How many domestic automakers does China need ?

An article in Bloombergbusinessweek (Dec 19, 2011) describes China’s auto sector has having 70 automakers with 55 of them accounting for 11 % of sales.  Foreign automakers account for 58% of sales.  The Chinese government plans to further concentrate the domestic automakers so that ten manufacturers account for 90% of the market. If the goal is to create a competitive domestic auto sctor, is this an appropriate step ? Given the vested local interests in job creation, with auto assembly a significant manufacturing base,  how will this concentration be achieved by 2015? Is auto sector concentration a good strategy to create a globally competitive Chinese auto sector ?

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About aviyer2010

Professor
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