China Auto Industry 2014

Image by Vichaya Kiatying-Angsulee

More automobiles were sold in China than in the US or Japan in 2013 according to the China Association of Automobile Manufacturers (CAAM). The International Monetary Fund (IMF) expects there to be more autos in China than in the US by 2030 and for there to be as many autos in China in 2050 as there are in the entire world today. Though the auto industry’s potential in China is exceptional, it is not yet mature. The vehicle-to-population ratio – an indicator used to measure industry maturity – is still currently much lower than in the US, Europe or Japan. Furthermore, after-sales service and other services such as financing, service centres and the used auto market are still not developed. There are currently 70 registered automobile manufacturers in China, most focussed on the domestic market, and many are engaged in joint-ventures with foreign multinationals. In the short- to medium-term, the Chinese government aims to have four large auto companies that can compete with the traditional world leaders, and several smaller auto groups. This consolidation is expected to occur through a process of mergers and acquisitions.

For those who want to know more about this dynamic, fast-growing sector of the Chinese economy, CEIBS Professor of Production and Operations Management Jaume Ribera and Professor of Operations Management Thomas E. Callarman have co-authored the book China Auto Industry 2014. The book provides a detailed look at how the industry operates in China. It includes a thorough analysis of the finished vehicle industry and the current market situation as well as an analysis of Chinese brands. It also provides a comprehensive look at the automotive parts industry, and the electric vehicle market. It’s a must read for anyone whose business deals with or is impacted by the auto sector.

Prof. Callarman is Director of the CEIBS Centre for Automotive Research (CCAR) and Co-Director of the CEIBS Centre for Innovations in Supply Chains and Services (CISCS). Prof. Ribera is the Port of Barcelona Chair of Logistics and a member of the CCAR team. Their co-authors are Clark Cheng, Managing Director of CEDARS and Research Associate Cristina Castillo. 

Professor of Production and Operations Management