Gm Swot in China

THE CHINESE AUTOMOTIVE INDUSTRY Overview and Forecast 2003 heralded the coming-to-life of the Chinese political machine industry. rider car sales and production both eclipsed 75 share growth rates, while automakers posted banner profits.6 Not unexpectedly, this market detonation prompted a bevy of new entrants, whose subsequent competition for market share reduced prices and drained the once limit little demand. Nevertheless, even with the croak from rosy profit margins and breakneck sales growth, China liquid represents the fastest growing automobile market in the man with far-reaching potential in sales and complementary services (see pose 1). A record 1.7 million new vehicles were sold in China in the first three months of 2006.7 With the strong start, vehicle sales should surpass that of Japan, placing China as the worlds second largest automobile market, behind(predicate) only the United States. The driving force behind the growth in automobile sales has been the burgeoning of the Chinese economy and in particular, consumer purchasing power. Chinas entry into the World Trade Organization in 2001 energized the economy by removing barriers to foreign trade and investment.

The robust health of the national economy, as seen in the booming gross municipal product, has trickled down to the individual consumer. For example, the average annual disposable income of capital of Red China urban residents has grown 71 percent over the finally half decade, reaching 18,000 RMB (~ 2250 USD) in 2005 (see Exhibit 2). In regard of the saving power of Chinese families, a substantial division of the urban population can now afford the introductory small car or subcompact offering priced at less than 100,000 RMB (~ 12,500 USD). Indeed, private purchases in the passenger car sector and the little car sub-sector have led the growth in overall car sales. As the purchase price of personal cars diminishes as an obstacle, the all important(p) factor will be the availability of key complements... If you extremity to get a full essay, order it on our website: Orderessay

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