The automotive industry in China has been the
largest in the world measured by automobile unit production since 2008. Since 2009, annual production of automobiles in China accounted for more than 32% of worldwide vehicle production, exceeding both that of the European Union and that of the United States and Japan combined.
The traditional "Big Four" domestic car manufacturers are
SAIC Motor
SAIC Motor Corp., Ltd. (formerly Shanghai Automotive Industry Corporation) is a Chinese state-owned automobile manufacturer headquartered in Anting, Shanghai. Founded in 1955, it is currently the largest of the " Big Four" state-owned car manu ...
,
Dongfeng,
FAW and
Chang’an
Chang'an (; ) is the traditional name of Xi'an. The site had been settled since Neolithic times, during which the Yangshao culture was established in Banpo, in the city's suburbs. Furthermore, in the northern vicinity of modern Xi'an, Qin Shi ...
. Other Chinese car manufacturers are
Geely,
Beijing Automotive Group
Beijing Automotive Group Co., Ltd. (BAIC) is a Chinese state-owned automobile manufacturer headquartered in Shunyi, Beijing. Founded in 1958, it is the sixth largest automobile manufacturer in China, with 1.723 million sales in 2021.
The comp ...
,
Brilliance Automotive
Huachen Automotive Group Holdings Co. Ltd., known for its brand name Brilliance Auto Group, was a Chinese multinational automobile manufacturer holding company headquartered in Shenyang. Its products include automobiles, microvans, and automotiv ...
,
BYD,
Chery,
Guangzhou Automobile Group
Guangzhou Automobile Group Co., Ltd. (GAC Group) is a Chinese State-owned enterprises of China, state-owned automobile manufacturer headquartered in Guangzhou, Guangdong. Founded in 1954, it is currently the Automotive industry in China#List of ...
,
Great Wall and
Jianghuai (JAC). In addition, several multinational manufacturers have partnerships with domestic manufacturers.
While most of the cars manufactured in China are sold within China, exports reached 814,300 units in 2011.
China's home market provides its automakers a solid base and Chinese economic planners hope to build globally competitive auto companies
that will become more and more attractive and reliable over the years.
China's automobile industry had mainly Soviet origins (plants and licensed auto design were founded in the 1950s, with the help of the USSR) and had small volumes for the first 30 years of the republic, not exceeding 100–200 thousands per year. Since the early 1990s, it has developed rapidly. China's annual automobile production capacity first exceeded one million in 1992. By 2000, China was producing over two million vehicles. After China's entry into the
World Trade Organization (WTO) in 2001, the development of the automobile market accelerated further. Between 2002 and 2007, China's national automobile market grew by an average 21 percent, or one million vehicles year-on-year.
In 2009, China produced 13.79 million automobiles, of which 8 million were
passenger cars and 3.41 million were
commercial vehicles and surpassed the United States as the world's largest automobile producer by volume. In 2010, both sales and production topped 18 million units, with 13.76 million passenger cars delivered, in each case the largest by any nation in history. In 2014, total vehicle production in China reached 23.720 million, accounting for 26% of global automotive production.
[China Corp. 2015 - Auto Industry, DCA Chine-Analyse]
The number of registered cars, buses, vans, and trucks on the road in China reached 62 million in 2009.
The
consultancy McKinsey & Company
McKinsey & Company is a global management consulting firm founded in 1926 by University of Chicago professor James O. McKinsey, that offers professional services to corporations, governments, and other organizations. McKinsey is the oldest and ...
estimates that China's car market will grow tenfold between 2005 and 2030.
China had about 250 million cars by the end of June 2019, according to the Ministry of Public Security.
The main industry group for the Chinese automotive industry is the China Association of Automobile Manufacturers (中国汽车工业协会).
Manufacturers and brands
File:SAICMotor logo.png
File:Dengfeng Motor Corporation logo.svg
File:Geely Logo 2022.svg
File:Changan Automobile Logo.svg
File:BYD Brazil company.png
There exists a grouping of traditional “Big Four” state-owned car manufacturers of China, namely:
SAIC Motor
SAIC Motor Corp., Ltd. (formerly Shanghai Automotive Industry Corporation) is a Chinese state-owned automobile manufacturer headquartered in Anting, Shanghai. Founded in 1955, it is currently the largest of the " Big Four" state-owned car manu ...
,
FAW,
Dongfeng, and
Chang’an
Chang'an (; ) is the traditional name of Xi'an. The site had been settled since Neolithic times, during which the Yangshao culture was established in Banpo, in the city's suburbs. Furthermore, in the northern vicinity of modern Xi'an, Qin Shi ...
, with car sales of 5.37 million, 3.50 million, 3.28 million and 2.30 million in 2021 respectively.
BAIC frequently challenged Chang'an as the fourth largest automaker but has since fallen behind.
SAIC Motor Corporation (上海汽车集团股份有限公司), also known as SAIC (上汽) and SAIC-GM (上汽通用), is a Chinese state-owned automotive manufacturing company headquartered in
Shanghai. The company had the largest production volume of any Chinese automaker in 2017, making more than 6.9 million vehicles.
SAIC sells vehicles under a variety of brands. Brand names that are exclusive to SAIC include
Maxus,
MG,
Roewe
Roewe is a vehicle marque created by the Chinese automaker SAIC Motor in 2006, focuses in luxury cars. Roewe vehicles were initially based on technology acquired from defunct British carmaker MG Rover. SAIC was unable to purchase the rights t ...
, and
Yuejin. Products produced by SAIC joint venture companies are sold under marques including
Baojun,
Buick
Buick () is a division of the American automobile manufacturer General Motors (GM). Started by automotive pioneer David Dunbar Buick in 1899, it was among the first American marques of automobiles, and was the company that established General ...
,
Chevrolet
Chevrolet ( ), colloquially referred to as Chevy and formally the Chevrolet Motor Division of General Motors Company, is an American automobile division of the American manufacturer General Motors (GM). Louis Chevrolet (1878–1941) and ous ...
,
Iveco
IVECO, an acronym for Industrial Vehicles Corporation, is an Italian multinational transport vehicle manufacturing company. It designs and builds light, medium, and heavy commercial vehicles. The name IVECO first appeared in 1975 after a merger o ...
