Investigation On Some Issues Of Development Strategy Of FAW Mini-vehicle Facing Industrial Restructuring

With China'stable economic growth, its auto market steps into a golden age of booming. In the past decade, China's auto industry maintained a sustainable and fast development, making it a pillar industry for China's national economy and an important constituent in global auto industry. In 2009, China became the largest auto production and sales country globally for the first time with a sales volume of 13.6 million units. Since the global auto industry is shifting its priority to the developing countries, China's auto industry is moving towards a new era of opportunity to reinforce industry restructuring, change development mode and transit from a large auto manufacturing country to a strong one.In the future, China's auto industry will see a more proper product structure with the energy-saving and environmental-friendly vehicles being a main player, the proportion of small vehicles seeing greater increase and the vehicles for rural market becoming a new growth engine. Meanwhile, China's local auto enterprises will have new development opportunity and merge into 2-3 large scale auto manufacturing groups with international competitiveness through market competition and reorganization, under the guidance of"Auto Industry Development Policy"and"Plan on Adjusting and Revitalizing the Auto Industry". Therefore, how to leverage the opportunity of auto industry restructuring to properly adjust its product structure, increase market share and improve competitiveness becomes a common challenge for each auto maker.This paper presents an analysis on the impact of many key factors including national economy, per capita income, raw material industry, petroleum industry, government role, scientific technology etc. on China's current and future auto market, and a study on the current status and future roadmap of China's auto market. It also puts forward with a discussion on the featurs of China's mini-vehicle market development from its history, its consumer group, its development trend and national industry policy etc.. With the above basis, it employs SWOT analysis method to discuss the opportunity, risk, advantage and disadvantage of FAW's mini-vehicle, and presents a strategic plan and implementation steps for FAW's mini-vehicle development.