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As of November 2009, China is the largest auto market in the world.[1][2][3][4][5] China's automobile industry has been in rapid development since the early 1990s.
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 United States as the second largest automobile maker, after Japan.
In addition, China has produced 10 million units of cars so far in 2009 as of October, becoming for the first time a l0-million-unit car producer, according to auto.qq.com.[7] China is expected to produce over 13 million vehicles in 2009, becoming the world's largest automobile producer and consumer.
The consultancy McKinsey & Company estimates that China's car market will grow tenfold between 2005 and 2030.[8]
The main national industry group is the China Association of Automobile Manufacturers (中国汽车工业协会).
Contents |
Overview
Automotive
Three years ago (2006), China zoomed past Japan to become the world's No. 2 vehicle market.
Now it looks poised to pass up the United States to be the biggest and 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.
Alternate propulsion
Alternate fuel vehicles
China encourages the development of clean and fuel efficient vehicles in an effort to sustain continued growth of the country’s automobile industry (see Fuel economy in automobiles). By the end of 2007, China plans to reduce the average fuel consumption per 100 km for all types of vehicles by 10%. The proportion of vehicles burning alternate fuel will be increased to help optimize the country's energy consumption. Priority will be given to facilitating the research and development of electric and hybrid vehicles as well as alternate fuel vehicles, especially CNG/LNG. Major cities like Beijing and Shanghai already require Euro III emission standards.In 2009,Beijing will be the first city to require GUO IV emission standards(Euro IV emission standards).
Electric vehicles
The Chinese Autmotive Industry Plan, announced on the main Web site of China's central government, said China aims to create capacity to produce 500,000 "new energy" vehicles, such as battery electric cars and plug-in hybrid vehicles. The plan aims to increase sales of such new-energy cars to account for about 5% of China's passenger vehicle sales. [9]
Auto parts
Currently auto parts and accessories enjoy lower levels of tariffs than cars (the average tariff is 10-13% for parts/accessories and 25% for cars). China has agreed to lower tariffs on imported auto parts and accessories to 10%. Although this difference in duty rate was initially responsible for an increase in car kit imports, the loophole has been tightened. Now, only replacement parts and accessories enter China under the lower duty level.
Used motor vehicles and used/refurbished auto parts
Although there are case-by-case exceptions for antiques and diplomats, it is currently illegal to import used motor vehicles into China. Refurbished heavy construction equipment can be imported with a special permit. Used and refurbished auto parts are not allowed to be imported into China.
Automotive after-sales products and services
Although improvements have been made in this field in the past decade, China's after-sales products and services still lag far behind those of developed countries. However, WTO commitments have brought about significant changes in the after-sale market. China’s aftercare market now faces the following challenges:
- Establishing an information feedback system with end-users in order to improve service;
- Modernizing outdated sales systems;
- Increasing the competitiveness of domestic auto parts and accessories;
- Clamping down on counterfeit products.
Car dealerships
In China, an authorized car dealership is called 4S car shops. The 4S represents Sale, Sparepart, Service and Survey. 整车销售(Sale)、零配件(Sparepart)、售后服务(Service)、信息反馈(Survey).
In most cases, brand-name new cars can be purchased only from 4S shops. For new cars in high demand, a high premium is added for instant delivery or just placing an order.
The profit of car dealers in China is quite high comparing to the rest of the world, in most cases 10%. This is due to the non-transparent invoice price as announced by manufactures and to the premiums they charge for quick delivery. Due to the lack of knowledge for most customers, dealers can sell add-ons at much higher prices than the aftermarket.
There is no regulation by either the government or associations.
History
1928-1949
- Zhang Xueliang founded his arsenal to make one truck called Ming Sheng in 1931
- Another general, Yang Hucheng, patronized the inventor Tang Zhongming to make a new type of mobile energized by charcoal.
1949-1980
- 1956: The first modern automobile factory First Automobile Works began production.
- March 10, 1958: The first 2½ ton light duty truck (NJ130), which was based on Russian GAZ-51, was produced in Nanjing. The truck was named Yuejin (meaning "leap forward") by China's First Ministry of Industrial Machinery.