,
Škoda,
Volkswagen, and
Wuling
Wuling may refer to:
People
* Xu Wuling (许武岭, born 14 September 1971), professional rower
* Yu Wuling (于武陵, born 810), poet
* Zhang Wuling (张武龄, 1889-1938), educator
* King Wuling of Zhao (趙武靈王, 340-295 BCE), ruler of th ...
.
Dongfeng Motor Corporation
Dongfeng Motor Corporation Ltd. is a Chinese state-owned automobile manufacturer headquartered in Wuhan, Hubei. Founded in 1969, it is currently the third largest of the " Big Four" state-owned car manufacturers of China, namely: SAIC Motor, F ...
(东风汽车公司, abbreviated to 东风) is a Chinese state-owned automobile manufacturer headquartered in
Wuhan. The company was the second-largest Chinese vehicle maker in 2017, by production volume, manufacturing over 4.1 million vehicles that year.
Its own brands are
Dongfeng,
Venucia and
AEOLUS. Joint ventures include
Cummins,
Dana,
Honda,
Nissan
, trade name, trading as Nissan Motor Corporation and often shortened to Nissan, is a Japanese multinational corporation, multinational Automotive industry, automobile manufacturer headquartered in Nishi-ku, Yokohama, Japan. The company sells ...
,
Infiniti,
Stellantis
Stellantis N.V. is a multinational automotive manufacturing corporation formed in 2021 on the basis of a 50–50 cross-border merger between the Italian-American conglomerate Fiat Chrysler Automobiles (FCA) and the French PSA Group. The comp ...
(through
PSA Peugeot Citroën),
Renault,
Kia and
Yulon.
FAW Group Corporation (第一汽车集团, abbreviated to 一汽) is a Chinese state-owned automotive manufacturing company headquartered in
Changchun
Changchun (, ; ), also romanized as Ch'angch'un, is the capital and largest city of Jilin Province, People's Republic of China. Lying in the center of the Songliao Plain, Changchun is administered as a , comprising 7 districts, 1 county and 3 c ...
. In 2017, the company ranked third in terms of output making 3.3 million vehicles.
FAW sells products under at least ten different brands including its own and
Besturn/Bēnténg, Dario,
Haima,
Hongqi Hongqi (, Chinese for "Red Flag") may refer to:
*Red Flag (magazine), ''Hongqi'' (magazine), published by the Chinese Communist Party from 1958 to 1988
*Hongqi (marque), Hongqi (automobile), luxury car series of First Automobile Works (FAW), Changc ...
,
Jiaxing,
Jie Fang,
Jilin, Oley,
Jie Fang and Yuan Zheng, and
Tianjin Xiali. FAW joint ventures sell
Audi,
General Motors
The General Motors Company (GM) is an American Multinational corporation, multinational Automotive industry, automotive manufacturing company headquartered in Detroit, Michigan, United States. It is the largest automaker in the United States and ...
,
Mazda,
Toyota and
Volkswagen.
Chang'an Automobile Group (重庆长安汽车股份有限公司, abbreviated to 长安) is an automobile manufacturer headquartered in
Chongqing
Chongqing ( or ; ; Sichuanese dialects, Sichuanese pronunciation: , Standard Mandarin pronunciation: ), Postal Romanization, alternately romanized as Chungking (), is a Direct-administered municipalities of China, municipality in Southwes ...
, and is a state-owned enterprise. In 2017, the company ranked fourth in terms of output making 2.8 million vehicles in 2017. Changan designs, develops, manufactures and sells passenger cars sold under the Changan brand and commercial vehicles sold under the Chana brand. Foreign joint venture companies include
Suzuki
is a Japan, Japanese multinational corporation headquartered in Minami-ku, Hamamatsu, Japan. Suzuki manufactures automobiles, motorcycles, All-terrain vehicle, all-terrain vehicles (ATVs), outboard motor, outboard marine engines, wheelchairs ...
,
Ford,
Mazda and
PSA Peugeot Citroën.
BAIC Group, also known as Beiqi (, abbreviated to 北汽), is a state-owned enterprise and holding company of several Chinese automobile and machine manufacturers located in
Beijing. In 2014, the company ranked fifth in terms of output making 2.5 million vehicles.
Its principal subsidiaries include the passenger car maker
BAIC Motor, the military vehicle and
SUV maker
BAW and the truck, bus and agricultural equipment maker
Foton Motor. BAIC's parent is the Beijing Municipal Government's State-owned Assets Supervision and Administration Commission (SASAC). It has foreign joint ventures with Hyundai and Mercedes-Benz.
Other notable Chinese automotive manufacturers include:
BYD, is an auto manufacturer founded by
BYD Company who are known for their batteries and electric buses around the world. They were also the seventh best-selling Chinese car brand in 2017.
GAC (Guangzhou Automobile Group), is a Chinese state-owned automobile manufacturer headquartered in Guangzhou. They were the sixth biggest manufacturer in 2017, manufacturing over 2 million vehicles in 2017. GAC sells passenger cars under the Trumpchi brand. In China, they are more known for their foreign joint-venture with Fiat, Honda, Isuzu, Mitsubishi, and Toyota.
Geely, is the biggest privately owned automobile manufacturer and seventh biggest manufacturer overall in China. Their flagship brand Geely Auto became the top Chinese car brand in 2017. Currently one of the fastest growing automotive groups in the world, Geely is known for its ownership of the Swedish luxury car brand
Volvo Cars, its performance counterpart
Polestar, and the British sports car company
Lotus
Lotus may refer to:
Plants
*Lotus (plant), various botanical taxa commonly known as lotus, particularly:
** ''Lotus'' (genus), a genus of terrestrial plants in the family Fabaceae
**Lotus flower, a symbolically important aquatic Asian plant also ...
. In China, their passenger car brands include Geely Auto, Volvo Cars, and
Lynk & Co.
Great Wall, the eighth biggest manufacturer in 2017 and the largest manufacturer of
SUVs. Great Wall sells vehicles under the brands of Haval and WEY.
Brilliance Auto, is a Chinese state-owned automobile manufacturer based in Shenyang. They were the ninth biggest manufacturer in 2017. They have a foreign joint venture with BMW and also sells passenger vehicles under their own brand Brilliance.
