Automobile industry in China
Encyclopedia
Automotive industry in the People's Republic of China has become the largest automotive market
Automotive industry
The automotive industry designs, develops, manufactures, markets, and sells motor vehicles, and is one of the world's most important economic sectors by revenue....

 in the world since late 2008. China's automobile industry has been in rapid development
Economic growth
In economics, economic growth is defined as the increasing capacity of the economy to satisfy the wants of goods and services of the members of society. Economic growth is enabled by increases in productivity, which lowers the inputs for a given amount of output. Lowered costs increase demand...

 since the early 1990s. In 2009, China produced 13.79 million automobiles, of which 8 million were passenger cars (sedans, sport utility vehicles (SUV)
Sport utility vehicle
A sport utility vehicle is a generic marketing term for a vehicle similar to a station wagon, but built on a light-truck chassis. It is usually equipped with four-wheel drive for on- or off-road ability, and with some pretension or ability to be used as an off-road vehicle. Not all four-wheel...

, multi-purpose vehicles (MPV)
Minivan
Minivan is a type of van designed for personal use. Minivans are typically either two-box or one box designs for maximum interior volume – and are taller than a sedan, hatchback, or a station wagon....

 and crossovers), and 3.41 million were commercial vehicles (bus
Bus
A bus is a road vehicle designed to carry passengers. Buses can have a capacity as high as 300 passengers. The most common type of bus is the single-decker bus, with larger loads carried by double-decker buses and articulated buses, and smaller loads carried by midibuses and minibuses; coaches are...

es, truck
Truck
A truck or lorry is a motor vehicle designed to transport cargo. Trucks vary greatly in size, power, and configuration, with the smallest being mechanically similar to an automobile...

s, and tractor
Tractor
A tractor is a vehicle specifically designed to deliver a high tractive effort at slow speeds, for the purposes of hauling a trailer or machinery used in agriculture or construction...

s). Of the automobiles produced, 44.3% are local brands (BYD
BYD Auto
BYD Automobile Co Ltd is a Chinese automobile manufacturer based in Shenzhen, Guangdong Province...

, Lifan, Chang'an (Chana)
Chang'an Motors
Chang'an Automobile Co Ltd is an automobile manufacturer in Chongqing, China, and a state-owned enterprise with China Weaponry Equipment as parent....

, Geely
Geely Automobile
Zhejiang Geely Holding Group is a holding company and parent of Geely Automobile Holdings Ltd a private automobile manufacturer. Geely may often round out the top ten Chinese automakers....

, Chery
Chery Automobile
Chery Automobile Co Ltd is a state-owned automobile manufacturer in the People's Republic of China.Chery became the 7th most-productive Chinese vehicle manufacturer in 2010, selling nearly 700,000 units.-History:...

, Hafei
Hafei
Hafei, officially the Harbin HF Automobile Industry Group Co Ltd , is a Chinese holding company whose subsidiaries make automobile engines; sedans; MPVs; and mini vehicles, small trucks and vans that see commercial use...

, Jianghuai (JAC)
Anhui Jianghuai Automobile
JAC Motors is a Chinese state-owned automobile and commercial vehicle manufacturer. The company is based in Hefei, Anhui Province, China....

, Great Wall, Roewe, etc.), the rest being produced by joint ventures with foreign car makers such as Volkswagen
Volkswagen
Volkswagen is a German automobile manufacturer and is the original and biggest-selling marque of the Volkswagen Group, which now also owns the Audi, Bentley, Bugatti, Lamborghini, SEAT, and Škoda marques and the truck manufacturer Scania.Volkswagen means "people's car" in German, where it is...

, Mitsubishi
Mitsubishi
The Mitsubishi Group , Mitsubishi Group of Companies, or Mitsubishi Companies is a Japanese multinational conglomerate company that consists of a range of autonomous businesses which share the Mitsubishi brand, trademark and legacy...

, General Motors
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...

, Hyundai
Hyundai Motor Company
Hyundai Motor Company is a Korean multinational automaker based in Seoul, South Korea which, along with Kia, comprises the Hyundai Kia Automotive Group, the world's fourth largest automaker as of 2009. As of 2011, it is the world's fastest growing automaker for two years running...

, Nissan, Honda
Honda
is a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles.Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than...

, Toyota etc. Most of the cars manufactured in China are sold within China, with only 369,600 cars being exported in 2009.

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
World Trade Organization
The World Trade Organization is an organization that intends to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade , which commenced in 1948...

 (WTO) in 2001, the development of the automobile market further accelerated. Between 2002 and 2007, China's national automobile market grew by an average 21 percent, or one million vehicles year-on-year. In 2006, China’s vehicle production capacity successively exceeded six, then seven million, and in 2007, China produced over eight million automobiles. In 2009, 13.759 million motor vehicle
Motor vehicle
A motor vehicle or road vehicle is a self-propelled wheeled vehicle that does not operate on rails, such as trains or trolleys. The vehicle propulsion is provided by an engine or motor, usually by an internal combustion engine, or an electric motor, or some combination of the two, such as hybrid...

s were manufactured in China, surpassing United States as the world's largest automobile market in the world. In 2010, both sales and production topped 18 million units, with 13.76 million passenger cars delivered, this is a new world record for the most number of cars sold in a single country in human history.

