Contents:

INTRODUCTION Report Coverage Executive Summary     1 MARKET BACKGROUND       1.1 Fast Facts       1.2 Exchange Rates         1.2.1 Exchange Rates: China         Table 1.1 AVERAGE ANNUAL EXCHANGE RATES BETWEEN RMB AND US$ 1994-1999         1.2.2 Exchange Rates: Hong Kong         Table 1.2 AVERAGE ANNUAL EXCHANGE RATES BETWEEN HK$, RMB & US$ 1994-1999       1.3 Regions of China       Map 1.1 CHINA: PROVINCES AND MUNICIPALITIES       1.4 Demographics         1.4.1 Demographics: Total Population         Table 1.3 TOTAL POPULATION 1994-1998         1.4.2 Demographics: Population by Location         Table 1.4 POPULATION BY URBAN-RURAL DIVIDE 1994-1998         1.4.3 Demographics: Population by Province         Table 1.5 POPULATION BY PROVINCE 1998         1.4.4 Demographics: Population Density by Province         Table 1.6 POPULATION DENSITY BY PROVINCE 1998         1.4.5 Demographics: Population Concentration         Map 1.2 CONCENTRATION OF POPULATION BY PROVINCE 1998         1.4.6 Demographics: Population by Sex         Table 1.7 TOTAL POPULATION BREAKDOWN BY SEX 1994-1998         1.4.7 Demographics: Population by Age         Table 1.8 POPULATION BY AGE GROUP 1994-1998       1.5 Consumer Wealth         1.5.1 Consumer Wealth: GDP and Cost of Living         Table 1.9 GDP AND COST OF LIVING INDEX 1994-1998         1.5.2 Consumer Wealth: Provincial Differences in GDP         Table 1.10 GDP BY PROVINCE 1996-1998         1.5.3 Consumer Wealth: GDP Per Capita by Province         Table 1.11 PER CAPITA GDP BY PROVINCE 1998         1.5.4 Consumer Wealth: Concentration of Wealth by Province         Map 1.3 VALUE OF GDP PER CAPITA BY PROVINCE 1998       1.6 Households         1.6.1 Households: Total Households by Size         Table 1.12 NUMBER OF HOUSEHOLDS BY SIZE 1994-1998         1.6.2 Households: Total households by Urban/Rural Divide         Table 1.13 NUMBER AND SIZE OF HOUSEHOLDS BY LOCATION 1994-1998         1.6.3 Households: Income Earners Per Household         Table 1.14 AVERAGE NUMBER OF INCOME EARNERS PER HOUSEHOLD 1994-1998       1.7 Consumer Trends       1.8 Consumer Market         1.8.1 Consumer Market: Consumer Spending Trends         Table 1.15 CONSUMER EXPENDITURE BY BROAD SECTOR AT CURRENT PRICES 1994-1998         1.8.2 Consumer Market: Retail Sales and Consumer Spending         Table 1.16 RETAIL SALES AS A PROPORTION OF CONSUMER EXPENDITURE 1994-1998         1.8.3 Consumer Market: Urban Income and Spending Compared         Table 1.17 URBAN AVERAGE ANNUAL INCOME AND EXPENDITURE 1995-1998     2 TRANSPORT MARKET BACKGROUND       2.1 Transport Infrastructure         2.1.1 Transport Infrastructure: Transport Routes         Table 2.1 LENGTH OF TRANSPORTATION ROUTES BY TYPE 1993-1997 Transport Infrastructure: Freight Transport         Table 2.2 VOLUME OF FREIGHT TRANSPORT BY TYPE 1993-1997 Transport Infrastructure: Passenger Transport         Table 2.3 VOLUME OF PASSENGER TRANSPORT BY TYPE 1992-1997 Transport Infrastructure: Central Government Direction Transport Infrastructure: Provincial Governments Follow Transport Infrastructure: Road Planning Policy Transport Infrastructure: The National Trunk Highway System The five north-south routes: The seven planned east-west routes: Three other major sections of highway: Transport Infrastructure: Defining the Highway Corporations Case Study: Hopewell Group Transport Infrastructure: Will Individuals Need Cars? Transport Infrastructure: Emissions Legislation Transport Infrastructure: The Manufacturers Response       2.2 Ownership of Vehicles Ownership of Vehicles: Total Vehicle Ownership       Table 2.4 TOTAL VEHICLE OWNERSHIP BY TYPE 1994-1998 Ownership of Vehicles: Percentage Breakdown of Vehicle Ownership       Table 2.5 PERCENTAGE BREAKDOWN OF VEHICLE OWNERSHIP BY TYPE 1994-1998 Ownership of Vehicles: Growth of Vehicle Ownership       Table 2.6 INDEX OF VEHICLE OWNERSHIP GROWTH BY TYPE 1994-1998 Ownership of Vehicles: Potential Ownership Trends in Light of New Policy      3. CAR MANUFACTURING       3.1 History of the Chinese Car Industry History of the Chinese Car Industry: Developing the Modern Industry History of the Chinese Car Industry: Cars in the Current Chinese Political Psyche History of the Chinese Car Industry: The New Structure of the Auto Industry History of the Chinese Car Industry: Development of the Auto Components Industry       3.2 Manufacturing Manufacturing: Output Value       Table 3.1 TOTAL OUTPUT VALUE 1994-1998 Manufacturing: Output Volume       Table 3.2 OUTPUT VOLUME