Automotive dealerships in China

Date of publication: March 3, 2008

Catalogue: Automotive 2008


In recent years, China has surpassed Japan and the major European car markets, and rapidly become the second largest automotive market in the world. Only in the United States of America are more vehicles sold every year, and even this will change in the future. With a projected annual growth of approximately 20%, China is destined to become the number one auto market in the world within the next three years. Indeed, even with far more conservative expectations, the Middle Kingdom will gain the global top spot not later than 2015. As one of the fastest developing car markets with huge potential for further growth, China has attracted virtually all car manufacturers to produce and sell their vehicles on the mainland. China has rapidly transformed from a seller market into a buyer market in which consumers can now choose among more than 60 car brands. The Middle Kingdom has therefore become the most competitive car market in the world - a fact which poses particular challenges for marketing strategies of car manufacturers, including the management of their distribution networks as well as individual dealer performances.

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