Page 182 - 2019 White Paper on the Business Environment in China
P. 182
9 White Paper on the Business Environment in China
2.3 Automotive Industry
Background increased by 1.66 million per month since 2018,
maintaining sustained and rapid growth. At present,
The Chinese automotive market grew from an there are more than one million vehicles in 58 cities
insignificant backwater to the world’s largest across the country, and more than 3 million in seven
in 2008. The number of registered cars, buses, vans, and cities. The number of trucks reached 24.7 million, and
trucks on the road in China reached 62 million in 2009, the number of newly registered trucks reached 1.72
and is expected to exceed 200 million by 2020 (Watts). million in the first half of 2018, which is significantly
The country’s motorists purchased 24.7 million cars, light higher than the registration of 1.56 million in the same
trucks, and crossovers in 2017, compared to just 17.2 period last year, the highest level in history. At the same
million in the US. China’s numbers could grow to as much time, the number of motorists reached 396 million, and
as 50 million as more of the country’s western regions the number of new drivers was 13.25 million. (Xinhua,
catch up with the economic growth along the Pacific China’s Motor Vehicle).
coast. China has some of the most protectionist auto trade
practices of any major market in the world. It levies a 25 According to the China Automobile Dealers
percent tariff on foreign-made vehicles, 10 times what the Association, 904,000 cars were bought from dealers,
US demands. These tariffs have severely limited imports. up 0.6 percent, reversing the decline seen in 2015 and
American factories only shipped about 300,000 vehicles 2016. Parallel imports, vehicles bought from other
to China in 2017, about 1 percent of the total market. To markets to be sold in China, surged 29.8 percent to
avoid the monetary obligations, foreign manufacturers 172,000 units. SUVs dominated the market, making up
have invested tens of billions of dollars in Chinese 88 percent of the all parallel imports. Unlike traditional
factories. The primary problem was the requirement that imports, the parallel-import scheme allows local auto
they partner with local brands such as Shanghai-based dealers to directly purchase vehicles from foreign
SAIC Motor, which operates joint ventures with General markets, and the prices of parallel import vehicles,
Motor (GM), Volkswagen, and others. After a decade of primarily premium brands, are usually 15 percent
false starts, Chinese automakers finally appear ready to lower than dealers authorized by auto makers (Xinhua,
start shipping their products to the US, Europe, and other China imports more).
foreign markets—and don’t want to see those doors
close. Guangzhou-based GAC—the joint venture partner Market Trends
of Fiat Chrysler—is currently negotiating with potential
US dealers, and hopes to have a distribution network up The country’s auto market rebounded in 2016 from
and running in 2019 (Eisenstein). an earlier period of slow growth, with 22.8 million cars
sold. Although sales are expected to increase by a
Motor Vehicle Ownership relatively modest 5 percent every year through 2022, this
will nonetheless equal 53 percent of total growth in the
The number of motor vehicles in the country global market, the report said. In other words, one out
reached 319 million by the end of June 2018. According of every three new cars sold in the world will be sold in
to the Traffic Management Bureau of the Ministry of China. The number of self-driving cars in China, the US
Public Security, the number of newly registered motor and EU—the three primary markets—will reach about 81
vehicles reached 16.36 million, which was higher than million by 2030. China would own more than 40 percent,
the registration volume of 15.94 million in the same the largest share among those markets. Those vehicles
period in 2017. The number of new energy vehicles would be either level four or level five autonomous. Level
reached 1.99 million, and the number of private cars four self-driving cars have the capabilities of handling
reached 180 million. The number of possessions most driving situations themselves, whereas those in
182
2.3 Automotive Industry
Background increased by 1.66 million per month since 2018,
maintaining sustained and rapid growth. At present,
The Chinese automotive market grew from an there are more than one million vehicles in 58 cities
insignificant backwater to the world’s largest across the country, and more than 3 million in seven
in 2008. The number of registered cars, buses, vans, and cities. The number of trucks reached 24.7 million, and
trucks on the road in China reached 62 million in 2009, the number of newly registered trucks reached 1.72
and is expected to exceed 200 million by 2020 (Watts). million in the first half of 2018, which is significantly
The country’s motorists purchased 24.7 million cars, light higher than the registration of 1.56 million in the same
trucks, and crossovers in 2017, compared to just 17.2 period last year, the highest level in history. At the same
million in the US. China’s numbers could grow to as much time, the number of motorists reached 396 million, and
as 50 million as more of the country’s western regions the number of new drivers was 13.25 million. (Xinhua,
catch up with the economic growth along the Pacific China’s Motor Vehicle).
coast. China has some of the most protectionist auto trade
practices of any major market in the world. It levies a 25 According to the China Automobile Dealers
percent tariff on foreign-made vehicles, 10 times what the Association, 904,000 cars were bought from dealers,
US demands. These tariffs have severely limited imports. up 0.6 percent, reversing the decline seen in 2015 and
American factories only shipped about 300,000 vehicles 2016. Parallel imports, vehicles bought from other
to China in 2017, about 1 percent of the total market. To markets to be sold in China, surged 29.8 percent to
avoid the monetary obligations, foreign manufacturers 172,000 units. SUVs dominated the market, making up
have invested tens of billions of dollars in Chinese 88 percent of the all parallel imports. Unlike traditional
factories. The primary problem was the requirement that imports, the parallel-import scheme allows local auto
they partner with local brands such as Shanghai-based dealers to directly purchase vehicles from foreign
SAIC Motor, which operates joint ventures with General markets, and the prices of parallel import vehicles,
Motor (GM), Volkswagen, and others. After a decade of primarily premium brands, are usually 15 percent
false starts, Chinese automakers finally appear ready to lower than dealers authorized by auto makers (Xinhua,
start shipping their products to the US, Europe, and other China imports more).
foreign markets—and don’t want to see those doors
close. Guangzhou-based GAC—the joint venture partner Market Trends
of Fiat Chrysler—is currently negotiating with potential
US dealers, and hopes to have a distribution network up The country’s auto market rebounded in 2016 from
and running in 2019 (Eisenstein). an earlier period of slow growth, with 22.8 million cars
sold. Although sales are expected to increase by a
Motor Vehicle Ownership relatively modest 5 percent every year through 2022, this
will nonetheless equal 53 percent of total growth in the
The number of motor vehicles in the country global market, the report said. In other words, one out
reached 319 million by the end of June 2018. According of every three new cars sold in the world will be sold in
to the Traffic Management Bureau of the Ministry of China. The number of self-driving cars in China, the US
Public Security, the number of newly registered motor and EU—the three primary markets—will reach about 81
vehicles reached 16.36 million, which was higher than million by 2030. China would own more than 40 percent,
the registration volume of 15.94 million in the same the largest share among those markets. Those vehicles
period in 2017. The number of new energy vehicles would be either level four or level five autonomous. Level
reached 1.99 million, and the number of private cars four self-driving cars have the capabilities of handling
reached 180 million. The number of possessions most driving situations themselves, whereas those in
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