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1、CONTENTS Error! No text of specified style in document. October 2011 | 1-800-330-3772 | IBISWorld Industry Report 3721 Automobile Manufacturing in China October 2011 About This Industry . 2 Industry Definition . 2 Main Activities . 2 Similar Industries 2 Additional Resources 3 Industry Performance
2、 4 Executive Summary 4 Key External Drivers . 4 Current Performance 5 Industry Outlook 8 Industry Life Cycle 10 Products (2) vehicles that were originally imported into China in past years began to be manufactured locally at lower cost; and (3) greater competition amongst manufacturers and retailers
3、 helped to push down prices. WWW.IBISWORLD.COM.CN Automobile Manufacturing in China October 2011 15 Major Markets Household buyers 78.0% Business fleet purchasers 16.0% Government fleet purchasers 6.0% Segmentation based on purchaser types The major purchasers of automobiles are household buyers, bu
4、siness fleet purchasers and government purchasers. In 2010, private automobiles accounted for about 83% of the total civil automobile stock in China. With the rising purchasing power of households, the number of private automobile buyers has increased substantially since 2001. ACMR-IBISWorld estimat
5、es that 78% of automobiles will be purchased by households during 2011, and the share is expected to increase in the future. The business fleet segment has grown steadily in recent years as the heightened economic activity requires a large number of passenger vehicles and freight vehicles. This segm
6、ent is estimated to have a 16% share n the industry in terms of the number of purchased automobiles. The market share of government purchasing has gradually decreased in recent years to a level of about 6% of total sales volume. There are two underlying reasons for this change. Firstly, the strong i
7、ncrease in the number of household purchasers, whose disposable income has increased steadily and demand for automobiles is substantial. Secondly, government regulations impose limits on the number of automobiles local governments can purchase. Most fleet purchases are concentrated in the medium- an
8、d large-size vehicle segment, while household purchases dominate the small vehicle category. Segmentation based on distribution channels Automobile brand specialty stores, many of which are categorized as 4S (sales, spare parts, service and survey) and 3S stores, form the main distribution channel f
9、or the industry. 4S stores are usually established by automobile dealer groups, automobile manufacturers and automobile repairing enterprises to provide all-around services to customers, mainly including sales and repairing. There were over 20,000 such stores in China by the end of 2010. The major a
10、utomobile manufacturers have all established their own 4S stores. Automobile trading markets have been a traditional place where potential buyers can select and purchase automobiles. In such a market, there are usually many automobile dealers for various brands. There were over 100 large automobile
11、trading markets in China in 2008, 10 of which realized annual trading turnover WWW.IBISWORLD.COM.CN Automobile Manufacturing in China October 2011 16 of over $250 million. A good example of such markets is the Beijing Asian Games Village Automobile Trading Market, where buyers can complete most of t
12、he governmental registration procedures right after their purchase. Automobile trading and service parks are emerging distribution channels for the industry. Such parks are made up of groups of 4S and 3S stores, and many functional areas for automobile trials, tests, repairs, and second-hand automob
13、ile trading. A typical example is Beijing International Automobile Trading and Service Park. Many automobile manufacturers establish their own sales subsidiaries, which sell products directly to end buyers. Another rising force in recent years is automobile dealer groups, which generally have an ext
14、ensive geographical presence and therefore broad access to the final market. Power Diversity Automobile Trade Co., Ltd. and China Grand Automobile Service Co., Ltd. are both representative of such enterprises. In the near future, brand specialty stores are expected to remain as the main distribution
15、 channel, with increasing segment market share. The number of traditional automobile trading markets will gradually decline and the share of the segment will shrink. Automobile trading and service parks, and automobile dealer groups will both rise to become important distribution channels in China.