Chery, a Chinese state-owned automobile manufacturer based in Anhui. They were the tenth biggest manufacturer in 2017. They have a foreign joint venture with Jaguar Land Rover for the production of
Jaguar
The jaguar (''Panthera onca'') is a large cat species and the only living member of the genus '' Panthera'' native to the Americas. With a body length of up to and a weight of up to , it is the largest cat species in the Americas and the th ...
and
Land Rover cars in China. They also sell cars under the Chery brand and Qoros brand.
List of Chinese automobile manufacturers by marques and foreign JVs
Foreign manufacturer joint ventures
Companies from other countries with joint manufacturing ventures in China include Daimler-Benz, General Motors. The latter makes numerous cars in China in four factories, especially
Buick
Buick () is a division of the American automobile manufacturer General Motors (GM). Started by automotive pioneer David Dunbar Buick in 1899, it was among the first American marques of automobiles, and was the company that established General ...
, but also some
Chevrolet
Chevrolet ( ), colloquially referred to as Chevy and formally the Chevrolet Motor Division of General Motors Company, is an American automobile division of the American manufacturer General Motors (GM). Louis Chevrolet (1878–1941) and ous ...
and
Cadillac
The Cadillac Motor Car Division () is a division of the American automobile manufacturer General Motors (GM) that designs and builds luxury vehicles. Its major markets are the United States, Canada, and China. Cadillac models are distributed i ...
models, in a 50/50 joint-venture with SAIC Motor, formerly known as Shanghai General Motors Company Ltd.
[Saic General Motors Corp Ltd: Company Profile - Bloomberg]
/ref> In November 2018, the company announced new Chevrolet models for the Chinese market, including an extended-wheelbase Malibu XL, a new Chevy SUV concept a new Monza.
In 2001, 1.5 million people were employed in this industry in China, and contributed 12 billion U.S. dollars to the economy, which accounts for 5% of the total value added to China's manufacturing industry.
Beijing Benz Automotive Co., Ltd is a joint venture between BAIC Motor and Daimler AG. As of 22 November 2018, a full two million Mercedes-Benz vehicles had been built in China by this alliance. At about the same time, the company announced the final development of a new Mercedes-Benz A-Class L sedan for China, in five variants, to "rival the China-made Audi A3 sedan and the BMW Series 1 sedan". Daimler and another partner, BYD Auto (backed by Warren Buffett), were already manufacturing an electric car for the Chinese market, the Denza, with an improved Denza 500 announced in March 2018. Apparently, Daimler-Benz was also having discussions about making battery-powered Smart cars in China with BYD Auto, according to an August 2018 report; the company would not comment on this topic. At the time, the petrol-powered Smart car was being imported into China.
Honda Motor Co has a joint venture with Guangzhou Automobile Group (GAC Group) and planned to invest 3.27 billion yuan ($469 million) in 2019 in new-energy vehicle manufacturing in China, probably with the Trumpchi badge. Toyota's joint venture is with GAC and the companies planned to build an electric vehicle under the GAC logo. Nissan operates in China under a joint venture with Dongfeng Motor Group Co Ltd. A report in early 2018 indicated that the alliance planned to build a new manufacturing plant in Wuhan, China in addition to expanding the Dongfeng plant in Changzhou to increase capacity. A late August update stated that Nissan and Dongfeng Group planned to invest roughly $900 million to eventually increase the production of Nissan vehicles in China to as many as 2.1 million per year. By September 1, 2018, Nissan's first electric sedan for the Chinese market, the Sylphy Zero Emission, was in production.
VW and Audi cars are manufactured in China by Volkswagen Group China under two joint-venture partnerships: FAW-Volkswagen and SAIC Volkswagen. They have sold 30 million cars as of November 2018. In 2018, the alliance opened three new FAW-Volkswagen plants in China: in Qingdao, Foshan and Tianjin. By 2019, the Audi expected to be making seven new SUV vehicle models in China. An executive with FAW-Volkswagen's Audi division said that two million China-made Audi cars will be sold in the country by 2020. As of the end of 2017, the total to date was 777,000. The joint venture SAIC Volkswagen was also in the process of building an electric-car plant in Anting, near Shanghai by late 2018; it was expected to make 300,000 e-vehicles per year, starting in 2020.
BMW and Chinese partner Brilliance Automotive Group Holdings expected to make 520,000 cars in China during 2019. In October 2018, the German company announced that it will spend €3.6bn ($4.16 billion) to increase ownership of Brilliance Automotive from 50% to 75%. BMW also planned to invest over €3bn to boost manufacturing in China as part of a goal to manufacture more than 650,000 units with Brilliance, starting in the early 2020s. The German company also made an alliance with Great Wall Motor to build electric-powered Mini cars in China for the domestic market.
Jaguar Land Rover operates a joint venture with Chery. A news report in July 2018 suggested that the company was considering increasing their investment to create a new model for China; a late October report about the Jaguar Land Rover turnaround plan, however, did not outline any plan to proceed with this concept.
The entire Volvo Cars company has been owned by the Chinese company Geely since 2010 and manufactures most of the XC60 vehicles in China for export to various countries as well as the local market. Other cars made in China (as of late 2018) for both the local market and for export include the Buick Envision, Ford Focus Active, Volvo S90 and the Cadillac CT-6 plug-in. (Prohibitive tariffs announced by the US in 2018 were expected to significantly reduce auto exports to that country.) Geeley also has investments in Daimler, AB Volvo (the manufacturer of trucks, buses, construction equipment, and engines) and Lotus.
In October 2018, Ford and Baidu announced that they were planning to start testing autonomous vehicles together in Beijing roads by year end, using
Baidu's "technological know-how and understanding of China together with Ford's vehicle expertise".
History
The first automobile in China was purchased from Hong Kong in 1902 by Yuan Shikai and gifted to Empress Dowager Cixi. It was later put on display in the Summer Palace Museum. During the early twentieth century, major western automobile manufacturers such as the Ford Motor Company, General Motors
The General Motors Company (GM) is an American Multinational corporation, multinational Automotive industry, automotive manufacturing company headquartered in Detroit, Michigan, United States. It is the largest automaker in the United States and ...
, and Mercedes-Benz had plants operating in Shanghai.
