Page 6 - The South China Business Journal
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China's Auto
Industry: Foreign
OSwcnrerashpippLimeitds
China has announced that it will eliminate Last year, China lifted some ownership
ownership limits on automotive restrictions on electric vehicle manufacturing
enterprisesby 2023, allowing foreign and related industries, but many observers were
investors to establish wholly foreign-owned disappointed by their limited scope. However,
enterprises(WFOEs) in the industry. in August the State Council released directives
urging relevant ministries to promote foreign
According to the National Development and investment in NEVs, which suggested further
Reform Commission, ownership limits on new liberalization was in development.
energy vehicles (NEVs) will be scrapped this
year, commercial vehicles by 2020, and passenger China is the world’s largest auto market, with
vehicles by 2022. By 2023, all other ownership 24.7 million passenger car sales and 3.7 million
limits on autos will be eliminated. truck sales in 2017. The industry has been slowing
after years of rapid growth, however, having
China will also remove ownership limits in the grown only three percent in 2017.
shipbuilding and aircraft industries later this year.
Despite China’s protection of its domestic auto
Currently, foreign investors in the auto market, the country is struggling to develop
industry must establish a joint venture (JV) globally competitive brands. Some of its biggest
with a Chinese partner to enter the market. brands are GAC, Great Wall, Volvo owner Geely,
Foreign car companies like Ford, General Motors, and BYD, which develops electric cars.
Volkswagen, and BMW all have joint ventures in
China, though some upstarts like Tesla have not Still, China has ambitious plans to become
yet established factories there. global leaders in the next generation of autos.
4 AmCham South China
China's Auto
Industry: Foreign
OSwcnrerashpippLimeitds
China has announced that it will eliminate Last year, China lifted some ownership
ownership limits on automotive restrictions on electric vehicle manufacturing
enterprisesby 2023, allowing foreign and related industries, but many observers were
investors to establish wholly foreign-owned disappointed by their limited scope. However,
enterprises(WFOEs) in the industry. in August the State Council released directives
urging relevant ministries to promote foreign
According to the National Development and investment in NEVs, which suggested further
Reform Commission, ownership limits on new liberalization was in development.
energy vehicles (NEVs) will be scrapped this
year, commercial vehicles by 2020, and passenger China is the world’s largest auto market, with
vehicles by 2022. By 2023, all other ownership 24.7 million passenger car sales and 3.7 million
limits on autos will be eliminated. truck sales in 2017. The industry has been slowing
after years of rapid growth, however, having
China will also remove ownership limits in the grown only three percent in 2017.
shipbuilding and aircraft industries later this year.
Despite China’s protection of its domestic auto
Currently, foreign investors in the auto market, the country is struggling to develop
industry must establish a joint venture (JV) globally competitive brands. Some of its biggest
with a Chinese partner to enter the market. brands are GAC, Great Wall, Volvo owner Geely,
Foreign car companies like Ford, General Motors, and BYD, which develops electric cars.
Volkswagen, and BMW all have joint ventures in
China, though some upstarts like Tesla have not Still, China has ambitious plans to become
yet established factories there. global leaders in the next generation of autos.
4 AmCham South China
