Chinese Automotive Industry grew at the 22% CAGR in the year 2005 to 2014. It overtook the biggest car market USA in 2010. By 2020 as per ACG forecast it would touch 21million bigger than the European market.
Like India, Chinese purchase behavior is different, currently, second-time buyers are more than first-time buyers and they are interested in taking budget (Upgrade) segment car. The buying sentiments and habits are different in the different region, Segment and body type. The Chinese auto market drivers are giving positive signals to like urbanization, increasing household income, Infrastructure, Spending nature and penetration rates.
Car and Commercial Vehicle market are two most important segment in China for foreign players like MAN, DAF, Scania, Volkswagen, General Motors, Ford, Audi, Mercedes, Renault, Peugeot, Landrover, Volvo etc. The market, Products, Pricing, Technology, Economy are some of the important factors but on the other hand, there is one more important parameter which impacts on entry and survival for any business in China. Intercultural management and negotiation are also very sensitive and important for any company which entered to planning to enter the Chinese market.
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