Automotive industry in China
Automotive industry in China
The automotive industry in China has been the largest in the world measured by automobile unit production since 2008. [1] [Two] [Trio] Since 2009, annual production of automobiles in China exceeds that of the European Union or that of the United States and Japan combined.
The traditional “Big Four” domestic car manufacturers are SAIC Motor, Dongfeng, FAW and Chang’an. Other Chinese car manufacturers are Beijing Automotive Group, Brilliance Automotive, BYD, Chery, Geely, Jianghuai (JAC), Good Wall, and Guangzhou Automobile Group. In addition, several multinational manufacturers have partnerships with domestic manufacturers.
While most of the cars manufactured in China are sold within China, exports reached 814,300 units in 2011. [Four] China’s home market provides its automakers a solid base and Chinese economic planners hope to build globally competitive auto companies. [Five] [6]
China’s automobile industry had mainly Soviet origins (plants and licensed auto design were founded in 1950s, with the help of USSR) and had petite volume for the very first thirty years of the republic, not exceeding 100–200 thousands per year. Since the early 1990s, it has developed rapidly. China’s annual automobile production capacity very first exceeded one million in 1992. By 2000, China was producing over two million vehicles. After China’s entry into the World Trade Organization (WTO) in 2001, the development of the automobile market accelerated further. Inbetween two thousand two and 2007, China’s national automobile market grew by an average twenty one percent, or one million vehicles year-on-year. [7] In 2009, China produced 13.79 million automobiles, of which eight million were passenger cars and Three.41 million were commercial vehicles and surpassed the United States as the world’s largest automobile producer by volume. In 2010, both sales and production topped eighteen million units, with 13.76 million passenger cars delivered, in each case the largest by any nation in history. [8] In 2014, total vehicles production in China reached 23.720 million, accounting for 26% of global automotive production. [9]
The number of registered cars, buses, vans, and trucks on the road in China reached sixty two million in 2009, and is expected to exceed two hundred million by 2020. [Ten] The consultancy McKinsey & Company estimates that China’s car market will grow tenfold inbetween two thousand five and 2030. [11]
The main industry group for the Chinese automotive industry is the China Association of Automobile Manufacturers (中国汽车工业协会).
Contents
1928 to one thousand nine hundred forty nine Edit
The very first Chinese built motor vehicle was a truck called the Ming Sheng. It was designed by Daniel F Myers and a prototype was made at the Liao Ning Trench Mortar Arsenal, Shenyang. The prototype was ended May 31, one thousand nine hundred thirty one for Zhang Xueliang. Prior to production commencing, the factory was bombed by the invading Japanese and production never commenced. [12] A fellow general, Yang Hucheng, patronized the inventor Tang Zhongming to make a fresh type of automobile engine powered by charcoal. In one thousand nine hundred thirty two Tang founded the Chung Ming Machinery Co Ltd in Shanghai to produce the engines. Charcoal powered vehicles were mainly used during 2nd Sino-Japanese War in China because of fuel shortages. [13] Tung oil was also used during the war as a petroleum substitute. [14] One source states that Du Yuming designed a car in 1937, but did not make it until one thousand nine hundred forty three after having been coerced to budge because of the war. No further information has been found about it. [15]
1949 to one thousand nine hundred eighty Edit
The very first Chinese production vehicles were made by the Very first Automobile Works in 1956, a truck called the Jiefang CA-30. [16] This was followed on March Ten, one thousand nine hundred fifty eight by the 2½ ton light duty truck (NJ130), which was based on Russian GAZ-51, was produced in Nanjing. The truck was named Yuejin (meaning “leap forward”) by China’s Very first Ministry of Industrial Machinery.
In June one thousand nine hundred fifty eight the Nanjing Automobile Works, previously a vehicle servicing unit of the Army, was established. The truck production continued until the last truck (NJ134) flipped off the assembly line on July 9, 1987. Cumulative production was 161,988 units (including models NJ130, NJ230, NJ135 and NJ134). The very first production automobiles were the Dongfeng CA71, Hongqi CA72, Feng Huang (later known as the Shanghai SH760) all from 1958.
