Chinese Automotive Industry Research Articles

Inherit or innovate?–evidence from China’s auto industry’s new car series naming

The automotive industry introduces a sizable number of new automobile products annually. The naming of new products may have significant impact on their market performance. Diverging from prior research on the impact of product names, companies’ innovative consciousness endows them with a certain level of proactive positioning, thereby implementing independent naming strategies after considering product factors and consumer preferences passively. This paper analyzes the drivers of the market performance of sequential products on the naming of new products in Chinese automotive industry. We collected market share data and names of various car series from January 2007 to September 2022. Then, we calculated semantic distances between names and performed empirical tests. Our findings show that firms demonstrate a risk preference pattern contrary to traditional prospect theory when using the previous car series’ market share as a reference point. In the interplay between market orientation and risk preferences, the relationship between the market share of the last car series and the similarity in names between old and new car series follows an inverted U-shaped pattern. This study extends the discussion on risk preferences within the behavioral theory of the firm (BTOF) and proposes a decision mechanism for product naming that considers market and firm factors during the response phase of market orientation.

Economic impact of ACES trends on the automotive value chain: a forecast exploratory study of the Chinese automotive industry in 2030

In the context of green transportation, the automotive industry is undergoing a revolution in autonomous, connected, electric, and shared (ACES) vehicles. ACES vehicles have a relatively short history and there is limited relevant market data available. Therefore, quantitative research on the economic impact of ACES trends remains a new area of exploration. The purpose of the paper is to explore the economic impact of ACES trends on the automotive value chain, with a specific focus on the production and aftermarket segments. In the paper, a detailed quantitative analysis of the installation scale and the market size of Chinese automotive production as well as the income changes of Chinese automotive aftermarket in 2030 is conducted. The findings show that the new markets for power batteries, electric powertrains, sensors, in-vehicle software and chips are created, thereby delivering more value to the business. While the ACES trends are expected to decrease the average aftermarket income per vehicle, the growth of the vehicle stock suggests significant potential for the development of the automotive aftermarket in 2030. Our research contributes by offering a business perspective on the impact of ACES trends. The quantitative insights presented are timely and crucial for all the stakeholders along the value chain, enabling them to adapt and thrive in the dynamic automotive landscape and align their strategies with the transformative ACES trends.

Free Riding of Vehicle Companies under Dual-Credit Policy: An Agent-Based System Dynamics Model

The dual-credit policy promotes green transition in automobile companies. This paper investigates the dual-credit policy framework in the Chinese automotive industry, with a focus on the phenomenon of free riding. This occurs when traditional vehicle manufacturers within an alliance benefit from the excess credits generated by a transitioning vehicle company without fully committing to their own green transitioning. The focus of this study lies on an alliance constituted by a transitioning vehicle company in partnership with two traditional vehicle manufacturers, all interconnected via equity ties. Utilizing an agent-based system dynamics model, this study explores the strategic behaviors emerging from such credit collaborations and their consequent effects on operational efficiency and financial performance. The findings reveal that 1. free riding negatively impacts the transitioning company’s revenue but benefits the alliance by easing transition pressures and boosting collective performance; 2. stricter policies increase intra-alliance credit transfers and performance, while lower credit prices reduce transfer value and harm the transitioning company’s earnings. This study implies that transitioning vehicle companies with equity-linked partners can benefit from a nuanced understanding of how policy mechanisms interact with alliance dynamics under free riding. By adjusting credit transfer strategies in line with market conditions and policy trends, they can better navigate the dual-credit policy landscape, balancing individual profitability with the needs of the broader alliance and long-term sustainability goals.

Social media for information sharing in an industrial setting: Evidence from the Chinese automotive industry

The qualitative case study is addressing the question on how social media became a major tool for information sharing in industrial setting by looking at the case of WeChat, a major social media in China. The field study combines different research instruments including interviews, observation, and archives over a two-years investigation period. The findings highlight how the failures in several ERPs implementations allowed WeChat to play a growing role in the IS processes of the company. Our results provide empirical insights about the way social media can be integrated and combined to official systems in the workplace for sharing information. Future research may provide complementarily understanding by testing the proposed propositions.