China's automobile industry had mainly Soviet origins (plants and licensed auto design were founded in the 1950s, with the help of the USSR) and had small volumes for the first 30 years of the republic, not exceeding 100–200 thousands per year. Since the early 1990s, it has developed rapidly. China's annual automobile production capacity first exceeded one million in 1992. By 2000, China was producing over two million vehicles. After China's entry into the World Trade Organization (WTO) in 2001, the development of the automobile market accelerated further. Between 2002 and 2007, China's national automobile market grew by an average 21 percent, or one million vehicles year-on-year. In 2009, China produced 13.79 million automobiles, of which 8 million were passenger cars and 3.41 million were commercial vehicles and surpassed the United States as the world's largest automobile producer by volume. In 2010, both sales and production topped 18 million units, with 13.76 million passenger cars delivered, in each case the largest by any nation in history. In 2014, total vehicle production in China reached 23.720 million, accounting for 26% of global automotive production.
1928 to 1949
The first Chinese built motor vehicle was a truck called the ''Ming Sheng''. It was designed by Daniel F Myers and a prototype was made at the Liao Ning Trench Mortar Arsenal, Shenyang
Shenyang (, ; ; Mandarin pronunciation: ), formerly known as Fengtian () or by its Manchu language, Manchu name Mukden, is a major China, Chinese sub-provincial city and the List of capitals in China#Province capitals, provincial capital of Lia ...
. The prototype was completed on May 31, 1931, for Zhang Xueliang. Prior to production commencing, the factory was bombed by the invading Japanese and production never commenced. A fellow general, Yang Hucheng
Yang Hucheng () (26 November 1893 – 6 September 1949) was a Chinese general during the Warlord Era of Republican China and Kuomintang general during the Chinese Civil War.
Yang Hucheng joined the Xinhai Revolution in his youth and had bec ...
, patronized the inventor Tang Zhongming Tang Zhongming (; 1897–1980) was a Chinese engineer and inventor. Zhong-Ming Tang was born to a poor family in 1897. He attended elementary and middle school in Henan province graduating from Huaiqing Middle School at age 19, when he then attende ...
to make a new type of automobile engine powered by charcoal. In 1932 Tang founded the Chung Ming Machinery Co. Ltd. in Shanghai to produce the engines. Charcoal powered vehicles were mainly used during the Second Sino-Japanese War in China because of fuel shortages. Tung oil was also used during the war as a petroleum substitute. One source states that Du Yuming designed a car in 1937, but did not make it until 1943 after having been forced to move because of the war. No further information has been found about it.
1949 to 1980
Several vehicle assembly factories were set up in the 1950s and 1960s. They were Beijing (today is Beijing Automotive Industry Holding Corporation
Beijing Automotive Group Co., Ltd. (BAIC) is a Chinese State-owned enterprises of China, state-owned automobile manufacturer headquartered in Shunyi District, Shunyi, Beijing. Founded in 1958, it is the Automotive industry in China#List of Chin ...
), Shanghai (today is Shanghai Automotive Industry Corporation), Nanjing (later Nanjing Automobile (Group) Corporation, merged with SAIC), and Jinan
Jinan (), Postal Map Romanization, alternately romanization of Chinese, romanized as Tsinan, is the Capital (political), capital of Shandong province in East China, Eastern China. With a population of 9.2 million, it is the second-largest city i ...
(evolving into China National Heavy Duty Truck Group
China National Heavy Duty Truck Group Co., Ltd., CNHTC or Sinotruk Group is a Chinese state-owned truck manufacturer headquartered in Jinan, Shandong province. It is currently the third largest truck manufacturer in Mainland China. It is known fo ...
). The Second Automobile Works (later Dongfeng Motor Corporation
Dongfeng Motor Corporation Ltd. is a Chinese state-owned automobile manufacturer headquartered in Wuhan, Hubei. Founded in 1969, it is currently the third largest of the " Big Four" state-owned car manufacturers of China, namely: SAIC Motor, F ...
) was founded in 1968.
The first Chinese production vehicles were made by the First Automobile Works in 1956, a truck called the Jiefang CA-30. This was followed on March 10, 1958, by the 2½ ton light duty truck (NJ130), which was based on the Russian GAZ-51, was produced in Nanjing. The truck was named Yuejin (meaning "leap forward") by China's First Ministry of Industrial Machinery.
In June 1958 the Nanjing Automobile Works, previously a vehicle servicing unit of the Army, was established. Production continued until the last truck (NJ134) rolled off the assembly line on July 9, 1987. Cumulative production was 161,988 units (including models NJ130, NJ230, NJ135 and NJ134). The first production automobiles were the Dongfeng CA71
The Dongfeng CA71 () is a medium-sized limousine made by the Chinese automobile manufacturer First Automotive Works (FAW) and produced in small numbers in 1958. It was the first passenger car to be produced entirely in China.Beijing Automobile Mu ...
, Hongqi CA72
The Hongqi CA72 is a car produced by FAW Hongqi. It was the company's first production automobile and the first representative sedan that was constructed and built in China. Produced from 1959 until 1963, the CA72 was only available to state inst ...
, Feng Huang (later known as the Shanghai SH760
The Shanghai SH760 is a car produced in China from 1965 to 1991 primarily for government officials not important enough to warrant a Hongqi (marque), FAW Hongqi and as a taxi. The design was based on the Mercedes-Benz W180, Mercedes-Benz 220S (W18 ...
) all from 1958.
1980 to 1990
The passenger car industry was a minor part of vehicle production during the first three decades of China's socialist economy. As late as 1985, the country produced a total of only 5,200 cars. To announce that the desire for consumer goods was no longer politically suspect and stimulate personal spending, while also advertising the opening of the Chinese market to foreign producers, a fabricated news story about China's first peasant to own a car was distributed across the world. Sun Guiying, a chicken farmer from near Beijing was touted as having purchased a silver Toyota Publica with her earnings. While the article was largely fraudulent (Mrs. Guiying did not know how to drive, and her husband was a senior official rather than a peasant), the message came across loud and clear. Car sales increased dramatically, although they were almost entirely purchased by ''danweis'' ( work unitsprivate car ownership was virtually unknown at the time, in spite of the Sun Guiying story).