1980 to one thousand nine hundred ninety Edit
The passenger car industry was a minor part of vehicle production during the very first three decades of China’s socialist economy. As late as 1985, the country produced a total of only Five,200 cars. To announce that the desire for consumer goods was no longer politically suspect and stimulate private spending, while also advertising the opening of the Chinese market to foreign producers, a fabricated news story about China’s very first peasant to own a car was distributed across the world. [17] Sun Guiying, a chicken farmer from near Beijing was touted has having purchased a silver Toyota Publica with her earnings. [Legal] While the article was largely fraudulent (Mrs. Guiying did not know how to drive, and her spouse was a senior official rather than a peasant), [Nineteen] the message came across noisy and clear. Car sales enlargened dramatically, albeit they were almost entirely purchased by danweis (work units – private car ownership was virtually unknown at the time, in spite of the Sun Guiying story). [20]
As domestic production was very limited, import totals rose dramatically, despite a two hundred sixty per cent import duty on foreign vehicles. Before 1984, the superior exporter of cars to China had been the Soviet Union. In 1984, Japan’s vehicle exports to China enhanced sevenfold (from Ten,800 to 85,000) and by mid-1985 China had become Japan’s 2nd thickest export market after the US. [21] The country spent some $Trio billion to import more than 350,000 vehicles (including 106,000 cars and 111,000 trucks) in one thousand nine hundred eighty five alone. Three taxi companies in particular thirsted for Japanese cars, such as Toyota Crowns and Nissan Bluebirds. [22]
As this spending binge began to lead to a severe trade deficit, the Chinese leadership put on the brakes, both through propaganda efforts and by making foreign exchange much less accessible. [23] Customs duties on imported goods were raised in March one thousand nine hundred eighty five and a fresh “regulatory tax” was added a little later. In September 1985, a two-year moratorium on almost all vehicle imports was imposed. [23]
While limiting imports, China also attempted to increase local production by boosting the various existing joint-venture passenger car production agreements, as well as adding fresh ones. In 1983, American Motors Corporation (AMC, later acquired by Chrysler Corporation) signed a 20-year contract to produce their Jeep-model vehicles in Beijing. The following year, Germany’s Volkswagen signed a 25-year contract to make passenger cars in Shanghai, and France’s Peugeot agreed to another passenger car project to make vehicles in the prosperous southern city of Guangzhou. [22] These early joint ventures did not permit the Chinese to borrow much foreign technology, as knock-down kit assembly made up the majority of manufacturing activities; [24] tooling may not have been permitted to slip past borders.
Three big joint-ventures and three petite joint-ventures:
- Beijing Automotive Industry – Hyundai Motor – DaimlerChrysler: Jeep Cherokee (XJ).
- Guangzhou Automobile Industry Group – Peugeot: Peugeot five hundred four (subsequently defunct). However, in the nineties, Honda substituted Peugeot as the playmate of Guangzhou Auto, and began producing the Accord and later the Fit with big success. In 2006, it embarked to manufacture Toyota Camry, also with considerable success. Guangdong province is now the center of the manufacturing of Japanese makes in China.
- Tianjin Automotive Industry – Daihatsu: Daihatsu Charade (since merged with FAW/Toyota joint-venture).
1990 to present Edit
Several enterprises entered the automobile industry since 1994. Some of them are originated from defense industry, such as Chang’an Motors, Changhe, and Hafei Motor; some were developed from old state-owned companies, such as Japanese-Chinese BYD Auto, Brilliance China Auto, Chery Automobile, and Changfeng Automobile. Others are private-owned companies, such as Geely Automobile and Superb Wall Motors.
The main industry group for the Chinese automotive industry is the China Association of Automobile Manufacturers (CAAM).
China has its traditional “Big four” domestic car manufacturers: Shanghai General Motors, Dongfeng, FAW, and Chang’an. [25] The fourth place of Chang’an has recently been overtaken by manufacturer Beijing Auto (also known as BAIC Motor). [26]
Shanghai General Motors (上海汽车集团股份有限公司), also known as SAIC (上汽) and SAIC-GM (上汽通用), is a Chinese state-owned automotive manufacturing company headquartered in Shanghai operating in joint venture with US possessed General Motors. The company had the largest production volume of any Chinese automaker in 2014, making more than Four.Five million vehicles. [26]
SAIC sells vehicles under a multitude of brands. Brand names that are sensational to SAIC include Maxus, MG, Roewe, and Yuejin. Products produced by SAIC joint venture companies are sold under marques including Baojun, Buick, Chevrolet, Iveco, Škoda, Volkswagen, and Wuling.
Dongfeng Motor Corporation (东风汽车公司, abbreviated to 东风) is a Chinese state-owned automobile manufacturer headquartered in Wuhan. The company was the second-largest Chinese vehicle maker in 2014, by production volume, manufacturing over Three.Five million vehicles that year. [26] Its own brands are Dongfeng, Venucia and Dongfen Fengshen. Joint ventures include Cummins, Dana, Honda, Nissan, Infiniti, PSA Peugeot Citroën, Renault, Kia and Yulon.
