Complex Structure of China Auto Industry
2008-06-18 Source：english.chinabuses.com
Summarize：China's auto industry structure is almost as impressive as the growth itself. Beyond the numerous joint ventures with Western vehicle manufacturers looking to benefit from the expansion of the domest ...
China's auto industry structure is almost as impressive as the growth itself. Beyond the numerous joint ventures with Western vehicle manufacturers looking to benefit from the expansion of the domestic market, Chinese partners are gaining experience building world-class vehicles through an incredibly complex web of development, supply, logistics, capital, processes and execution. The inevitable consolidation of smaller domestic vehicle makers into larger entities is necessary due to the benefits of scale economies. No country has developed its automotive capability in the same fashion as China. New capabilities are found in selected Chinese vehicle makers - those that need to field truly integrated entities able to compete on the global stage.
For example, FAW and SAIC are using a combination of experience gained from Western partners to improve their capability to build their own portfolio. As is the case with other regions such as Japan, the US, South Korea and Europe, China will be home to two-three of integrated global vehicle makers - not only producing in China but increasingly active players in markets abroad. Tomorrow's integrated vehicle makers will have to utilize global platforms to build offerings in several markets, not just one hub from which all markets are served. Instead, a global framework of production, supply and development is required to effectively address an ever-more complex market.
Views:0Editor：Frederick
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