Ken research announced its recent publication on “China Passenger Vehicle Industry in overview, 2017-2021”. The report provides a comprehensive analysis on the passenger vehicle industry of China. The report gives a detailed account of Development Environment of Passenger vehicle, its supply and demand, major sales channel, its import and export, competitive landscape and the major driving forces. Further the report delineates about the threats and Challenges in Passenger Vehicle Industry in China with its forecast on the future supply and demand trends.
China is a unitary sovereign nation of East Asia. Covering about 9.6 million square kilometer and it is the second largest state by land area and fourth largest by total area. This country has a socialist economic system which is world’s largest economy by purchasing power parity. It is the manufacturing hub of the world and is the largest exporter of goods. The main goods exported by the country is Electrical , machinery, including data processing equipment, apparel, textiles, iron and steel, optical and medical equipment, as well as almost every single category of industrial products. It is also the second largest importer of goods. However, it is net importer of the service products. China is one of the fastest growing economies and consumer market.
China is world’s largest trading nation has signed various pacts with numerous nations. It has free trade agreements with various nations such as Australia, South Korea, ASEAN, New Zealand, and Pakistan among others.
China has the world’s largest population and subsequently high population density. It has an average proportion of urbanized population however the rate of urbanization is growing at a much faster rate than the world average.
For the past couple of years the Chinese economy is experiencing slowdown. The country’s debt has increased significantly and its debt to GDP ratio has soared over a decade. As the Chinese economy has expanded over the years, its regulatory environment has not been able to keep up with the pace. The growth of new business has been outperformed the government ability to regulate them. Other major problem that the country goes through is concerns about labour force and pricing system. The nation is marred with large scale unemployment. The government has further struggled to contain social strife and environmental damage due to rapid transformation of the economy, high corruption, and low collection public receipts among others.
China’s passenger vehicle market is one of the biggest in the world. They are a major segment of automotive industry. It also has the highest number of brands and models. It is the global leader in the passenger vehicle production. It has been steadily growing after it overtook USA is terms of sales in 2009. It efficiently caters the needs of consumers as the Chinese passenger vehicle is known for its strong product portfolios, top class features, and superior brand loyalty: all at affordable prices. Further, the industry has also recognized the consumer needs for hybrid and electrical vehicle as well as the environmental concerns. The major drivers for this market is the increasing disposable income, rapid urbanization, demand for new cars from lower tier cities, and low vehicle costs.