FAW Group Corporation (第一汽车集团, abbreviated to 一汽) is a Chinese state-owned automotive manufacturing company headquartered in Changchun. In 2014, the company ranked third in terms of output making Two.7 million vehicles. [26] FAW sells products under at least ten different brands including its own and Besturn/Bēnténg, Dario, Haima, Hongqi, Jiaxing, Jie Fang, Jilin, Oley, Jie Fang and Yuan Zheng, and Tianjin Xiali. FAW joint ventures sell Audi, General Motors, Mazda, Toyota and Volkswagen.
BAIC Group, also known as Beiqi (Chinese: 北汽集团 , abbreviated to 北汽), is a state-owned enterprise and holding company of several Chinese automobile and machine manufacturers located in Beijing. In 2014, the company ranked third in terms of output making Two.6 million vehicles. [26] Its principal subsidiaries include the passenger car maker BAIC Motor, the military vehicle and SUV maker BAW and the truck, bus and agricultural equipment maker Foton Motor. BAIC’s parent is the Beijing Municipal Government’s State-owned Assets Supervision and Administration Commission (SASAC).
Chang’an Automobile Group (重庆长安汽车股份有限公司, abbreviated to 长安) is an automobile manufacturer headquartered in Chongqing, and is a state-owned enterprise. In 2014, the company ranked fifth in terms of output making Two.1 million vehicles in 2014. Changan designs, develops, manufactures and sells passenger cars sold under the Changan brand and commercial vehicles sold under the Chana brand. Foreign joint venture companies include Suzuki, Ford, Mazda and PSA Peugeot Citroën.
Other notable Chinese automotive manufacturers include:
- JAC (江淮), the sixth fattest manufacturer in 2014,
- Excellent Wall, the seventh fattest manufacturer in 2014, the largest manufacturer of SUVs and a major exporter,
- Chery, which exports passenger cars worldwide,
- BYD Auto, the ninth largest manufacturer in 2014, and
- Geely, which gets its name from the Chinese word “auspicious” 吉利 and was the tenth largest manufacturer in 2014.
A notable Taiwanese automotive manufacturer is Yulon.
Automotive industry in China
Automotive industry in China
The automotive industry in China has been the largest in the world measured by automobile unit production since 2008. [1] [Two] [Trio] Since 2009, annual production of automobiles in China exceeds that of the European Union or that of the United States and Japan combined.
The traditional “Big Four” domestic car manufacturers are SAIC Motor, Dongfeng, FAW and Chang’an. Other Chinese car manufacturers are Beijing Automotive Group, Brilliance Automotive, BYD, Chery, Geely, Jianghuai (JAC), Excellent Wall, and Guangzhou Automobile Group. In addition, several multinational manufacturers have partnerships with domestic manufacturers.
While most of the cars manufactured in China are sold within China, exports reached 814,300 units in 2011. [Four] China’s home market provides its automakers a solid base and Chinese economic planners hope to build globally competitive auto companies. [Five] [6]
China’s automobile industry had mainly Soviet origins (plants and licensed auto design were founded in 1950s, with the help of USSR) and had puny volume for the very first thirty years of the republic, not exceeding 100–200 thousands per year. Since the early 1990s, it has developed rapidly. China’s annual automobile production capacity very first exceeded one million in 1992. By 2000, China was producing over two million vehicles. After China’s entry into the World Trade Organization (WTO) in 2001, the development of the automobile market accelerated further. Inbetween two thousand two and 2007, China’s national automobile market grew by an average twenty one percent, or one million vehicles year-on-year. [7] In 2009, China produced 13.79 million automobiles, of which eight million were passenger cars and Trio.41 million were commercial vehicles and surpassed the United States as the world’s largest automobile producer by volume. In 2010, both sales and production topped eighteen million units, with 13.76 million passenger cars delivered, in each case the largest by any nation in history. [8] In 2014, total vehicles production in China reached 23.720 million, accounting for 26% of global automotive production. [9]
The number of registered cars, buses, vans, and trucks on the road in China reached sixty two million in 2009, and is expected to exceed two hundred million by 2020. [Ten] The consultancy McKinsey & Company estimates that China’s car market will grow tenfold inbetween two thousand five and 2030. [11]
The main industry group for the Chinese automotive industry is the China Association of Automobile Manufacturers (中国汽车工业协会).
