China Automotive Industry Research

The frame of SCP (Structure-Conduct-Performance) is the traditional way to study industrial organization, during which industrial concentration, as one of the main factors affecting market structure, influences the market conduct and then affects the market performance.The object of this paper is automobile industry, which capital-intensive and has obvious scale of economy. Furthermore, based on the experience of other countries, oligarch monopoly is the mature sign for automobile industry, and industrial concentration is its embodiment on organization structure.With the entry to WTO, Chinese automobile industry would face intensive competition and threats. Therefore, how to improve the international competition ability quickly has become an urgent task. The main goal of the paper is to define the main factors that will affect greatly the industrial concentration rate of Chinese automobile industry. To achieve that, the author utilizes the methods of yearbook statistic, correlation analysis and regression analysis.This paper analyzes the situation of concentration rate in Chinese automobile industry, defines the criteria that will affect its concentration and finds the main factors by mathematic regression model. Then, from the regression results, the author suggests the possible ways to improve the concentration rate of Chinese automobile industry: first, to complete and perfect the industrial policy; second, to set up cone-shaped group; third, develop new marketing conception and attract consumers.