Preview

Automobile Industry in China and India

Powerful Essays
Open Document
Open Document
4362 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Automobile Industry in China and India
Table of Contents

Introduction 3
1 The Nature of the Automobile Market 4
1.1 China: 4
1.2 India: 5
2 The Country Situation in India and China 7
2.1 China: 7
2.2 India: 8
3 The Type of FDI to Further Minimise Risks 10
4 Conclusion and Recommendations. 10
5 Bibliography 13
6 Appendices 17
6.1 List of Tables: 17
6.2 List of Figures: 22

List of Tables

Table 1: Comparison of Key Economic Indicators in China and India 17
Table 2: China - Top 10 Manufacturers ' ' Sales Rank 17
Table 3: India - Turnover of Automobile Manufacturers 17
Table 4: India - Automobile Production (2001-07) 18
Table 5: India - Automobile Domestic Sales (2001-07) 19
Table 6: India - Automobile Export (2001-07) 20
Table 7 - FDI Inflow, by regions and selected countries (1994-2005) 21

List of Figures

Figure 1: China 's growth surpasses that of India 22
Figure 2: China -YTD April Sales by Manufacturer 22
Figure 3: There will soon be more cars in India & China than the US 23
Figure 4: India - Domestic Market Share in 2006-07 23

Introduction

The automobile industry in China and India increasingly showing rising importance in the global scale. Thus, both are gradually viewed as a serious competitor in the global automobile industry (Fairclough and White 2007). This report looks in depth in the automobile industry of China and India to try to come to a conclusion and recommended investment in the automobile industry.

The report looks at the nature of the automobile industry in both countries. This includes, market size, competitors and demand. Then we review the countries ' situation to review FDI policies, infrastructure, and risks. This is followed by recommended FDI strategy for further minimizing risks and comparison of China and India to recommend specific location of investment. 1 The Nature of the Automobile Market
1.1 China:

In 2006 the Chinese passenger car production exceeded this of the U.S. for the first time, churning out 5.2



Bibliography: Answers.com 2007. Indian Automobile Industry. Retrieved 8 May, 2007, from, http://www.answers.com/topic/indian-automobile-industry ATKEARNEY 2005 Automotive Resources Asia 2006. China Automotive Report. Retrieved 7 May, 2007, from, www.autonews.com/assets/PDF/CA7342626.PDF Chen, J., Yao, S CHINA.ORG.CN 2006. China 's Auto Production, Sales Up 25% in 1st 8 Months. Retrieved 5 May, 2007, from, http://www.china.org.cn/english/BAT/180616.htm Deng, P 2001 Fairclough, G, White, J.B. 2007. China Car Makers Pull Ahead at Home. Wall Street Journal, pg.A.9 Frost and Sullivan 2002 Guang, Z and Wei, P 2003. China 's Automobile Industry Boom. Retrieved 7 May, 2007, from, www.touchbriefings.com/pdf/11/ACF385C.pdf Hill, C.W.L 2001 IndoBritish 2005. Automotive. Retrieved 8 May, 2007, from, http://www.ibpn.co.uk/automotive.asp Jayate, S 2006 Kalish, I 2007. China and India: The Reality Beyond the Hype. Retrieved 9 May, 2007, from, http://www.deloitte.com/dtt/cda/doc/content/dtt_ChinaIndia_English040407.pdf Kwan, C.H Kwan, C.H. 2003. On China Becoming a Major Auto Power - The need to enhance international competitiveness. Retrieved 6 May, 2007, from, http://www.rieti.go.jp/en/china/03062001.html Kwan, C.H Madslien, J 2007. India prepares for automotive boom. Retrieved 7 May, 2007, from, http://news.bbc.co.uk/2/hi/business/6521909.stm Narayanswamy, S and Zainulbhai, A 2007 People 's Daily 2004. China 's auto demand to reach 20 mln in 2020. Retrieved 7 May, 2007, from, http://english.people.com.cn/200401/23/eng20040123_133198.shtml PricewaterhouseCoopers 2006 PricewaterhouseCoopers 2007. Global Automotive Risk Outlook – India. Retrieved 8 May, 2007, from, http://www.pwc.com/extweb/pwcpublications.nsf/docid/2FF4DF7C8B6AF373852571C4005E1A83 Qiu, L.D SIAM 2007. Industrial Statistics. Retrieved 5 May, 2007, from, http://www.siamindia.com/ Simon, B 2007 Sit, V.F. and Liu, W. 2000. Restructuring and Spatial Change of China 's Auto Industry under Institutional Reform and Globalization. Annals of Association of American Geographers, 90 (4): 653-673. Veloso, F and Kumar, R 2002. The Automotive Supply Chain: Global Trends and Asian Perspectives. Retrieved 10 May, 2007, from, http://www.adb.org/Documents/ERD/Working_Papers/wp003.pdf Yeung, H.W.C 2007 Human Development Index $, 2005 Global Ranking, 2004 1703

You May Also Find These Documents Helpful

  • Better Essays

    Fiscal Policy Paper

    • 1097 Words
    • 5 Pages

    Scott, R.E., Wething, H. (January, 2012). Economic Policy Institute: Trade and globalization. Retrieved from http://www.epi.org/publication/bp336-us-china-auto-parts-industry.…