16、Also, new distribution channels such as online sales or e-commerce will experience further development. WWW.IBISWORLD.COM.CN Automobile Manufacturing in China October 2011 17 International Trade Exports in this industry are low and increasing. Imports in this industry are medium and increasing. In 2
17、011, competing imports are expected to amount to $5.05 billion, up 23.6% from 2010 and representing an annualized growth rate of 36% during the past five years. In 2010, due to the recovery of Chinas economy and the prosperous automobile market in China, demand for automobiles increased significantl
18、y. As a result, automobile imports surged to $40.81 billion, up 75% from 2009. Major import sources of the industry in 2010 included: Germany (32.8% of import value), Japan (27.2%), the United States (10.8%), South Korea (9.1%), and the United Kingdom (6.3%). Major imported automobiles are SUVs and
19、high-end cars. As the number of high-income families in China increases, demand for imported luxury automobiles will remain strong. Automobile imports experienced increase of 22.2% in 2009 compared with 2008. This slower growth rate compared with previous years was due to the negative effects from t
20、he global recession and increased consumption tax rates for high-end luxury cars in China. From 2006 to 2008, automobile imports experienced strong growth with annualized growth rate of about 36.4%. This was fundamentally due to the strong domestic demand for luxury and high-end automobiles. By 2005
21、, although import quotas were canceled and the overall tariff level continued to decline, automobile imports decreased by 8% from 2004. Major reasons for the decline include many vehicle models previously imported were beginning to be produced domestically, which resulted in some substitution of imp
22、orted automobiles; the appreciation of the euro directly resulted in the decrease of imports from Europe as it was more expensive for Chinese importers to purchase European vehicles; and the newly launched regulations for automobile sales and dealers, and tax payment system for imported automobiles
23、upon entry, increased the market entry barrier for dealers of imported automobiles. As a result, many automobile import dealers decreased their import volumes. Exports In 2010, exports increased by 29.4% from 2009 due to the recovery of foreign demand, to $8.77 billion. Exports decreased dramaticall
24、y by 36.6% in 2009 as effects of the global recession persisted. The industrys exports in 2008 increased by 14.3% from 2007, much lower compared with the previous five years. This was essentially due to weak foreign demand caused by the global recession. ACMR-IBISWorld estimates that Chinas automobi
25、le exports will resume strong growth over the next five years, with more domestic manufacturers developing and expanding into foreign markets, such as Africa, Middle East, Central Asia, South America and Europe. In 2011, exports are forecast to continuing increasing to $10.55 billion, up 20.3% year
26、on year. In 2010, major export destinations of the industry included the United States (6.4% of export value), Algeria (5.3%), Iran (5.2%), Vietnam (4.9%) and Russia (4.6%). Major exported automobiles are freight autos, cars and buses. Products made in China feature relatively high quality-to-price
27、ratios, and are becoming increasingly popular in developing countries. WWW.IBISWORLD.COM.CN Automobile Manufacturing in China October 2011 18 Business Locations Region Percentage East China 31.7 Middle South China 23.8 North East China 16.2 North China 10.7 South West China 10.2 North West China 7.4
28、 Region Percentage East China 49.2 Middle South China 19.9 North East China 9.2 North China 10.1 South West China 9.9 North West China 1.7 Region Percentage East China 36.1 Middle South China 24.9 North East China 17.0 North China 12.5 South West China 7.1 North West China 2.4 WWW.IBISWORLD.COM.CN A
29、utomobile Manufacturing in China October 2011 19 Automobile manufacturing is concentrated in six major areas: Jilin, Guangdong, Shanghai, Shandong, Hubei and Beijing, which are expected to hold a joint market share of 61.2% in 2011 in terms of industry revenue. FAW Group is located in Jilin; Guangzh
30、ou Automobile Industry Group is located in Guangdong; SAIC Group in Shanghai; Dongfeng Motor, Hubei; and Beijing Auto is located in its namesake Beijing. These large automobile manufacturers contribute to the large revenue shares of the areas. Shandong province has several medium-size automobile man
31、ufacturers such as China National Heavy Duty Truck Group, Shifeng Group, Zhong Tong Bus and KAMA Automobile. In addition, the industry is mainly located in Chinas coastal regions due to the historical development of the industry, access to imported components and raw materials, and access to a large
32、 workforce and large consumer markets. WWW.IBISWORLD.COM.CN Automobile Manufacturing in China October 2011 20 Competitive Landscape Market Share Concentration The level of industry concentration is medium. Industry concentration measures the extent to which major players dominate an industry. The to