As domestic production was very limited, import totals rose dramatically, despite a 260 per cent import duty on foreign vehicles. Before 1984, the dominant exporter of cars to China had been the Soviet Union. In 1984, Japan's vehicle exports to China increased sevenfold (from 10,800 to 85,000) and by mid-1985 China had become Japan's second biggest export market after the US. The country spent some $3 billion to import more than 350,000 vehicles (including 106,000 cars and 111,000 trucks) in 1985 alone. Three taxi companies in particular thirsted for Japanese cars, such as Toyota Crowns and Nissan Bluebird
The is a compact car with a model name introduced in 1957. It has been Nissan's most internationally recognized sedan, in multiple body styles, and is known for its dependability and durability. The Bluebird originated from Nissan's first vehic ...
s.[
]
As this spending binge began to lead to a severe trade deficit, the Chinese leadership put on the brakes, both through propaganda efforts and by making foreign exchange much less accessible.[Mann, pp. 151–152] Customs duties on imported goods were raised in March 1985 and a new "regulatory tax" was added a little later. In September 1985, a two-year moratorium on nearly all vehicle imports was imposed.
While limiting imports, China also tried to increase local production by boosting the various existing joint-venture passenger car production agreements, as well as adding new ones. In 1983, American Motors Corporation
American Motors Corporation (AMC; commonly referred to as American Motors) was an American automobile manufacturing company formed by the merger of Nash-Kelvinator Corporation and Hudson Motor Car Company on May 1, 1954. At the time, it was the ...
(AMC, later acquired by Chrysler Corporation
Stellantis North America (officially FCA US and formerly Chrysler ()) is one of the " Big Three" automobile manufacturers in the United States, headquartered in Auburn Hills, Michigan. It is the American subsidiary of the multinational automoti ...
) signed a 20-year contract to produce their Jeep
Jeep is an American automobile marque, now owned by multi-national corporation Stellantis. Jeep has been part of Chrysler since 1987, when Chrysler acquired the Jeep brand, along with remaining assets, from its previous owner American Moto ...
-model vehicles in Beijing. The following year, Germany's Volkswagen signed a 25-year contract to make passenger cars in Shanghai, and France's Peugeot agreed to another passenger car project to make vehicles in the prosperous southern city of Guangzhou. These early joint ventures did not allow the Chinese to borrow much foreign technology, as knock-down kit assembly made up the majority of manufacturing activities; tooling may not have been allowed to slip past borders.
1990 to present
Several enterprises entered the automobile industry since 1994. Some of them are originated from defense industry, such as Chang'an Motors, Changhe, and Hafei Motor; some were developed from old state-owned companies, such as BYD Auto, Brilliance China Auto, Chery Automobile, and Changfeng Automobile
GAC Changfeng Motor Co Ltd is a Chinese automobile manufacturer wholly owned by GAC Group but which originated as a branch of the People's Liberation Army. Changfeng produced mainly light trucks, and as of 2008 the majority of their sales had bee ...
. Others are private-owned companies, such as Geely Automobile and Great Wall Motors.
On February 29, 2016, the Ministry of Industry and Information Technology shut down 13 automobile manufacturers that did not meet mandatory production evaluations for two consecutive years.
The number of registered cars, buses, vans, and trucks on the road in China reached 62 million in 2009, with cars accounting for two-thirds of that number, according to the traffic bureau of the Ministry of Public Security. At that time, it was expected to increase to 200 million by 2020. In fact, by March 2017, there were 300.3 million registered vehicles. A 2018 analysis published by the University of California predicted that up to 419 million vehicles would be registered by 2022 and over 500 million by 2030.
Many of the cars on the roads in China are imports. In 2017, the country imported 1.25 million cars according to the China Association of Automobile Manufacturers. Both imports to the US and sales of US made vehicles were expected to decline in late 2018 and in 2019 due to increased tariffs by both the United States and China in July 2018.
Not many of the imports were from the US even prior to 2018. As of 2017, American automakers exported roughly 250,000 cars to China per annum and imported about 50,000 from China.
The government is limiting the number of conventionally-powered new cars that are licensed each year, particularly in Beijing where the wait for a license plate in 2018 was roughly five years. Each such plate was priced at US$14,300, an amount that would almost be adequate to buy a small economy car. Licenses for electric vehicles on the other hand, can be obtained quite quickly.
Best-selling brands in China
2017
According to China Association of Automobile Manufacturers (C.A.A.M), automakers in China delivered 28,226,616 passenger and light commercial vehicles in 2017. Volkswagen remained the best-selling brand followed by Honda. In 2017, Geely surprised everyone by rocketing to become the third best-selling brand in China and the top Chinese brand in the market. Korean and American brands suffered from lackluster sales with Hyundai dropping from the top ten and GM and Ford both falling below local Chinese brands. Below is a breakdown of the deliveries by brand.
The best selling specific model in 2017 was the Wuling Hong Guang minivan made in partnership with SAIC-GM, formerly known as Shanghai General Motors Company Ltd. In fact, five of the top-15 models were produced by SAIC-GM. Volkswagen had three models in the top-15, including the number-two Lavida while Geely, Great Wall, and Guangzhou Automotive Corp (GAC) models accounted for several models on that list. Number three of the top-15 belonged to the Nissan Bluebird Sylphy/Sylphy, number four to the Haval H6 and number five to the VW New Santana.
2016
Source:
Controversies
Copying claims controversy
Several Chinese car makers have been accused of copying designs of other established companies.
BYD
Some BYD cars have historically appeared similar to those of other brands including Lexus, Toyota, Honda, Mercedes Benz, and Porsche
Dr. Ing. h.c. F. Porsche AG, usually shortened to Porsche (; see #Pronunciation, below), is a German automobile manufacturer specializing in high-performance sports cars, SUVs and sedans, headquartered in Stuttgart, Baden-Württemberg, Germany ...
.
Chery
GM executives claimed design duplication of the Chery QQ to the Daewoo Matiz, which may extend to interchangeable parts
Interchangeable parts are parts ( components) that are identical for practical purposes. They are made to specifications that ensure that they are so nearly identical that they will fit into any assembly of the same type. One such part can freely r ...
. GM China Group stated the two vehicles, "shared remarkably identical body structure, exterior design, interior design and key components." After initial mediation attempts failed, GM Daewoo brought a case against Chery in a Shanghai court, but by 2005, jurisdiction had been moved to the Beijing No.1 Intermediate People's Court.
Around that time Chinese state officials, including a vice-minister of commerce and a vice-director of the State Intellectual Property Office, publicly supported Chery.[ It was suggested that GM may have not patented its technology.]
