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The Chinese Autootive Market Essay

2155 words - 9 pages

TJPU

The Chinese automotive market
In accordance to the German car manufacturers

Preface
The Chinese automotive market is immensely growing and becoming one of the strongest revenue generating market around the world. As the German car manufacturing industry is the third largest in this business sector and therefore it is not surprising that the well known German companies with Volkswagen leading the way want a big market share. According to this initial situation this paper should show up the actual situation of the Chinese markets and their own brands compared to the German and other manufacturers
1.0 Introduction of the market situation
The market for automobiles in China has ...view middle of the document...

This makes up 26% of the total amount of cars produced around the world and the trend doesn´t seem to be changing within the next years. Additionally to the cars which are produced in China itself Germany, Korea, Japan and the USA import a vast amount of cars every year.
But as many cars from these foreign countries are also produced within China, the total amounts of imports of a brand doesn´t reflect the market share of a brand or even a country. The following pie chart can be used to obtain the different distributions by countries which only include the domestic car brands of each country.

According to this diagram about 27% of the market share is spread among the different domestic Chinese car brands. On the second place Germany fulfills its goal as the strongest foreign importing and producing country.
1.2 Key values of car owners
Key values for car owners may be the same around the whole world, but as there may be a bigger gap in price between foreign and domestic car models, customers have to distinguish and make their choice between quality and price. Very popular for the Chinese market are the large executive cars from the German top brands Audi, BMW and Mercedes which are generally sold as a version with extended length which are rarely seen in Germany and are adjusted to the wants of the Chinese customers. The large Volkswagen group which isn´t in the executive car market neither in Germany nor in China. VW is more into selling small to medium class cars, which are also known for the superb quality.
2.0 Comparison of markets
The orientation of the two markets Germany and China couldn´t be more different. Germany steps up as a small country with a very strong export culture with car brands which are especially known for the high quality. China might be the strongest producer in numbers, but lacks until now in quality and international acceptance.
2.1 Germany
The German market is highly penetrated by domestic German car manufacturers and Chinese brands are rarely known and there exist nearly no Chinese manufactured cars on the German streets. This situation is highly reflective for the Germany car market, as Germany only produces about 5,55 million cars (in 2008), which seems to be relatively low if you compare it to the about 23,13 Million cars (in 2010) which China produces every year, but thanks to this numbers Germany has been the third largest manufacturer of automobiles around the world. Compared to China and USA which is the second largest producer, German car brands are highly involved into serving cars around the world, whilst foreign brands in the US or China are mainly producing for their local market. The automobile sector is by far the biggest business sector in Germany as they employ about 747.000 people and generate revenue of more than 345 million Euros.
2.2 China
Just like the American market, the Chinese market also differs a lot from the German one. Domestic car manufacturers are generally only...

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