Study On The M&A Activity Of China's Automotive Industry

Development of the automobile industry is direct manifestation of comprehensive strength , competitiveness and technological level in a national and regional. Many countries have the automotive industry as an important pillar industry. China's automobile industry in recent years has seen rapid development. It has become an important driving force. But from the point of view of the market structure, China's automobile industry compared with developed countries, there are still large gaps . The industry division of labor is still very unreasonable. With the increased global competition trend of the automobile industry, China's auto industry facing structural optimization and upgrading under the market pressure increases. The fundamental method to enhance the country's automotive industry level is speeding up structural adjustment, through M&A to formate large international group. Therefore, how through M&A to promote the optimal distribution of resources, enhance the country's competitiveness in the automotive industry, become a reality problem in China's automobile. In this paper, we will recall the development of China's automobile industry and the status quo, based on the world automobile market structure and trends, M&A in China's auto industry is to promote the optimization and upgrading of the market structure. Analysis the M&A performance of the Chinese automotive industry .We found that at the present stage of China's automobile industry mergers and acquisitions overall performance is not obvious that the main reason is the excessive administrative intervention, such as capital market development lags behind. Believe that by continuing to improve the market system, and correctly positioning the Government in promoting the formation of oligopolistic market structure , such as comprehensive measures will effectively improve the performance of China's automobile industry mergers and acquisitions .