Great Wall Motor
Fiat
Fiat Automobiles S.p.A. (, , ; originally FIAT, it, Fabbrica Italiana Automobili di Torino, lit=Italian Automobiles Factory of Turin) is an Italian automobile manufacturer, formerly part of Fiat Chrysler Automobiles, and since 2021 a subsidiary ...
has claimed that a Great Wall A-segment
The A-segment is the 1st category in the passenger car classification system defined by the European Commission. It is used for city cars, the smallest category of passenger cars defined.
A-segment sales represent approx. 7-8% of the market in ...
car, the Peri (''Jing Ling'' in China), is a copy of its 2nd-generation Fiat Panda.
A 2008 Italian Turin court ruling substantiated the claim stating that the Great Wall Peri, “doesn't look like a different car but is a Fiat Panda with a different front end.”
Landwind
Landwind, a new joint venture between Changan Auto and Jiangling Motors, launched the Landwind X7 SUV in 2014. Jaguar Land Rover regarded it as a copy of the Range Rover Evoque
The Land Rover Range Rover Evoque (generally known simply as the Range Rover Evoque) is a subcompact luxury crossover SUV developed and produced by Jaguar Land Rover, a British car manufacturer, under their Land Rover marque. The original Evoqu ...
, which is produced locally by Chery Jaguar Land Rover, and tried unsuccessfully to stop its production. Although the designs of the cars are similar, the X7 was almost three times as cheap as the Evoque when the former hit the market. Prices of the X7 started at 135,000 renminbi (US$21,700 as of August 2015), while the starting price of the Evoque amounted to ¥398,000 (US$64,000 as of August 2015). Kits for the X7 are sold in China in order to make the car look more like the Evoque. Such kits include the grille, logos, and badges of the Evoque.
Jaguar Land Rover's first response came during the Guangzhou Auto Show in November 2014, when car designer Ian Callum, who works for Jaguar
The jaguar (''Panthera onca'') is a large cat species and the only living member of the genus '' Panthera'' native to the Americas. With a body length of up to and a weight of up to , it is the largest cat species in the Americas and the th ...
, tweeted pictures of the car and pointed out the resemblance between the X7 and the Evoque. Furthermore, the company stated that it was investigating whether the Evoque's design elements were copied by Jiangling Motors, Landwind's parent company, and that it would "take whatever steps are appropriate to protect its intellectual property." Jaguar Land Rover later went to court in China, but its complaints were dismissed in early 2015. At the 2015 edition of Auto Shanghai, Jaguar Land Rover's CEO Ralf Speth said he regretted "that all of a sudden, copy-paste is coming up again." He added that his company could not do anything, since there were no laws against copying cars.
Both Jaguar Land Rover and Jiangling Motors had filed design patents for the Evoque and the X7, respectively, but both patents were annulled in 2016. The patent for the exterior design of the Evoque in China was declared invalid in April by the Chinese intellectual property regulator, because the car was unveiled before the patent was filed in China in November 2011. The nullification happened at the request of Jiangling Motors. The X7's patent was annulled on May 16 at Jaguar Land Rover's request, because the design was too related to the Evoque's design.
In June 2016, Jaguar Land Rover took legal action against Jiangling Motors again in a Beijing court. The car manufacturer blamed Jiangling for copyright infringement and unfair competition. It was a rare move; most non-Chinese car manufacturers choose not to go to court over design copying by Chinese companies because of the small likelihood of winning such lawsuit. In the same month, an unnamed source said to '' Reuters'' that Jiangling had agreed with Jaguar Land Rover it would not export the X7 to Brazil. According to that same source, both companies had also discussed what would be acceptable in a design update for the X7.
Lifan
Lifan's 320
__NOTOC__
Year 320 (Roman numerals, CCCXX) was a leap year starting on Friday (link will display the full calendar) of the Julian calendar. At the time, it was known as the Year of the Consulship of Constantinus and Constantinus (or, less freq ...
model looks very similar in appearance to the current Mini.
Shuanghuan
The Shuanghuan Noble
The Shuanghuan Noble (also sold as the Shuanghuan Bubble, the Martin Motors Noble and the Martin Motors Bubble) is a 4-seater Chinese hatchback that was made by Shuanghuan Auto. It was sold in various European and Asian countries and has generated ...
has caused numerous controversies, with Mercedes-Benz even filing a lawsuit against Shuanghuan because of its similarities with the Smart Fortwo. Mercedes-Benz also persuaded the Italian court to prohibit the car from being exhibited at the Bologna Motor Show, but the Shuanghuan Noble
The Shuanghuan Noble (also sold as the Shuanghuan Bubble, the Martin Motors Noble and the Martin Motors Bubble) is a 4-seater Chinese hatchback that was made by Shuanghuan Auto. It was sold in various European and Asian countries and has generated ...
car was put on display anyway.
In May 2009, a Greek judge ruled against Daimler
Daimler is a German surname. It may refer to:
People
* Gottlieb Daimler (1834–1900), German inventor, industrialist and namesake of a series of automobile companies
* Adolf Daimler (1871–1913), engineer and son of Gottlieb Daimler
* Paul Da ...
and cleared the car allowing sales to begin in Greece. The judge answering to Daimler's demand to ban the Chinese vehicle from entering the Greek market said that "The impression the Noble makes on a third and informed party by its visual appearance is different to the one that is made to the same person by the Smart... It is commonly accepted that the decision over buying a new car cannot be based only on the exterior characteristics but many other technical specifications such as the power of the engine, fuel consumption, trim specification, retail price and dealers’ network."
The ruling states that the latter party's doings "cannot possibly misguide the public" as the German company claimed in its legal request. The judge noted the salient fact that "the plaintiff is no longer selling the specific generation of the Smart which claims to have been copied, but a different vehicle, with much different characteristics."
Today
The Today Sunshine M1 electric microcar shares multiple design features with the second-generation Mini Countryman, monst notably in the front end.