Modeling Challenges in Low-Carbon Manufacturing Adoption Using the ISM-MICMAC Approach: A Case of Green Tech Projects of the Chinese Automotive Industry

In addressing the issue of climate change, the Chinese government has established a definitive objective to attain its peak carbon emissions by 2030 and strive for carbon neutrality by 2060. This effort aims to progressively achieve a state of net-zero carbon dioxide (CO2) emissions. In the given scenario, this research examines challenges in promoting low-carbon manufacturing (LCM) within the Chinese automotive sector, specifically in the context of Green Tech projects. In view of greater emphasis on environmental sustainability and technological innovation, this study aims to uncover challenges restraining the adoption of LCM in one of the world’s largest automotive markets, China. A three-step methodology was adopted by incorporating a literature review, the Delphi method, Interpretive Structural Modeling (ISM), and MICMAC analysis. In the first stage, relevant articles were selected scientifically to identify the main challenges in previous studies by following the relevant keyword criteria. Further, challenges identified from the comprehensive literature review were screened through the Delphi method, and finally, challenges were modeled and clustered through ISM and MICMAC analysis. Data collected from the experts highlight that “difficulties in the transition towards energy efficient technologies”, “insufficient operational efficiency”, and “information imbalances and asymmetry” were the most critical challenges that hinder LCM initiatives in the automotive industry. This research serves as a valuable resource for academia, industry professionals, and policymakers in the quest to adopt LCM in the dynamic context of the Chinese automotive sector.

Automotive culture of China and Russia

INTRODUCTION. The study is devoted to considering the problem of the specifics of Chinese and Russian automotive cultures and is focused on the explication of linguistic facts. The purpose of the study is to analyze the “linguocultural space” of automotive culture, which can be a certain marker of the names of car brands as a specific category of proper names in Chinese and Russian linguistic cultures.MATERIALS AND METHODS. The empirical material for the study was the names of famous car brands in China and Russia, taken from scientific and popular science publications on the history of automotive culture. To describe the facts of the language, a continuous sampling method, a descriptive method and an interpretation method, and definitional analysis were used.RESULTS AND DISCUSSION. It has been established that automotive culture, being a component of national culture, reflects a specific way of human activity. Automotive culture is strengthened by local car brands and plays an important role in the economy of any country. Nowadays, Chinese automobile culture plays an important role in the global market, providing people with increasingly competitive cars and services, and taking an active place in the life of modern society. The future of the Chinese automotive industry will pursue a path of self-reliant and highquality development to create a favorable living environment for people.CONCLUSION. The development of automotive culture is largely determined by the degree of significant semantic indicators, which include “prestige”, “reliability”, “comfort”, “price”, “fashion”. These indicators for native speakers of both Chinese and Russian languages are assigned to the names of car brands and give an idea of automotive culture, reflected in the form of the so-called “image of the world,” which explicates the linguistic component, taking into account the specifics of the national culture and the native speaker at the same time, reflecting important information about different linguistic cultures in the context of synchrony.

Dynamic Complexity Analysis of R&D Levels in the Automotive Industry under the Dual-Credit Policy

The dual-credit policy, as an important emerging policy in the Chinese automotive industry intended to achieve energy savings, emissions reductions, and promote the development of new energy vehicles (NEVs), has attracted considerable attention from scholars. This study investigates how this policy affects the research and development (R&D) levels of both component suppliers and vehicle manufacturers in the automotive supply chain. Assuming the bounded rationality of the participants, we construct a complex dynamic evolutionary model under Stackelberg games to explore the impact of the policy on the dynamic game behavior and equilibrium stability of R&D levels. Furthermore, we examine the influences of various parameters on the R&D level complex system. The findings reveal that the disparity in the proportion of NEVs in the policy should not be too large; otherwise, bifurcation and chaos may occur in the R&D level game system. Moreover, higher supplier research efficiency contributes to the stability of R&D levels, while the higher credit trading price is not suitable for stable R&D levels. This paper theoretically reveals the dynamic impact of the dual-credit policy on the R&D levels in the automotive supply chain, bridging the gap between previous studies assuming decision-makers as fully rational and the reality of bounded rationality. It also provides managerial recommendations for the implementation details of this policy.

