The State Information Center of China has published a market study on the state of the automobile industry across the country. This study reviewed past trends in the market in order to be able to analyze present data and predict the future of the automobile industry over approximately the next decade in China. This study began in 2013 and will continue until 2017, ensuring quality of information and data as well as testing the predictions the State Information Center has made on the automotive industry in China thus far.
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| AMSIA - CAPE 2.5 |
Unlike the automobile industry in America, China has grown and maintained its hold on the market and indeed has expanded their reach globally. Foreign countries have taken notice of the success of China�s automobile industry and have sent teams to study, document, and review their practices to bring back to their home countries in the hopes that they can learn from China in jumpstarting their own automobile industries once again.
In China the automobile has profited 40% to 50% just off of used car sales alone. The study also showed that some of the market sectors that were studied had profits of 100% or more. The sale of pre-used cars has grown past 26% while the sale of new cars remains slightly behind at 25%.
China has also seen a rise in less traditional aspects of automobile ownership like the finance of automobiles, upkeep of automobiles and automotive clubs for car enthusiasts. People seem to be buying cars they desire (in addition to instead of only being for transportation or work) and enjoying driving those cars and being around other people who also enjoy their vehicles. This market no doubt improves the overall automobile industry as general citizens are taking interest in this integral part of China�s economy.
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| AMSIA - Upcoming SELVO model. |
China has long been a testing ground for new and extraordinary technology- they are now adding these new technologies to their cars, prompting a boost in sales according to the study. As mentioned above normal people who otherwise would not have an interest in their cars (other than if they work or not) are becoming essential in their knowledge of the cars and the automobile industry in China.
The predictions the study holds for the Chinese automotive industry is that increased technology will greatly expand the market of new cars and their desirability in China and across the globe. Transnational corporations have already begun observing and exploring China�s success in this market and will bring the information they find back to their home markets to expand their own domestic automotive enterprises. China�s automotive growth rate has grown steadily to 25% while the used car rate has skyrocketed to over 26%, showing an increased interest by the public for well known, pre-used cars. People themselves are more interested in knowing how their cars work, studying the mechanics and finances of owning special cars and getting together in clubs to discuss their particular models. The automobile market in China shows no signs of slowing down anytime soon.
