China growth

Even as global light vehicle assembly grew by over 50% between 1990 and 2010, China’s share of global assembly grew a hundred fold from about 0.2% in 1990 to over 20% in 2010. During 2009 when the global volumes declined by 8.5 million units, China built an additional 3.6 million units compared to 2008. Already the world’s largest automotive producer and consumer, China is en route to become the largest manufacturer in automotive history as its approaches the 21 million mark in 2016.

Hence there is little doubt that China will continue to grow for decades to come. Most automakers have already realized that succeeding in China is the key to becoming a truly global player. However, China’s market and policy environment are anything but straightforward. Beijing’s active role in the automotive industry has helped it flourish but has also created a cause for concern as it rallies state owned automakers to lead China’s automotive industry. As their joint venture partners aspire towards launching separate brands and products, foreign automakers in China may need to start contemplating a future without their partners.

How PwC can help you

The PwC global automotive network has more than 1,500 skilled professionals that provide guidance, offer analysis, and deliver solutions to firms across the entire automotive industry value chain. Every day these professionals help companies grow in China by delivering various services including: