Status of the passenger car industry in china

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Status of Passenger Car Industry in China

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Status of Passenger Car Industry in China

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In the records of 2007 , China is becoming the second largest automotive industry . Chinese auto makers rolled out 9 .04 million vehicles in 2007 , up 22 .9 percent year on year , said the country 's top economic planner , the National Development and Reform Commission (Xinhua News Agency , 2008 . Roughly 55 , 4 .95 million of this 9 .04 million is the growing passenger car industry in China . Since 1990 's the passenger

car production has grown steadily for the past years . This is because foreign companies from Japan , US and Europe began pouring billions of dollars to have joint ventures with leading China car manufacturers after seeing the prospect of car buyers proportional to China 's large population . Two of the companies that formed joint ventures is Japan 's Nissan and China 's Dongfeng Motor , Another famous manufacturers who went into a joint venture are Japan 's Toyota and China 's First Automotive Works (FAW . The growth peaked after 2000 when China 's automotive business joint ventures with foreign investors started to eliminate the bureaucratic interventions of government and lack of trust between parties . Prior to 2000 , the joint ventures between a foreign company and local manufacturer in China normally ended in very long negotiations that affected the growth rate . Also in 2000 , the Chinese government granted foreign car manufacturers to develop small and affordable vehicles , also known as people 's car (Cooney , 2006 . Couple these changes with the opening of China 's automotive industry to the World Trade Organization (WTO , the growth of passenger car industry in China is expected to rise quickly after 2000 Growth Rate Figure 1 . China Passenger Car Market

These changes in 2000 allowed the passenger car industry in China to grow from 600 million units in 2000 to 1 .1 million units in 2002 . Then it grew further to 2 .0 million units in 2003 and to 2 .3 million units in 2004 (Cooney , 2006 . The passenger car industry in china is further increasing reaching 3 .1 million units in 2005 and 3 .7 million units in 2006 . The combine data of all these annual passenger market in China is shown in Figure 1 China Passenger Car Production . In 2006 to 2007 alone a 25 growth rate in the passenger car industry occurred making the annual production rolled out for passenger car to reach 4 .95 million (Xinhua News Agency , 2008 . For the past five years the annual growth continued to show increase in passenger car industry . This is shown in Figure 2 which shows a relatively high increase of growth rate from 2002 to 2003 as the changes after 2000 in the bureaucracy of China 's automotive industry has already taken effect . Although there was a slight decrease from the 2003 's record high of 45 growth rate to 13 growth in 2004 . Although the growth rate rebound to 26 in 2005 as the local...