati, BorgWarner and Yamaha.

The medical division produces electric wheelchairs and electric scooters for old and disabled people.

The biggest portion of revenue, 65%, comes from the US. Some of its biggest clients there are Tesla and BorgWarner.


“David” Shen Guorong serves as Chairman, while “Charles” Chen Junzhi rounds out the team as president.

"David" Shen serves as Chairman, while "Charles" Chen rounds out the team as president #Hota

World Class Benchmarking

Profitable Growth drifted to #3 from #2, which it held from 2014 to 2016.

Hota still ranked among the top 411 of 1,370 medium Consumer Discretionary companies.

Profitability, the main driver of Profitable Growth, remained at #2, in line with 2016. Growth remained below average for the second straight year.

Hota still ranked among the top 411 of 1,370 medium #ConsumerDiscretionary companies

Asset utilization remains stable but poor at #8. Profit margin, on the other hand, has been World Class since 2014.

Sales growth is above average at #4. But Margin change ranked poorly at #8, a far cry from the 2013-2015 period.

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