Automobile production in China – additional information
In 2013, roughly 87 million automobiles had been produced worldwide. That year, China's productionhad accounted for about a quarter of the global car production. In the passenger car market, China’s annual production had exceeded that of the United States, Japan and Germany combined in 2013. In that particular year, the total revenue of automobile industry in China had amounted to approximately 834 billion U.S. dollars.
More and more carmakers decide to move their manufacturing facilities to China. Apart from the low-cost manufacturing and supply, another main motive is to be closer to one of their key markets. China had been the world’s largest automobile market in 2013, whereas the export value of vehicles from China had surged to around 13 billion U.S. dollars.
Foreign carmakers are required to form joint ventures with Chinese car manufacturers in order to build cars in China. This policy mainly aims at building the domestic automobile industry. However, Chinese brands have difficulties finding market acceptance in comparison with their international rivals. Among the ten leading passenger car manufacturers in China in 2013, eight were joint ventures. Domestic brands only hold 37 percent of the passenger car market through August 2014, according to the China Association of Automobile Manufacturers. As China is one of the largest vehicle markets worldwide, with car sales amounting to 24.6 million vehicles in 2015, competition for a share of the market is huge among both local and foreign players.