Huayu Automotive Sustainable Growth Study

Recent years, Chinese automotive industry achieved a big jump in production andsales with increasing citizen income and demand on vehicles. As an important part ofautomotive industry, Chinese automotive components industry also obtained fastdevelopment during recent years. However there are still many potential risks amongChinese local automotive components enterprises. Most Chinese automotive componententerprises have no long-term developing strategy and also don’t know how to achievesustainable growth. They have a wrong thought: faster sales growth rate means betterperformance. The purpose of this paper is giving other related enterprises inspirations andreferences through analyzing HUAYU Automotive Sustainable Growth.In the beginning of this paper, the author presented us the history of SustainableGrowth Theory forming and developing and introduced the concepts and models of severalfamous Sustainable Growth Rates. And then this paper analyzed influencing factors ofSustainable Growth and their affects on HUAYU Automotive. Besides, this paper foundHUAYU’s some risks and issues through an analysis of HUAYU financial data andSustainable Growth Rate. Finally this paper showed ideas and suggestions on how toimprove those issues found in previous chapters.