In the current context of significant economic growth of China, with 2008 being a year when Beijing hosted the Olympic Games, it seems wise to focus on the country.
Indeed, it officially aims to give way to a spirit of conviviality around sports, but does not forget to attract as many people as possible to boost the economy, which is the main priority of the country.
On the other hand, the global automotive market tends to experience a significant turning point in terms of production and resources. Indeed, after an appearance in the countries of Eastern Europe in order to minimize production costs, European manufacturers have invested in the Chinese market in recent years. This is still limited by a conservative spirit of national authorities, but in no way alters the leadership of the manufacturers in the Chinese market.
Being an ardent admirer of the automotive world, and wanting to combine business with pleasure, I decided to conduct a study on these two subjects. Indeed, combining economics with my studies is the most effective way to achieve a final result and to find a niche market.
The figures and facts in this report are the result of extensive research, and focus in particular on the evolution of the Chinese market.
China has always been regarded as the land of the bicycle; the country where people cannot afford to travel by car. Today, the world sees it as a goldmine for the automotive industry. Indeed, in 2005, China became the third largest producer of automobiles after the United States and Japan. Thus, the total car production in China exceeded 4 million units for the first time in 2005. It is also the fourth largest market worldwide in vehicle sales.
Over time, it will be the largest world power in terms of automotive sales, which can be explained by the considerable potential of all the emerging markets it represents. Its huge population and rapid economic growth, especially its purchasing power, are two key factors. The car then became a separate entity in the country, a symbol of success and a revolutionary means of progress and economic development for the emerging middle class.
The automotive sector has become the third largest economic center in China in recent years. The strong growth and change in this sector in China represents one of the biggest and most evocative changes in world history in the automotive industry (38% growth in 2002 against only 1% in the rest of the world).
The Chinese automotive industry was composed of many small businesses and public institutions which were divided, and the technical powers were largely isolated from each other in the world economy. Moreover, the automotive industry in China is governed by several large state enterprises of the system, which are increasingly able to meet the demand of the country, which is constantly increasing. These companies currently export products to other countries.
The Chinese market is also characterized by its very large settlement of foreign manufacturers which are directly related to the industry and partly behind this amazing growth. In the current economic environment where all the major countries are trying to capitalize on the commercial potential of China's auto industry remains the perfect example of a successful and organized economic structure.
Several questions thus arise from this: what are the characteristics of this market emphasized by the opposition between local and foreign manufacturers? What future awaits the Chinese automotive industry?
Tags: car industry in China , evolution of the Chinese automotive market, EU strategy
[...] Imports are no less significant (lower tariffs, elimination of import barriers vehicles and parts).However, though China allows all imports, all major global automakers are already producing on its soil and the risk of massive imports is limited - Political aspects The Chinese authorities identified the main lines of evolution of the automobile industry in the Eleventh Five-Year Plan from 2006 to 2010 some time ago. The willingness of the major Chinese governments as part of these measures is clearly intended to encourage Chinese manufacturers to improve their capabilities of innovation, and deploy vehicles of which they own the intellectual property and brand. [...]
[...] The famous Carlos Ghosn, the CEO of Nissan, said during a press conference that the 300,000 vehicles produced in China are not for re-export to Japan, as the production costs are too high. Though the Chinese incomes remain relatively low, production costs and labor are so high that exporting from China is not profitable enough. Furthermore, Carlos Ghosn talks about the relocation of production in order to achieve the elimination of jobs that do not create value. HONDA Since 2006, the Japanese company Honda has invested nearly 150 million Euros to expand its production capacity in China, which accounted for more than 500,000 vehicles produced in 2006. [...]
[...] The 5 groups with an annual production exceeding 500,000 vehicles: Group: Total production in Including: passenger Source: China Association of Automobile Manufacturers (CAAM) Unlike the passenger car sector, there are very few joint ventures with foreign companies regarding utility vehicles and trucks. Indeed, Chinese builders prefer to lead alliances on specific projects such as the production of engines. The approach to the Chinese automotive market 1. The three global strategies By analyzing and comparing strategies in Europe, Japan and US (which will be specified further in the second part of this report), we can realize that they are distinct from each other. [...]
[...] The main brands of the Chinese automotive market 2 - The delay of local builders Until just a decade ago, car buyers in China were only public procurers, who also used their car for private purposes. Since the government no longer takes part in economic life and the Chinese now prefer private consumption, the portrait of the buyer has changed dramatically. In addition, the deregulation of prices and the opening of China to the WTO in 2001 have helped to significantly boost the local market. [...]
[...] Thus, the total car production in China exceeded 4 million units for the first time in 2005. It is also the fourth largest market worldwide in vehicle sales. Over time, it will be the largest world power in terms of automotive sales, which can be explained by the considerable potential of all the emerging markets it represents. Its huge population and rapid economic growth, especially its purchasing power, are two key factors. The car then became a separate entity in the country, a symbol of success and a revolutionary means of progress and economic development for the emerging middle class. [...]
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