Industrial Organization Analysis Of Chinese Car Industry

With the rapid development of our national economy and people's income raise, China's automobile industry entered a period of rapid growth. In 2009, China has become the world's largest automotive production and sale market .China's automobile industry has also undergone profound changes.In this paper, we use the SCP frame, the theory of industrial organization paradigm of the Harvard School to analysis the market structure, market behavior, and market performance of Chinese automobile industry respectively. After successive years of decline, China's car industry Market Concentration Rate has been gradually stabilized, enter the integration phase. Situation, though still relatively backward economies of scale, but under the impetus of the government, the consolidation and reorganization among enterprises are ongoing. Price war among enterprises continues. Own-brand cars companies began to establish a brand image and improved service levels, and actively expand products to the high-end market in order to obtain more profits. In terms of market performance, Chinese automobile companies earn higher profits than international counterparts; this is mainly due to the expansion of market demand and the cheap human resources. In stark contrast, Chinese automobile companies were in the serious shortage of investment on R&D. The market structure is big but not strong. Unreasonable market structure also led to low efficiency. On this basis, the paper raised suggestions to help the development of China's own brand cars. This article aims to apply the theory of industrial organization and obtaining a conclusion, for the reference of relative personnel.