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Chinese Business Guide Chinese Business Guide （Auto Volume） China Council for the Promotion of International Trade Economic Information Department October, 2007 Chinese Business Guide (Auto Volume) CONTENTS INTRODUCTORY REMARKS............................................................................................................6 COMMENTS ON THE DEVELOPMENT OF CHINA’S AUTOMOBILE INDUSTRY................9 1 THE DEVELOPMENTAL ITINERARY & ECONOMIC POSITION ..................................23 1.1 The development history of Chinese auto industry.................................................23 1.1.1 The early stage of the industry’s development................................................23 1.1.2 The industry’s development since China’s accession to the WTO..................26 1.2 The industry’s status and influence on the national economy.................................39 1.2.1 The auto industry is one of the pillar endeavors of the national economy ......39 1.2.2 The auto industry is a powerhouse to promote economic growth in China. ...40 1.2.3 The auto industry’s development is an important part for China’s construction of a harmonious society ..................................................................................................41 1.2.4 The auto industry is an indispensable precursor for the Chinese economy to make its way into the world’s economy ..........................................................................42 1.2.5 The auto industry is a trail-blazer in Chinese strategy for making independent innovations......................................................................................................................43 2 THE INTERNATIONALIZATION OF CHINESE AUTO INDUSTRY.................................47 2.1 The current conditions of the world auto industry ..................................................47 2.1.1 A newly rising marketing trend drive the globeto demand for more autos .....47 2.1.2 World auto production maintains a robust growth momentum .......................49 2.1.3 The competitive pattern of today world’sauto industry is in change...............52 2.1.4 Energy-efficient and environmental-friendly technology becomes the major developing trend for world auto technologies.................................................................54 2.2 The international conditions for occupational competitionthe Chinese auto industry has to face................................................................................................................................56 3 THE DEVELOPING ENVIRONMENT OF CHINESE AUTO INDUSTRY .........................63 3.1 An analytic exposition of the policy environment ..................................................63 3.2 An analytic exposition of the industry’s economic environment s..........................72 3.3 Social environmental analysis.................................................................................74 3.4 An analysis of the technical environment ...............................................................77 4 THE GENERAL DEVELOPMENT MOMENTUM IN CHINESE AUTO INDUSTRY ......81 4.1 The sound development seen in recent five years...................................................81 4.2 Annual Increases Achievedin 2006 .........................................................................84 4.2.1 The increases of output and sales....................................................................84 4.2.2 Increased output value.....................................................................................88 4.2.3 Flourishing sales..............................................................................................90 4.2.4 Increased payoffs.............................................................................................91 4.2.5 Key enterprises................................................................................................93 4.3 Forecast ...................................................................................................................95 2 Chinese Business Guide (Auto Volume) 5 THE COMPETITION ANALYSIS AND DEVELOPMENT FORECASTS IN THE CHINESE MARKET OF PASSENGER CARS.................................................................................97 5.1 The current situation in the Chinese market of passenger cars ...............................97 5.1.1 The Sedan market’s analysis in 2006 ..............................................................98 5.1.2 The MPV market analysis in 2006..................................................................98 5.1.3 The SUV marketing analysis in 2006..............................................................99 5.1.4 Cross-country passenger cars marketing analysis in 2006 ............................100 5.2 Competition analysis of the Chinese passenger cars market.................................100 5.3 The developmental trends forecast for Chinese passenger cars ............................104 6 AN ANALYSIS AND FORECAST OF CHINESE MARKET OF COMMERCIAL-USE VEHICLES .........................................................................................................................................106 6.1 Status quo of the Chinese Market of Commercial-use vehicles............................106 6.1.1 Status of Bus & Coach Market......................................................................106 6.1.2 Status of Truck Market..................................................................................109 6.2 Forecast of Chinese Commercial-use vehicles Development ...............................113 6.2.1 Forecast of Bus & Coach Development........................................................113 6.2.2 Forecast of Trucks Development...................................................................115 7 A STATISTICAL OVERVIEW OF THE INSTURY’S DATA ............................................... 119 7.1 The industry’s historical data & statistics..............................................................119 7.1.1 The industry’s yearly output volumes ...........................................................119 7.1.2 The yearly numbers of the car-making firms, employees & fixed assets in China 120 7.1.3 The yearly numbers of the industry’s total output value and added value ....122 7.1.4 The yearly quantities of the industry’s total investments ..............................123 The quantities of industry’s total investments of automobile industry..........................123 7.1.5 The yearly quantities of the industry’s total investments & their proportions in the national total............................................................................................................124 7.1.6 The yearly national volumes of imports & exports.......................................125 7.2 Statistic figures registered in 2006 ........................................................................126 7.2.1 The statistical figures on passenger vehicles in 2006....................................126 7.2.2 The statistical figures on commercial-use vehicles in 2006..........................135 7.2.3 Top 10 auto manufactuers and their sales volumes in various brands in 2006 140 7.2.4 The output & sales volumes in various auto brands achieved by Top 5 car-making groups.........................................................................................................148 7.2.5 Statistical figures about the annual sales of car-driving engines...................155 8 INDUSTRY SUMMARIZATION AND DEVELOPMENT TREND OF SPECIAL VEHICLES, AUTO PARTS AND MOTORCYCLES.....................................................................157 8.1 Industry summarization and development trend of special vehicles.....................157 8.1.1 Summary .......................................................................................................157 8.1.2 Development Trend.......................................................................................159 8.2 Industry summarization and development trend of Automobile Spare Parts. .......162 3 Chinese Business Guide (Auto Volume) 8.2.1 A summary of the industry............................................................................162 8.2.2 Development trend........................................................................................171 8.3 The general situation and trend of motorcycle industry........................................175 8.3.1 General situation ...........................................................................................175 8.3.2 Development trend........................................................................................178 9 CURRENT SITUATION OF CHINA AUTOMOTIVE GROUP...........................................180 9.1 SAIC......................................................................................................................180 9.2 FAW Group...........................................................................................................181 9.3 Dongfeng Automobile...........................................................................................183 9.4 Chang’an Automobile ...........................................................................................184 9.5 Beijing Automobile Holding Co.,Ltd....................................................................186 9.6 Guangzhou Automobile Industry Group ...............................................................187 9.7 Chery Automobile .................................................................................................188
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