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In 1994, the Chinese government jump-started the country's auto industry development with a policy officially sanctioned linking cars with the family, by first time putting forward that the private purchase of vehicles set to be encouraged to change the sedan consuming restructure. Before that, sedans in China are limited to be sold to public. They are majorly produced for official usage.
Passenger car production in 1995 increased 85,000 units over 1994, more than the total production volume of 1991. At the end of 1995, Michelin's first joint venture operation in China, Michelin Shenyang Tire Co Ltd was established and it was transformed into a wholly foreign-owned enterprise in 2003. The total investment currently reaches $150 million. In 1998, China became the tenth largest auto market in the world. More auto manufacturers came to China, establishing production facilities to grab market share.
In April 2001, Michelin Group and Shanghai Tire and Rubber Co Ltd formed a new joint stock company, Shanghai Michelin Warrior Tire Co Ltd, for the manufacture and sale of radial passenger car tires with a total investment of $200 million. The company produced domestic Warrior brand tires and started to produce Michelin brand tires in 2002. Michelin's headquarters in China moved to Shanghai in 2001. In the same year, Michelin (China) Investment Co Ltd was set up in Shanghai, which gave the company more opportunities to develop and reinforce Michelin's long-term commitment in China.
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