The Chinese Automotive Industry Competitiveness In Comparison With Global Competitors

Bachelor Thesis from the year 2018 in the subject Economics - Industrial Economics, grade: 1,0, University of Mannheim, language: English, abstract: The following thesis will answer the question: Did China develop a competitive domestic automotive industry? Therefore, the rest of the bachelor thesis is structured as follows: The next section will give an overview of the history and the current market structure of the Chinese automotive industry. The second section contains a literature review of the theory and the empiricism of spillover effects originating from Joint Ventures with foreign enterprises and Foreign Direct Investment. Subsequently, in the third section, the related literature is applied on the case of the Chinese automotive industry. The fourth section presents an application of the infant industry protection argument on the Chinese automotive industry. The fifth section includes an analysis of trade data in order to access the competitiveness of the Chinese automotive industry. Afterwards, there will be a conclusion and an outlook of the possible future developments of the Chinese automotive industry. Since the beginning of economic reforms in China, protection, Joint Ventures, and Foreign Direct Investment played a significant role in the Chinese economic policy to promote industrial development. This is also the case for one of the global most important industries; the automotive industry. The automotive industry is a pillar industry with a vast number of linkages throughout the economy and plays a major role in driving China's economic growth and in ensuring employment. The Chinese government followed the idea of an infant industry protection argument and imposed tariffs and quotas on automobiles and automobile components to promote the development of the automotive industry. Further, the policymakers strived for spillovers originating from foreign Joint Venture partners and Foreign Direct Investment. Like other Chinese industries, the automotive industry experienced massive growth over the last four decades, making China, since 2008, the economy with the largest automobile output globally, surpassing Germany, the US, and Japan. However, there does not exist a single Chinese automobile brand, which can sell more than a few of its Chinese branded cars in the markets of developed countries. This situation raises some questions about the real strength and competitiveness of the Chinese automotive industry.

Seminar paper from the year 2006 in the subject Business economics - Investment and Finance, grade: 2,0, Ocean University of China, 6 entries in the bibliography, language: English, abstract: In Germany as well as in China, the automobile industry is one of the dominating sectors. Many economic activities like tire industry, plastics industry, metal processing rely on automobile. With changing technologies, production concepts, strategies and products, the car industry is often an initiator of innovations in other industries. Its success has been due to the technological competencies of manufacturers, suppliers and their respective employees. In this essay, I am going to describe the differences or similarities in a car industry between China and Germany, focusing on history, current facts, figures and other economic issues.

Master's Thesis from the year 2015 in the subject Economics - International Economic Relations, grade: 1,3, Berlin School of Economics and Law (IMB), language: English, abstract: This paper investigates Chinese automotive companies’ internationalisation activities into the European market. They are still short on experience and young in history. Since the Chinese economy has only gradually liberalised after 1978, the industry has been highly influenced by joint venture activities with foreign automobile companies in China.12 years ago, Chinese automotive companies started to internationalise. Dunning’s eclectic paradigm is utilized as academic foundation and related motives and entry modes are aligned to current Chinese activities. In early attempts to enter Europe there was a predominant resource-seeking motive, while later market-seeking reasons became more obvious and have dominated the activities since. So far, ownership-specific advantages do not play a major role in terms of valuable intangible assets like patents, whereas location specific determinants are significant, especially in terms of governmental impact. Additional home market advantages in labour endowment, resources, legal environment and strong finan- cial resources give Chinese automakers an edge and prepare them to further internationalise. However, regarding all OLI forces, there are still no outweighing advantages over European competitors. The interviewed experts do not expect a noticeable market entry with significant sales volume within the next ten years. To date, Chinese exports and FDI in Europe are the most relevant modes even though visibility is marginal. According to industry experts, companies like Qoros, BYD and Geely are possible candidates to succeed on the European market in the future. Other brands, which failed to enter Europe, e.g. due to lacking safety standards, are yet still opinion-forming. It is concluded, that if China’s automotive industry consolidates and advances technologically, it will be prepared to successfully compete on global markets, in particular Europe. The acquisition of European car manufacturers represent – in this context – a feasible possibility to speed up the process and offset technological deficiencies.

Offers insight into the Chinese economy through the lens of the auto industry, uses case studies to illustrate China's explosive growth over the last three decades, and explores the strengths and weaknesses of the Chinese economy.

