STRATEGIES OF CHINESE AUTOMAKERS

Abstract

ABSTRACT Backed by its booming economy, China surpassed the United States and became the largest automobile market in the world in 2009. 2010 Beijing International Auto Show and 2010 Shanghai World Expo gained the world attention. The rising Chinese independent automakers, namely, Geely, Chery and Wanxiang Group, wowed the world and represented the “China Power.” What strategies have they used or would use to accomplish their goals? What are the common characteristics that different Chinese automakers could have? The answers may be of interest of both the East and the West. This study analyzed the case of the three Chinese independent automakers. It is clear that young Chinese independent automakers followed the “attracting-in” and “walking-out” pattern, narrowed the gap by international cooperation, independent innovation, and merger and acquisition, followed by leaping forward and directly tackling the latest technology. Although these young Chinese independent automakers need to continue their effort on building brand and global expansion, they have set themselves ready to compete with major players at the same start line now. Meanwhile, Chinese government’s “pushing power” behind them should not be underestimated. Keywords Chinese auto makers, international cooperation, innovation, merger and acquisition, strategy, technology