China automobile industry can be regarded as one of the largest growing automobile industries in the world. The market is continually flourishing and as a consequence, automakers are hastening to invest in China automobile industry.
Market survey reports regarding China automobile industry
Market survey reports reveal that for the last 15 years, China observed a steady growing economy and as a consequence, China automobile industry is going to be a booming market. Survey report also shows that in 2002, the car sales arose to 62% with a high profitability, that is why leading automakers like Honda attain highest unit margins in China.
The report also shows that between 2001 to 2005, the annual growth rate of China's car consumption was 54.42%. In the year 2005, motor vehicle production and sales in China increased by 27.32% and 25% respectively. In the year 2006, motorcycle production and sales in China crossed 21 Million Units mark.
China automobile market scenario
The automobile production cost in China is higher that in Japan, Europe or U.S. The tariffs are also higher than other leading automobile manufacturing countries. The income levels in China seem to be climbing and consequently the potentiality of automobile market is also rising.
Overcapacity and abrupt price fall can be a threat to China's automobile industry, although China's entry to WTO, falling tariffs and competition can drop pricing. The government of China sometimes act upon industrial policy and as a consequence shareholders may find it difficult to access cash flows.
Leading automakers of China automobile industry
China automobile manufacturers are making very high profits. On the basis of market capital and sales, some leading domestic and international automakers in China are Volkswagen, Honda, Mazda, Nissan Motor Company Ltd., Hyundai Motor Company, General Motors,, Toyota, Suzuki, Tianjin Faw Xiali Automobile Co.Ltd., Geely Automobile Holdings Ltd., Dongfeng Motor Group Co. Ltd. Etc.