Research Paper (undergraduate) from the year 2016 in the subject Business economics - Industrial Management, grade: 3,7 (93%), California State University, Fullerton, language: English, abstract: The paper analysis the automotive industry in general as well as the relative position of the Volkswagen AG. Furthermore, VW's competitors are assessed and recommendations for actions are formulated. In the beginning the creation of the automobile seemed less of a need and more of a luxury, as the cars could only be afforded by the well off. The very first steam car took to the road in France in 1768 – but Cugnot's novel idea did not trigger the beginning of the car industry. After Henry Ford’s model made its debut, owning a car was a symbol of status, because it could only be afforded by the wealthy. Once the process of Henry Ford’s mass production was introduced, cars could be afforded by a wider dynamic of people, and ownership became an affordable growing trend. The production of automobiles was a great help to the economy. It provided jobs across industries including positions in steel and machine tool makers for the different metal parts of the car. The increase in the need of supplies and other parts of the car including the battery, head lights, paint, and interior upholstery, were the driving forces for new businesses to thrive. Cars being a part of the everyday norm meant they would need routine car maintenance which became a major source of business. This also led to the increase of petroleum sales as the demanded use of cars increased. When WWII came the US was able to use the jeep for military use, additionally Chrysler reworked the jeep design to create tanks. Moreover, car production in Europe turned its focus from “the people’s car” to cars designed for the military.

Since 2008, while the global automotive manufacturing has been faltering, the Chinese auto industry has been swiftly transformed into the largest producer in the world. The growth of the Chinese automakers is a close reflection of China's powerful manufacturing economy, and Geely Auto is one such best example. This book closely examines the rise of Geely as a privately-owned automaker in China. From its humble beginning as a refrigerator component maker and motorcycle manufacturer in the late twentieth century, Geely has grown to become not only a top selling national brand in China, the largest auto market in the world, but also a significant player in the global automotive industry. The book studies Geely's successful acquisition of Volvo, within a long-term framework of asset-seeking foreign direct investment, and then further investigates its recent strategic initiatives with Daimler, London Taxi, PROTON and Lotus. The book reveals how the little-known carmaker is worth close examination, via its product development, organizational dynamics, corporate culture, brand development, talent and cross-cultural management strategies, as well as the entrepreneurship of its visionary founder Shufu Li. From catching up in technology to a leader in product, service and business model innovations, Geely has driven out as a new Chinese automaker on the world stage. Facing challenges in clean energy and Internet of Things, artificial intelligence, new user's experience towards smart and mobility solution, Geely will continue to play an increasingly important role in the globalization age of the twenty-first century.

The author presents an argument for a system of social insurance that replaces welfare with a Guaranteed Adequate Income. The book reviews public assistance programmes, and evaluates other plans that have been proposed.

Bachelor Thesis from the year 2020 in the subject Business economics - Miscellaneous, grade: 1,0, Vienna University of Economics and Business (Institute for Strategic Management), language: English, abstract: This bachelor thesis deals with the development of the Chinese automobile industry (only passenger cars) over the past fifteen years (2005-2020). In the first part of the thesis, the political and economic development in China is outlined and major political events in contemporary Chinese history are discussed. A special emphasis is put on the open-door policies introduced by Deng Xiaoping in the late 1980s that still have a major impact on the Chinese automobile industry. In the literature review, the development of this industry is analyzed along four categories: government regulations, competitive landscape, products available and consumer behavior. In each of the categories, the changes and developments are elaborated in detail. Significant changes were found in all four categories. Particular attention was paid to government regulations as the research has shown that major changes have been made in recent years that have significantly impacted the entire industry. Ultimately, the current state of the Chinese automobile industry is outlined and shows the importance of this industry for the Chinese as well as the world economy. In the last part of the thesis, the opinions of experts working in or with the Chinese automobile industry are outlined. Over the working time of this thesis, eight expert interviews have been conducted with professionals from diverse cultural backgrounds and work experience in the Chinese automobile industry. The insights provided should allow a better understanding of the current state and challenges. While for some topics all experts agreed (e.g. surprising rapid growth of Chinese automobile industry), there was no common opinion on other topics (e.g. potential of Chinese EVs).