China has become the main pillar of the world's automotive market

In recent years, China’s auto market has been developing rapidly. Here, major automobile manufacturers have also seen many business opportunities and have come to China to build factories or find joint venture partners. Recently, according to German media reports, global car sales will grow strongly in 2014 and 2015. In particular, the Asian and U.S. markets still have great potential. In particular, the Chinese market will be the main pillar of future development. The details are as follows:

Car density is small The development of space San Marino is one of the smallest countries in the world, and its land area is almost the same size as the Lake Starnberg (about 61.2 square kilometers). But what's most worth mentioning here is the density of cars - there are more than 1,100 cars per 1,000 inhabitants in San Marino, which is 1,100 cars/thousand. The density of cars here is a world record, followed by Liechtenstein, Monaco, Luxembourg and Iceland. Their car density ranges from 650 cars/thousand people to 750 cars/thousands. In Western Europe, there are about 500 cars per 1,000 people. In contrast, in China, with a population of 1.3 billion people, the density of cars is less than 50 vehicles/thousand people. Therefore, it is clear that in China, the automotive market has great potential for growth.

According to the prediction of experts, in 2014 and 2015, the global automobile sales volume will increase by 10% to 77.2 million vehicles each year, and more than 40% of this sales data will come from the Chinese market. From this point of view, the prospects of automakers also seem bright. However, Ferdinand Dudenhäffer, an expert at the Center for Automotive Research (CAR), said: "This will change, because at present, global car sales will increasingly be dominated by China and the US supermarkets. This situation will also reflect Assets and liabilities and the stock market, the division of the auto industry will continue."

Although China's automobile production has climbed, the driving force of environmental protection will become important in 2014, but it will not play a leading role. In other words, the development of the auto industry still has to focus on meeting the needs of the general public. In terms of world production, currently 23% of cars are produced in China. The production data is almost equal to the sum of the United States and Japan. In the past 12 years, China’s car production has almost quadrupled. At the same time, production in Japan, Spain and France is almost halved.

Changes in sales of the world's top ten automotive markets from 2013 to 2015 From a logistics point of view, it is very beneficial to produce cars at the same time in the sale market, especially in the Far East. From 2013 to 2015, the sales of cars in the Chinese market will increase by 19%, and the share of China’s sales data in the world market will also increase by 2% to 25%.

The major manufacturers in China are looking for opportunities to develop business opportunities in the Chinese market, which has attracted many foreign manufacturers to build plants in China. However, it seems that some manufacturers are too slow to act. For example, Renault will be the last large-scale automobile manufacturer in Europe to set up a factory in China. From 2016, Renault will have some models to be produced in China. However, this strategy alone has lost its starting point. Like Fiat and Peugeot, only a small number of models are manufactured in China.

In addition to building factories in China, there is also a strategy for development in the Chinese market - that is, establishing joint ventures with local Chinese manufacturers. Volkswagen has established its first joint venture in China since 1984. BMW and Daimler started late, and it was only at the beginning of the 20th century that they really began to develop boldly in China.

What these strategies bring is a stronger market position and stronger profitability. In China, the cars of local manufacturers are more or less important than imported cars in the social or political sense. In addition, high import taxes will also be reduced. From components to manufacturing to sales, car production in the country can reduce significant expenses.

The Chinese factory will be able to make full use of 2014, and will have nearly one-third more automobile factories in China than in 2009. This directly increases the average annual automobile output in China to 3.5 million vehicles per year.

Changes in sales volume of the top ten automotive markets in the world from 2013 to 2015 While China's factories are being fully utilized, vehicle production in the United States has begun to decline. Plants in other markets are also in a difficult position. For example, in southern Europe, according to a study. The Italian factory's current utilization rate is only about 46%, and it can reach 75% earlier. There are similar problems in France and Spain.

China and the United States have become the two most important automobile markets in the world. However, the reasons for the increase in sales in the two countries are not the same. There are a large number of first-time car buyers in China, and their demand for new cars is very large. While customers in the United States are almost planning to buy a second car, this trend is expected to continue until 2016.