The number of registered cars, buses, vans, and trucks on the road in China reached 62 million in 2009, and is expected to exceed 200 million by 2020.

The consultancy McKinsey & Company
McKinsey & Company
McKinsey & Company, Inc. is a global management consulting firm that focuses on solving issues of concern to senior management. McKinsey serves as an adviser to many businesses, governments, and institutions...

 estimates that China's car market will grow tenfold between 2005 and 2030.

The main national industry group is the China Association of Automobile Manufacturers (中国汽车工业协会).

Automotive

China surpassed Japan to become the world's No. 2 vehicle market in 2006 and passed the United States to be the biggest in 2009. This growth is spurring demand for automotive parts, services, and after-care products. China is presently capable of manufacturing a complete line of automobile products and large automotive enterprises. Major domestic firms include the China First Automobile Group Corp.
First Automobile Works
FAW Group Corporation is a state-owned enterprise with publicly traded subsidiaries: FAW Car Company , Tianjin FAW Xiali Automobile Co Ltd , Changchun FAWAY Automobile Components Co Ltd ....

 (FAW), Dongfeng Motor Corp. (DMC) and Shanghai Automotive Industry (Group) Corp. (SAIC).

China had a total of 6322 automotive enterprises by the end of November 2006. The total output value of the automotive sector for the first three quarters of 2006 was US$143 billion. As incomes increase the high annual growth rate of private ownership is expected to accelerate.

Alternate fuel vehicles

China encourages the development of clean and fuel efficient
Fuel efficiency
Fuel efficiency is a form of thermal efficiency, meaning the efficiency of a process that converts chemical potential energy contained in a carrier fuel into kinetic energy or work. Overall fuel efficiency may vary per device, which in turn may vary per application, and this spectrum of variance is...

 vehicles in an effort to sustain continued growth of the country’s automobile industry (see Fuel economy in automobiles
Fuel economy in automobiles
Fuel usage in automobiles refers to the fuel efficiency relationship between distance traveled by an automobile and the amount of fuel consumed....

). 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 will be increased to help optimize the country's energy consumption
World energy resources and consumption
]World energy consumption in 2010: over 5% growthEnergy markets have combined crisis recovery and strong industry dynamism. Energy consumption in the G20 soared by more than 5% in 2010, after the slight decrease of 2009. This strong increase is the result of two converging trends...

. Priority will be given to facilitating the research and development
Research and development
The phrase research and development , according to the Organization for Economic Co-operation and Development, refers to "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of...

 of electric and hybrid vehicles as well as alternate fuel vehicles, especially CNG
Compressed natural gas
Compressed natural gas is a fossil fuel substitute for gasoline , diesel, or propane/LPG. Although its combustion does produce greenhouse gases, it is a more environmentally clean alternative to those fuels, and it is much safer than other fuels in the event of a spill...

/LNG. Major cities like Beijing
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...

 and Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...

 already require Euro III emission standards.In 2009,Beijing will be the first city to require GUO IV emission standards(Euro IV emission standards).

Electric vehicles

The Chinese Automotive Industry Plan, announced on the main Web site of China's central government, said China aims to create capacity to produce 500,000 "new energy" vehicles, 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 sales. At the 2010 Beijing Motor Show, 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
BYD F3DM
The BYD F3DM is a plug-in hybrid compact sedan manufactured by BYD Auto with an all-electric range of and a hybrid electric powertrain that can extend the range an additional . The F3DM is the world's first mass produced plug-in hybrid automobile and went on sale to government agencies and...

), all-electric minivan (Luxgen
Luxgen
LUXGEN Motors is a Taiwanese automaker. It was initially a private brand, announced by Yulon on January 6, 2009. The name "Luxgen" is formed by combining "Luxury" and "Genius". The company's slogan is "Think Ahead"...

 7 MPV EV) and all-electric long-range bus (500 km range Zonda Bus) are Chinese.

China subsidies
Subsidy
A subsidy is an assistance paid to a business or economic sector. Most subsidies are made by the government to producers or distributors in an industry to prevent the decline of that industry or an increase in the prices of its products or simply to encourage it to hire more labor A subsidy (also...

 oil and some Chinese automakers see opportunities in less mature electric vehicle
Electric vehicle
An electric vehicle , also referred to as an electric drive vehicle, uses one or more electric motors or traction motors for propulsion...

s because Western companies have yet to develop much of a lead in the technology.

Auto parts

Currently auto parts and accessories enjoy lower levels of tariff
Tariff
A tariff may be either tax on imports or exports , or a list or schedule of prices for such things as rail service, bus routes, and electrical usage ....

s than cars (the average tariff is 10-13% for parts/accessories and 25% for cars). China has agreed to lower tariffs on imported auto parts and accessories to 10%. Although this difference in duty
Duty (economics)
In economics, a duty is a kind of tax, often associated with customs, a payment due to the revenue of a state, levied by force of law. It is a tax on certain items purchased abroad...

 rate was initially responsible for an increase in motorcycle and car kit imports, the loophole
Loophole
A loophole is a weakness that allows a system to be circumvented.Loophole may also refer to:*Arrowslit, a slit in a castle wall*Loophole , a short science fiction story by Arthur C...

 has been tightened. Now, only replacement parts and accessories enter China under the lower duty level.

