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Future drivers of the China automotive industry


Future Drivers

  • This paper provides insights to the challenges and opportunities faced by multi-nationals and Chinese domestic companies by discussing 2 reports: Sustainable Strategies for China’s Automotive Industry - Something Old, Something New and Export Readiness of China’s Automotive Industry - The “Ins” and “Outs” of Management Issues
  • The first report provides multi-nationals with two strategic concepts that are very relevant – one, an old idea that can be executed more effectively to drive additional impact; and the other, a new concept that is especially well-suited to the complexities and uncertainties in the China market
  • Under something old, the challenges faced by companies wanting to leverage low cost sourcing in China and ways to conquer them are discussed
  • In the something new section, a Deloitte framework that has been successfully applied , called Strategic Flexibility is discussed. It enables a company to compete effectively today while preparing for an uncertain tomorrow without either over-committing to one vision of the future or simply hoping for the best
  • In the second report, key findings of an executive survey and insights into the automotive export challenges and opportunities of domestic Chinese manufacturers are provided
  • Only a few years ago, there was a general concern that China's accession to the World Trade Organisation would have a grave impact on the domestic automotive industry, but market developments have proved otherwise. The second report analyses whether this was luck or whether there are risks that have yet to surface
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