Аутсорсинг в цепочках создания стоимости в автомобильной промышленности Китая

Outsourcing plays an important role in the development of the Chinese automotive industry. The transfer of individual business processes to outsourcing allows you to expand the scale of production and ensure its modernization without a significant increase in costs. However, outsourcing not only improves production efficiency but also contributes to the sustainability of the automotive industry. The purpose of this article is to study the impact of outsourcing in various parts of the value chain of the automotive industry on the sustainability of its development. In addition to the traditional approach that defines three components of sustainable development (economic, social, and environmental), in this study we also analyze the technological one, which characterizes the possibilities of using innovative technologies to achieve sustainable development goals. SWOT analysis was used as a research tool. As a result of the study, the opportunities and risks of outsourcing in various parts of the value chain in the automotive industry were identified. The characteristics of environmental factors are given in terms of how they contribute to the development of outsourcing in the automotive industry. It is concluded that outsourcing in the automotive industry contributes not only to the development of the Chinese economy but also to those countries in which outsourcing work is carried out.

Use of the best-worst method to evaluate determinants affecting cost reduction of heat exchanger components in the Chinese automotive industry

As China is a major automobile manufacturing and consumption country, cost reduction is an important indicator for the operation of the automobile industry. There are many automobile-related components and parts, and each component is important to the full functionality of the automobile. This article focuses on automobiles’ heat exchanger components (HECs) because they have important connections with the engine, transmission, body, and hydraulic systems of automobiles. Since the HECs are important functional parts of automobiles, it is worthwhile to investigate the determinants affecting the cost reduction of HECs in the automobile industry. Hence, the main purpose of this article is to evaluate the determinants affecting the cost reduction of HECs in the Chinese automotive industry using the best-worst method (BWM). Firstly, based on the literature and the opinions of industry and expert interviews, five evaluation dimensions and 20 evaluation factors were developed. Secondly, an empirical survey was conducted using the BWM and expert questionnaires. Finally, the study’s results revealed that: (1) “Research and development” is the most critical evaluation dimension that affects the cost reduction of HECs in the Chinese automotive industry; (2) The determinants affecting the cost reduction of HECs in the Chinese automotive industry were “value analysis/value engineering,”“production system optimization,”“developing industry standards,”“lightweighting,”“synchronous new product development,” and “waste reduction.” The empirical findings showed that the first three determinants were particularly important in the decision-making factors of cost reduction. In addition, this article discusses and suggests these determinants as a reference for future cost reduction evaluation of HECs in the Chinese automotive industry.

The Roles of Supply Networks and Board Interlocks in Firms’ Technological Entry and Exit: Evidence from the Chinese Automotive Industry

ABSTRACTIn this research, we explore how supply networks and board interlocks – as distinct, yet parallel interorganizational networks – jointly influence firms’ entry into new technology domains and exit from old technology domains. Drawing from the perspectives of social networks and organizational learning we highlight the relevance of the interdependency between these networks for a firm's technological entry and exit decisions. We argue that a firm that maintains a large number of supplier ties is more likely to enter new technology domains and exit from old technology domains instead. We further find empirical evidence that the degree centrality of a firm in its board interlock network strengthens these effects. Our theoretical arguments are supported through stochastic actor-based modeling analysis for the longitudinal and multilevel networks of 86 firms active in the Chinese automotive during 2011–2015. These findings inform the literature on interorganizational network dynamics as we insert relational pluralism to examine the complexities of organizational relationships as antecedents to a firms’ technological entry and exit. Finally, we imagine the implications of our analysis for management as they shed light on how multiple interorganizational relationships affect firms’ decisions on new technology entry and old technology exit.

