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Manufacturers : China

Automotive wise the Chinese market is regarded as the most promising for the next 10-20 years. The enormous population of more than 1.3 bill. in a spacious region and growth rates of more than 5% per year provides a continuously extending base of potential customers. The vehicle industry expects annual sales growth of more than 25%.  The car market in 2006 was already at about 7 Mill. units and is expected to double by 2012 according to Polk Marketing Systems.

 

Beside all potential there is a significant amount of risk in the market. All but air pollution and congestion of the cities is working against a freely flowing trade of cars. The Chinese government already takes measures to narrow the flood of cars around its capital and more actions will be forced by deteriorating circumstances.

The art of copying western technology is the other risk foreign car manufacturers and suppliers have to face. Although the Chinese government commits in sanctioning copycat, the country is large and the regions are out of governmental reach.

Chinese car market and its automotive industry

Foreign car companies and its joint ventures account for about 40% of the market in 2006, but in 2011 the ratio will be almost 1:1 according to figures published by Polk Marketing Systems.


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Joint Venture Companies in 2006

In 2006 Volkswagen was the strongest foreign car maker in China. Its early engagement of 1982 paid off. General Motors and Hyundai-Kia established a significant market share. Hyundai recently (August 07) announced its plans to increase car sales to 600.000 units by 2008. Daimler and Chrysler still have a weak footprint in the market, which might change once Chrysler is finding its new identity.

Domestic Chinese Companies Sales in 2005

In China more than 100 companies produce car and trucks. The market of the majority is local, not to say regional. About 20 domestic companies can be regarded as potentially important for the overall Chinese market, as well as for export markets. The biggest domestic auto maker is Chongqing Changan Automobil with more than 630.000 units sold in 2005. Chery is another aggressively growing car maker, who was able to hire some Daewoo engineers and to take advantage of Daewoo's product engineering. In August 2007 Chery announced its plans to export 600.000 units by 2010.

"We plan to open 14 new plants overseas and export 600,000 vehicles by 2010," the CEO of Chery, Zhou told Xinhua News Agency at the sidelines of a launching ceremony for the company's one millionth vehicle in August 2007.

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