Automobile Industry China
Market Analysis Report: China’s Automotive Industry
Presented to: Israel Export & International Cooperation Institute
November 2010
1
China’s Automotive Sector - Prepared for IEICI Updated November 2010 (Original April 2009)
Table of Contents EXECUTIVE S UMMARY ---------------------------------------------------------------------------------- 3 1.
1.1 1.2 1.3
MARKET OVERVIEW ------------------------------------------------------------------------------ 4
General Overview Market Structure Emerging Industry Trends 4 8 10
2. REGULATORY OVERVIEW ------------------------------------------------------------------------ 14
2.1 2.2 2.3 Foreign Access to the Chinese Automotive Market Automobile Emissions Standards Automotive Industry Policies 15 16 17
3.
3.1 3.2
MARKET OPPORTUNITIES ------------------------------------------------------------------ 18
Current Opportunities Key Industry Events 19 23
APPENDIX I: LOCATION OF MAJOR AUTOMOTIVE INDUSTRY CLUSTERS IN CHINA -- 25 APPENDIX II: MAP OF CHINA ------------------------------------------------------------------------ 26 APPENDIX III: ACRONYMS --------------------------------------------------------------------------- 27
2
China’s Automotive Sector - Prepared for IEICI Updated November 2010 (Original April 2009)
EXECUTIVE SUMMARY
China became the world’s largest automobile producer and market in 2009 with annual sales of nearly 14 million vehicles. The market continues to expand in 2010. In the first nine months of 2010, automobile production reached 13.08 million units, a 36.1 percent increase from a year ago. The China Association of Automobile Manufacturers (CAAM) raised its forecast for annual sales to reach a record 17 million this year, matching the highest annual total ever reached in the United States. Industry growth has been primarily driven by rising domestic demand stemming from rising incomes, a growing middle class, and by supportive industry policies from the Chinese
Presented to: Israel Export & International Cooperation Institute
November 2010
1
China’s Automotive Sector - Prepared for IEICI Updated November 2010 (Original April 2009)
Table of Contents EXECUTIVE S UMMARY ---------------------------------------------------------------------------------- 3 1.
1.1 1.2 1.3
MARKET OVERVIEW ------------------------------------------------------------------------------ 4
General Overview Market Structure Emerging Industry Trends 4 8 10
2. REGULATORY OVERVIEW ------------------------------------------------------------------------ 14
2.1 2.2 2.3 Foreign Access to the Chinese Automotive Market Automobile Emissions Standards Automotive Industry Policies 15 16 17
3.
3.1 3.2
MARKET OPPORTUNITIES ------------------------------------------------------------------ 18
Current Opportunities Key Industry Events 19 23
APPENDIX I: LOCATION OF MAJOR AUTOMOTIVE INDUSTRY CLUSTERS IN CHINA -- 25 APPENDIX II: MAP OF CHINA ------------------------------------------------------------------------ 26 APPENDIX III: ACRONYMS --------------------------------------------------------------------------- 27
2
China’s Automotive Sector - Prepared for IEICI Updated November 2010 (Original April 2009)
EXECUTIVE SUMMARY
China became the world’s largest automobile producer and market in 2009 with annual sales of nearly 14 million vehicles. The market continues to expand in 2010. In the first nine months of 2010, automobile production reached 13.08 million units, a 36.1 percent increase from a year ago. The China Association of Automobile Manufacturers (CAAM) raised its forecast for annual sales to reach a record 17 million this year, matching the highest annual total ever reached in the United States. Industry growth has been primarily driven by rising domestic demand stemming from rising incomes, a growing middle class, and by supportive industry policies from the Chinese