Used motor vehicles and used/refurbished auto parts

Although there are case-by-case exceptions for antiques and diplomat
Diplomat
A diplomat is a person appointed by a state to conduct diplomacy with another state or international organization. The main functions of diplomats revolve around the representation and protection of the interests and nationals of the sending state, as well as the promotion of information and...

s, it is currently illegal to import used motor vehicles into China. Refurbished heavy construction equipment can be imported with a special permit. Used and refurbished auto parts are not allowed to be imported into China.

Automotive after-sales products and services

Although improvements have been made in this field in the past decade, China's after-sales products and services still lag far behind those of developed countries. However, WTO commitments have brought about significant changes in the after-sale market. China’s aftercare market now faces the following challenges:
  • Establishing an information feedback
    Feedback
    Feedback describes the situation when output from an event or phenomenon in the past will influence an occurrence or occurrences of the same Feedback describes the situation when output from (or information about the result of) an event or phenomenon in the past will influence an occurrence or...

     system with end-user
    End-user
    Economics and commerce define an end user as the person who uses a product. The end user or consumer may differ from the person who purchases the product...

    s in order to improve service;
  • Modernizing outdated sales
    Sales
    A sale is the act of selling a product or service in return for money or other compensation. It is an act of completion of a commercial activity....

     systems;
  • Increasing the competitiveness of domestic auto part
    Auto part
    This is a list of auto parts, which are manufactured components of automobiles:-Body and exterior:Body components, including windows and trim:-Engine cooling system:* Air blower* Coolant hose* Cooling fan* Fan blade* Fan clutch* Radiator...

    s, accessories and aftermarket kits;
  • Clamping down on counterfeit
    Counterfeit
    To counterfeit means to illegally imitate something. Counterfeit products are often produced with the intent to take advantage of the superior value of the imitated product...

     products.

Car dealerships

In China, authorized car dealership are called 4S car shops. The 4S represents Sale, Sparepart, Service and Survey.
整车销售(Sale)、零配件(Sparepart)、售后服务(Service)、信息反馈(Survey).

In most cases, brand-name new cars can be purchased only 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
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...

 is quite high comparing to the rest of the world, in most cases 10%. This is 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.

1928-1949

  • Zhang Xueliang
    Zhang Xueliang
    Zhang Xueliang or Chang Hsüeh-liang , occasionally called Peter Hsueh Liang Chang in English, nicknamed the Young Marshal , was the effective ruler of Manchuria and much of North China after the assassination of his father, Zhang Zuolin, by the Japanese on 4 June 1928...

     founded his arsenal to make one truck called Ming Sheng in 1931
  • Another general, Yang Hucheng
    Yang Hucheng
    Yang Hucheng was a Chinese warlord during the Warlord Era of Republican China and Kuomintang general during the Chinese Civil War....

    , patronized the inventor Tang Zhongming
    Tang Zhongming
    Tang Zhongming was a Chinese engineer and inventor. In 1931, he created an internal combustion engine powered by charcoal and mounted it in an automobile.-External links:*...

     to make a new type of mobile energized by charcoal
    Charcoal
    Charcoal is the dark grey residue consisting of carbon, and any remaining ash, obtained by removing water and other volatile constituents from animal and vegetation substances. Charcoal is usually produced by slow pyrolysis, the heating of wood or other substances in the absence of oxygen...

    .

1949-1980

  • 1956: The first modern automobile factory First Automobile Works
    First Automobile Works
    FAW Group Corporation is a state-owned enterprise with publicly traded subsidiaries: FAW Car Company , Tianjin FAW Xiali Automobile Co Ltd , Changchun FAWAY Automobile Components Co Ltd ....

     began production.
  • March 10, 1958: The first 2½ ton light duty truck (NJ130), which was based on Russian GAZ-51
    GAZ-51
    The GAZ-51 is the best known, most popular, and longest produced Soviet truck. Its first prototypes were produced before the end of World War II, and mass production started in 1946....

    , was produced in Nanjing. The truck was named Yuejin (meaning "leap forward") by China's First Ministry of Industrial Machinery.
  • June 1958: Nanjing Automobile Works, previously a vehicle servicing unit of the Army, was established. The truck 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).
  • late 1950s to 1960s: Several automobile factories were set up in Nanjing
    Nanjing
    ' is the capital of Jiangsu province in China and has a prominent place in Chinese history and culture, having been the capital of China on several occasions...

     (today is Nanjing Automobile (Group) Corporation), Shanghai
    Shanghai
    Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...

     (today is Shanghai Automotive Industry Corporation), Jinan
    Jinan
    Jinan is the capital of Shandong province in Eastern China. The area of present-day Jinan has played an important role in the history of the region from the earliest beginnings of civilisation and has evolved into a major national administrative, economic, and transportation hub...