- June 1958: Nanjing Automobile Works, previously a vehicle servicing unit of the Army, was established. The truck production continued until the last truck (NJ134) rolled off the assembly line on July 9, 1987. Cumulative production was 161,988 units (including models NJ130, NJ230, NJ135 and NJ134).
- late 1950s to 1960s: Several automobile factories were set up in Nanjing (today is Nanjing Automobile (Group) Corporation, Shanghai (today is Shanghai Automotive Industry Corporation), Jinan (evolving into China National Heavy Duty Truck Group), and Beijing (today is Beijing Automotive Industry Holding Corporation).
- 1968: The Second Automobile Works (later Dongfeng Motor Corporation) was founded.
1980s
Three big joint-ventures and three small joint-ventures:
- Shanghai Automotive Industry Corporation - Volkswagen: Santana mid-size/compact car.
- First Automobile Works - Volkswagen: Volkswagen Jetta compact car.
- Dongfeng Motor Corporation - Citroën: Citroën Fukang compact car.
- Beijing Automotive Industry - Hyundai Motor:DaimlerChrysler: Jeep Cherokee.
- Guangzhou Automobile Industry Group - Peugeot : Peugeot 504 (subsequently defunct). (However, in the 90s, Honda replaced Peugeot as the partner of Guangzhou Auto, and producing the Accord and the Fit with huge success. And in 2006, it started to manufacture Toyota Camry, with huge success also. Making Guangdong province the center of Japanese makes auto manufacturing in China now.)
- Tianjin Automotive Industry - Daihatsu : Daihatsu Charade (merged with FAW/Toyota joint-venture).
After 1990
Several enterprises entered the automobile industry since 1994. Some of them are originated from defense industry, such as Chang'an Motors, Changhe, and Hafei Motor; some were developed from old state-owned companies, such as Brilliance China Auto, BYD Auto, Chery Automobile, and Changfeng Automobile. Others are private-owned companies, such as Geely Automobile, Great Wall Motors.
Historic Data
| Year | Production (in million units) |
|---|---|
| 1992 | 1.0 |
| 1999 | 1.2 |
| 2000 | 2.07 |
| 2001 | 2.33 |
| 2002 | 3.25 |
| 2003 | 4.44 |
| 2004 | 5.07 |
| 2005 | 5.71 |
| 2006 | 7.28 |
| 2007 | 8.88 |
| 2008 | 9.35 |
Domestic manufacturers
- Baolong (1998-present)
- Beijing Automobile Works (1958-present)
- Beijing Automotive Industry Holding Corporation
- BYD Auto
- Chang'an/Chana (1990-present)
- Changcheng (Great Wall)
- Changfeng
- Liebao
- Changfeng Yangzi
- Changhe
- Chery (Qirui)
- Dadi
- Dongfeng
- First Automobile Works (FAW)
- Haima (2004-present)
- Hongqi (Red Flag) (1958-present)
- Huali
- Tianjin FAW Xiali (1986-present)
- Foton (2003-present)
- Fudi (1996-present)
- Fukang (1990-present)
- Fuqi
- Fuxing (1994-1998)
- Geely (Jili) (1998-present)
- Zhejiang Geely Automobile
- Shanghai Maple Guorun Automobile
And is the majority shareholder in
-
- LTI Shanghai Automobile
- Gonow (2004-present)
- Guangzhou Automobile Industry Group (GAIG)
- Guizhou / Yunque
- Hafei (1995-present)
- Huachen (Brilliance)
- Huayang
- Jianghuai (JAC)
- Jiangling (JMC) (1993-present)
- Jiangnan (1988-present)
- Lifan (2005-present)
- Nanjing Automobile Corporation (NAC)
- Nanjing Soyat (2004-present)
- Yuejin (1995-present)
- New Power :
- Shaanxi Automobile Group
- Shanghai Automotive Industry Corporation (SAIC)
- Shanghai Maple Guorun Automobile
- Sichuan Tengzhong
- Shuanghuan (1998-present)
- Shuguang
- Soueast Motors / Dongnan
- Tianma (Heavenly Horse) (1995-presemt)
- Tongtian (2002-present)
- Xinkai (1984-present)
- Zhongshun (Polarsun) (2004-present)
- Zhongxing (Zxauto) (1991-present)
- Zhongyu (2004-present)
- Zotye (2005-present)
Copying claims
Chinese cars have become notorious across the western world for their so-called copied designs.[10]
BYD
Some BYD cars seem to copy those of many brands including Lexus,[11] Toyota,[12][13] Honda,[14] Mercedes Benz,[15][16][17] and Porsche.[18] For example, the BYD F8 convertible bears great similarity to the Mercedes CLK from the front, and the Renault Megane CC or third generation Chrysler Sebring convertible from the rear.[19]
Chery
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The Chery QQ (left) and Daewoo Matiz (right).
