Machinery (including automobile) Industry
 AUTOMOBILE INDUSTRY IN CHINA AND CHENGDU |
AUTOMOBILE SEGMENTS IN CHENGDU |
AUTOMOBILE INDUSTRIAL ADVANTAGES IN CHENGDU |
| MAJOR PLAYERS |
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After more than 20 years of reform, to own a car is no longer a dream but a reality amongst China's burgeoning middle class, thus driving the rapid expansion of China's automobile industry. With improved living standards, the private sector has become the most important driver of soaring demand. Growth rates in both automobiles and sedans outputs declined dramatically in 2004 due to excessive built-up capacity, which led to a fierce price war in 2004. Customers postponed their purchase in the hope of further discounts and the declining demand caused the automakers cut automobile outputs. |
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Figure 15.1: Automobiles Manufactured in China from 2000 to 2006
Figure 15.2: Sedans Manufactured in China from 2000 to 2006
Chengdu has a comparative advantage in the automobile industry in Western China. There were more than 140 automobile related companies, 16 whole vehicles makers and over 120 auto parts makers in Chengdu by the end of 2006. Revenue from the automobile industry
reached RMB 16.92 billion in 2006. Currently, Chengdu’s automobile companies account for more than 60% of the overall provincial level and their revenue accounts for more than 70% of the overall provincial level. In 2006, Chengdu’s companies produced approximately 60,000
automobiles.
Figure 15.3: Automobiles Manufactured in Chengdu
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