33、p four industry participants (Shanghai Automotive, FAW, Dongfeng and ChangAn) are forecast to account for a combined market share of 57% of industry revenue in 2011. In the passenger vehicle segment, the top ten participants (SAIC-GM-Wuling, Shanghai GM, Shanghai Volkswagen, FAW Volkswagen, etc) acc
34、ounted for about 58.1% of the whole industrys sales volume in 2010, while in the commercial vehicle segment, the figure was about 69% (in this segment, the top ten participants became Foton, Dongfeng Nissan, FAW, JAC, etc). This represents a medium-to-high level of industry concentration, with no on
35、e firm totally dominating the industry. For the automobile industry, the medium-to-high concentration level indicates the requirements for high technology levels, effective management skills and strong manufacturing strengths. Even with these attributes, there is still a large gap between Chinas aut
36、omobile manufacturers and those in advanced countries. Scale economies of Chinas automotive industry will not be totally realized until the top players can achieve a higher concentration level. The industry concentration level for the top four companies operating in the passenger vehicle segment dec
37、reased slightly before 2006 due to increased competition and a wider variety of models on offer. However, in 2008 the concentration level increased due to more acquisitions and mergers. Within the commercial automotive segment, industry concentration for the top four firms is expected to remain stab
38、le in the next several years. This is because this segment has been open to competition for a longer period, with well-established participants and operations. There are several small players in this industry that specialize in a small number of product lines to serve niche markets. However, it is e
39、xpected that these participants will be unable to compete successfully against their larger rivals with foreign joint venture partners. In 2005, there were several small players, such as Aux, that exited the industry. In the next few years, a higher number of small players will be acquired and merge
40、d, or exit the industry. Key Success Factors The key success factors in the Automobile Manufacturing industry are: Optimum capacity utilisation A high level of plant utilization maximizes output and productivity. Effective cost controls Close relationships with suppliers and good distribution channe
41、ls are necessary for success in this industry. Establishment of export markets Development of export markets is required to supplement domestic sales. Having an extensive distribution and collection network Good distribution channels assist in the efficient receiving of raw materials and components,
42、 and the WWW.IBISWORLD.COM.CN Automobile Manufacturing in China October 2011 21 distribution of completed vehicles. Use of most efficient work practices Good industrial relations through a motivated workforce can contribute to higher output and better quality products. Successful industrial relation
43、s policy Improved labor productivity, including industrial relations, are necessary for operators in this industry. Access to the latest available and most efficient technology and techniques The degree of investment in technological improvements and product development can influence a companys succ
44、ess in this industry. Management of a high quality assets portfolio Operators in this industry need to understand the implications of government policies and other requirements. WWW.IBISWORLD.COM.CN Automobile Manufacturing in China October 2011 22 Cost Structure Benchmarks Purchases 65.4% Managemen
45、t and Administration 4.3% Depreciation 4.0% Wages 3.2% Rent 1.7% Tax and Interest 1.5% Utilities 1.4% Research and Development 1.1% Advertising 1.1% Other 6.8% Profit 9.5% The industrys profit level increased substantially prior to 2004, before declining sharply to 4.3% in 2005. This was mainly due
46、to increases in material costs and price competition among automobile manufacturers. Profits increased again in 2006 and 2007, reaching 8.5% in 2007. Profits dropped to 6.2% in 2008, due to weaker local demand, falling prices, rising production costs and increased sales of low- priced and low-profit
47、 cars. Industry profitability increased to 7.8% in 2009 and 10% in 2010, benefiting from the booming growth of automobile sales in the two years. The profit margin is expected to be 9.5% during 2011. Purchases are the largest cost item for the industry, accounting for an estimated 65.4% of industry
48、revenue during 2011. Purchase costs have increased significantly in the past five years, due to surging raw material prices, such as steel. The share of depreciation in industry revenue has increased steadily during the past five years, from 3.2% in 2004 to a forecast 4% in 2011. This reflects the i
49、ncreasing investment in capital equipment in the industry. Labor costs have increased significantly in the past five years, from 2.4% of industry revenue in 2006 to a forecast 3.2% in 2011. The average monthly wages for individual workers in the industry increased from $388 in 2005 to a forecast $1,132 in 2011. However, this wage level is still much lower than its equivalent in developed countries. The industry has high expenses on management, administration, research and development, given its mass production and comple