Automobile industry in China

#### This is incomplete ### China has emerged as the center of focus in the automobile industry. From its mere production of trucks in the earlier years of development and the further production of saloon cars for specific members of the political class, the country has evolved to be leading producer and consumer of cars. This has been through various pitfalls in the process of growth with success and failure of certain policies. One of the significant events that were followed by a spur in the

CHINA AUTOMOBILE INDUSTRY: INTERCONNECTED SUPPLY CHAIN ISYE 6339 REPORT   Introduction of Chinese automobile industry Among all the industrialization processes in China, no one can compare with automotive industry, which may be more important than others. It is a catalyst for many other related factors of the economy. The global economic downturn has had a major impact on U.S. automotive sector, meanwhile, China’s fast growth auto industry has been supported, especially for foreign firms with

enterprises the SOEs remained the most significant role in China economy and control the key industry of China. The adjustment of government policy and stabile political environment played a role in the recent increase of foreign investment in China. By the end of June 1997, it was reported that over 200,000 business joint ventures had been registered in China, with a total foreign investment of $204 billion ($15.7 billion from US companies) (China National

This coursework is going to focus on Chinese SUV automobile market from 2000-2016 as the SUV segment has been one of the most active consumer markets. In fact, passenger-vehicle sales rose by 19% to 1.7 million units in China in 2016 and sport utility vehicles and multipurpose vehicles climbed 9.5 percent to 10.8 million units in the January-June period, according to the China Passenger Car Association (Bloomberg News, 2016). More recently, the abolition of one-child policy has brought about increasing

Chinese automobile industry’s development and the Volkswagen Group (VW) in particular. The role of Government and the Open Door Policy, foreign direct investment (FDI) from VW, Resource-based Theory are the main issues that will be discussed in the following chapter. I have chosen these elements because they are essentials factors to the Chinese automobile industry. Regarding the role of the government, the government has been heavily influential in the development of the automobile industry all around

focused research and development initiatives. They invest roughly “10% of their annual sales revenue (which is significant when compared to Toyota’s 5% investment)” in research and development and focus much of their company’s efforts on their Geely Automobile Research School and the Geely Engine Research School (Dess, Lumpkin, and Eisner, 2010). These schools allow them to make improvements pertaining to gas efficiency (a huge competitive advantage in the U.S. and European markets), the meeting of EPA

We Have to Reduce Prices of Passenger Cars in Metropolitan China 1. Executive SUMMARY We found that there is a great potential demand in the family car market of China, cars that sell for under RMB 100, 000 yuan each enjoy the greatest popularity, and price is the main factor that directly influences consumer decision to buy. It is therefore necessary to reduce the price of cars. For this, we recommend that the manufacturing costs be reduced and, step by step, the average price of a family car

of the automobile, starting from 1765, with Nicholas Cugnot’s steam-powered vehicles, to the present day. The goal of the book, as stated by Volti in the introduction, is to “pay particular attention to the automobile’s technical evolution while at the same time delineating the cultural, social, and political context in which that evolution has taken place” (xi). Thus, Volti also demonstrates the cultural and societal effects that resulted from the emergence and mass production of automobiles. Volti

resources: capital availability and cost to finance industries. Capital resources can be affected by the rate of savings and national capital

of China’s Automotive Industry Contact Information Beijing Bill Russo Senior Advisor +86-10-6563-8300 bill.russo@booz.com Shanghai/Beijing Edward Tse Senior Partner +86-10-6563-8300 +852-3650-6100 +86-21-2327-9800 edward.tse@booz.com Tao Ke Principal +86-21-2327-9800 tao.ke@booz.com Booz & Company EXECUTIVE SUMMARY China is the world’s factory for “everyday low price” merchandise. Sara Bongiorni’s amusing yet engaging book titled A Year Without ‘Made In China’ chronicles an American