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The QQ became the center of an industrial copyright and intellectual rights controversy, as General Motors claimed the car was a copy to the Daewoo Matiz (which is marketed outside South Korea as the Chevrolet Spark). GM executives demonstrated the extent of the design duplication, noting for example that the doors of the QQ and those of the Matiz are interchangeable [20] without modification.
GM China Group indicated the two vehicles "shared remarkably identical body structure, exterior design, interior design and key components."[20] MotorAuthority.com[21] and Car and Driver called the Daewoo Matiz a "carbon copy", while the International Herald Tribune, in a 2005 article, referred to it as a clone. [22]
As well as this, the Chery Tiggo was criticized for resembling a 2nd generation Toyota RAV4.
Great Wall Motor
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The Great Wall Peri (left) and Fiat Panda (right).
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In December 2006 Fiat claimed that Great Wall Motor's new A-segment Peri (called Jing Ling in China) is a copy of Fiat's popular second-generation Panda.[23]
On July 16, 2008, a Turin court upheld Fiat's claim and banned Great Wall from importing the Peri into Europe, stating that the Peri “doesn’t look like a different car but is a (Fiat) Panda with a different front end.”[24] A copyright infringement case filed by Fiat in China has been lost by the Italian manufacturer.
As well as this, the Great Wall Safe has been criticized for looking like a 2nd generation Toyota 4Runner, the Great Wall Florid for looking like 1st generation Toyota ist and the Great Wall Hover for looking like an Isuzu Axiom.
Shuanghuan
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The Shuanghuan Noble (left) and Smart ForTwo (right).
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The Shuanghuan Noble has caused numerous controversies, with Mercedes-Benz even filing a lawsuit against Shuanghuan because of the similarities with the Smart Fortwo.[25] Mercedes-Benz also persuaded the Italian court to prohibit the car from being exhibited at the Bologna Motor Show[26], but this was violated and the car was put on display.[27]
In May 2009 a Greek judge ruled against Daimler and cleared the car allowing sales to begin in Greece. The judge answering to Daimler's demand to ban the Chinese vehicle from entering the Greek market said that “The impression the Noble makes on a third and informed party by its visual appearance is different to the one that is made to the same person by the Smart . . . It is commonly accepted that the decision over buying a new car cannot be based only on the exterior characteristics but many other technical specifications such as the power of the engine, fuel consumption, trim specification, retail price and dealers’ network.”[28]
The ruling states that the latter party’s doings “cannot possibly misguide the public” as the German company claimed in its legal request. The judge noted the salient fact that “the plaintiff is no longer selling the specific generation of the Smart which claims to have been copied, but a different vehicle, with much different characteristics.”
The judge also accepted in whole the defendant’s argument that cars of the same segment cannot avoid a certain level of resemblance due to technical restrictions, similar purposes and goals, especially when it comes to such small cars that present a challenge to design.
The ruling concludes that “there is no competition between the two companies.”
Also, in Germany legal action was taken by BMW which resulted in a ban on sales of the Shuanghuan SCEO due to its strong resemblance to the BMW X5.[29][30]
Joint-venture manufacturers
In 2005, 5,707,688 motor vehicles were manufactured in China. The following 13 foreign makers have joint venture factories, with local partners, in China.