Zotye
German automaker Porsche
Dr. Ing. h.c. F. Porsche AG, usually shortened to Porsche (; see #Pronunciation, below), is a German automobile manufacturer specializing in high-performance sports cars, SUVs and sedans, headquartered in Stuttgart, Baden-Württemberg, Germany ...
threatened Zotye
Zotye Auto (; officially Zotye International Automobile Trading Co., Ltd.) was a privately owned Chinese automobile manufacturer based in Yongkang, Zhejiang, China. It was owned by Zotye Holding Group and was established in 2005 and known for it ...
with legal action after it revealed the Zotye SR9 in 2016, which is said to resemble the Porsche Macan. The car has been described as a "complete knockoff", with many aspects of the exterior and interior resembling the Macan.[China's Zotye rolling out Porsche Macan knockoff , CarAdvice](_blank)
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The Zotye SR9 gained notoriety on Chinese social media after a woman dumped her boyfriend for claiming that his SR9 was in fact a Porsche. The two vehicles are priced at 170,000 RMB and 588,000 RMB, respectively.
Other Zotye models have been said to resemble Volkswagen, Audi and Daihatsu models.
Ora
Ora's Lightning Cat model looks very similar in appearance to the current Porsche 911
The Porsche 911 (pronounced ''Nine Eleven'' or in german: Neunelfer) is a two-door 2+2 high performance rear-engined sports car introduced in September 1964 by Porsche AG of Stuttgart, Germany. It has a rear-mounted flat-six engine and origin ...
and it's body style looks like Porsche Panamera.
Cherry
Chery Arrizo 3's headlights looks similar in appearance to the Toyota Corolla (E170) US version's.
the taillight of the Chery Omoda 5
The Chery Omoda 5 () is a compact crossover SUV produced by Chery since 2022.
The Omoda 5 is part of Omoda, which is one of Chery's product series alongside the Tiggo series. According to Chery, the letter "O" from Omoda represents "brand new", w ...
is a total copycat of the first generation of Lexus NX's.
JAC
the taillight of the JAC Refine S5
The JAC Refine S5 is a Compact crossover, Compact CUV that was produced by JAC Motors and positioned above the slightly smaller Refine S3, JAC Refine S3.
Overview
Previewed by the JAC Eagle SII concept on the 2012 Beijing Auto Show and originally ...
is very similar to the tail light of Audi Q5 2013.
Threats to disclose industry secrets
'' The Wall Street Journal'' reported that the government of China will be forcing foreign carmakers to disclose their electric vehicle
An electric vehicle (EV) is a vehicle that uses one or more electric motors for propulsion. It can be powered by a collector system, with electricity from extravehicular sources, or it can be powered autonomously by a battery (sometimes cha ...
technology secrets before the vehicles are allowed to be sold in China. The current Chinese automotive policy states that a foreign carmaker must form a joint-venture with a Chinese carmaker if the former plans to sell its electric vehicles there, with the Chinese carmaker owning 51% of the joint venture.
Due to this supposed threat by the Chinese government, Toyota postponed the launch of the current-generation Prius until they learn more about the plan.
According to ''The New York Times'', GM was asked to disclose key technological information on the Volt. Failure to do so would result in not qualifying for substantial (up to $19000) subsidies.
In 2011, China was believed to be behind the theft of information from Renault. In 2013 a US couple was sentenced to jail time for revealing GM trade secrets to Chery.
In 2014 it was noted there are "stringent" and "extreme" requirements for intellectual property transfer in order to sell to the Chinese market. Imported electric vehicles are subject to high taxes and no subsidies.
In 2017, the US government signaled willingness to investigate such forced technology transfers.
Alternative fuel vehicles
China encourages the development of clean and fuel efficient vehicles in an effort to sustain continued growth of the country's automobile industry (see Fuel economy in automobiles
The fuel economy of an automobile relates distance traveled by a vehicle and the amount of fuel consumed. Consumption can be expressed in terms of volume of fuel to travel a distance, or the distance traveled per unit volume of fuel consumed. S ...
). By the end of 2007, China plans to reduce the average fuel consumption per 100 km for all types of vehicles by 10%. The proportion of vehicles burning alternate fuel
Alternative fuel, known as non-conventional and advanced fuels, are any materials or substances that can be used as fuels, other than conventional fuels like; ''fossil fuels'' (petroleum (oil), coal, and natural gas), as well as nuclear materi ...
will be increased to help optimize the country's energy consumption
Energy consumption is the amount of energy used.
Biology
In the body, energy consumption is part of energy homeostasis. It derived from food energy. Energy consumption in the body is a product of the basal metabolic rate and the physical activity ...
. Priority will be given to facilitating the research and development
Research and development (R&D or R+D), known in Europe as research and technological development (RTD), is the set of innovative activities undertaken by corporations or governments in developing new services or products, and improving existi ...
of electric and hybrid vehicles as well as alternate fuel vehicles, especially CNG/ LNG. Major cities like Beijing and Shanghai already require Euro-3 emission standards. On March 10, 2008, Beijing became the first city to require light-duty vehicles to meet China-4 emission standard, which was equivalent to Euro-4. Beijing shifted its emission standards to the fifth-stage standards for light-duty and heavy-duty vehicles in January 2013 and August 2015, respectively. On 12 April 2016, the Ministry of Environmental Protection (MEP) released the proposal for light-duty China-6 standard.
Electric vehicles (EV) and Fuel cell vehicles (FCV)
Due to serious air pollution problems and ever-increasing traffic, alternative-energy vehicle production is an area of strong focus for the Chinese government, and several NEV-friendly policies have appeared at the national and local level as a result. In many cities, free licenses — otherwise a significant expenditure for traditional vehicles — are provided for electric vehicle owners, along with exemptions for registry lotteries. These kinds of policies have created strong interest in new energy vehicles within China.
The Chinese Automotive Industry Plan
Chinese can refer to:
* Something related to China
* Chinese people, people of Chinese nationality, citizenship, and/or ethnicity
**'' Zhonghua minzu'', the supra-ethnic concept of the Chinese nation
** List of ethnic groups in China, people of v ...
, announced on the main Web site of China's central government, said China aims to create capacity to produce 500,000 new energy vehicles
A plug-in electric vehicle (PEV) is any road vehicle that can utilize an external source of electricity (such as a wall socket that connects to the power grid) to store electrical power within its onboard rechargeable battery packs, which then ...
, such as battery electric cars and plug-in hybrid vehicles. The plan aims to increase sales of such new-energy cars to account for about 5% of China's passenger vehicle
A car or automobile is a motor vehicle with wheels. Most definitions of ''cars'' say that they run primarily on roads, seat one to eight people, have four wheels, and mainly transport people instead of goods.
