history of automobile industry in china

history of automobile industry in china

As of November 2009,China is the largest auto market in the world.China's automobile industry has been in rapid development since the early 1990s.In 2009,China produced 13.79 million units of automobile,of which 10.38 million units were passenger cars (sedans,sport untility vehicles (SUV),multi-purpose vehicles (MPV) and crossovers),and 3.41 million units were commercial vehicles (buses,trucks,and tractors).Of the automobiles produced,44.3% are local brands (BYD,Chery,Geely,Hafei,Jianghuai (JAC),Chang'an (Chana),Great Wall,Roewe etc.),the rest being produced by joint ventures with foreign car makers such as Volkswagen,General Motors,Hyundai,Nissan,Honda,Toyota etc.Most of the cars manufactured in China are sold within China,with only 369,600 cars being exported in 2009.
China's annual automobile production capacity first exceeded one million in 1992.By 2000,China was producing over two million vehicles.After China's entry into the World Trade Organization (WTO) in 2001,the development of the automobile market further accelerated.Between 2002 and 2007,China's national automobile market grew by an average 21 percent,or one million vehicles year-on-year.In 2006,China’s vehicle production capacity successively exceeded six,then seven million,and in 2007,China produced over eight million automobiles.[6] In 2008,9.345 million motor vehicles were manufactured in China,surpassing the United States as the second largest automobile maker,after Japan.
The consultancy McKinsey & Company estimates that China's car market will grow tenfold between 2005 and 2030.[7]
China zoomed past Japan to become the world's No.2 vehicle market in 2006 and passed the United States to be the biggest in 2009.This growth is spurring demand for automotive parts,services,and after-care products.China is presently capable of manufacturing a complete line of automobile products and large automotive enterprises.Major domestic firms include the China First Automobile Group Corp.(FAW),Dongfeng Motor Corp.(DMC) and Shanghai Automotive Industry (Group) Corp.(SAIC).
China had a total of 6322 automotive enterprises by the end of November 2006.The total output value of the automotive sector for the first three quarters of 2006 was US$143 billion.Since 2002,50% of all motor vehicles (cars and trucks) in China had been purchased by individuals.As incomes increase the high annual growth rate of private ownership is expected to accelerate.