The collision of theCOVID-19 and the Chinese automotive industry

In the context of the slow or even stagnant development of China's auto industry in the epidemic environment, the specific hazards caused by the epidemic are studied. A survey on the share of auto production by region, auto production, sales trends, and offline events is conducted, and the critical situation faced by the supply chain and offline marketing model is reported. It is proposed that the supply chain should change its previous strategy to increase the resilience of the supply chain against uncertain external factors; that it should shift the focus of the supply chain to the area of core components and enhance the production level of the relevant segments; that it should propose a more automated and modern production process; and that it should transform its primary marketing model from offline to online apps and live promotions. In the face of the impact of the COVID-19 on the market, the automotive industry must establish a more resilient supply chain model and a new sales model to cope with this massive market shift.

Role of digitalization of logistics outsourcing in sustainable development of automotive industry in China

Relevance. Digital technologies can bring regional logistics outsourcing in the automotive industry to a new level of performance. However, the digitalization of logistics outsourcing and its role in improving the sustainability of the automotive industry are poorly understood. Research objective. To develop the conceptual framework of the digital ecosystem of regional logistics outsourcing in the automotive industry. The object of the study is the automotive industry in China. Data and methods. Prospects for the digitalization of regional logistics outsourcing of the automotive industry and its impact on the sustainability of the industry are considered in terms of the economics of transaction costs and a resource-based approach. The data sources involved the national policy documents reflecting the strategic directions of digital development of China, statistical data provided by the National Bureau of Statistics of China, as well as research papers presented in the Scopus database. Results. The authors analyzed the trends of digital transformations in the geographic clusters of production of the automotive industry in China. The digitalization of regional logistics outsourcing was determined to influence the sustainability of the automotive industry development in the context of its economic, social, environmental and technological components. The logistics ecosystem model developed by Capgemini was supplemented by the conceptual framework of the digital logistics outsourcing ecosystem for the Chinese automotive industry. The key components of this framework were determined. Conclusions. It can be concluded that digitalization of regional logistics outsourcing will contribute to increasing the sustainability of the automotive industry. However, this requires the formation of a digital landscape of logistics outsourcing, which involves changes in the entire supply chain management system. The results of the study can be used to improve the efficiency of supply chain management in the automotive industry.

A brief analysis of introducing curriculum ideological and political elements into "Mapping Practice of Auto Parts"

The article focuses on the new requirements of integrating curriculum ideological and political elements into the professional practice course of "Automotive Parts Mapping Practice", proposes feasible curriculum ideological and political elements, establishes the course teaching concept of ideological and political element integration, and discusses the new teaching mode different from the traditional practice course, striving to integrate professional knowledge education, ideological and political education, and students' practical ability training. The course aims to integrate professional knowledge education, ideological and political education and the cultivation of students' practical skills, and comprehensively promote the construction of the teaching content, curriculum system, teaching methods, teaching means, teaching conditions and teaching staff of Mapping Practice of Auto Parts, so as to lay a solid practical foundation for the revitalization of Chinese automotive industry and the cultivation of China's own manufacturing technology engineers for the first line of automotive production.

Research on the Influence of COVID-19 on Overall Sales of Cars and Cars in Different Categories in China

COVID—19 outbreak has caused a global economic recession; automotive industry plays a key role in economy nowadays. Previous studies were focused on the short-term impact of the COVID outbreak. This study is aimed to evaluate two years after the COVID outbreak, what impact did COVID post on the Chinese automotive industry overall and across different categories, how sales of car models with different price, nationality, and car type reacts to the COVID outbreak. The result of this study shows that COVID posted a significant negative impact on Chinese car sales overall. The higher priced car models impacted less by the COVID outbreak, chinse models impacted more by the COVID outbreak, and no significant evidence to show how SUV models impacted by the COVID outbreak. These findings can help car companies to make the most ideal production, operation and supply chain management decisions when a natural shock happens in the future.