     (evolving into China National Heavy Duty Truck Group
    China National Heavy Duty Truck Group
    China National Heavy Duty Truck Group Company Limited , CNHTC or Sinotruk Group is a truck manufacturing state-owned enterprise headquartered in Jinan, Shandong, People's Republic of China. It is currently the third largest truck manufacturer in Mainland China...

    ), and Beijing
    Beijing
    Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...

     (today is Beijing Automotive Industry Holding Corporation
    Beijing Automotive Industry Holding Corporation
    Beijing Automotive Industry Holding Co Ltd is a state-owned enterprise and holding company of several Chinese automobile and machine manufacturers, such as Beijing Automobile Works Co Ltd, etc. Beijing Automotive Industry Holding Co Ltd 's state-run parents may include Beijing Automotive Group ,...

    ).
  • 1968: The Second Automobile Works (later Dongfeng Motor Corporation) was founded.

1980s

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. As domestic production could not meet demand,import totals rose dramatically, despite a 260 per cent import duty on foreign vehicles. 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 Crown
Toyota Crown
The Toyota Crown is a line of full-size luxury sedans by Toyota. The range was primarily available in Japan and some other Asian countries, originally designed to serve as a taxi...

s and Nissan Bluebird
Nissan Bluebird
Although Nissan's own materials indicate that the Bluebird name emerged in 1959, some records show that the name first adorned a 988 cc, four-door sedan in 1957, which was part of the company's 210 series...

s.

China’s answer to the import binge was to sign a series of joint-venture passenger car production agreements. In 1983, American Motors Corporation (AMC, later acquired by Chrysler Corporation) signed a 20-year contract to produce their Jeep
Jeep
Jeep is an automobile marque of Chrysler . The first Willys Jeeps were produced in 1941 with the first civilian models in 1945, making it the oldest off-road vehicle and sport utility vehicle brand. It inspired a number of other light utility vehicles, such as the Land Rover which is the second...

-model vehicles in Beijing. The following year, Germany’s Volkswagen
Volkswagen
Volkswagen is a German automobile manufacturer and is the original and biggest-selling marque of the Volkswagen Group, which now also owns the Audi, Bentley, Bugatti, Lamborghini, SEAT, and Škoda marques and the truck manufacturer Scania.Volkswagen means "people's car" in German, where it is...

 signed a 25-year contract to make passenger cars in Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...

, and France’s Peugeot
Peugeot
Peugeot is a major French car brand, part of PSA Peugeot Citroën, the second largest carmaker based in Europe.The family business that precedes the current Peugeot company was founded in 1810, and manufactured coffee mills and bicycles. On 20 November 1858, Emile Peugeot applied for the lion...

 agreed to another passenger car project to make vehicles in the prosperous southern city of Guangzhou
Guangzhou
Guangzhou , known historically as Canton or Kwangchow, is the capital and largest city of the Guangdong province in the People's Republic of China. Located in southern China on the Pearl River, about north-northwest of Hong Kong, Guangzhou is a key national transportation hub and trading port...

.

Three big joint-ventures and three small joint-ventures:
  • Shanghai Automotive Industry Corporation - Volkswagen
    Volkswagen
    Volkswagen is a German automobile manufacturer and is the original and biggest-selling marque of the Volkswagen Group, which now also owns the Audi, Bentley, Bugatti, Lamborghini, SEAT, and Škoda marques and the truck manufacturer Scania.Volkswagen means "people's car" in German, where it is...

    : Santana
    Volkswagen Passat
    The Volkswagen Passat is a large family car marketed by Volkswagen Passenger Cars through six design generations since 1973. Between the Volkswagen Golf / Volkswagen Jetta and the Volkswagen Phaeton in the current Volkswagen line-up, the Passat and its derivatives have been badged variously as...

     mid-size/compact car.
  • First Automobile Works
    First Automobile Works
    FAW Group Corporation is a state-owned enterprise with publicly traded subsidiaries: FAW Car Company , Tianjin FAW Xiali Automobile Co Ltd , Changchun FAWAY Automobile Components Co Ltd ....

     - Volkswagen
    Volkswagen
    Volkswagen is a German automobile manufacturer and is the original and biggest-selling marque of the Volkswagen Group, which now also owns the Audi, Bentley, Bugatti, Lamborghini, SEAT, and Škoda marques and the truck manufacturer Scania.Volkswagen means "people's car" in German, where it is...

    : Volkswagen Jetta
    Volkswagen Jetta
    Although the Golf had reached considerable success, in the North American markets, Volkswagen observed that the hatchback body style lacked some of the appeal to those who preferred the traditional three-box configuration...

     compact car.
  • Dongfeng Motor Corporation - Citroën
    Citroën
    Citroën is a major French automobile manufacturer, part of the PSA Peugeot Citroën group.Founded in 1919 by French industrialist André-Gustave Citroën , Citroën was the first mass-production car company outside the USA and pioneered the modern concept of creating a sales and services network that...

    : Citroën Fukang
    Citroën Fukang
    The Fukang was the first in a range of cars produced for the Chinese market by the Dongfeng Peugeot-Citroën Automobile group, a joint venture between the French PSA Peugeot Citroën and a Chinese manufacturer Dongfeng....

     compact car.

