Companies can benefit from nation's favorable investment environment
Busy roads in Shanghai. Automobile sales in China are expected to maintain a steady year-on-year growth rate of 20 percent for the next five years. [Zhang Heping / China Daily]
BEIJING - Global automakers will continue to take the fast road to China to cash in on the huge market and growth potential and also make hay from its technological advances and favorable investment environment, said industry analysts and company executives.
"We are firm believers in China's investment environment and the huge potential it offers, as for years China has been providing preferential policies and steady domestic demand," said Ulrich Walker, chairman and chief executive officer (CEO) of Daimler Northeast Asia.
"During the global financial crisis, China continued to offer a beacon of light to other nations. As such, we hold strong confidence that China will continue to present a dynamic investment environment and a fast-growing marketplace that is favorable for foreign direct investment," said Walker.
Last year, the global automobile industry shrank considerably as demand slumped due to the financial crisis.
Buoyed by the government's stimulus measures, China became the world's biggest auto market when it surpassed the United States in terms of sales last year.
Automobile sales in China are expected to maintain a steady year-on-year growth rate of 20 percent for the next five years, according to a recent survey from AlixPartners.
Lu Xi, deputy director of Industrial Policies at the Ministry of Industry and Information Technology said China will become a major player in the global automobile industry by 2020 and also have the biggest market in terms of sales.
According to Lu, the ministry will tweak the automobile industry development policy of 2004 in such a way that it improves the international competitiveness of domestic manufacturers.
"The government will encourage domestic manufacturers to develop homegrown brands and technologies. At the same time we also hope that foreign companies can expand their investment and facilities here for a long-term existence," said Lu.