R&D collaboration, social coordination, and standardization: evidence from the Chinese automotive industry

R&D collaboration, social coordination, and standardization: evidence from the Chinese automotive industry

The Innovation Ecological Model of Chinese Automotive Industry Based on Artificial Intelligence and Big Data Technology

The digitalization of the automobile industry must depend on the information technology industry. The coupling development of the two creates conditions for the realization of industry 4.0 and intelligent manufacturing. The purpose of this paper is to make an empirical study on the possibility of coupling and the coupling degree, correlation degree, and innovation ability of China’s automobile industry and information technology industry. This paper takes the intelligent manufacturing of the automobile industry as the research object. According to the current situation of China’s automobile industry, this paper uses data to analyze and predict the development level of China’s automobile industry and the gap with the foreign automobile industry. Firstly, it summarizes and analyzes the development of China’s automobile industry and information technology industry. Then, the gray correlation analysis method is used to explore the factors affecting the innovation of China’s automobile industry. It is found that the relationship between capital investment and innovation is the most significant in “industrial innovation investment.” Finally, the coupling development model of the automobile industry and information technology industry is established, and the coupling degree of the two is analyzed by using the analytic hierarchy process and the Delphi method. The research of this paper mainly focuses on the automobile industry. Under the wave of internet, other industries such as the commerce and service industry also have a strong coupling relationship with the information technology industry, which will provide a new research direction for the follow-up research of experts and scholars.

Third party purchase: an empirical study from the Chinese automotive industry

Third party purchase: an empirical study from the Chinese automotive industry

The trade-off between trust and distrust in supply chain collaboration

Trust and distrust can play an important role in a healthy supply chain collaborative relationship, and both carry potential shortcomings. Little attention has been paid to understanding and explaining the development process of trust and distrust in supply chain collaborations, especially in an international context. Using the Transaction Cost Economics theory, this study begins by discussing expressions of trust and distrust within the context of a supply chain collaboration dyad. Then, we explore how trust and distrust interact at a network level. Using a novel, longitudinal, multi-case-study approach, this paper provides new empirical evidence of the complementary roles of trust and distrust in supply chain collaboration, exploring how these concepts work together across different stages of the relationship and in different contexts. This study distinguishes between ‘competence trust’ and ‘integrity trust’ concerning collaboration contracts which typically create distrust. Finally, this paper offers unique insights into the influence of culture on the interpretation and performance of trust and distrust in international supply chain collaboration, grounded in the context of the Chinese automotive industry.

An Exploratory Study of Competitive Strategy and Performance in Chinese Automotive Industry

Purpose - The purpose of this study was to analyze the impact of a company s competitive strategy on corporate performance in the highly competitive Chinese automotive industry. Design/methodology/approach - This study collected 14 survey data from automotive companies in China which be listed more than one year. We chosen the exploratory study with deriving research assignments, and the final research results are presented as propositions to proceed with the study. Findings - First, in the Chinese automobile industry, a company s competition strategy has a positive impact on corporate performance. and also the Differentiation strategy and the Low-cost strategy both have a positive impact on corporate performance. In addition, a company pursuing the Differentiation strategy that it would achieve better corporate performance than a company pursuing the Low-cost strategy. Second, it has been shown that the hybrid strategy rather than the pure strategy in the Chinese automobile industry can achieve higher corporate performance. Research implications or Originality - First, the type of competitive strategy in Chinese automotive industry were identified through the original strategies presented by Porter and Murray, and the impact of the Low-cost and the Differentiation strategies on corporate performance was analyzed. Second, contributing to the study of pure and hybrid strategies that are still under discussion now. Third, it also suggested practical implications that companies in China s automotive industry should pursue cost or differentiation advantages to secure competitive advantage.

How tie strength in alliance network affects the emergence of dominant design: the mediating effects of exploration and exploitation innovation

ABSTRACT Drawing on social network theory and technological innovation literature, this study investigates how firm innovation mediates the relationship between tie strength of alliance network and the probability of producing dominant designs. We argue that strong ties facilitate both exploratory and exploitative innovation, which enables firms to produce dominant designs. We test the hypotheses with data from the Chinese automotive industry during 2004 and 2012. The findings suggest that strong network ties help producing dominant designs through facilitating exploitative but not exploratory innovation. This study reveals how the social networks, as important resources, influence firm performance in the competition to produce a dominant design. Firms must engage in innovation activities, especially exploitative innovation activities, to realise the value of their networks.