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Chinese Automobile Industry Sees Good Prospect - With over 50 years of development, Chinese automobile industry has formed a complete industrial system. The continuous development of Chinese national economy and the issue and implementation during the period of the 11th Five-year Plan provide a favorable development environment for the automobile industry. Development of Chinese automobile industry is reflected in the following nine respects:

Firstly, output enjoys a rapid growth, and investment scale continues expanding, forming a large-scale industrial foundation. The ranking of the automobile output in the world develops from the 8th in 2001 to the 4th in 2005. In 2009, China surpassed the U.S.A. to become the world’s largest automobile producing country.

Secondly, as urban and rural residents’ living standard is upgrade, the demand for automobiles sees a rapid increase, and obvious changes take place in consumption structure, thus an automobile market with huge potential is initially formed.

Thirdly, product structure tends to be reasonable, basically meeting the demand of the market.

Fourthly, the structure of industrial organization is further optimized, in which pillar enterprises play a more obvious role in industrial development.

Fifthly, the export of automobile products achieves significant effects with industrialization process further enhanced. The period of the 11th Five-Year Plan serves as an important period for the transformation of Chinese automobile product market from a single market with one-way channels to a two-way market.

Sixthly, as market competition become fiercer, emphasis is given to the upgrade of manufacture technology and management level by enterprises, resulting in increase of product varieties, improvement of product quality and reduction of prices annually.

Seventhly, the marketing system is gradually formed, and a large-scale and orderly automobile market is established.

Eighthly, international cooperation is further enhanced.

Ninthly, industrial investors become diversified, forming a diversified industrial capital structure with the coexistence of state-owned, private and foreign capitals.

However, in addition to the rapid development, Chinese automobile industry also faces obvious problems. Chinese automobile products possess weak independent R&D capacity, and lack own brands. Technology levels of Chinese automobile products lag behind those of advanced automobile producing countries, and technological base of automobile parts is weak with scattered development, lagging behind the development of complete automobiles in a long term. Besides, the aftermarket of the automobile industry seriously lags behind industrial development. Though the development of the automobile industry makes people’s life convenient and efficient, it also brings new problems such as waste of resources, traffic jam, environmental protection, etc.

Influenced by the financial crisis, Chinese economic development slows down. In order to maintain the growth, expand domestic demand and adjust the structure, China begins to implement the policy of domestic demand expansion, industrial adjustment and rejuvenation planning so as to promote automobile consumption and optimization of automobile industrial structure, which stimulates the rapid recovery of Chinese automobile market and presents a rapid development momentum.

In the future, emphasis will be given to the development of a new generation of energy-saving and environmentally friendly automobiles. In addition, improvement of independent R&D and innovation capacity is the key to the upgrade of corporate competitiveness, through which Chinese enterprises will enter the international market to adjust and optimize our product structure, and expand their shares in the international market. Meanwhile, it is important to establish a powerful automobile parts supporting system and accelerate industrial reorganization in the future. Exploring the rural market will also be the focus of the future automobile industry development. All in all, Chinese automobile industry will enjoy good prospect.

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