The year 1886 is regarded as t ...
sales. At the 2010 Beijing Motor Show
}
Beijing ( ; ; ), alternatively romanized as Peking ( ), is the capital of the People's Republic of China. It is the center of power and development of the country. Beijing is the world's most populous national capital city, with over 21 ...
, more than 20 electric vehicles were on display, most of which came from native automakers. As of May 2010, at least 10 all-electric models have been reported to be on track for volume-production. The first mass-produced plug-in hybrid car ( BYD F3DM), all-electric minivan ( BYD e6) and all-electric long-range bus (BYD K9
The BYD K-series bus (sometimes just referred to as the BYD ebus or BYD electric bus) are a line of battery electric buses manufactured by the Chinese automaker BYD, powered with its self-developed lithium iron phosphate battery, featuring a ty ...
) are Chinese.
New energy vehicle sales between January 2011 and March 2016, totaled 502,572 units, of which, over 92% were sold between January 2014 and March 2016. These figures include heavy-duty commercial vehicles such buses and sanitation trucks. These figures only include vehicles manufactured in the country as imports are not subject to government subsidies. , the Chinese stock of plug-in electric vehicles consist of 366,219 all-electric vehicles (72.9%) and 136,353 plug-in hybrids (27.1%).
, China is the world's largest electric bus market, and by 2020, the country was expected to account for more than 50% of the global electric bus market. China also is the world's leader in the plug-in heavy-duty segment, including electric buses, plug-in trucks, particularly sanitation/garbage trucks.[ ''Cumulative global sales totaled over 1 million highway legal plug-in electric passenger cars and light-duty vehicles by mid-September 2015.''][ ''Download EVS in China (full report). See Table 2: Chinas's EV Sales by Brand, 2011-2013, pp.19.'']
A September 2018 update by CNBC included a prediction that the market share of China's electric vehicles will grow by 40% in the short term and that China expected total annual sales of electric and gasoline-electric hybrid vehicles to be 2 million by 2020. The government was encouraging the purchase of such cars with a short wait time for a new license plate and with government-backed discounts of up to 40% on electric vehicles. In 2018, new-energy vehicles accounted for about 3% of China's new car sales; that was expected to increase to over 30% by 2030 according to an estimate by the Japanese Mizuho Bank
is the integrated retail and corporate banking unit of Mizuho Financial Group (; ), the third largest financial services company in Japan, with total assets of approximately $1.8 trillion in 2017. Mizuho is one of the three so-called Japanese ...
.[Chinese electric-car makers charge ahead, powered by state - Nikkei Asian Review]
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The country has a significant benefit over others. Some two-thirds of the world's lithium-ion batteries are made in China and the country's EV manufacturing facilities are close to the source these components. In October 2018, Tesla purchased land for the construction of an EV manufacturing plant in Shanghai's Lingang area. By then, VW had already begun construction of its EV factory, with a planned annual capacity of 300,000 SAIC-VW MEB-platform vehicles, starting with three battery-electric vehicles and two plug-in hybrids. Toyota Motor had already launched sales of an EV branded under Guangzhou Automobile Group; the two companies have a joint venture in China.
Sales
In China, authorized car dealership are called 4S car shops. The 4S represents Sales (整車销售 ), Spare parts (零配件), Service (售後服务) and Survey (信息反馈).
In most cases, brand-name new cars can only be purchased from 4S shops. For new cars in high demand, a high premium is added for instant delivery or just placing an order.
The profit of car dealers in China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
is quite high compared to the rest of the world, in most cases 10%. This is supposedly due to the 'non-transparent invoice price' as announced by manufactures and to the premiums they charge for quick delivery. Due to the lack of knowledge for most customers, dealers can sell add-ons at much higher prices than the aftermarket.
There is no regulation by either the government or associations but some retailers are members of the China Automobile Dealers Association (CADA).
Exports
, exports of Chinese automobiles were about 1 million vehicles per year and rapidly increasing. Most sales were made to emerging economies such as Afghanistan, Algeria, Brazil, Chile, Colombia, Costa Rica, Ecuador, Egypt, Iraq, Iran, Libya, Mexico, North Korea, Peru, the Philippines, Russia, Saudi Arabia, South Africa, or Turkey where a Chinese-made automobile such as a Geely, Great Wall, or Chery sells for about half of what a comparable model manufactured by a multinational brand such as Toyota does. Cars made in China by multinational joint ventures are generally not exported. The quality of Chinese cars is increasing rapidly but, according to J. D. Power and Associates in 2012, it was not expected to reach parity with multinational manufacturers until about 2018.
Most of cars manufactured in China are sold within the country; in 2011, exports totalled 814,300 units. China's home market provides its automakers a solid base and Chinese economic planners hope to build globally competitive auto companies that will become more and more attractive and reliable over the years. In 2017, the country exported roughly 891,000 vehicles. In that year, the value of exports was nearly $70 billion in auto parts and $14 billion in cars, while total imports (parts and vehicles) totalled about $90 billion.China's Carmakers Have a Strong Home Front in the Trump Trade War - Bloomberg
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See also
*Economy of China
The China, People's Republic of China has an upper middle income Developing country, developing Mixed economy, mixed socialist market economy that incorporates economic planning through Industrial policy, industrial policies and strategic Five- ...
* Electric vehicle industry in China
The electric vehicle industry in China is the largest in the world, accounting for around 57.4% of global production of electric vehicles (EVs) and around 500,000 exports in 2021. In 2021, CAAM reported China had sold 3.34 million passenger ele ...
* Motorcycle industry in China
* Military vehicles of China
A military, also known collectively as armed forces, is a heavily armed, highly organized force primarily intended for warfare. It is typically authorized and maintained by a sovereign state, with its members identifiable by their distinct ...
* Pollution in China
* Renewable electricity
* Renewable energy in China
References
External links
Anderson, Greg, ''Designated Drivers: How China Plans to Dominate the Global Auto Industry'', book talk at the USC U.S.-China Institute, 2012.
China Association of Automobile Manufacturers
Statistical Information Network of China Association of Automobile Manufacturers
(in Chinese)
China Society of Automotive Engineering
China Council for the Promotion of International Trade Branch of the automotive industry
China National Automotive Industry International
China Corp. 2015 - Auto Industry
CA Chine-AnalysePublished May, 2015
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