  • Beijing Automotive Industry
    Beijing-Benz DaimlerChrysler Automotive
    Beijing Benz - Daimler Chrysler Automotive Co Ltd is a Chinese car manufacturer. It is also known as BBDC, but as its legal name may have recently been changed to Beijing Benz Automotive Co Ltd, BBAC may now be the preferred acronym....

     - Hyundai Motor - DaimlerChrysler
    DaimlerChrysler
    Daimler AG is a German car corporation. By unit sales, it is the thirteenth-largest car manufacturer and second-largest truck manufacturer in the world. In addition to automobiles, Daimler manufactures buses and provides financial services through its Daimler Financial Services arm...

    : Jeep Cherokee
    Jeep Liberty
    Inspired by styling from the Dakar and Jeepster concept cars, the Liberty was intended as a replacement for the discontinued Jeep Cherokee . Three trim levels were initially offered; the top end Limited, a more rugged looking Renegade and the base Sport. All were made available with either 2WD or 4WD...

    .
  • Guangzhou Automobile Industry Group
    Guangzhou Automobile Industry Group
    Guangzhou Automobile Group Co Ltd , is a Chinese automobile maker and a subsidiary of Guangzhou Automobile Industry Group, a holding company....

     - Peugeot
    Peugeot
    Peugeot is a major French car brand, part of PSA Peugeot Citroën, the second largest carmaker based in Europe.The family business that precedes the current Peugeot company was founded in 1810, and manufactured coffee mills and bicycles. On 20 November 1858, Emile Peugeot applied for the lion...

     : Peugeot 504
    Peugeot 504
    The Peugeot 504 is a large family car manufactured by French automaker Peugeot between 1968 and 1983, with licensed production continuing until 2006.-1968 — introduction:...

     (subsequently defunct). (However, in the 90s, Honda replaced Peugeot as the partner of Guangzhou Auto, and producing the Accord
    Honda Accord
    The Honda Accord is a series of compact, mid-size and full-size automobiles manufactured by Honda since 1976, and sold in a majority of automotive markets throughout the world....

     and the Fit
    Honda Fit
    The Honda Jazz is a five-door hatchback subcompact manufactured by the Honda Motor Company of Japan, first introduced in June 2001 and is now in its second generation. The Jazz shares Honda's Global Small Car Platform with the City/Fit Aria, Airwave/Partner, Mobilio, Mobilio Spike, Freed and Freed...

     with huge success. And in 2006, it started to manufacture Toyota Camry, with huge success also. Making Guangdong
    Guangdong
    Guangdong is a province on the South China Sea coast of the People's Republic of China. The province was previously often written with the alternative English name Kwangtung Province...

     province the center of Japanese makes auto manufacturing in China now.)
  • Tianjin Automotive Industry - Daihatsu : Daihatsu Charade
    Daihatsu Charade
    The Daihatsu Charade is a supermini which was first introduced in 1977. Daihatsu considers the Charade a "large compact" car to differentiate it from smaller compacts in its lineup, such as the Daihatsu Mira/Cuore...

     (merged with FAW/Toyota joint-venture).

After 1990

Several enterprises entered the automobile industry since 1994. Some of them are originated from defense industry, such as Chang'an Motors
Chang'an Motors
Chang'an Automobile Co Ltd is an automobile manufacturer in Chongqing, China, and a state-owned enterprise with China Weaponry Equipment as parent....

, Changhe
Changhe
Jiangxi Changhe Automobile Co Ltd is a car-making company based in Jingdezhen, Jiangxi province, China.Currently owned by Chang'an Motors, Changhe is engaged in a joint venture with Suzuki Motor Corporation of Japan, and manufactures products that carry the Suzuki brand.Making passenger cars and...

, and Hafei Motor
Hafei Motor
Hafei, officially the Harbin HF Automobile Industry Group Co Ltd , is a Chinese holding company whose subsidiaries make automobile engines; sedans; MPVs; and mini vehicles, small trucks and vans that see commercial use...

; some were developed from old state-owned companies, such as BYD Auto
BYD Auto
BYD Automobile Co Ltd is a Chinese automobile manufacturer based in Shenzhen, Guangdong Province...

, Brilliance China Auto
Brilliance China Auto
Brilliance China Automotive Holdings Limited is a publicly owned, Chinese investment holding company making automobiles, automotive components, and minibuses....

, Chery Automobile
Chery Automobile
Chery Automobile Co Ltd is a state-owned automobile manufacturer in the People's Republic of China.Chery became the 7th most-productive Chinese vehicle manufacturer in 2010, selling nearly 700,000 units.-History:...

, and Changfeng Automobile. Others are private-owned companies, such as Geely Automobile
Geely Automobile
Zhejiang Geely Holding Group is a holding company and parent of Geely Automobile Holdings Ltd a private automobile manufacturer. Geely may often round out the top ten Chinese automakers....

, Great Wall Motors
Great Wall Motors
Great Wall Motor Company Limited is a Chinese automobile manufacturer formed in 1976. The company is named after the Great Wall of China. As of 2010 it is China's largest SUV producer....

.

