Product & Company
Geely in Australia
Environment of Australian
Australia automobile market
Opportunities and challenges
Mode of transport
Regulatory Control & Documentation
The automotive trade is a major sector in the Australian economy. In 2011, it represented around $3.2 billion value add to the economy, including around $0.3 billion in exports and $2.9 billion in import. The automotive industry makes up around 5 per cent of Australian manufacturing and employs around 962000 people in motor vehicle and parts manufacturing. Based on the sales data, about 5 % vehicles are imported from China. (Government, 2012) This paper will discuss the Export and Distribution Program to Australia to expand the market. It covers the environment of Australia, opportunities and challenges, marketing strategy and expansion and so on, in order to assess the feasibility of the our automobile to be placed a position in Australian market.
1. Product & Company
We select Geely Automobile as our product to export to Australia. Geely is a Chinese automobile manafacturing company that founded in 1986 by Li Shufu. It sells passenger cars under the Emgrand, Englon, Geely, Gleagle, and Volvo marques. In addition to China, Geely vehicles are sold in worldwide area like Russia, Australia and South Africa. It now runs facilities in seven cities across China with total production capacity of 400000 cars a year. Its mid-term outlook is to produce and sell 2 million vehicles annually by 2015, with half of the sales for exports. 2.1 Geely in Australia
On March 27, 2009, Geely Automobile company announced that it has successfully acquired Drivetrain Systems international (DSI), which is one of the biggest auto-parts suppliers in Australia. (Ally, 2009) Geely MK is available for only $11990 in Western Australia, is set to the cheapest new car. The Panda and EC7 were both set to make their places in Australia within 2011. Geely has established an international marketing system, and worked out strategic plans for international business circles. According to statistics, Geely Holding Group exported more than 100,000 units from 2007 to 2010, ranking first among domestic companies.
2. Environment of Australian
Australia is a highly developed country and has the world’s fifth-highest per capital income. It has total 7.7 million kilometres square and ranked the 6th in the world. The population is merely about 2.2 million and the density is around 2.8 per kilometres square, which is among the lowest in the world. Most immigrant groups come from the UK, New Zealand, China and so on. Its culture has been strongly influenced by western and established a policy of multiculturalism. Australia is more emphasis on exporting commodities, especially in agricultural products such as wheat and wool. With the larger ports capacities, most of cargo trades delivered by sea. Melbourne is Australia’s largest container and motor vehicle trading port in terms of throughput tonnages and value added to the Australian economy. It provides a major contribution to the economic performance of the State and Australia. 3.2 Australia automobile market
There are three famous automobile companies (Ford, Holden and Toyota) which import, manufacture locally and export cars. Moreover, various retailers sale and manufacture parts and components for local and overseas. A numerous vehicle importers operate in Australia, as shown in the graph of volumes per month for 2010.
3.3 China-Australia FTA
The establishment of China-Australia Free Trade Area not only facilitates trade and investment between the two countries, but also conduces to the stable development of the...
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