Strong revenue growth has been driven by increasing demand for cars across urban and rural areas in China.
(PRWEB) November 11, 2011
In the next five years, revenue in the Chinese Automobile Manufacturing industry is expected to grow at an annualized rate of about 15.9% to US$805.9 billion, according to IBISWorld, America’s largest publisher of industry research. In 2012, Chinese auto manufacturing revenue is forecast to increase by 15.6%, which comes as no surprise since China surpassed the United States as the largest automobile market in the world in 2009.
With revenue of US$386.0 billion in 2011, the Automobile Manufacturing industry in China has seen average annual revenue growth of 23.9% over the past five years. This strong growth was mainly driven by substantially increasing domestic demand across urban and rural areas and increased exports. Chinese automobile manufacturers benefit from low labor costs and good relationships with countries in Africa, South America and the Middle East, ensuring positive trade environments.
In 2010, total output of automobiles in China reached 18.26 million units, up 32.4% from 2009, according to IBISWorld. During 2009, total automobile output in China had surged to 13.79 million units, up 47.6% from 9.35 million units in 2008. The strong output growth in 2009 and 2010 was mainly driven by a series of favorable government policies, including the reduction of purchasing fees for new cars, subsidies for buyers of cars in rural areas, and subsidies for car owners who replaced old vehicles with new ones. Automobile output numbers are forecast to total nearly 20.1 million in 2011.
As household income levels have increased in China in the past several years, and as vehicle prices have remained competitive, more people have been able to purchase their own vehicles, particularly in China's large cities. This has had a major positive impact on this industry and will continue to drive future growth.
Over the next five years, industry revenue is projected to grow by 15.9% per annum to reach just under US$805.6 billion.
For more information, download IBISWorld’s report on Auto Manufacturing industry in China
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The Automobile Manufacturing industry in China is comprised of establishments that manufacture complete automobiles or automobile engines. The major products manufactured in this industry include automobile engines and complete and incomplete passenger and commercial vehicles.
Manufacturing of complete automobiles (passenger vehicles and commercial vehicles)
Manufacturing of non-complete automobiles (commercial passenger vehicles and freight vehicles)
Manufacturing of passenger vehicles (basic, MPVs, SUVs, cross-over, non-complete)
Manufacturing of commercial vehicles (passenger, freight, non-complete, semi-trailer towing vehicles)
Manufacturing of automobile engines
Automobile Manufacturing in China Report Key Topics
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on 200 Chinese industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.cn or call 1-800-330-3772.
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