An Analysis Of The Changes In The Structure Of Chinese Car Market And Their Influence

More than fifty years ago automobile industry was reputed as "the most influential industry in all industries" by Peter Dluke, a world-famous expert in administration .Some people even regard it as "the kind of machine that changes the world" due to the fact that it has brought about a profound revolution both in "space" and "time", that only inventions of steam engine and computer can be comparable to its effect in industrialization and modernization, that it is an irreplaceable strategic industry in the process of industrialization and modernization. While car industry is the most important part in the whole automobile industry, which will have a great impact on promoting social progress and developing economy and improving living standard of family life. Chinese car industry initiated in the 1980s.It has undergone remarkable changes in every respect in the past more 20 years. Based on the theory of traditional industry organization, this paper aims to analyse the changes in the structure of Chinese car market which are thought to be divided into three phases: high-degree oligopolistic market structure, moderate-degree oligopolistic market structure and monopolistic competition market structure. It is concluded that a more competitive market structure will do better to the development of Chinese car industry by observing those changes both in the market conduct and market performance caused by different market structures. Finally the policy of Chinese automobile industry is evaluated and some suggestions are put forward: the government should promote full competition within automobile industry, accelerate the shaping of a united national automobile market and make good use of civil capital. Meanwhile, it should provide detailed policies to support independent exploiture and speed up the legislation of antitrust laws and fair competition acts so as to create a favorable external circumstance for the development of automobile industry.