Abstract

This paper uses Data Envelopment Analysis (DEA) to measure the scale and efficiency of 28 major automotive enterprises in Chinese, and the results show that at this stage, large automobile manufacturers of China are under-produced and the production is too scattered, and the overall efficiency of automobile manufacturers is low. One of the main reasons is that because of the low technical efficiency value, the technological innovation capability of enterprises needs to be strengthened. The other reason is that the low efficiency of a large number of enterprises lowers the overall efficiency level. There is a positive correlation between the scale and efficiency of automobile manufacturers. Whether it is the horizontal comparison between different enterprises (nature) or the vertical comparison between the same enterprises, all show that compared with small-scale enterprises, large-scale manufacturing enterprises not only have higher scale efficiency but also have higher technical efficiency. With the expansion of production scale, the scale of enterprises and technical efficiency have improved, which shows that for the automotive industry, compared with other factors, economies of scale is the main factor that affects the automotive industry, and not only is it reflected in the scale but also in technological innovation. Therefore, when formulating policies, the relevant departments should support the development of large-scale enterprises, encourage mergers and acquisitions among enterprises, increase R&D investment, support technological innovation, and set up a scientific market exit mechanism to reduce exit costs, such as guiding the transformation of enterprises and establish a competition mechanism for the survival of the fittest.

Highlights

  • In 1956, China's first car factory was put into operation, and China's auto industry has 60 years of development history

  • This paper uses Data Envelopment Analysis (DEA) to measure the scale and efficiency of 28 major automotive enterprises in Chinese, and the results show that at this stage, large automobile manufacturers of China are under-produced and the production is too scattered, and the overall efficiency of automobile manufacturers is low

  • Whether it is the horizontal comparison between different enterprises or the vertical comparison between the same enterprises, all show that compared with small-scale enterprises, large-scale manufacturing enterprises have higher scale efficiency and have higher technical efficiency

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Summary

Introduction

In 1956, China's first car factory was put into operation, and China's auto industry has 60 years of development history. According to the data from China Association of Automobile Manufacturers, the auto production and sales in 2015 exceeded 24.5 million vehicles to 24,503,300 and 24,597,600 respectively, with an increase of 3.25% and 4.68% from the same period of last year, which is a record high in the history of the world, ranking first in the world for seven consecutive years. How much influence does low output and too fragmented organizational structure do to the efficiency of manufacturing enterprises? Can large-scale manufacturing enterprises produce higher-scale efficiency? Can http://jmr.ccsenet.org

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