SCP Analysis And Countermeasure Research Of Chinese Automobile Industry

Chinese automobile industry start from establishing the Changchun first automobile works in 1953,after nearly 60 years of development,has grown into a pillar industry in China’s national economy.In 2009,China became the biggest production and sales basement in the world,and won the production and marketing list for six consecutive years,becoming a veritable auto power.But,china is just the auto great country,not the auto powerful country.China is enslaved to transnational enterprises in automobile production technology,has higher operating costs at the management level,and does not have the competitive advantage in export trade and etc.All the problems above restrict the development of Chinese automobile industry.Based on the industrial organization theory of SCP paradigm,this paper gives a comprehensive analysis on China’s automobile industry from three dimension: market structure,conduct and performance,and summarizes the problems in China’s automotive industry.Combined with Germany and Korea successful experience in automotive development,this paper puts forward recommendations conducive to the development of Chinese automobile industry.First of all,from the market concentration,product differentiation,entry and exit barriers,economies of scale those five aspects,this paper analyses the market structure of Chinese automobile industry,and argue that Chinese automobile industry has low market concentration,large product differentiation,high barriers to entry,high barriers to exit and non-significant economies of scale.Secondly,through pricing,technology research and development,advertising promotion,merging and reorganization reflects the current market behavior of Chinese automobile industry is: a price war,low R & D investment,increasing advertising investment and low degree of merging and reorganization.Thirdly,from the production scale and efficiency,technology progress,market openness and international competitiveness shows the market performance of Chinese automobile industry is that: has large production and sales but low average efficiency,technology has been developed but there is still a gap,foreign car import ratio is higher and the international competitiveness of Chinese automobile is low.Fourthly,from market structure,conduct and performance dimensions summarizes current problems of Chinese automobile industry.Fifthly,we proceed a detailed analysis of Germany and Korea both countries’ successful experience in automotive development and its inspiration to China.Finally,combined with the full text of the analysis,we present recommendations that make benefit of the development of Chinese automobile industry: the transition from “auto great country” to “ auto powerful country” is a complex and lengthy project that calls for the government and businesses to work together.