News ID : 2504
Publish Date : 01 May 2018 - 09:25
Statistics show that most of automakers located in china meanwhile, America and European countries always leading the auto industry, but the real question are why major auto companies are choosing Chinese as commercial partners?
Khodrocar – Presence of Chinese automakers is noticeable among the list of American, European and Asian major automakers. Some Chinese companies don’t have the half of European or American automakers age, but became the first choice for joint venture contracts very fast.

About 2 decades ago, after the execution of the third revolutionize plan of china, most of Chinese automakers decided to have cooperation with American and European automakers to develop their industry.

Examples of these joint ventures are, BMW & Brilliance, Shanghai & Volkswagen, Dongfang motor & Citroen and finally Beijing auto industry with Hyundai motor and former Daimler – Chrysler.

Also, Shanghai auto industry & GM, Dongfang Motor &Renault-Nissan and PSA group, FAW & Volkswagen and Toyota are the newest Chinese joint ventures.  

"the main reason for china’s success is its unique market. As you may know, China has the largest auto market in the world. China with a population of 1 billion people has always been an attractive market for investors and they found out this attractiveness since 30 years ago. Since then china is trying to find foreign investments in different industries.” Mostafa Jafari, an expert of auto industry told Khodrocar reporter.

"They managed the auto industry development plan that time and now we can see the results. On the other hand, China forced automakers to enter the China’s market to and have cooperation with Chinese and it made the relationship between Chinese automakers and global car manufacturers stronger.” He said. "These actions were accompanied by goals such as technology transfer because the Chinese didn’t have much to say in technologies. They got richer by cooperating with foreigners and instead of investing in branding, bought the full company with their technologies. An obvious example is Geely and Volvo.”

"Chinese policymakers chose the right path for auto industry 30 years ago and the continued this way till now. These policies have improved the financial condition and make the relation of companies stronger.” He added.
"Chinese have passed the path of improvement and they are seeking production now. They copied their logos from foreign companies in the 2nd decade of their industrial development. However, in the 3rd decade, China’s government starts to localize the modern technologies, green vehicles and alternative fuels and they were successful in this matter too.” Said Jafari. "The confidence of Chinese automakers is because of the 30 years of good policies and now the production rate of their most average company is more than the production rate of Iran’s largest automaker.”

Khodrocar Reporter: Negar Mir Karimi

Khodrocar Translator: Amin Zamani
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