The Chinese Autootive Market

TJPU

The Chinese automotive market

In accordance to the German car manufacturers

Preface

The Chinese automotive market is immensely growing and becoming one of the strongest revenue generating market around the world. As the German car manufacturing industry is the third largest in this business sector and therefore it is not surprising that the well known German companies with Volkswagen leading the way want a big market share. According to this initial situation this paper should show up the actual situation of the Chinese markets and their own brands compared to the German and other manufacturers

1.0 Introduction of the market situation

The market for automobiles in China has been the largest one in the whole world for now more than 8 years, as they overtook the leadership from the US market in 2008, measured by the total amount of units produced within a year. Since 2009 the numbers for the total production of automobile units exceed the ones of the total European Union or every other comparable market.

Worth to say is the special situation of the Chinese market which has a broad variety in manufacturers and different models. So there are in general many foreign brands and a lot more Chinese brands which are mainly known in the Chinese market. As it is easy to recognize, the Chinese car manufacturers are not able to compete with the western quality, companies like General Motors, Volkswagen, Mercedes, BMW and others have great opportunities to challenge indigenous brands and catch a great amount of the market share.

1.1 Statistics

Since 1992 the Chinese automotive market experienced and enormous growth. Back in 1992 only about one million cars were produced. 8 years later the numbers already doubled and about 2 million cars were produced and sold. Later on between 2002 and 2007 the local market grew by an average 21% per year. Nowadays (2014) the total amount of produced cars within China is close to 24 million cars. This makes up 26% of the total...