Since joining the World Trade Organization for more than two years, the highly-protected Chinese auto industry has taken full advantage of transitional protection measures to expand itself and enhance its competitiveness, prompting the Chinese automobile industry to undergo profound changes in seven areas.
First, the rapid growth of automobile production and sales. In 2003, 4.44 million vehicles were produced, a net increase of over 2.1 million compared to 2001. The increase is mainly in cars and cars have become the main force driving the growth of China's automobiles.
Second, the structure of automotive products is more reasonable and the proportion of cars has increased substantially. In 2003, the sedan accounted for 44.5% of all vehicle production, which was nearly 15 percentage points higher than the 30% in 2001.
Third, the degree of industrial concentration has improved. In 2003, the production and sales of FAW, Dongfeng, SAIC and other top ten auto companies accounted for nearly 80% of the country's total. The production and sales of the top ten sedan manufacturers also account for about 80% of the total number of cars in the country.
Fourth, the economic benefits of the automotive industry have increased substantially.
Fifth, new products have been introduced continuously, especially the largest number of new products for cars. According to preliminary statistics, in 2002 and 2003, a total of about 80 new cars were introduced.
Sixth, export of automotive products maintained rapid growth. According to customs statistics, the export of automobiles and their parts and components was US$4.7 billion in 2003, an increase of 34% over the previous year.
Seventh, significant progress has been made in industrial restructuring. Since joining the WTO, with the three major automobile groups as the core, we have carried out joint reorganization and joint venture cooperation. The multinational companies that have entered the country have increased their capital and expanded their shareholdings to extend the cooperation period. Multinational companies that have not entered the market have actively sought to enter; with the entry of multinational companies for complete vehicles, the supporting auto parts companies have also entered; non-automotive industry companies have aggressively entered the automobile industry. Industry; private capital, private capital participate in the joint-stock reform of state-owned auto companies; state-owned auto companies accelerate the pace of joint-stock reform.
Authoritative sources pointed out that although China's auto industry has made great progress in the past two years, there is still a big gap between the overall level and the world's advanced level. First, the R&D capability of new products is still very weak, and the production base of auto parts and components needs to be strengthened. Second , the scale of major auto companies is relatively small, and the auto industry is still “scattered, chaotic, and badâ€. Third, there are few independent brands and over-reliance on foreign brands; Fourth, the automobile consumption environment needs to be further improved.
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