The Theoretical Research On The Impact Of Consumer Demand On Technological Innovation Of Automobile Industry And China’s Empirical Study

Consumption is the purpose anddriving motivation of the production. Meanwhile,the consumption can create a realistic production. Consumer demand is the drivingforce of industrial development and expanding consumer demand is the source toachieve sustainable development of China’s automobile industry. Brisk demand candrive the development of the automobile industry and expanding scale of demandwillbring automotive industrythe benefits of economies of scale which is beneficial toreduce the cost of production and sales. Accordingly, brisk demandand expandingscale of demand can enhance the international competitiveness of the automotiveindustry.Currently, asthelarge consumer goods carsenter millions of households,China is accelerating into the auto society.Therefore, it is a to-be-developed researchproject that how to enhance the technological innovation capability of China’sautomobile industry together with the optimization and upgrading per the hugecapacity of Chinese market.First, I analyzed the currentcharacteristics and trend of China’s automotiveconsumer demand from the scale of demand and demand structure; second, I analyzedthe status quo of China’s automotive technology innovationand drew some factorswhich affectthe automotive technological innovation;third, in order to reveal the impactof consumer demand on the automobile industry,Igave an explanation ofthe mechanismthat consumer demandpromote automotive technological innovation from two aspects,one is that the scale of consumer demand can reduce the cost of automotivetechnology innovation, the other is that the optimization and upgrading ofdemandstructure can promoteautomotive technology innovation; finally,on basis of dataenvelopment analysis,I tested total factor productivity index to measure technologicalinnovation of China’s auto mobile industry in the empirical analysis. Then usingrelated automotive data based on24provinces of China during2001-2010andregarding consumer demand as an important index of affecting automotive technologyinnovation to discuss the impact of consumer demand on the automobileindustry.Furthermore, I used technical progress index which is separated from total factorproductivity to take robust test. The conclusion of the robust test manifested that theregression result is robust by taking total factor productivity as a measure oftechnological innovation. The empirical results showed that China’s automobileconsumer demand played a significant role in promoting technological innovation of automobileindustry.Therefore, how to put the domestic consumer demand as an impetus to promotetechnical innovation of China’s automobile industry and speed the optimization andupgrading of the automobile industry? I suggested that we should promote technologicalinnovation of automobile industry by guiding new product demandandconsumerdemand together with attractingboth domestic and overseas innovative elementsagglomeration based on domestic consumer demand.