Development Status of China’s Car Industry
Reform and opening up a few people have had on the “China can not develop the automotive industry” proposal, passage of time. After 30 years of efforts, China’s car industry developed at an unimaginable speed, has become a pillar industry of national economy. To July 1, 2006, China’s accession to WTO negotiations, the Government on reducing import tariff rates of automobiles and their parts have all been fulfilled promises, cars, off-road vehicles, small passenger cars and other vehicles, vehicle import tariff rate fell to 25% , body, chassis, medium and low emission gasoline engines and other auto parts import tariff rates down to 10%. Time has passed more than a year, the basic stability of the prices of imported cars, but also the promotion of domestic price stability. This shows not only the domestic car market further with the international market, the domestic market gradually mature. And from another point of note, China’s car industry to compete in the market to get a gratifying development. Concrete can be explained by the following aspects:
(1) WTO commitments reduced the import tariff rates in place on imports of vehicles, the impact of market prices for quite some time there will be no big changes.
(2) to join WTO, along with the decline in import tariff rates and car industries, domestic market prices of vehicles in the competition constantly balance, has formed its own relatively stable price system and market discipline.
(3) With the economic development and people’s living standards, vehicle ownership in shape for the market maturity and price stability has laid a good foundation.
As can be seen as a part of the international market, international competition in the domestic market in a phased relative balance for domestic car industry, international development has laid a good foundation.
With the opening up of China’s auto market, car manufacturers have developed landing piece of the emerging international markets, thereby contributing to the rapid development of China’s car industry to make it on the basis of the original greatly enhanced the level of technology infrastructure and capacity. In 2006 China’s auto industry achieved a sales target of 7 million to become the world after the United States and Japan, the country’s third-largest automotive production and sales. At the same time, China’s car industry has also developed rapidly, which is characterized mainly in the following areas:
A production has gradually increased as the technology level and the increasing demand for domestic and international markets, China’s car production in the product has increased steadily, and continuously developing to meet the market demand at home and abroad
2 structure basically formed, and ever-increasing focus on enterprise products as the economic development and market competition intensifies, the product concentration continues to increase. Group’s main enterprise for the production of car industry development pattern has taken shape. According to statistics of China’s car sales of the analysis of product research, we can see that China’s car industry has many manufacturing companies, products are much more dispersed. However, by 2006, SAIC, FAW, Dongfeng, Chang’an, Beijing Automotive and other enterprises or enterprise groups of products have been sold occupy the top 10 position, these 10 companies had total sales of all car sales in China accounted for a total amount of more than 67.66%. Specific circumstances such as (table 1).
3 own brands take shape in the fierce market competition. Own brand product development and production has developed rapidly. For example, Chery, Geely and other sales of own brand products have entered the domestic car sales of the top 10 companies, Chery’s QQ, Geely, the Chinese dragon, the Great Wall Wizard, and other brands occupy a certain share of the domestic market and successfully enter the international market.
From a long-term perspective, the car companies to compete in the international market in order to access to development, should have its own independent brand products. Because only with its own independent brand, can we truly develop their own comparative advantages, make the products in the fierce market competition to maintain and develop the enterprise’s own characteristics.
4 parts manufacturers ability to continuously upgrade the supporting technical level of both components of products related to vehicle production quality problems, but also related to vehicle maintenance and improvement of market development issues. Therefore, the components of the production is an important foundation for the development of the automotive industry. In recent years, as China’s industrial policy adjustment and the development of automobile industry, and the supporting parts production also received a great deal of development, in addition to meet the domestic automobile enterprises supporting the production and maintenance of the market’s needs, but also gradually being developed favor of national car companies, European and Japanese car companies have begun ordering auto parts products from China.
5 exports have a greater development and reform and opening up, the countries have entered the Chinese piece of car products highly potential market, the Chinese have a “10000 State Auto Fair” in the title. After a period of development, especially through the dead five-year transition period after the development of own-brand car products have gradually developed, not only meet some of the domestic market demand, but has begun to enter the international market volume. China’s car exports rise in volume year after year showing a good trend, in 2001 the export volume of only about 2500 to 2006, export volume of nearly 680,000.
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