Historic Data

Automobile production by year
Year Production (in million units)
1992 1.0
1999 1.2
2000 2.07
2001 2.33
2002 3.25
2003 4.44
2004 5.07
2005 5.71
2006 7.28
2007 8.88
2008 9.35
2009 13.79
2010 18.06

Copying claims controversy

Some of Chinese cars makers have been accused of copying designs of other companies.
This judgement can seem to be harsh, as it is clear that the Russian car industry had been founded on the same principle; the Mosckvich was produced from tooling taken from German Opel factories in 1945, the later 408 was a scaled down Ford Zephyr and the Gaz Chaika was copied from Packard. The Russians acknowledged this in that there was no point in repeating the development process that had already gone on in the rest of the world.

BYD

Some BYD
BYD Auto
BYD Automobile Co Ltd is a Chinese automobile manufacturer based in Shenzhen, Guangdong Province...

 cars may look similar to those of other brands including Lexus
Lexus
is the luxury vehicle division of Japanese automaker Toyota Motor Corporation. First introduced in 1989 in the United States, Lexus is now sold globally and has become Japan's largest-selling make of premium cars. The Lexus marque is marketed in over 70 countries and territories worldwide, and has...

, Toyota, Honda
Honda
is a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles.Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than...

, Mercedes Benz, and Porsche
Porsche
Porsche Automobil Holding SE, usually shortened to Porsche SE a Societas Europaea or European Public Company, is a German based holding company with investments in the automotive industry....

. For example, the BYD S8 bears similarity to the Mercedes CLK from the front, and the Renault Megane CC or third generation Chrysler Sebring convertible from the rear.

A staff member at Honda
Honda
is a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles.Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than...

 claimed that the BYD F3
BYD F3
The BYD F3 is a compact car produced in China by BYD Auto. The F3 is one of the top selling compact cars in China, looking very similar in front appearance to the 9th generation Toyota Corolla and back appearance to the Honda Fit Aria...

 was "a known copy" of the Toyota Corolla
Toyota Corolla
The Toyota Corolla is a line of subcompact and compact cars manufactured by the Japanese automaker Toyota, which has become very popular throughout the world since the nameplate was first introduced in 1966. In 1997, the Corolla became the best selling nameplate in the world, with over 35 million...

 (with Honda Fit
Honda Fit
The Honda Jazz is a five-door hatchback subcompact manufactured by the Honda Motor Company of Japan, first introduced in June 2001 and is now in its second generation. The Jazz shares Honda's Global Small Car Platform with the City/Fit Aria, Airwave/Partner, Mobilio, Mobilio Spike, Freed and Freed...

 design cues). Another model too, the BYD F1, has been described as "a clear copy" this time of the Toyota Aygo
Toyota Aygo
The Toyota Aygo is a city car sold by Toyota in Europe since 2005. All Aygos are built at the new factory of the Toyota Peugeot Citroën Automobile Czech joint venture in Kolin, Czech Republic. The Aygo was first displayed at the 2005 Salon de l'Automobile de Genève...

.

Domestic dealerships have been known to take advantage of this and replace the badging of BYD vehicles with those of other car manufacturers, including Toyota. Micheal Austin, vice president of BYD America, has acknowledged the issue saying that the practices done by dealers (which are franchised) has made BYD "uncomfortable".

Chery

In June, 2003, General Motors
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...

, a U.S. company, sued Chery
Chéry
Chéry is a commune in the Cher department in the Centre region of France.-Geography:An area of farming and forestry, comprising the main village and a hamlet, situated in the valley of the river Arnon some south of Vierzon, at the junction of the D75, D165 and the D68 roads.-Population:-External...

, accusing the Chinese manufacturer of copying the first generation Daewoo Matiz (developed by GM Korea) with the design for the Chery QQ
Chery QQ
The Chery QQ is a city car produced by the Chinese manufacturer Chery Automobile since 2003. In 2006, the car was renamed the Chery QQ3 in China, when Chery launched their new supermini, the Chery QQ6.-Engine:...

. General Motors then went on to accuse Chery of using a Matiz in a crash test for the Chery QQ.

GM executives claimed design duplication, which may extend to interchangeable parts
Interchangeable parts
Interchangeable parts are parts that are, for practical purposes, identical. They are made to specifications that ensure that they are so nearly identical that they will fit into any device of the same type. One such part can freely replace another, without any custom fitting...

, and GM China Group stated the two vehicles, "shared remarkably identical body structure, exterior design, interior design and key components."

After mediation attempts failed, GM Daewoo brought a case against Chery in a Shanghai court, but by 2005 jurisdiction
Jurisdiction
Jurisdiction is the practical authority granted to a formally constituted legal body or to a political leader to deal with and make pronouncements on legal matters and, by implication, to administer justice within a defined area of responsibility...

 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. In late 2005 the lawsuit was settled.

Great Wall Motor

Fiat company has claimed that a Great Wall A-segment car, the Peri (Jing Ling in China), is a copy of its 2nd-generation Fiat Panda.

A 2008 Italian
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...

 Turin
Turin
Turin is a city and major business and cultural centre in northern Italy, capital of the Piedmont region, located mainly on the left bank of the Po River and surrounded by the Alpine arch. The population of the city proper is 909,193 while the population of the urban area is estimated by Eurostat...

