Automotive Market in China 2011

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Automotive Market - China
August 2011
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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 from20-- to 20--
China is the largest automaker in the world
Drivers
Challenges
Huge population and low penetrationRising urban
middle class populationGrowing luxury car market
Unstable market position of each
manufacturerOvercapacity
Drivers Challenges
Restrictions imposed on car ownershipReduced
prices led by intensified competitionHigh
dependency on depleting oil reserves
Auto dealers to open more outletsImproved public
transport infrastructureAvailability of low-cost
skilled labour
China promotes alternative energy vehicles
Increasing market share of the domestic OEMsOEMs
are expanding through mergers and
acquisitionsSupport Programs of the Government
20-- - 20--zth Five-Year Plan for the Automotive
IndustryGovernment initiatives for EVs
Trends
Government Initiatives
Market comprises of a large number of domestic
players as well as foreign players mainlythrough
JVs with their domestic partners
Competition
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.
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AUTOMOTIVE MARKET IN CHINA 2011.PPT
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Market Overview
Export-Import
Drivers Challenges
Trends
Government Initiatives
Competition
Key Takeaways
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AUTOMOTIVE MARKET IN CHINA 2011.PPT
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China is the largest auto maker in the world
Growth of Automobile Production
Automotive Market - Overview
Automotive industry has become a leading
industry in China's national economy and is
playing a guiding
mn units a6
30
p a5
and supporting role in the overall national
economicsituation
25
a4
20
a3
15
China surpassed country 1 to become the world's
No. x vehicle market in 20-- and passed the
United States to be the biggest in 20--
a1 a2
10
5
0
20-- 20-- 20--
20-- 20--e 20--e
Automotive Market Segments
Annual Auto Market Segment (Sales)
Sub-segment 1
mn units
Sub-segment 2 b7
Automotive 15
b5b3
10
b1 b2
Segment 1
Segment 2
5
b6 b8b4
Sub-segment 1
Sub-segment 2
0
20--
20-- 20-- 20--
Source
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Automobile manufacturers earn revenues by
exporting their
products to various countries around the world
Country-wise Imports (20--)
Growth in Total Imports
USD mn
40,000
e6 Country 1e5 Country 2
c5
30,000 q
e1
e4
Country 3Country 4Country 5
20,000 c3
c4
c2
e3
10,000 c1
e2 Others
0
20-- 20-- 20--
20-- 20--
Growth in Total Exports
Country-wise Exports (20--)
Country 6 Country 9 Country 12 Country 15
r
Country 13 OthersCountry 14
USD mn
Country 7 Country 10
d3 d5 d4
Country 8 Country 11
15,000
d2
f1 f2
10,000 d1
Region 1 g5
f3f4
5,000
g1
f6
Region 2 g4
f5
f7
Region 3
f9f8f11 f10
0
Region 4 g3
20-- 20--
20-- 20-- 20--
g2
Region 5
Source
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AUTOMOTIVE MARKET IN CHINA 2011.PPT
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Drivers Challenges - Summary
Challenges
Unstable Market Position of Manufacturers
Drivers
Huge Population and Low Penetration
Overcapacity
Restrictions Imposed on Car Ownership
Rising Urban Middle Class Population
Reduced Prices Led by IntensifiedCompetition
Growing Luxury Car Market
Auto Dealers to Open More Outlets
High Dependency on Depleting Oil Reserves
Improved Public Transport Infrastructure
Availability of Low-cost Skilled Labour
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Summary - Trends
China promotes
alternative energy vehicles
Trends
OEMs are expandingthrough mergers
and acquisitions
Increasing market share of the domestic OEMs
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Major Domestic Players in the Market (1/10)
Company Snapshot Company 1
Corporate Information
Financial Performance
Headquarters City 1Founded 19--
Revenue Revenue Profit
USD mn USD mn
Profit / Loss
5,000 a4 800
4,000
600
Commercial and passenger vehicles,
autocomponents
a3a1 a2 400
Products
3,000
2,000
200
1,000
Key People
Person 1 - MD
0
0
20--
20--
20--
20--
Business Highlights
Company offers type 1 vehicles, type 2
vehicles,type3, type 4, type 5, type 6,type 7,
type 8, and other components, aswell as light,
medium, and heavy-duty type 9 and it also
provides special vehicles, including type 10,
such as type11,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
type 23 vehicle
In Jul 20--, it is reported that the company is
planning USD x mn investment together with
subsidiary company 2
Company 2 will spend USD y mn on a RD
capability upgrading program on DCT automatic
transmissions and company 1 will spendUSD 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 Branch
Source
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Other Major Domestic Players in the Market (4/5)
Company Snapshot Company 2
Corporate Information
Business Highlights
It manufactures type 8 and type 9, including
light type 10 and type 11, type 13 and type 14
vehicles
Headquarters City 2
Founded 19--
It started construction of a new
manufacturing base in Zengcheng
Type 1, type 2, type 3, type 4 and
Products
development, type 6
Company expects to finish the first phase of
the manufacturing base, which has an investment
of up to USD x mn, by the end of 20--
Key People
Person 2 -President
New plant will mainly produce its own-brand
vehicles,including type 15, type 16 and other
type 17, and willeventually have an annual
production capacity of yvehicles
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 3
Source Press Articles Company Website
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