China's Car Industry Market Structure And Brand Competitiveness Study

With the rapid development of the national economy of our, country and the raising of the level of dweller income and after China's entry into WTO, the car industry of our country have been growing up fast and have become the dominant industry in industrializes new period. Our country has become the 3th automobile market besides America and Japan in the world. There are many foreign and national car firms that appear on the market of China. This bings on more and more drastic competition. And the structure of car market is changing deeply in China. On the basis of the characteristic of the market, the brand competing is becoming the major method of competition.In view of mentioned above, we analyze the structure of national car market at the beginning of the paper, and then dissertate on the appearance of the brand competing in the frame of SCP. Whereafter, we set up a Structure Equation Model(SEM) that is used in analyzing the relation of the market structure and the brand competitiveness of car industry. We apply the data of five national car firms in the model, and adopt Maximum Likelihood Estimates to get the result. After that, we analyze the relation and draw a conclusion.All in all, the brand competition of domestic car industry has been becoming more and more intense, and multinational firms are also participating in each segment market's competition through their multi-brands strategy. With improvement of the market concentration during competition, the whole development would appear "U" trend. National brands would be involved in hard condition as the fulfillment of multinational brands strategy in China. Brand competition accelerates the market concentration further, and the enterprises who become winners in the competition would gain more in their brand competitiveness.