An Empirical Study On Efficiency Of China’s Auto Industry Based On DEA Method

With the development of the country and policy encouragement, auto industry in our country achieved the sustained and rapid growth. Since 2009, the production and sales of automobile in our country has been No.1, which create a word record. The development of the auto industry is very important to the national economy. Because it can promote the development of relevant industries, create more employment opportunities and has a great contribution to financial income. Influenced by the macro economic environment in 2015, auto industry will grow in a stable growth, but opportunities still exist. With the emergence of smog and a series of environmental problems, our country launched a series of energy conservation and emissions reduction and environmental protection policy, which will promote the development of new energy vehicles.After decades of development, China’s auto industry has become the source of economic growth. Compared with the past, the scale, technology level and product innovation has achieved great progress. But compared with the developed countries abroad, the auto industry in our country has a low industrial concentration, a low market share and lack core competitiveness. At the same time, capability of independent innovation is weak. Independent brands cannot compete with foreign brands. To survive in the fierce competition and broad market, the key is to improve the efficiency of the enterprises.From the perspective of efficiency, the article introduces the related theory of efficiency evaluation, analysis the current situation of the automobile industry, the existing problems and the future development trend. The article selects 19 listed companies as samples, then selects input and output index and use DEA model to evaluate the efficiency of automobile industry. Through the combination of static and dynamic analysis, we can have a more comprehensive understanding of the condition and problems ofChinese auto industry, which has certain practical value for the auto industry.At last, the paper puts forward some suggestions based on the empirical results of the previous part. The results of the research reveals that the enterprises that is efficient accounts for low proportion. Most of the enterprises are in the increasing return to scale so that we can obtain economic benefits through expanding the scale of the enterprises.