China's Automotive Industry (Automotive Industry in Emerging by Mark Norcliffe

By Mark Norcliffe

Researched and written by way of the pinnacle of the foreign division of the Society of Motor brands and investors, this in-depth record analyses the developments and clients for the automobile in China. It offers an authoritative industry review and research of industry facts, tendencies, economic system, executive coverage, geographical components. It then appears to be like intimately on the Passenger motor vehicle area, the economic car quarter and the elements region - in each one case supplying research of key gamers, their operations, industry proportion, suggestions, most probably destiny successes and screw ups. ultimately the document assesses China's car from a comparative worldwide standpoint.

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However, this pattern is now changing, driven principally by stricter emissions standards, improving infrastructure, greater mobility and a consumer demand for greater comfort. The major international players (Volvo, Mercedes Benz, MAN, Renault/Nissan, Mitsubishi, Hyundai, Hino and Iveco) are all pursuing closer relationships with Chinese partners. General Motors are also thought to be examining the possibility of GMB Publishing 1-84673-016-3_CH03_31_06/01/2006 China forming a joint venture with a second Chinese partner (they make passenger cars with SAIC) to build commercial and agricultural vehicles.

Chinese shipments to the USA accounted for less than 5 per cent of America’s bill for component imports in 2004, but the value of that trade grew by a massive 45 per cent in the following six months. Both Ford and GM have committed themselves to a substantial increase in sourcing from China. By 2009, GM alone expects to buy Chinese-made components worth $4 billion for its global factories, in addition to the $6 billion 41 1-84673-016-3_CH04_42_06/01/2006 China that it will spend on locally produced parts for its Chinese assembly plants.

However, minibuses have traditionally held the largest market segment. Typically, they are simple, single-box vehicles, owned by private individuals or business groups, that are used for commercial hire. Their small (less than 1 litre) engines are often based on old Japanese technology and do not meet modern emission standards. As a result, they are increasingly confined to mediumand small-sized towns and to the countryside. In 2003, mini-vehicles still accounted for 57 per cent of Chinese bus production, but the market is no longer expanding.

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