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An Overview on Volkswagen Volkswagen is the largest automobile manufacturer in the world as of 2012 A German-based corporation, the Volkswagen Group is represented by g brands -Audi, Bentley, Lamborghini Scania, Seat, Skoda and the volkswagen Volkswagen, which stands for The People's Car"in German, specializes in affordable, reliable and fashionable passenger cars. Volkswagen officially entered the China market in 1984 when it signed a 25 year government contract allowing for its passenger car production in Shanghai http://www.economist.com/node/21558269
An Overview on Volkswagen • Volkswagen is the largest automobile manufacturer in the world as of 2012. • A German-based corporation, the Volkswagen Group is represented by 9 brands – Audi, Bentley, Lamborghini, Scania, Seat, Skoda and the Volkswagen • Volkswagen, which stands for “The People’s Car” in German, specializes in affordable, reliable and fashionable passenger cars. • Volkswagen officially entered the China market in 1984 when it signed a 25 year government contract allowing for its passenger car production in Shanghai. http://www.economist.com/node/21558269
An Overview on Volkswagen The initial line of cars which presided Volkswagens entry into China included the wildly successful VW Santana which attracted taxi companies and the chinese government Within 2 years after its production vw was celebrating the production of its 1ooooth Santana in Shanghai Prior to this. China's overall automobile production topped 6200 cars the year before http://www.economist.com/node/21558269
An Overview on Volkswagen • The initial line of cars which presided Volkswagen’s entry into China included the wildly successful VW Santana which attracted taxi companies and the Chinese government. • Within 2 years after its production VW was celebrating the production of its 10000th Santana in Shanghai. • Prior to this, China’s overall automobile production topped 6200 cars the year before. http://www.economist.com/node/21558269
The 1986 VW Santana http://zhouf6o111z.blog163.com/blog/static/1265510662012921951504784
The 1986 VW Santana http://zhouf601117.blog.163.com/blog/static/126551066201292195150478/
The 2000 VW Santana. China's favourite cab 神N8913 12-4 http://www.economist.com/node/21558269
The 2000 VW Santana, China’s favourite cab http://www.economist.com/node/21558269
An Overview on Volkswagen In 1995, Shanghai-Volkswagen boasted an 8 9% Chinese-built components in its production line and had collaborated in a second joint venture FAW-Volkswagen in Changchun By the end of 2000, vw had amassed 53% of the Chinese passenger car market After Chinas inception into the Wto in 2001 VWs market share collapsed, falling to 24% 2004 and finally 15% in 2012 http://www.economist.com/node/21558269
An Overview on Volkswagen • In 1995, Shanghai-Volkswagen boasted an 89% Chinese-built components in its production line and had collaborated in a second joint venture FAW-Volkswagen in Changchun. • By the end of 2000, VW had amassed 53% of the Chinese passenger car market • After China’s inception into the WTO in 2001, VW’s market share collapsed, falling to 24% in 2004 and finally 15% in 2012. http://www.economist.com/node/21558269
Analysis of the Chinese Car Market Chinas domestic auto car market has grown rapidly since the country's 2001 accession to the WTO An oligopolistic industry dominated by a few foreign brands with many smaller domestic and foreign brands This growth has been underpinned by market liberalization and greater economic openness, leading to rising income levels, increased urbanization and government policies which stimulated private consumption. China became the world s largest automobile producer and market in 2009 with annual sales of almost 14 million cars
Analysis of the Chinese Car Market • China’s domestic auto car market has grown rapidly since the country’s 2001 accession to the WTO. • An oligopolistic industry dominated by a few foreign brands with many smaller domestic and foreign brands • This growth has been underpinned by market liberalization and greater economic openness, leading to rising income levels, increased urbanization and government policies which stimulated private consumption. • China became the world’s largest automobile producer and market in 2009 with annual sales of almost 14 million cars. http://www.economist.com/node/21558269
Private Consumption Expenditure of China (2011) Figure 41 Monthly spending by category (%) Source: Credit Suisse Emerging Consumer Survey 30% 25% 20% 15% 10% 5% O%
Private Consumption Expenditure of China (2011) http://www.economist.com/node/21558269
19 Trillion rMB Spent in Private Consumption (2012) Private Final Consumption Expenditure in China(CHNPFCEADSMEI) Source: Organisation for Economic Co-operation and Development 20,000 18,000 16,000 G14.000 312,000 10.000 88,000 6,000 4,000 2,000 1975 1980 1985 1990 1995 2000 2005 2010 2015 FRED a 2013 research. stlouisfed org
19 Trillion RMB Spent in Private Consumption (2012)
Analysis of the Chinese Car Market Despite a deceleration due to a round of policies which tightened borrowing, auto sales recovered from a slump of 2.5% growth in 2010 to 10% in 2012, with projected growth in 2014 at 20% Based on this, ownership rates should double over the next few years to 113 cars per 1000 people by 2015 As of the third quarter of 2013, out of the top ten car brands in China, 8 are foreign based automobile manufacturers http:/lannualreport2012volkswagenag.com/managementreport/value-enhancingfactors/marketfocus.html
Analysis of the Chinese Car Market • Despite a deceleration due to a round of policies which tightened borrowing, auto sales recovered from a slump of 2.5% growth in 2010 to 10% in 2012, with projected growth in 2014 at 20% • Based on this, ownership rates should double over the next few years to 113 cars per 1000 people by 2015 • As of the third quarter of 2013, out of the top ten car brands in China, 8 are foreign based automobile manufacturers. http://annualreport2012.volkswagenag.com/managementreport/value-enhancingfactors/marketfocus.html