 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.”

A copyright infringement case in China did not see a similar outcome.

Other Great Wall models may resemble those of other automakers: The Great Wall Florid
Great Wall Florid
The Great Wall Florid is a subcompact car marketed by Great Wall Motor of China. Styling is suspected to be copied from the first generation Toyota ist , while the nose section is inspired by the second generation Toyota Vitz ....

, may look similar to a Toyota ist; and some older Great Wall Hover
Great Wall Hover
Great Wall Motor also produces a more luxurious, limousine version of the Hover, called the Great Wall Hover Pi . Its name is also sometimes spelt Hover•π. The first Hover Pi was given as a gift to Fidel Castro...

 models may look like Isuzu Axiom
Isuzu Axiom
The Isuzu Axiom is an SUV designed in Japan using a "knife blade" theme for its car-like styling. Built in Lafayette, Indiana, U.S. at the Subaru of Indiana Automotive, Inc. plant on the Rodeo platform. It jointly replaced the Trooper, but was itself replaced by the Isuzu Ascender for the 2005...

s, etc.

Shuanghuan

The Shuanghuan Noble
Shuanghuan Noble
The Shuanghuan Noble is a 4-seater Chinese hatchback made by Shuanghuan...

 has caused numerous controversies, with Mercedes-Benz
Mercedes-Benz
Mercedes-Benz is a German manufacturer of automobiles, buses, coaches, and trucks. Mercedes-Benz is a division of its parent company, Daimler AG...

 even filing a lawsuit against Shuanghuan
Shijiazhuang Shuanghuan Automobile Co
Shuanghuan is a Chinese automobile manufacturer established in April 1988. In 2002 ShuangHuan has bought the state owned automobile manufacturer Red Star.-Models:...

 because of the alleged similarities with the Smart Fortwo
Smart Fortwo
The Smart Fortwo is a rear-engined two-seater city car manufactured by Smart GmbH, introduced at the 1998 Paris Motor Show as the Smart City Coupé, and currently in its second generation...

. Mercedes-Benz
Mercedes-Benz
Mercedes-Benz is a German manufacturer of automobiles, buses, coaches, and trucks. Mercedes-Benz is a division of its parent company, Daimler AG...

 also persuaded the Italian
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...

 court to prohibit the car from being exhibited at the Bologna Motor Show
Bologna Motor Show
The Bologna Motor Show is an auto show held in Bologna, Italy, in December. It is recognized as an international show by the Organisation Internationale des Constructeurs d'Automobiles.- 2011 :...

, but the Shuanghuan Noble
Shuanghuan Noble
The Shuanghuan Noble is a 4-seater Chinese hatchback made by Shuanghuan...

 car was put on display anyway.

In May 2009 a Greek
Greece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....

 judge ruled against Daimler and cleared the car allowing sales to begin in Greece
Greece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....

. The judge answering to Daimler's demand to ban the Chinese
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...

 vehicle from entering the Greek
Greece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....

 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
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...

 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.”

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
Electric vehicle
An electric vehicle , also referred to as an electric drive vehicle, uses one or more electric motors or traction motors for propulsion...

 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 latter holding 51% stakes while the former is only allowed to hold 49% stakes.

Due to the threat by the Chinese government, Toyota postponed the launch of the current-generation Prius
Toyota Prius
The Toyota Prius is a full hybrid electric mid-size hatchback, formerly a compact sedan developed and manufactured by the Toyota Motor Corporation...

 until they have been confirmed about the plan.

High Mobility Multipurpose Wheeled Vehicles built in China

There are at least two Chinese automobile manufacturers building HMMWV copies, possibly with the assistance of AM General
AM General
AM General is an American heavy vehicle manufacturer based in South Bend, Indiana. It is best known for the civilian Hummer and the military Humvee, that is assembled in Mishawaka, Indiana...

. Both Chinese HMMWV
High Mobility Multipurpose Wheeled Vehicle
The High Mobility Multipurpose Wheeled Vehicle , better known as the Humvee, is a military 4WD motor vehicle created by AM General. It has largely supplanted the roles formerly served by smaller Jeeps such as the M151 MUTT, the M561 "Gama Goat", their M718A1 and M792 ambulance versions, the CUCV,...

 vehicles rely on imported U.S.-made parts including chassis, gear box, and diesel engine. It appears that at least one company, Dongfeng Motor Corporation (DFM), has the full consent and cooperation of AM General. Both manufacturers claimed that they will be able to gradually increase the percentage of indigenously made content on the vehicles in the future, since the PLA
People's Liberation Army
The People's Liberation Army is the unified military organization of all land, sea, strategic missile and air forces of the People's Republic of China. The PLA was established on August 1, 1927 — celebrated annually as "PLA Day" — as the military arm of the Communist Party of China...

 is unlikely to be willing to accept any equipment that relies largely on foreign made parts.

