By Mark Norcliffe
Researched and written via the pinnacle of the foreign division of the Society of Motor brands and investors, this in-depth document analyses the tendencies and clients for the automobile in China. It presents an authoritative marketplace review and research of industry facts, traits, economic system, govt coverage, geographical components. It then seems to be intimately on the Passenger automobile quarter, the economic car zone and the elements region - in each one case delivering research of key avid gamers, their operations, marketplace proportion, suggestions, most likely destiny successes and screw ups. ultimately the file assesses China's car from a comparative international viewpoint.
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Additional info for China's Automotive Industry (Automotive Industry in Emerging Markets S.)
For these first arrivals, the initial rewards must have seemed questionable, with modest production volumes for elderly models, and the difficulties of integrating with traditional local partners (a situation exacerbated by VW’s separate partnerships with FAW and SAIC). For suppliers supporting the joint ventures of PSA PeugeotCitroen, early results were even more discouraging – output at the Wuhan joint venture with DMC struggled to reach 50 per cent of predicted capacity levels and the venture in Guangzhou was abandoned without ever reaching the stage of commercial production.
5 m (un- changed). Overall, the Chinese bus market grew by 7 per cent in 2005, with growth at the top end stimulated by substantial fleet orders from companies such as Beijing Bus Co and Shanghai Bashi. 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.
However, growth will be concentrated in the small and economy car sectors and, as a result, profits will not follow that same upward curve. At the same time, the continuing fragmentation of the market and rising consumer expectations will reduce the production volumes and cycles for individual models. This will present an advantage to those players who can manufacture profitably at lower model volumes (around 40,000 units per annum) and who can offer regular additions and facelifts to their model ranges.