Undergrowth of China's Automobile IndustryOne the one hand, many completed automobile manufacturers cannot meet the quota of production, and their production capacity has been laid idle for a long time. Factories have loudly called for starting up the market and stimulating consumption; on the other hand, new automobile projects have been started one after another. There are now nearly 30 factories producing various types of automobiles nationwide.On the one hand, designated automobile factories with investment of several billion or tens of billion yuan shouted determinedly, "There is no space for price reduction, the price of sedan cars must not be cut"; on the other hand, some unlicensed automobile factories, acting contrary to them, have forced the price down to a very low point. On the one hand, designated factories blamed the competent department for their "failure in macro-control"; on the other hand, "unlicensed" factories censured the designated factories, demanding for competition on an equal footing. The competent asserted that it would strengthen macro-control and repeatedly indicated that it would approve not even a single new project. However, when it come to specific projects, it approved one project after another. The framework of a market economy has initially taken shape over the past 22 years of reform and opening up, the most competitive auto industry, however, still remains under the planned economy system. Without competition in its real sense, the automobile industry will never grow up. Steady Development In Auto IndustryDuring the "Ninth Five-Year Plan" period, the auto industry, one of China's pillar industries has witnessed a steady growth. The repetition in the construction of auto-manufacturing industry has got contained and with its restructuring strengthened the economic benefit in mass-production has begun to show up.Statistics show that in 1999, the volume of auto sales increased to 1.83 million cars, a yearly average increase of 6.33% from 1.46 million in 1995. By the end of 1998, the private cars accreted to 4.2365 million from 2.4996 million in1995, a rise of 23.615%. By PD Online staff Du Minghua |
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