Wto Transition Period The Automotive Industry Development Problems

Auto industry of Beijing achieved prosperous development with China's entering into WTO in 2001, which bring in both opportunities and threats. Beijing ranked the first in terms of vehicle consumption, with new vehicle average monthly sales of 20,000 and average ownership of 11 cars per 100 household. Two auto makers located in Beijng with products of off-road vehicles and light buses before 2001, while after entering into WTO, Beijing's vehicle and auto pats production increased rapidly, at the same time, two new auto makers were established, Beijing Hyundai, established in 2002, a joint venture of BAIC and Hyundai, and Beijing Benz, established in 2004, a joint venture of BAIC and Dymler Chrysler, which promoted the municipal auto industry to much more auto production capacity. At present, Beijing has been formed a industry cluster, with passenger car production base of Beijing Hyundai and Beijing Benz and commercial vehicle production base of Beijing Foton, and their parent company, BAIC (Beijing Automobile Industry Corporation), ranked into top five auto group since 2004. In addition, Beijing auto parts industry also achieved sound development; Beijing Wanyuan GDX Automotive Sealing Products Corporation plays an important role in leading the development of the industry.However, there are still some points have to be noticed. Firstly, with the globalization of the entire auto industry, Beijing's auto players have to learn the international rule to participate the global auto industry development and competition.Secondly, after China access into the WTO, significant changes have taken place in China's auto market as well as Beijing's auto market. Beijing's auto makers have to adjust their strategy to meet the demand of the market as well as suit the change of the environment.Thirdly, independent brand development has been raised to a high level in China by the government. In auto industry, the development of independent brand car has been regarded as a strategic solution and has been listed into the 11th Five Year Plan. Beijing'sauto makers have to complete their independent brand goal in the next five years.The last points is involved with the economic security, with access into WTO, foreign capital can follow into China easily, the subject of attracting oversea investment and protecting of local industry has become serious for the development of Beijing auto industry.