The Chinese government is promoting consolidation of the auto industry by favouring the large domestic manufacturing companies.
Dongfeng production line Image: Dongfeng Yulong Motor Co |
A plan from China’s legislators, entitled “Blueprint for Industry Transformation and Upgrade in 2011-2015”, is encouraging foreign and domestic automakers to improve technology and consolidate operations.
To achieve this, legislation will ensure that ten automakers will be responsible for 90% of all vehicle assembly in China by 2015. The government hopes the move will unify China's currently highly-fragmented auto industry.
The top ten automakers last year were Shanghai Automotive Industry Corp., Dongfeng Motor Corp., China FAW Group Corp., Chongqing Changan Automobile Co., Guangzhou Automobile Group Co., Beijing Automotive Industry Holding Corp., Chery Automobile Co., Brilliance China Automotive Holdings, Great Wall Motor Co. and Jianghuai Automobile Co.
Together, these companies produced 16 million light vehicles and trucks in 2011 and already account for 87% of the national vehicle manufacturing total.