Ken Research has recently announced its latest publication, “Research Report On Automobile Distribution Industry, 2017-2021” which aims at provides in-depth market analysis, information and insights into the automobile industry. It describes Automobile industry’s growth prospects by segment and category and outlines a comprehensive overview of the developing economy of China and demographics. It further provides the detailed competitive setting, distribution channels and regulatory policies in the Automobile industry of China.
Economic Environment of China
In the last few decade China has shown an astounding change in its economy due to the change and introduction of economic reforms and due to its inclusion in WTO in 2001, China’s economy has attracted worldwide attention. Since then it has become manufacturing hub where the industrial sector proved to be the largest contributor of the growth in the GDP. Due to above mentioned facts; China was also proved to be better than other countries n survived the economic crisis during 2008, due to its strong position. In case of automobile sector, China is the largest manufacturer of it since a decade and is showing a sturdy growth year by year. China outstripped the United States in 2010 to become the world’s largest market for new vehicles. The incursion rate of the automobile market in China is still quite low and offers great impending for the future, in spite of the confines imposed on some cities. Urbanization and the emerging middle class will drive the development of China’s auto industry.
Automobile industry is the sector which deals with the production, development, designing, sales and distribution of motor vehicles. It has been the largest contributor to the Chinese economy and China stands as the largest manufacturer of automobile industry way above the US industry. The key contributor of this ranking is the cheap labour of China which boosts the production sector of automobile industry of China and thus with growing demand the sales of the same, thus going with the tuneful progress in this sector. The other reason for such results is due to the lethargic growth in the low end cities which gives the whole sovereignty to the 3 and 4 tier cities which raised its production as the sales will also follow the same pattern due to less competition. Thus due to the monopoly of the 3 and 4 tier cities the production and distribution rate is more or less congruent to each other making it no loss situation for the auto giants. The other reason is the concept of O2O market which helps the consumer to see and pay for the commodity online and then directs them to real and offline world. Thus due to the factors of easy to consumers and harmonious progression of sales and production of automotives, China has emerged to be the automotive giant in the sector of automobile industry.
China automobiles production reached to 28.119 million whereas sales was close to 28.028 million units in 2016; Production and sales registered growth of 14.5% and 13.7% respectively as compared to previous year. China Passenger vehicles production recorded volume output of 24.421 million followed by sales volume of 24.377 million with a growth of 15.5% and 14.9% respectively in 2016. Passenger vehicles with engines sales volume reached to 1.6 liter in 2016.
Key topics covered in report
Growth and economy correlates
Reasons for such growth
Trends in low end and high end cities
E-commerce and O2O potential benefits
Future trends in further years
Production and sales congruence
China is on the top of the charts for the automobile sector and the reasons that contribute towards such result is the attention the Chinese economy caught due to WTO inclusion in 2001 and the cheap labour that contributes towards the manufacturing sector of China. Other factors such as E-commerce and O2O market also further adds up to the basket making it a colossal automobile industry.
Key Factors Considered in the Report
China Automobile Industry Research Report
Automobile Industry Future Outlook China
China Passenger Vehicle Market Research
China Automobile Production Output
China Automobile Sales Volume
Distribution Modes Of Automobiles In China
China Automobile Industry Competition
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Ankur Gupta, Head Marketing & Communications