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Auto Parts Manufacturing in China

Government measures boosting growth in the China auto parts manufacturing industry

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2014-01-15 20:40:04 - Auto Parts Manufacturing in China - a new market research report on

The development of the Auto Part Manufacturing industry is being driven by the fast-growing Automobile Manufacturing industry and strong growth in the number of automobiles in use across China. In 2009, the Chinese government launched a series of measures to boost automobile sector growth.

These measures included reduced automobile sales taxes, direct subsidies to rural households purchasing automobiles, and the indirect effects of the government´s $500 billion stimulus package. At the end of 2012, the total number of automobiles in use in China was nearly 121 million; this number is expected to continue increasing rapidly in future years.

China´s accession to the World Trade Organization (WTO) in 2001 helped facilitate the development of the automobile parts and accessories market by encouraging an



open and rational market structure. However, membership in the WTO also meant that China had to reduce its tariffs and non-tariff barriers, and open up its service sector. China´s Auto Part Manufacturing industry is less efficient compared to those in developed countries, and faces increasing competition as the market continues to become more globalized.

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