Development and business potential of automobile industry Essay

Development and business potential of automobile industry - Essay Example This research will begin with the statement that the Chinese automobile industry is one of the most diversified yet compact industries of the world. In comparison to the global automobile region, China has developed high standards of performance for its automobile segment. Since 2008, China has topped the charts for being the highest producer of automobile units and has crossed the European Union, USA, and Japan with their efficient automobile management processes. The production process of the Chinese automobile segment is mainly performed by establishing relationships between the local and foreign firms. Global automotive brands such as Volkswagen, Toyota, General Motors, etc have established their manufacturing units in China for increasing their output. However, the primary market for the local automobile companies of China such as Great Wall, Beijing Automotive Group, Shanghai Automotive Industry Corporation, Geely, etc still remains the Chinese market. The history of Chinese au tomobile segment started before the Second World War. The first Chinese produced vehicle was a truck which was developed and used for military purposes. According to Oliver, Holweg, and Luo, most of the public transport and luxury vehicles used in China prior to the Second World War were imported from abroad or made within the country by manufacturing units of Multinational Companies. Jones noted that most of MNCs entered China for leveraging the benefit of low labor cost in comparison to the high-end labors of Europe or Japan.