Toyota
Currently Toyota is the only company making hybrids in China. It sold 2,000 in 2006.
| Total motor vehicles | Passenger cars | Light commercial vehicles | Heavy trucks | Buses |
|---|---|---|---|---|
| 150 078 | 146 943 | 3 635 |
Nissan
| Total motor vehicles | Passenger cars | Light commercial vehicles | Heavy trucks | Buses |
|---|---|---|---|---|
| 179 034 | 166 938 | 12 096 |
Honda
| Total motor vehicles | Passenger cars | Light commercial vehicles | Heavy trucks |
|---|---|---|---|
| 254 820 | 254 820 |
Suzuki
| Total motor vehicles | Passenger cars | Light commercial vehicles | Heavy trucks |
|---|---|---|---|
| 139 536 | 139 536 |
Mazda
| Total motor vehicles | Passenger cars | Light commercial vehicles | Heavy trucks |
|---|---|---|---|
| 107 929 | 107 929 |
Daihatsu
| Total motor vehicles | Passenger cars | Light commercial vehicles | Heavy trucks | Buses |
|---|---|---|---|---|
| 1 290 | 1 290 |
Mitsubishi
| Total motor vehicles | Passenger cars | Light commercial vehicles | Heavy trucks |
|---|---|---|---|
| 18 540 | 18 540 |
FIAT
| Total motor vehicles | Passenger cars | Light commercial vehicles | Heavy trucks | Buses | |
|---|---|---|---|---|---|
| FIAT | 32 856 | 32 856 | |||
| Iveco | 18 235 | 5 620 | 12 615 |
Isuzu
| Total motor vehicles | Passenger cars | Light commercial vehicles | Heavy trucks | |
|---|---|---|---|---|
| 23 214 | 23 214 |
Ford
| Total motor vehicles | Passenger cars | Light commercial vehicles | Heavy trucks | Bus and Coaches |
|---|---|---|---|---|
| 145 498 | 59 827 | 85 671 |
General Motors
| Total motor vehicles 250365 | Passenger cars 25487 | Light commercial vehicles 2654 | Heavy trucks 26587 | Buses |
|---|---|---|---|---|
| 346 697 | 308 290 | 38 407 |
PSA Peugeot-Citroën
| Total motor vehicles | Passenger cars | Light commercial vehicles | Heavy trucks | Buses | |
|---|---|---|---|---|---|
| Citroën | 101 839 | 101 839 |
VW
| Total motor vehicles | Passenger cars | Light commercial vehicles | Heavy trucks | |
|---|---|---|---|---|
| 430 600 | 430 592 |
Auto shows
- Auto Beijing/Auto Shanghai alternate every year [1]
- Auto Guangzhou
See also
- Automobile industry
- List of countries by motor vehicle production
- List of countries by vehicles per capita
- Lists of automobiles
- List of cars
- List of Asian cars
- List of Japanese cars
- Future car technologies
- List of truck manufacturers
- List of motorcycle manufacturers (Category)
- List of scooters - List of scooter manufacturers
- Military vehicles of China
References
- ^ 8:47 p.m. ET (2009-02-04). "China poised to be world’s largest auto market - Autos- msnbc.com". MSNBC. http://www.msnbc.msn.com/id/29022484/. Retrieved 2009-04-28.
- ^ "/ UK - US car market clings to pole position". Ft.com. 2009-02-06. http://www.ft.com/cms/s/0/fe07ae0c-f3ee-11dd-9c4b-0000779fd2ac.html. Retrieved 2009-04-28.
- ^ 22:25. "RIA Novosti - World - China becomes world's largest car market". En.rian.ru. http://en.rian.ru/world/20090206/120007709.html. Retrieved 2009-04-28.
- ^ 6:13 a.m. ET (2009-05-20). "China emerges as world's auto epicenter - Politics- msnbc.com". MSNBC. http://www.msnbc.msn.com/id/30802161/. Retrieved 2009-05-25.
