China's Automobile Industry Development Strategy Research

After reform and opening , China's auto industry has improved greatly , formed a comparative vehicle product series and production system , such as the First Auto Work, Dongfeng Auto Group and Shanghai Auto Group. The shares of domestic products are more than 95%.But, auto industry is an industry with prominent slope of economy. When world auto industry was founded more than one hundred years ago, M&A became more and more frequent in order to improve competivity, more and more auto manufacters were turned over by stronger ones. Now there are only nine auto groups exit. In history, there were more than two thousand auto manufacters, but there are only three auto groups. China's auto industry will not be dependent with world auto industry. There were 115 auto manufacters in 2003 in China, but each manufacters' output is very low. Recently, though China's auto industry has been improved greatly, there is great gap comparing with world auto industry. The new edition of development policy of auto industry give a direction for China's auto industry.Because China's auto industry is very important to Chian's economy, so it has been protected by Chinese government. But after entrying WTO, China's auto industry has to open to foreign countries, so it will give China's auto industry more pressure.Competivity is a very important issue in every industry of the world. With the depth of reform and openness and commitment to WTO, for deeply involved in world economic system and share market, China must analyze the whole system of industry competivity. From a long time ago, China's auto industry was set up repeatly, with little share and low efficiency. After the cancel of tariff, China's auto industry will directly face to foreign auto industry. Can China's auto industry compete with foreign auto industry and how to improve the competivity of China's auto industry? The assay will answer the question in detail. First China's auto industry should restructure with domestic strongers and cooperate with cross-national companies.