Contents
1928 to one thousand nine hundred forty nine Edit
The very first Chinese built motor vehicle was a truck called the Ming Sheng. It was designed by Daniel F Myers and a prototype was made at the Liao Ning Trench Mortar Arsenal, Shenyang. The prototype was ended May 31, one thousand nine hundred thirty one for Zhang Xueliang. Prior to production commencing, the factory was bombed by the invading Japanese and production never commenced. [12] A fellow general, Yang Hucheng, patronized the inventor Tang Zhongming to make a fresh type of automobile engine powered by charcoal. In one thousand nine hundred thirty two Tang founded the Chung Ming Machinery Co Ltd in Shanghai to produce the engines. Charcoal powered vehicles were mainly used during 2nd Sino-Japanese War in China because of fuel shortages. [13] Tung oil was also used during the war as a petroleum substitute. [14] One source states that Du Yuming designed a car in 1937, but did not make it until one thousand nine hundred forty three after having been coerced to budge because of the war. No further information has been found about it. [15]
1949 to one thousand nine hundred eighty Edit
The very first Chinese production vehicles were made by the Very first Automobile Works in 1956, a truck called the Jiefang CA-30. [16] This was followed on March Ten, one thousand nine hundred fifty eight by the 2½ ton light duty truck (NJ130), which was based on Russian GAZ-51, was produced in Nanjing. The truck was named Yuejin (meaning “leap forward”) by China’s Very first Ministry of Industrial Machinery.
In June one thousand nine hundred fifty eight the Nanjing Automobile Works, previously a vehicle servicing unit of the Army, was established. The truck production continued until the last truck (NJ134) flipped off the assembly line on July 9, 1987. Cumulative production was 161,988 units (including models NJ130, NJ230, NJ135 and NJ134). The very first production automobiles were the Dongfeng CA71, Hongqi CA72, Feng Huang (later known as the Shanghai SH760) all from 1958.
1980 to one thousand nine hundred ninety Edit
The passenger car industry was a minor part of vehicle production during the very first three decades of China’s socialist economy. As late as 1985, the country produced a total of only Five,200 cars. To announce that the desire for consumer goods was no longer politically suspect and stimulate individual spending, while also advertising the opening of the Chinese market to foreign producers, a fabricated news story about China’s very first peasant to own a car was distributed across the world. [17] Sun Guiying, a chicken farmer from near Beijing was touted has having purchased a silver Toyota Publica with her earnings. [Legal] While the article was largely fraudulent (Mrs. Guiying did not know how to drive, and her spouse was a senior official rather than a peasant), [Nineteen] the message came across noisy and clear. Car sales enlargened dramatically, albeit they were almost entirely purchased by danweis (work units – private car ownership was virtually unknown at the time, in spite of the Sun Guiying story). [20]
As domestic production was very limited, import totals rose dramatically, despite a two hundred sixty per cent import duty on foreign vehicles. Before 1984, the superior exporter of cars to China had been the Soviet Union. In 1984, Japan’s vehicle exports to China enlargened sevenfold (from Ten,800 to 85,000) and by mid-1985 China had become Japan’s 2nd fattest export market after the US. [21] The country spent some $Three billion to import more than 350,000 vehicles (including 106,000 cars and 111,000 trucks) in one thousand nine hundred eighty five alone. Three taxi companies in particular thirsted for Japanese cars, such as Toyota Crowns and Nissan Bluebirds. [22]
As this spending binge began to lead to a severe trade deficit, the Chinese leadership put on the brakes, both through propaganda efforts and by making foreign exchange much less accessible. [23] Customs duties on imported goods were raised in March one thousand nine hundred eighty five and a fresh “regulatory tax” was added a little later. In September 1985, a two-year moratorium on almost all vehicle imports was imposed. [23]
While limiting imports, China also attempted to increase local production by boosting the various existing joint-venture passenger car production agreements, as well as adding fresh ones. In 1983, American Motors Corporation (AMC, later acquired by Chrysler Corporation) signed a 20-year contract to produce their Jeep-model vehicles in Beijing. The following year, Germany’s Volkswagen signed a 25-year contract to make passenger cars in Shanghai, and France’s Peugeot agreed to another passenger car project to make vehicles in the prosperous southern city of Guangzhou. [22] These early joint ventures did not permit the Chinese to borrow much foreign technology, as knock-down kit assembly made up the majority of manufacturing activities; [24] tooling may not have been permitted to slip past borders.
Three big joint-ventures and three petite joint-ventures:
- Beijing Automotive Industry – Hyundai Motor – DaimlerChrysler: Jeep Cherokee (XJ).
