In general, China aims to discard its reputation as a manufacturer of inferior quality products as it transitions to a manufacturing-based economy. The country continues to evolve into a global manufacturing powerhouse for consumer as well as technology goods while also supporting global markets in technologically advanced product areas.
New analysis from Frost & Sullivan (automotive.frost.com), Strategic Assessment of Chinese Automakers' Globalization Plans, prepares companies for change and identifies opportunities for growth through partnerships or peripheral services required by market entrants.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with a Strategic Assessment of Chinese Automakers' Globalization Plans, then send an email to Sara Villarruel, Corporate Communications, at sara.villarruel[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state, and country. Upon receipt of the above information, an overview will be sent to you by email.
"China's vehicle manufacturing industry is still in the developmental stage, but the industry is planning for its future and has set its sights on the global market," says Frost & Sullivan Research Analyst David Zhao.
China's automakers have created detailed globalization plans to ready themselves for entrance into the North American and European markets. The country faces a myriad of challenges such as high barriers to entry and export/import, prohibitive manufacturing costs, need for enhanced safety performance, significant R&D costs, as well as political implications. Chinese manufacturers hope to overcome these obstacles by implementing strategies for each of these concerns with extreme determination.
"While non-Chinese automotive manufacturers are expanding production and sales within China, local vehicle manufacturers are executing a systematic penetration of the global vehicle market," says Zhao "Compared to just five or ten years ago, Chinese automakers are significantly larger by manufacturing capacity and revenues and are preparing to take on the export markets."
North American automotive-related industries should recognize China's growing clout in the automotive industry as demonstrated by the 78.9 percent increase in exported Chinese-manufactured vehicles in 2007. Chinese automakers have already announced their North American market entry dates, and by 2009, Chinese vehicle brands will likely achieve brand recognition among North American and European consumers.
"China's largest manufacturers have documented market penetration programs, much of which hinges on joint venture partnerships with North American-, European-, and Asia-based sponsors," notes Zhao. "These sponsors have vested interests in the Chinese company's global success and it is the commitment, political savvy, and financial resources of the partnership that will ultimately determine when and how Chinese vehicles will enter the North American market."
Strategic Assessment of Chinese Automakers' Globalization Plans is part of the Automotive & Transportation Growth Partnership Service program, which also includes research in the following markets: light vehicle component market size, customer purchase behavior analysis, commercial vehicle component market size, and repair industry analysis. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.
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