    • 1097 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Porter's Diamond

    • 2875 Words
    • 12 Pages

    A positive estimate of profit in the automobile industry indirectly promotes the development of national infrastructure development. To speed up the progression, the government has attracted FDI in the basic infrastructure sectors.…

    • 2875 Words
    • 12 Pages
    Good Essays
  • Better Essays

    Tao Q., 2006. ‘Race to Great Wall: Competing in the Chinese Automobile Industry’, Global Strategy, Thomson South-Western, 165-170.…

    • 1186 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    The automotive industry is inherently interesting: it is massive, it is competitive, and it is expected to…

    • 13032 Words
    • 53 Pages
    Powerful Essays
  • Good Essays

    Private Car Use

    • 1825 Words
    • 8 Pages

    Statistics from the Traffic Administration under the Ministry of Public Security show that the total quantity of automotive vehicles in China stood at 217 million by the end of June 2011, including nearly 72.1 million private cars.…

    • 1825 Words
    • 8 Pages
    Good Essays
  • Best Essays

    When contemplating international economic issues associated with China, It is essential to note that the People’s Republic of China is a single-party state, with governance of the communist party coming as a result of the Chinese civil war. The direct years after the communist party usurping power, China’s economic growth stagnated and faltered due to the leadership of Mao Zedong. It has been referred to as “chaotic” and although stringent rules and regulations where-ever-present in the early years under Mao, they have relaxed since his death in 1976. If his death had a large effect on the economy of China so too did the 1978 reforms that allowed for a freer market place and encouraged growth in rural areas. This has resulted in new urbanised areas, outside of the major cities. With this increase in urbanisation comes the need for materials…

    • 3117 Words
    • 13 Pages
    Best Essays
  • Powerful Essays

    Gm in China

    • 4979 Words
    • 20 Pages

    General Motors China Group (GM China) is a fully owned venture by General Motors (GM). The roots of GM in China trace back to the year 1929, where it sets up its first dealership in Shanghai. GM China has eleven joint ventures in China, two wholly owned foreign enterprises and more than 35,000 employees. GM China and its joint venture partners offer the broadest lineup of vehicles and brands among car manufacturers in China, offering passenger vehicles and commercial cars under seven different brands. In 2011 it sold more than 2,5 million vehicles in China, is has been the sales leader among multinational car manufacturers for seven consecutive years.…

    • 4979 Words
    • 20 Pages
    Powerful Essays
  • Satisfactory Essays

    In this article, we can easy to find that why China will be the biggest electric car market. The author stated his purpose by using some fact and comparison between China and America. For example, at the beginning of the article, the author described a popular auto show which hold in southwestern part of China. The heavy demand and the interest from Chinese consumer can be found through this auto show. After that, the article talking about problem of Chinese environment which is an important and hard to ignore issue. Electric car alleviate the growing traffic jam and lower greenhouse-gas emissions. But the most important for China is getting out of oil addiction. The gas price for a country which per capita income is USD 2800 a year is too expensive. The second half of this article focus on the Chinese technological strength…

    • 617 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Compton, J & Brinker, Thomas M, Jr, (2005), How do we Define "Cost", Journal of…

    • 16085 Words
    • 98 Pages
    Powerful Essays
  • Good Essays

    The recently completed year 2015 was a mixed bag for the global automobile industry in terms of sales as well as profitability. The first three quarters of the year of the year caused the automakers to worry about the future returns from their recent and on-going investments in key markets like China, Asia Pacific, Europe and even the US itself. But results for the two reported months of the fourth quarter have revived the hopes that the New Year would turn out to be a great one. Sales of cars and light trucks in the U.S. likely set a record for 2015 at around 17.5 million vehicles.…

    • 935 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Ford Chinese Venture

    • 731 Words
    • 3 Pages

    China had experienced the global recession of 2008-2009 with minimal losses unlike most Western markets such as the US and Europe. Because of that, as in many markets, China overtook the US and became the largest car market in the world in the beginning of 2010. Its internal market was rapidly growing, including cars, so since the Western markets were still suffering, the expansion of Western car manufacturers into Asia and especially China seemed like a great strategic move. Such a move was made by Ford, which went into a joint venture with Changan the fourth largest Chinese car manufacturer over 100 years old. The joint venture was proving to be successful but no as successful as anticipated.…

    • 731 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Byd Company Analysis

    • 1425 Words
    • 6 Pages

    by automobile unit production since 2008. In 2009, China produced 13.79 million automobiles, of which…

    • 1425 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    There are not enough and proper infrastructure to use a car in China as one…

    • 2606 Words
    • 10 Pages
    Good Essays
  • Powerful Essays

    Entry Strategy

    • 18701 Words
    • 75 Pages

    some 3 million cars a year might be sold in China. While it explicitly recognized that it had much to learn about…

    • 18701 Words
    • 75 Pages
    Powerful Essays
  • Satisfactory Essays

    Companies should venture to Chinese car market because it is increasingly growing. While most of companies are already doing it, increased investment will make China a production base for the world as companies put the best practices to work in this world’s largest emerging market. With the new market freedoms, car makers will have to focus on customer desires more than ever before, and eventually, lower prices and wider choice should create a thriving for auto industry.…

    • 398 Words
    • 2 Pages
    Satisfactory Essays