China's Car Industry, Industrial Organization Analysis

Automobile industrial linkage is very high and the industrial chain is very long. Automobile industry occupies an important position in the national economy's growth, and is a reflection of comprehensive national strength and the level of overall competitiveness. China's car production has long accounted for more than half of the production of automobiles and the introduction of technology and the automotive industry R&D investment is mainly used for car industry. After China joins the WTO, with the rapid growth of national income and opening the car market, China's car industry has maintained a rapid development of an unprecedented speed. Relative to the beginning of the 21st century, car industrial market structure, market behavior and market performance have taken great changes. In the previous studies, SCP paradigm is using to analysis some aspects of car industry in specific period of time with old data, so these studies can't reflect the current changes, and comprehensive analysis of car industrial organization is less.In this context, it is necessary to do a comprehensive analysis for the status and direction of development of China's car industry. On the basis of summing up the results of previous studies, recalling the world car industry's current situation and development trend, and China's car industry is divided into four stages in tentative, which is creation stage, formative stage, comprehensive development stage and high-speed growth stage. In the following, according to the characteristics of China's car industry, followed by a detailed empirical analysis of the car industry market structure, market conduct and market performance, then refined the founding problems. On the basis of the analysis, combining the theory of industrial organization and the reality of our country put forward meaningful countermeasures.Through this analysis, this study found that the current market concentration has increased, a "U"-shaped reversal, the degree of vertical integration has been reduced, mergers and acquisitions have been active under the organization guidance of the government, the level of margins in the industry gradually returning to normal. However, the analysis also found that there are still some problems in the industrialization of China's car industry organizations, such as economies of scale are relatively poor, independent brands encountered technological bottlenecks, small emission vehicles in the policy to encourage, but sales fell year after year, and other issues. In this essay, based on a detailed analysis, the author puts forward to a practical guide to the significance of the countermeasures, such as cutting the tax relief of small displacement cars, the implementation of the national automotive innovation strategy to promote industrial base study. The purpose of this study is to use the latest domestic data, analyzing the industrial organization of China's car industry with the theory of industrial organization, so as to draw practical significance conclusions for the study of staff members.