China poses significant complexity for automotive manufacturers. The promise of rapid market growth and the country's potential as a low-cost export base make China very attractive. Yet the multitude of challenges, from overcapacity, declining prices and government regulation to lack of availability of credit-to name a few-make it a difficult market to navigate. There are no easy answers to the China puzzle. However, there are still significant opportunities for both multinational automotive companies doing business in China and domestic Chinese automotive companies.

This Deloitte report presents insights to the challenges and opportunities faced by multinationals and domestic companies.

For multinationals, we have selected two relevant strategic concepts: the first is an old idea that we believe can be executed more effectively to drive additional impact; and the second is a new concept that is especially well-suited to the complexities and uncertainties of the Chinese market.

For domestic Chinese manufacturers, we present the key findings of our executive survey that focus on automotive export challenges and opportunities. Furthermore, we discuss the trends of the domestic automotive industry and the critical strategic options for Chinese automotive companies.

Learn more from the full report available below in PDF format.