Chinese Auto Companies Competitive Situation And Countermeasures

Auto industry is an industry that has a long producing chain and has many relations with other industry, so it is a good impetus for a nation's economy. As our residents'income increased these years , more and more cars are bought by families, this is a huge market and a good opportunity for our country's auto industry to develop. however, our country's car made enterprises are not very competitive in the market. As a matter of fact, our nation's strategy that using the market to exchange the technology turn out to be a failure. Our market are dominated by foreign brand cars, but still we don't master the core technology to design and produce cars. Although the quantity of the car made in domestic market is increasing very quickly ,our own brands'competitiveness are becoming weak. The auto industry is integrating globally in an accelerated speed, we won't get a good result if we only rely on the cheap labor cost to assemble cars. This article choose to analyse our country's auto industry from the enterprise's competitiveness angle, and design a model to analyse the enterprise'competitiveness. Then review some theory about competitiveness, for example the value chain theory and the core competence theory, based on these theories I give some strategy suggestions for our car-made enterprises to increase their competitivenessand stand at a good position in the global competition. These suggestions include that we should promote the Industrial Cluster of auto industry. and also we need to invest more money on R&D, try to improve the technology so that we can climb up to a more profit position in the value chain. Next I use the case of Geely, a private-owned enterprise, to illustrate that my suggestions to increase the enterprise's competitiveness are correct. At last I try to forecast the prospect of China's auto industry in the future.