The Research Of Hunan Province’s Automobile Industrial Concentration

The automob ile output of China accounts for a quarter of production in the world.It goes without saying that automob ile ind ustry is s ignificant to Chinese nationecono my. As is we ll-known, the structure of Chinese automobile industry is notreasonable, which is shown as low industria l concentration, dispersed industria lcluster and unreasonable product structure, etc.The auto industry of Hunan Province is booming in the last decade. Productionand sales are ris ing rap idly, while ve hicle types are increasingly abundant. SinceCHANGFENG Group has been recomb ined in these years, successively, there arelarge Auto joint ve nture groups and parts firms entering in Huna n Province, which hasgathered the resources in market, and produced ind ustrial agglo meratio n. All of this isindicating that the potentia l of Hunan auto industry is been excavating, and a wholenew ind ustrial c luster is growing up. Nonethe less, the ind ustrial conce ntratio n stilltends to low. How to improve it and enha nce market structure is the core proble m ofthis paper.This paper starts from the theoretical analyses, including scale economic theory,industrial cluster theory, and the calculation methods of industrial concentration. Then itdissects current situation of auto industrial concentration in China and Hunan province,forecasts the growing trend of it in Hunan province and current problems. It is beendiscovered that auto industrial concentration index CR4is not lower than the nationalaverage and CR8is been promoted in2013. What’s more, this paper restructuring case ofCHANGFENG Group, and particularly analyses the agents, process and the influences onHunan auto industry of it, we can find out that this case positive ly influenced autoindustry of Hunan Province, that GAC Mitsubishi Group and GAC Fiat Group hasentered in Hunan through this case, which enlarges the industry scale and enhancesagglomeration effects of Hunan Province. In the last part, the paper proposes effectiveadvice on how to advance auto industrial concentration, which is expected to providetheoretical support for market management of government.