China will continue to dominate the global automotive market

One of the four largest accounting firms in the world, KPMG's latest "2012 KPMG survey of global auto industry executives" shows that Chinese automakers are expanding overseas business through joint ventures and alliances, and the Chinese market will continue to be global The automotive market dominates.

KPMG visited 200 global executives in the automotive industry, of which more than half held departmental or higher-level positions. Respondents came from different aspects of the automobile manufacturing industry. 97.5% of the company's annual turnover was more than US$100 million, more than five points. One of the companies interviewed had an annual turnover of over 10 billion U.S. dollars.

The survey found that of the top 20 automakers that executives expect to see an increase in international market share in 2016, 9 are Chinese brands, including Chery, Geely and Shanghai Automotive. They look globally and the cars they launch are technically competitive.

Andrew Thompson, partner of KPMG's China automotive company, said: "The survey shows that China has provided enormous market potential for local and international car manufacturers. The factors driving the successful development of the market include the government's plan to fully develop new energy vehicles, and Increase in disposable income."

Thomson pointed out that the increasingly close cooperation between Chinese automakers and their joint venture partners is also crucial to the future development of the industry. "Recently China's investment policy has changed. Overseas OEMs will rely more on their joint venture partners in terms of market access and development. At the same time, Chinese OEM manufacturers are also determined to expand overseas markets. Only in the interest of the best tactics for mutual benefit."

Chinese companies will become the main targets of alliances or mergers and acquisitions, and 70% of executives surveyed expect their activities in the region to become more frequent. Eastern Europe and Russia are the other two most popular objects.

The survey report also listed some of the challenges faced by the Chinese market, the most important of which was overcapacity and oversupply. More than half of the interviewed executives stated that in 2016 China’s auto market will be the country with the most serious problems of oversupply in the BRIC countries.

However, Thomson pointed out that China's overcapacity issue also needs to be considered from another perspective, "especially to take into account China's per capita car ownership growth potential." He added: “In an attractive figure in the report, 74% of respondents believe that high-quality customer service is the key to auto sales, which will provide the Chinese market with in-depth development space.”

Thomson said that KPMG's survey also showed that 75% of respondents believe that mature and emerging markets are in line, which means that the two markets will soon face the same opportunities and challenges. This is significant for OEM manufacturers from mature markets. They will get more opportunities, but they must also face fierce competition from the “BRIC” producers in the local traditional market and the latest technology automotive market.