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

By Mark Norcliffe

Researched and written by means of the pinnacle of the overseas division of the Society of Motor brands and investors, this in-depth file analyses the traits and customers for the automobile in China. It offers an authoritative marketplace evaluation and research of marketplace information, traits, economy, govt coverage, geographical elements. It then appears intimately on the Passenger motor vehicle quarter, the economic automobile area and the elements quarter - in each one case offering research of key avid gamers, their operations, industry proportion, techniques, most likely destiny successes and screw ups. eventually the record assesses China's car from a comparative worldwide point of view.

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Sample text

Across the Atlantic, Chery’s ambitions in the US market may have been simultaneously hyped and delayed by their partnership with the flamboyant Malcolm Bricklin’s Visionary Vehicles; talk of 250,000 imports by 2007 now seems highly speculative. Interestingly, the Chinese company themselves appears more restrained about their international growth than either their potential partners or the automotive press. Chery may see their plans to set up a small (30,000 capacity) manufacturing 23 1-84673-016-3_CH02_24_06/01/2006 China facility in Iran and a distribution chain in Malaysia as low-risk opportunities to test their international ambitions.

The early pioneers did not turn their backs on China, but preferred to await the expected upturn in vehicle demand. As an interim method of absorbing spare manufacturing capacity some companies sought to develop export business, particularly in the aftermarket where they did not risk harming their existing supply chains to the international vehicle manufacturers. The anticipated market boom came, later than expected, in 2002–2003. Coupled with the relaxation of regulations on joint ventures, it sparked a GMB Publishing 1-84673-016-3_CH04_43_06/01/2006 China new wave of investment from the major component makers.

However, in the second and third tiers of the supply chain a different picture emerges, with far fewer overseas companies having the resources or the desire to establish a local presence. As a result, there is currently a skills and quality gap in this part of the Chinese component sector, which can cause problems, as well as additional costs, for the major suppliers in their quest to build complete modules and sub-assemblies in China. However, those indigenous manufacturers who can continue to raise their standards and eventually fill this gap will be well placed to win more business in international markets.

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