Market Research Report : Automotive Market in China 2011


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Automotive industry has become a leading industry in China's national economy and is playing a guiding and supporting role in the overall national economic situation. It is one of the fastest growing and competitive industries in China.

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Market Research Report : Automotive Market in China 2011

  1. 1. Automotive Market – ChinaAugust 2011
  2. 2. Executive Summary Since China joined the Organization 1, x years ago, its automotive industry has accomplished its most outstanding and fastest development in its history Market Annual double digit percentage sales growth, nearly y%, has been achieved in the automobile sector from 20-- to 20-- China is the largest automaker in the world LE Drivers: Challenges: P Huge population and low penetration Unstable market position of each manufacturer Rising urban middle class population Overcapacity M Drivers & Growing luxury car market Restrictions imposed on car ownershipChallenges SA Auto dealers to open more outlets Improved public transport infrastructure Availability of low-cost skilled labour China promotes alternative energy vehicles Reduced prices led by intensified competition High dependency on depleting oil reserves Trends Increasing market share of the domestic OEMs OEMs are expanding through mergers and acquisitions Support Programs of the Government 20-- - 20--Government zth Five-Year Plan for the Automotive Industry Initiatives Government initiatives for EVs Market comprises of a large number of domestic players as well as foreign players mainly through JVs with their domestic partnersCompetition Some of the major players in the market company 1, company 2, company 3, company 4, company 5, company 6, company 7, company 8, company 9, company 10, company 11 etc. AUTOMOTIVE MARKET IN CHINA 2011.PPT 2
  3. 3. •Market Overview•Export-Import•Drivers & Challenges•Trends•Government Initiatives•Competition•Key Takeaways AUTOMOTIVE MARKET IN CHINA 2011.PPT 3
  4. 4. China is the largest auto maker in the world Automotive Market – Overview Growth of Automobile Production • Automotive industry has become a leading industry mn units a6 in Chinas national economy and is playing a guiding 30 p% a5 and supporting role in the overall national economic 25 20 a4 situation LE 15 a3 • China surpassed country 1 to become the worlds No. a1 a2 10 MP x vehicle market in 20-- and passed the United States to be the biggest in 20-- 5 0 20-- 20-- 20-- 20-- 20--e 20--e SA Automotive Market Segments Annual Auto Market Segment (Sales) mn units Sub-segment 1 Sub-segment 2 Automotive 15 b7 b5 10 Segment 1 Segment 2 b3 b1 5 b8 b2 b4 b6 Sub-segment 1 Sub-segment 2 0 20-- 20-- 20-- 20--Source: AUTOMOTIVE MARKET IN CHINA 2011.PPT 4
  5. 5. Automobile manufacturers earn revenues by exporting their products to various countries around the world Growth in Total Imports Country-wise Imports (20--) USD mn40,000 e6% Country 1 c5 LE30,000 q% e5% Country 2 e1% e4% Country 320,00010,000 c1 c2 c3 c4 MP e3% Country 4 Country 5 A e2% Others S 0 20-- 20-- 20-- 20-- 20-- Growth in Total Exports Country-wise Exports (20--) Country 6 Country 9 Country 12 Country 15 r% USD mn Country 7 Country 10 Country 13 Others15,000 d3 Country 8 Country 11 Country 14 d2 d5 f1%10,000 d4 f2% d1 g5% f4% Region 1 f3% 5,000 g1% Region 2 g4% f5% f6% f7% Region 3 f9% f8% 0 Region 4 g3% f11% f10% 20-- 20-- 20-- 20-- 20-- g2% Region 5Source: AUTOMOTIVE MARKET IN CHINA 2011.PPT 5
  6. 6. Drivers & Challenges – Summary ChallengesDrivers Unstable Market Position of ManufacturersHuge Population and Low Penetration OvercapacityRising Urban Middle Class Population Restrictions Imposed on Car Ownership Reduced Prices Led by IntensifiedGrowing Luxury Car Market CompetitionAuto Dealers to Open More Outlets High Dependency on Depleting Oil ReservesImproved Public Transport InfrastructureAvailability of Low-cost Skilled Labour AUTOMOTIVE MARKET IN CHINA 2011.PPT 6
  7. 7. Summary – Trends China promotes alternative energy vehicles Trends OEMs are expanding Increasing market share through mergers and of the domestic OEMs acquisitions AUTOMOTIVE MARKET IN CHINA 2011.PPT 7
  8. 8. Major Domestic Players in the Market (1/10) Company Snapshot: Company 1 Corporate Information Financial Performance Headquarters City 1 Revenue Revenue Profit USD mn USD mn Profit / Loss Founded 19-- 5,000 a4 800 4,000 600 Commercial and passenger vehicles, auto a3 Products 3,000 components a1 a2 400 2,000 Key People Person 1 – MD 1,000 200 0 0 20-- 20-- 20-- 20-- Business Highlights LE • Company offers type 1 vehicles, type 2 vehicles,type3, type 4, type 5, type 6,type 7, type 8, and other components, as well as light, medium, and heavy-duty type 9 and it also provides special vehicles, including type 10, such as type11, type 23 vehicle MP type 12, and type 13; and type 14, which include type 15, type 16, type 17, type 18, type 19, type 20, type 21, and • In Jul 20--, it is reported that the company is planning USD x mn investment together with subsidiary company 2 SA • Company 2 will spend USD y mn on a R&D capability upgrading program on DCT automatic transmissions and company 1 will spend USD z mn on auto body mold fixtures of type 24 and USD w mn on auto body mold fixtures of type 25 • In Dec 20--, company announced that it plans to set up type 26 Car BranchSource: AUTOMOTIVE MARKET IN CHINA 2011.PPT 8
  9. 9. Other Major Domestic Players in the Market (4/5) Company Snapshot: Company 2 Corporate Information Business Highlights Headquarters City 2 • It manufactures type 8 and type 9, including light type 10 and type 11, type 13 and type 14 vehicles Founded 19-- • It started construction of a new manufacturing Products Type 1, type 2, type 3, type 4 and base in Zengcheng development, type 6 E • Company expects to finish the first phase of the L manufacturing base, which has an investment of up to Key People Person 2 –President P USD x mn, by the end of 20-- • New plant will mainly produce its own-brand vehicles, M including type 15, type 16 and other type 17, and will A eventually have an annual production capacity of y S vehicles • In 20--, BAIC inaugurated a new plant in Zhuzhou, Hunan province and rolled out its first own-brand automobile, the brand 1 Planning to buy a type 7 plant with its joint venture partner, the motorcycle maker company 3Source: Press Articles; Company Website AUTOMOTIVE MARKET IN CHINA 2011.PPT 9
  10. 10. Thank you for the attentionAutomotive Market - China report is a part of Netscribes’ Automotive Industry Series.For more detailed information or customized research requirements please contact: Jitendra Punjabi Gagan Uppal Phone: +91 33 4064 6215 Phone: +91 22 4098 7530 E-Mail: E-Mail: gagan.uppal@netscribes.comAbout NetscribesNetscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment &business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a truevalue proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growthobjectives.Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India,Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is thesole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. AUTOMOTIVE MARKET IN CHINA 2011.PPT 10