The Shenyang Aircraft Industry Co
Shenyang Aircraft Corporation
Shenyang Aircraft Corporation is a Chinese civilian and military aircraft manufacturer located in Shenyang. Founded in 1953, it is one of the oldest aircraft manufacturers in the People's Republic of China. Many aircraft manufacturers in China such as Chengdu Aircraft Industry Group or Guizhou...

 (SAC) version called "Zhanshen," for God of War, is trying to impress the PLA with a vehicle-mounted mobile air defence missile system jointly developed with NORINCO
Norinco
The China North Industries Corporation , official English name Norinco, manufactures vehicles , machinery, optical-electronic products, oil field equipment, chemicals, light industrial products, explosives and blast materials, civil and military firearms and ammunition, etc...

, the primary weapon manufacturer in China. The missile system, mounted on an SAC SFQ2040, is similar to the U.S. Army HMMVEE-mounted Avenger air defence system
M1097 Avenger
The Avenger Air Defense System, designated AN/TWQ-1 under the Joint Electronics Type Designation System, is a missile system which provides mobile, short-range air defense protection for ground units against cruise missiles, unmanned aerial vehicles, low-flying fixed-wing aircraft, and helicopters...

. SAC also emphasizes the low cost of its SFQ2040, only one third of the price of the U.S.-made HMWWV.

Joint-venture manufacturers

In 2005, 5,707,688 motor vehicles were manufactured in China. The following 13 foreign makers have joint venture factories, with local partners, in China.

Toyota (Japan)

Currently Toyota is the only company making hybrids
Hybrid electric vehicle
A hybrid electric vehicle is a type of hybrid vehicle and electric vehicle which combines a conventional internal combustion engine propulsion system with an electric propulsion system. The presence of the electric powertrain is intended to achieve either better fuel economy than a conventional...

 in China. It sold 2,000 in 2006.
Toyota (2005)
Total motor vehicles Passenger cars Light commercial vehicles Heavy trucks Buses
150 078 146 943 3 635

Nissan (Japan)

Nissan (2005)
Total motor vehicles Passenger cars Light commercial vehicles Heavy trucks Buses
179 034 166 938 12 096

Honda (Japan)

Honda (2005)
Total motor vehicles Passenger cars Light commercial vehicles Heavy trucks
254 820 254 820

Suzuki (Japan)

Suzuki (2005)
Total motor vehicles Passenger cars Light commercial vehicles Heavy trucks
139 536 139 536

Mazda (Japan)

Mazda-AutoAlliance
AutoAlliance International
AutoAlliance International is a joint venture automobile assembly firm co-owned by Ford Motor Company and Mazda Motor Corporation. The main AAI plant is located at 1 International Drive in Flat Rock, Michigan...

 (2005)
Total motor vehicles Passenger cars Light commercial vehicles Heavy trucks
107 929 107 929

Daihatsu (Japan)

Daihatsu (2005)
Total motor vehicles Passenger cars Light commercial vehicles Heavy trucks Buses
1 290 1 290

Mitsubishi (Japan)

Mitsubishi (2005)
Total motor vehicles Passenger cars Light commercial vehicles Heavy trucks buses
278 540 178 540 49 450 28 660 21 890

FIAT (Italy)

FIAT-Iveco
Iveco
Iveco, an acronym for Industrial Vehicle Corporation, originally an alliance of European commercial vehicle manufacturers such as Fiat , Unic and Magirus. Iveco is now an Italian truck, bus, and diesel engine manufacturer, based in Turin...

 (2005)
Total motor vehicles Passenger cars Light commercial vehicles Heavy trucks Buses
FIAT 32 856 32 856
Iveco 18 235 5 620 12 615

Isuzu (Japan)

Isuzu (2005)
Total motor vehicles Passenger cars Light commercial vehicles Heavy trucks
23 214 23 214

Ford (United States)

Chang'an Motors
Chang'an Motors
Chang'an Automobile Co Ltd is an automobile manufacturer in Chongqing, China, and a state-owned enterprise with China Weaponry Equipment as parent....

 (2005)
Total motor vehicles Passenger cars Light commercial vehicles Heavy trucks Bus and Coaches
145 498 59 827 85 671

General Motors (United States)

GM Shanghai & SAIC (2005)
Total motor vehicles 250365454 Passenger cars 25487 Light commercial vehicles 2654 Heavy trucks 26587 Buses
346 697 308 290 38 407

PSA Peugeot-Citroën (France)

Peugeot
Peugeot
Peugeot is a major French car brand, part of PSA Peugeot Citroën, the second largest carmaker based in Europe.The family business that precedes the current Peugeot company was founded in 1810, and manufactured coffee mills and bicycles. On 20 November 1858, Emile Peugeot applied for the lion...

-Citroën
Citroën
Citroën is a major French automobile manufacturer, part of the PSA Peugeot Citroën group.Founded in 1919 by French industrialist André-Gustave Citroën , Citroën was the first mass-production car company outside the USA and pioneered the modern concept of creating a sales and services network that...

 (2005)
Total motor vehicles Passenger cars Light commercial vehicles Heavy trucks Buses
Citroën 101 839 101 839

Volkswagen (Germany)

VW (2005)
Total motor vehicles Passenger cars Light commercial vehicles Heavy trucks
430 600 430 592

See also


External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
x
OK