Competition in the Chinese Automobile Industry

_SLIDE_1_ Competition in the Chinese Automobile Industry _SLIDE_2_ Brief Competition in the Chinese Automobile Industry In the late 1970s, Planned economy Market economy China realized Chinese vehicles are needed to be replaced Attractive FDI trough JV with foreign automobile companies Volkswagen, American Motors, and Peugeot established JV in 1983 1984 Only approximately 20 JVs were established by the end of 1989 FDI flows into this industry started to accelerate sharply from 1992 The WTO entry in 2001 has further intensified the competition as government regulations weaken. The number of registered cars, buses, vans, and trucks on the road in China reached 62million in 2009, and is expected to exceed 200million by 2020. _SLIDE_3_ Q .1 Competition in the Chinese Automobile Industry Why do all multinational automakers choose to use FDI to enter this Industry What are the drawbacks of using other entry modes such as exporting and licensing _SLIDE_4_ Competi…
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