Sample Essay on Chinese Automakers

Chinese Automakers

The automotive industry is one of the greatest contributors to the global economy. The number of automakers has also been increasing on daily basis, but China stands as the best in the industry. In fact Chinese automakers rank as the best and the largest in the world since 2008.  Evidently, annual production of automobiles on China exceeds that of US, Japan and European Union all together according to research conducted in 2009. The number of registered cars, truck, vans and buses on the roads in China reached 62 million in 2009 and it is expected to hit 200 million by 2020.

The global automotive industry involves the manufacturing ad sales of automobiles and retail activities like gas-station retail and the sale of vehicle parts. China is a great automaker and about 44.3% were local brands that include Lifan, Chery, Hafei, Geerly and Chana among others. The rest were produced via joint ventures with foreign automakers like General Motors, Hyundai, Toyota, Mitsubishi and Volkswagen among others.

Most of the cars produced by most of Chinese automakers are sold within China and exports have reached 814,300 units in 2011. The Chinese automobile industry has been successful due to the fact that China’s home market offers a solid base and to build a great platform to compete with other automakers. The Chinese auto manufacturing industry has been highly capital and labor intensive due to the factor that they are significant cost on labor for engineering and designing automobiles.


There are notable emerging industry trends that have impacted the Chinese automobile industry. There has been a rapid expansion of the industry due to the growth in domestic demand for affordable vehicles. The Chinese government has also been supportive in pushing for growth of the automobile industry. For instance, the government has led to lower import tariffs and has given international automotive firms better access to domestic market.  Beijing has encouraged the development of JV R&D centers with favored tax policies that aid in easy transfer of knowledge and technology.

The Chinese government is also focused into restructuring and consolidation of its automotive industry. This has been accelerated by the hopes of changing the market from many disjointed manufacturers to two or three central domestic companies. Global expansion is another factor that has helped transform the Chinese automotive industry. The china government is accelerating the global transformation of the automotive industry to increase its presence in the foreign market. Chinese automakers have released the importance of the power of strong brand reputation. Hence, most of the local companies have been merging with foreign countries to improve their brands.

Focus of future development has pushed Chinese automakers to find better ways to improve the quality of their products. Due to the impact of high oil prices, air pollution and Chinese automakers commitment to lessen carbon emission have pushed the industry to explore new energy alternatives. The government has come up with matchless policies and incentives that have helped stimulate development of new vehicles that are entail a hybrid, plug-in and battery, fuel cell or ones that are hydrogen-powered. In essence, there is a lot of expected from the Chinese automotive industry with the recent technology advances.

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