A Study On The Structure Evolution Of China's Auto Industry

Auto industry has always been the focus in developed countries for its featuresof highly industrial relativity, large employment capacity and wide relativities toother industries. Its input-output rate is relatively high and it can forcefully push theindustries. The development of auto industry is influential in the industrial layout ofthe nation, filling the gap between workers and peasants and the gap between townsand countries and changing people's life style. Auto industry will become the pillarindustry in national economy and it can pull the development of relative industriesthus push the development of national economy forward. As means of production anddurable consumer goods, auto is the main source of financial income for theproducers, consumers and users. It has become the most important transport andfreight tool. It brings people velocity, efficiency and profits. It broadens the activityspace and improves people's life. The change of demand for autos depends on incomeor change of prices. With the development of living standard and the increase ofincome per capita, people's demand for autos grow larger and larger. Thus autuindustry has become a main strength in increasing domestic demand.Crashed by the 2008 financial crises, auto markets in developed countries likeNorth America, Japan and EU was in dilemma. The production slumped, salesdecreased and there was no sign of recovery. Due to the uprising of emergingeconomies of China and India, there was a great adjustment of the international autoindustry in 2009. When the auto giants were suffering from the difficulties, Chinaauto industry kept developing. In 2009, the China auto consumer market went againstthe market trend with its production and sales increasing rapidly. Untill the Sep. 2009,the sales had amounted to the highest record in history, with the production of1362100 cars and sales of 1331800 cars. The annual auto production and sales of autoin 2009 was 13791000 and 13645000 respectively, with its year-on-year growth of48% and 46%. China auto industry withstood this test. In 2006, the total productionvolum of China autos ranked the 3rd in the world. In 2009, its annual sales surpassed that of US, ranking the first in the world. The state of auto industry in nationaleconomy keeps rising. In accelerating the economic recovery and keeping a steadydevelopment of economy, auto industry has played an important role. In 2009, autoindustry's contribution to the GDP amounted to 0.9 percent and its contribution ratesurpassed 10%.While affirming the achievement, we have to clearly know that for a long time,the structure of our auto industry is not rational. There exist problems. Thedevelopment mainly depends on investment. Great importance has been attached tothe increase of quantity. The industry itself is lowly concentrated and has no strongcreativity. The brand added value is low. The development of finished cars anddevices is unbalanced. Core technology is still lacked of. The development of nationaland international market is unbalanced. Thus the study on the transition of autoindustry structure has great importance.Chapter One is the introduction of research background, meaning and currentsituation, and it also shows the study methods and the main frame of the content.Chapter Two is the introduction of industry structure development and thetheories of industrial concentration.Chapter Three mainly analyses vehicle industrial product structure and marketstructure.On the product structure, according to Automotive Industry Yearbook(2000-2009), in accordance with the classification of automotive products,automotiveproducts can be divided into the cars, modified cars, motorcycles, car engines and carand motorcycle accessories. Among them, the car is divided into trucks, busesandcars as three categories, calculating and analyzing various automotive products,the ratio relations of different automotive products and China's auto industry importsand exports of different models in the field of evolution and characteristics. On theprovinces (municipalities), It analyzes the regional distribution of China's autoindustry and the evolution of structural characteristics.On the Market structure, taking the industrial concentration as an index, itmainly inspects the top four automobile production enterprises in China's automotiveindustry from 1999 to 2008 to , calculating the annual industrial concentration and market structure in accordance with Bain's methods, classifying China's automobilespecific categories of industrial market structure.Chapter Four concludes on the problems in the developing process of China'sautomobile industrial structure, and makes the relative suggestions.