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The Study On Scale And Performance Of Chinese Auto Industry

Posted on:2016-01-11Degree:MasterType:Thesis
Country:ChinaCandidate:Z YuFull Text:PDF
GTID:2309330461452219Subject:Industrial Economics
Abstract/Summary:PDF Full Text Request
In 2014, China has remained the world’s largest auto market for over six years, with over 23 million production and sales of automobile. Since the reform and opening up, Chinese auto industry had a rapid growth on production scale, with rapidly growing on the amount of ownership of private cars. Continued rapid growth in market demand, brought a golden age for the automobile industry. Foreign auto.producers entered the Chinese market by joint ventures and cooperation. Lots kinds of enterprises went with the increase of production scale, profitability, fixed asset investment and practitioners. The synchronous increase on scale and benefits showed significant characteristics of scale merits.The issue about scale economics and scope economics is a based problem in the theory of industrial organization, and auto companies’ scale efficiency is one of most important research topics for scholars. The automotive industry is one of pillar industries which are supported by government, with a long production chains, strong capital intensity, high technology and a great supporting role in the national economy. In 1994 and in 2004, government twice enacted policies to support the automotive industry, designed to improve the scale economics of the automobile industry, to reduce production costs and improve their competitive advantage. But in 2014, there are still 115 vehicle manufacturers in auto industry, which is more than the sum of the United States, Europe and Japan. A large number of automobile production workers and production equipment goes in a low efficiency of production and management. they cannot be unable to change the ongoing status, or withdraw from the market. This paper analyses technical efficiency and scale efficiency of automobile industry by DEA model, and draw relevant conclusions: First, scale efficiency and overall technical efficiency showed statistically increase with the size of production in Chinese passenger car business. The larger the scale of production become, the higher scale efficiency and overall technical efficiency. Secondly, the scale efficiency and overall technical efficiency were severely affected the market demand in passenger car business, and the overall growth of the automobile industry productivity index is also influenced by changes of demand. Thirdly, the overall passenger car business input output ratio is not high, and a large number of auto companies produce in inefficiency. Finally, an analysis of Malmquist production index shows that the main problem lies in Chinese auto industry and the expected absence of inadequate management of the market.By collecting and collating relevant literature, the first chapter is for understanding the main contents of Chinese automobile industry and ideas, issues and research framework about the research in economies of scale. The second chapter is mainly on classical economics and neoclassical economics and the modern theory of interpretation of economies of scale. The third chapter is the introduction to the market development and size about Chinese automobile industry, and then it is a analysis of the status of economies of scale about China’s passenger car industry. The fourth chapter is preliminary measure of scale economies in Chinese auto market. By survival technology method and the most profitable method, conduct a preliminary determination of minimum optimal scale for automobile enterprises. The minimum optimal production scale of Chinese auto companies has reached 500 000 vehicles in 2012. The fifth chapter using CCR model and BCC model as well as the productivity index decomposition method, operational efficiency and scale efficiency of 32 major passenger car business is calculated and sorted during 2007 to 2012.Then analyses the effect of technical efficiency and scale efficiency for passenger car business efficiency. The sixth chapter analyzes the relative efficiency according to the last chapter conclusions, put forward specific policy recommendations.
Keywords/Search Tags:Auto Industry, Scale Economics, Scope Economics, Data Envelopment Analysis
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