Automotive

industry and
joint venture
manufacturers
in China

1. Automotive industry in China

1949

1980

1990

2016

1949

1980

1990

2016

1949

1980

199
0

201
6

1949

195
3

1980

195
3

First Automobile Works

195
3

Jiefang

Limousine Red Flag

195
8

> 200 factories

1949

1953

196
8

1980

196
8

197
1

> 100,000 units

1

1980

1990

1980s

Highly centralized
management system

Market oriented
approach

1983

Beijing Jeep Corporation

1985

Shanghai-Volkswagen

1991

FAW-Volkswagen

1992

Dongfeng Moto Corporation

- Citroen

Annual motor vehicle output

600,000

200,000

1980
1

1989

1980

1990

1980

1985

3,500 cars/year

Were imported

1990

1990

2016

1990

1994

1994
Establish a large group for
production sedans and vans

National Automotive
Policy

Improve spare parts industry

Establish automotive
development center

Encourage private car owners

1990

1994

2001

2001

1990

199
4

200
1

2008

1990

1994

2001

2008

2015

2016

2. Joint venture manufacturers in

China

The formation

Technology transfer
Development and training
of skilled manpower
Domestic experience
Know-how for the production

Potential for
production and sales

1985

Shanghai-Volkswagen

1991

FAW-Volkswagen

1992

Dongfeng Moto Corporation

- Citroen

How China Protects Its Auto Industry?

How China Protects Its Auto Industry?

High tariffs and taxes

Stakes in venture: 50%
Made the antitrust
investigations against
international competitors

Achievements

The worlds biggest

car market

Drawbacks

Depending on
selling overseas brands

34,6%
Raising total
vehicle sales

Local brands

Foreign auto manufacturers are facing

in demand
economy

in china due to

slowing

and competition from

local offering.

decreasing

low-price

The measures imposed by some cities to

restrict the number of cars as well as the

ending of car purchased incentive
policies of government are the causes of slow
growth in cars sale in 2011.

How Joint venture manufacturers can Survive?

Concentrate in quality Develop brand

Deal with
Focus on innovation through marketingChinese Governmen

Thanks for listening

- Group 6
-