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Opportunities and Challenges in China´s Automotive Industry

Wijaya Ng and Markus Scherer, Ipsos Business Consulting, in Ipsos, 05/2014

Chinese consumers are expected to play an increasingly important role in the development of the economy as China rebalances from an export driven to a domestic consumption driven model.

As the growth of new passenger vehicle sales relative to past years slows, China is still expected to remain the world’s largest producer and consumer of automobiles. It will outperform both the European and US markets in the midterm with its projected high single digit growth.
Expansion in manufacturing capacity continues at an unabated speed and with overcapacity already showing, manufacturers threatened most are expected to increase industry competitive pressure by entering into new segments with low-price market penetration strategies.