Changing the mix of China’s automobile production

A New York Times article (Sept 4, 2011) describes a shift in emphasis in China from increasing manufacturing volume to higher mileage cars.  Car sales increased by 5 % in 2011 compared to a 33 % increase in 2010. Officials in Beijing cut the number of new car registrations by 30 % in an attempt to reduce congestion.  Recent discussions by authorities suggest that such trends may be adopted in other cities.  But there are moves to focus on increased mileage and pollution controls, as China attempts to prepare its auto industry to compete globally.  But a slowdown in growth in China will affect not just Chinese automakers but all of the world’s top brands that depend on China for growth. Is China’s abrupt proposal to cut volumes and incent a shift to battery or other powered high mileage vehicles a credible way to change the auto supply chain ? How will the flexibility to limit vehicle registrations by cities impact industry sales volume and product mix across the country ? Do you forsee that such a policy will speed up China’s auto industry’s global competitiveness ?

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About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Supply Chain Issues, Sustainability and tagged , , , , , , . Bookmark the permalink.

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