- ^ "More cars are now sold in China than in America". The Economist. 2009-10-23. http://www.economist.com/daily/news/displaystory.cfm?story_id=14732026&fsrc=nwl.
- ^ http://english.people.com.cn/90001/90778/90860/6789987.html
- ^ http://www.chinadaily.com.cn/china/2009-10/20/content_8820728.htm
- ^ http://www.businessgreen.com/business-green/news/2239795/china-e6-electric-car-trying
- ^ "Obama's Briefing; Sandalow To DOE; Automaker News; Nat'l Wildlife Federation Embraces PHEVs". Calcars.org. 2009-03-27. http://www.calcars.org/calcars-news/1052.html. Retrieved 2009-04-28.
- ^ Road rage in the West as copycat cars from China start to make their marque overseas independent.co.uk
- ^ RX for Success... or lawsuit? China's BYD gets its Lexus tribute on autoblog.com, Mar 27th 2009
- ^ Detroit 2009: BYD F3DM is the poor man's plug-in Toyota Corolla autoblog.com, Jan 13th 2009
- ^ China's F1 entry... sorta autoblog.com, Oct 23rd 2007
- ^ Beijing '08 Preview: BYD e6 electrifies family hauling autoblog.com, Apr 17th 2008
- ^ BYD S8 Convertible: A Chinese Chopstick Dumpling Deathtrap jalopnik.com, Wed Apr 15 2009
- ^ BYD B8 Convertible: Impending Doom Never Looked So Good, SL-like jalopnik.com, Tue Apr 21 2009
- ^ Chinese Byd for entry into sports car market autoblog.com, Nov 5th 2006
- ^ BYD T6: A Chinese Porsche Cayenne Knock-Off jalopnik.com, Mon May 4 2009
- ^ MotorAuthority: Another Chinese copy, the BYD F8
- ^ a b "China to Foreign Automakers: Drop Dead". Frank Williams. 2007-08-16. http://www.thetruthaboutcars.com/editorials/china-to-foreign-automakers-drop-dead/. Retrieved 2007-12-17.
- ^ "China Chinese Chery QQ - a carbon copy of the Daewoo Matiz". MotorAuthority.com 6 July 2006. http://www.motorauthority.com/news/industry/chinese-chery-qq-a-carbon-copy-of-the-daewoo-matiz/.
- ^ "China's quest to sell cars in the U.S.". International Herald Tribune, Chris Buckley, Jan 7, 2005. http://www.iht.com/articles/2005/01/06/business/cars.php.
- ^ FIAT IS CONSIDERING TAKING LEGAL ACTION TO STOP GREAT WALL'S PANDA CLONE BEING SOLD IN EUROPE - Italiaspeed.com
- ^ Great Wall banned from importing GWPeri minicar
- ^ http://www.autoblog.com/tag/shuanghuan+noble/
- ^ http://www.smartcarofamerica.com/green_smart_cars/shuanghuan_noble_smart_fortwo/
- ^ http://www.autobloggreen.com/2007/12/11/good-idea-smart-clone-importers-violate-court-injunction-at-bol/
- ^ http://autonews.gasgoo.com/auto-news/1010649/Greek-court-rules-against-Daimler-on-China-SUV.html
- ^ "China - Imitation is the sincerest form of flattery".
- ^ "BMW joins smart in threatening copy-cat Chinese".
- China: New Car Industry Policy - Deacons - Published October 1, 2004 - Hong Kong
- China Car Forums - information on Chinese auto manufacturers
External links
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Wikimedia Commons has media related to: Vehicles of China |
- China Association of Automobile Manufacturers Chinese: {{{1}}}
- Statistical Information Network of China Association of Automobile Manufacturers
- China Society of Automotive Engineering
- China Automotive Technology and Research Center
- SOHU Automotive News
- Shanghai Automotive Industry Association
- China Council for the Promotion of International Trade Branch of the automotive industry.
- China National Automotive Industry International
- 2009 could be the year that China emerges as the No. 1 auto market.
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