- Guangzhou Automobile Industry Group – Peugeot: Peugeot five hundred four (subsequently defunct). However, in the nineties, Honda substituted Peugeot as the fucking partner of Guangzhou Auto, and began producing the Accord and later the Fit with gigantic success. In 2006, it commenced to manufacture Toyota Camry, also with considerable success. Guangdong province is now the center of the manufacturing of Japanese makes in China.
- Tianjin Automotive Industry – Daihatsu: Daihatsu Charade (since merged with FAW/Toyota joint-venture).
1990 to present Edit
Several enterprises entered the automobile industry since 1994. Some of them are originated from defense industry, such as Chang’an Motors, Changhe, and Hafei Motor; some were developed from old state-owned companies, such as Japanese-Chinese BYD Auto, Brilliance China Auto, Chery Automobile, and Changfeng Automobile. Others are private-owned companies, such as Geely Automobile and Excellent Wall Motors.
The main industry group for the Chinese automotive industry is the China Association of Automobile Manufacturers (CAAM).
China has its traditional “Big four” domestic car manufacturers: Shanghai General Motors, Dongfeng, FAW, and Chang’an. [25] The fourth place of Chang’an has recently been overtaken by manufacturer Beijing Auto (also known as BAIC Motor). [26]
Shanghai General Motors (上海汽车集团股份有限公司), also known as SAIC (上汽) and SAIC-GM (上汽通用), is a Chinese state-owned automotive manufacturing company headquartered in Shanghai operating in joint venture with US wielded General Motors. The company had the largest production volume of any Chinese automaker in 2014, making more than Four.Five million vehicles. [26]
SAIC sells vehicles under a multitude of brands. Brand names that are sensational to SAIC include Maxus, MG, Roewe, and Yuejin. Products produced by SAIC joint venture companies are sold under marques including Baojun, Buick, Chevrolet, Iveco, Škoda, Volkswagen, and Wuling.
Dongfeng Motor Corporation (东风汽车公司, abbreviated to 东风) is a Chinese state-owned automobile manufacturer headquartered in Wuhan. The company was the second-largest Chinese vehicle maker in 2014, by production volume, manufacturing over Three.Five million vehicles that year. [26] Its own brands are Dongfeng, Venucia and Dongfen Fengshen. Joint ventures include Cummins, Dana, Honda, Nissan, Infiniti, PSA Peugeot Citroën, Renault, Kia and Yulon.
FAW Group Corporation (第一汽车集团, abbreviated to 一汽) is a Chinese state-owned automotive manufacturing company headquartered in Changchun. In 2014, the company ranked third in terms of output making Two.7 million vehicles. [26] FAW sells products under at least ten different brands including its own and Besturn/Bēnténg, Dario, Haima, Hongqi, Jiaxing, Jie Fang, Jilin, Oley, Jie Fang and Yuan Zheng, and Tianjin Xiali. FAW joint ventures sell Audi, General Motors, Mazda, Toyota and Volkswagen.
BAIC Group, also known as Beiqi (Chinese: 北汽集团 , abbreviated to 北汽), is a state-owned enterprise and holding company of several Chinese automobile and machine manufacturers located in Beijing. In 2014, the company ranked third in terms of output making Two.6 million vehicles. [26] Its principal subsidiaries include the passenger car maker BAIC Motor, the military vehicle and SUV maker BAW and the truck, bus and agricultural equipment maker Foton Motor. BAIC’s parent is the Beijing Municipal Government’s State-owned Assets Supervision and Administration Commission (SASAC).
Chang’an Automobile Group (重庆长安汽车股份有限公司, abbreviated to 长安) is an automobile manufacturer headquartered in Chongqing, and is a state-owned enterprise. In 2014, the company ranked fifth in terms of output making Two.1 million vehicles in 2014. Changan designs, develops, manufactures and sells passenger cars sold under the Changan brand and commercial vehicles sold under the Chana brand. Foreign joint venture companies include Suzuki, Ford, Mazda and PSA Peugeot Citroën.
Other notable Chinese automotive manufacturers include:
- JAC (江淮), the sixth fattest manufacturer in 2014,
- Excellent Wall, the seventh thickest manufacturer in 2014, the largest manufacturer of SUVs and a major exporter,
- Chery, which exports passenger cars worldwide,
- BYD Auto, the ninth thickest manufacturer in 2014, and
- Geely, which gets its name from the Chinese word “auspicious” 吉利 and was the tenth largest manufacturer in 2014.
A notable Taiwanese automotive manufacturer is Yulon.
