China is a booming market for international investors
The automotive sector is one of the core industries in the Chinese
economy. China surpassed the United States to become the world's
largest automobile market in 2009. A record 18.1 million vehicles
(+32,4 % compared to 2009) were sold in China in 2010. The China
Association of Automobile Manufacturers expects a sales increase of 10
- 15 % for 2011. This would mean 20 to 21 million sold cars.
Especially sales of small
and medium sized passenger cars are booming, due to a growing demand
from the so-called second and third tier cities. And there is even more
potential for the future as the average car density per thousand
inhabitants in China is still a mere twelve units.
In the past few
years the international supplier industry has positioned itself well in
China as a result of being technology leaders. Similar components and
parts produced by Chinese manufacturers are low priced but often show
critical quality defects. Future business opportunities arise from
increasingly strict environment and safety regulations in China.