BIZCHINA / Auto Industry

Foreign Investment

Updated: 2006-04-21 13:53

iv. At the end of the Tenth Five-Year Plan, two to three of the nation's whole vehicle-development centers will be set up. Chinese corporations must play a major role in the development of loading vehicles. The development of cars can be realized via a cooperation between Chinese and foreign corporations, and China should be capable to develop economical cars with independent intellectual property rights that can compete in the world market. Six to eight national development centers for spare parts will be also be set up to meet the need of expanding whole-vehicle manufacturers.

II. The development of the domestic automotive industry

According to the National Bureau of Statistics, the total number of auto-manufacturing corporations in China was 5,228 in 2000. Among them 119 were whole-vehicle producers, 780 were re-equipped-vehicle producers and 143 were motorcycle producers. Staff members totaled about 1,465,000 and the net value of fixed assets was about 163.3 billion yuan. By the end of 2000, total assets were valued at about 564.2 billion yuan. The annual output of the entire automobile-manufacturing industry was about 2,069,000 units in 2000 with a sales volume of 2,089,000, ranking eighth in the world. The number of finished products in storage totaled 186,000 at the end of 2000 with a total output value of 371 billion yuan and sales value of 391 billion yuan.

Among the 119 whole-vehicle producers, there were nine corporations whose individual output totaled more than 100,000 units (total output was 1,652,000, accounting for 79.9 percent of the total); four corporations had an individual output of more than 200,000 (total output was 1,090,000, accounting for 52.7 percent of the total). Corporations with an individual output of more than 100,000 units were FAW Group, with an annual output of 424,000; Shanghai Volkswagen Automotive Co Ltd, with 253,000; Dong Feng Motor Corp, with 211,000); Chang'an Automobile Co Ltd, with 203,000; Beijing Automotive Industry Group Co, with 125,000; Hafei Motor Co Ltd, with 122,000; Liuzhou Wuling Automobile Co Ltd, with 112,000; Changhe Airplane Industry Co, with 103,000; and Tianjin Automotive Industry Corporation, with 102,000.

Among the 2,069,000 automobiles produced in 2000 63.1 percent were passenger vehicles. Detailed information regarding the sales and production of different vehicles is as follows:

1. Heavy-loading vehicles: There are 19 corporations in total with an output and the sales volume of 82,000 and 83,000 units respectively. The market share of five corporations -- Dong Feng Motor Corp, FAW Group Corporation of China, Sichuan Automobile Co, Shanxi Automobile Co and Chongqing Automobile Co -- is 97.1 percent. FAW's market share is 58.9 percent.

2. Middle-loading vehicles: There are 11 corporations in total with an output and sales volume of 154,000 and 163,000 units respectively. FAW's and Dong Feng's market shares are 47.4 and 46.6 percent respectively.

3. Light-loading vehicles: There are 46 corporations in total with an output and sales volume of 391,000 and 397,000 units respectively. Beijing Automotive's market share is 25.2 percent, ranking first among its domestic counterparts.

4. Mini vehicles: There are 11 corporations in total with an output and sales volume of 138,000 and 132,000 units respectively. Liuzhou Wuling's market share is 41.7 percent, ranking first among its domestic counterparts. Chang'an Automobile is in second place with a market share of 31 percent.

5. Large passenger cars: There are 14 corporations in total with an output and sales volume of 7,953 and 7,743 respectively. Dong Feng's and Liaoning Huanghai's total market share is 36.8 percent, with an output and sales volume of over 1,000 units each.

6. Mid-sized passenger cars: There are 17 corporations in total with an output and sales volume of 36,000 units. FAW's market share is 34.2 percent, ranking first its domestic counterparts. Dong Feng, Jiangsu Yaxing, Changzhou Changjiang and Liaoning Huanghai also have relatively high market shares.

7. Light passenger cars: There are 51 corporations in total with an output and sales volume of 248,000 units. FAW, Yue Jin Co and Hefei Jianghuai Co are the top three companies in terms of market share.

8. Mini passenger cars: There are eight corporations in total with an output and sales volume of 408,000 and 420,000 units respectively. Hafei Motor Co Ltd's market share is 27.3 percent, ranking first among its domestic counterparts. The second is Chang'an Automobile Co Ltd, whose market share is 24.6 percent, followed by Changhe Airplane Co at 21.5 percent.

9. Saloon cars: There are 13 corporations in total with an output and sales volume of 605,000 and 613,000 respectively. Shanghai Volkswagen Automotive Co Ltd's market share is 36.3 percent, ranking first among its domestic counterparts. The second is FAW , whose market share is 18.2 percent, followed by Tianjing Automotive Industry Corporation at 14.7 percent. Shenlong ranks fourth with a market share of 8.5 percent followed by Chang'an at 7.7 percent. Major market brands include the Santana, XiaLi, Jetta, FuKang and Chang'an Aotuo.


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