BY SECTOR 1994-1998       3.3 Production by Region Production by Region: Passenger Cars Production by Region: Identifying China's Detroit Production by Region: Potential new Production Bases       3.4 Companies by Region Companies by Region: Location of Joint Ventures Companies by Region: Location of Chinese Companies Companies by Region: Economics of Location       3.5 Industry Forecast Industry Forecast: Future Trends Industry Forecast: Key Opportunities Engine Parts Chassis And Related Parts Other Components Auto Electrical Appliances Research and Development Automotive Aftermarket Pollution Prevention Industry Forecast: Total Output Value       Table 3.3 FORECAST TOTAL OUTPUT VALUE 1999-2003 Industry Forecast: Sector Volumes       Table 3.4 FORECAST VEHICLE OUTPUT VOLUME BY SECTOR 1999-2003       3.6 Industry SWOT Analysis Strengths Weaknesses Opportunities Threats      4. AUTOMOBILE MARKET       4.1 Overview       4.2 Total Sales Total Sales: Market Volume       Table 4.1 TOTAL AUTOMOBILE SALES VOLUME 1994-1998 Total Sales: Output as a Proportion of Sales       Table 4.2 AUTOMOBILE OUTPUT VALUE AND VOLUME AS A PROPORTION OF SALES 1994-1998       4.3 Sector Breakdown Sector Breakdown: Sales by Type of Owners       Table 4.3 CAR OWNERSHIP BY TYPE OF OWNERSHIP 1994-1998 Sector Breakdown: Fashion Sector Breakdown: Idiosyncrasies of Chinese Motoring Sector Breakdown: Vehicle Restrictions       4.4 Manufacturer Market Shares Market Shares: Manufacturer Shares       Table 4.4 LEADING MANUFACTURER SHARES OF VOLUME PASSENGER CAR SALES 1997 Market Shares: Sales by Manufacturer       Table 4.5 LEADING PASSENGER CAR MODEL SALES VOLUME 1994-1998       4.5 Consumer Demand Indicators Consumer Demand Indicators: Wealth Consumer Demand Indicators: Need Consumer Demand Indicators: Desire Consumer Demand Indicators: Concern       4.6 Consumer Demand Trends Consumer Demand Trends: Discernible Target Groups Consumer Demand Trends: Niche Sectors       4.7 Retail Trends Retail Trends: Retail Sales by Outlet Type Retail Trends: Who Can Sell Cars? Retail Trends: Dealerships Retail Trends: Restrictions on Car Sales Automotive After Sales: The Second Hand Market Automotive After Sales: Cars on the Internet Automotive After Sales: Development of a Car Culture? Retail Trends: The Black Market       4.8 Car Ownership Regulations Car Ownership Regulations: Vehicle Ownership Car Ownership Regulations: Driving License Application Getting a License Car Ownership Regulations: Vehicle Purchase Making A New Car Legal Chinese Car Dealerships Buying a Used Car Car Inspection for Used Cars Annual Inspections Insurance       4.9 Prices Prices: Retail Prices       Table 4.6 RETAIL PRICES ON SELECTED CAR MAKES 1997        4.10 Market Forecast Market Forecast: Future Trends Market Forecast: Total Sales Value        Table 4.7 FORECAST TOTAL SALES VOLUME 1999-2003      5. SWOT ANALYSIS Strengths Weaknesses Opportunities Threats      6. COMPANY PROFILES       6.1 Beijing Jeep Co. Ltd. Beijing Jeep Co. Ltd.: Company Details Beijing Jeep Co. Ltd.: Products and brands Beijing Jeep Co. Ltd.: Company Background Beijing Jeep Co. Ltd.: Financial Results       Table 6.1 BEIJING JEEP CO. LTD.: FINANCIAL RESULTS       6.2 China First (Changchun) Automobile Group Corporation (FAW) FAW: Company Details FAW: Company Background FAW: Financial Results       Table 6.2 FAW: FINANCIAL RESULTS 1996/1997       6.3 Jinbei GM Automotive Co. Ltd. Jinbei GM Automotive Co. Ltd.: Company Details Jinbei GM Automotive Co. Ltd.: Company Background Jinbei GM Automotive Co. Ltd.: Financial Results       Table 6.3 JINBEI GM AUTOMOTIVE CO. LTD.: FINANCIAL RESULTS 1996/1997       6.4 General Motors China, Inc. GM Representative Office Opel China GmbH GM Representative Office GM Shanghai Office       6.5 Shanghai Volkswagen Automotive Co. Ltd. Shanghai Volkswagen Automotive Co. Ltd.: Company Details Shanghai Volkswagen Automotive Co. Ltd.: Company Background Shanghai Volkswagen Automotive Co. Ltd.: Financial Results       Table 6.4 SHANGHAI VOLKSWAGEN AUTOMOTIVE CO. LTD.: FINANCIAL RESULTS 1992-1995 Shanghai Automotive Co Ltd.: Financial Results       Table 6.5 SHANGHAI AUTOMOTIVE CO LTD.: FINANCIAL RESULTS       6.6 China Space Industry Corporation (CSIC) CSIC: Company Details CSIC: Company Background CSIC: Guizhou-Subaru       6.7 China North Industries (NORINCO) Vehicle Works NORINCO: Company Details NORINCO: Company Background NORINCO: Chang'an Co. Ltd. Financial Results       Table 6.6 CHANG'AN CO. LTD.: FINANCIAL RESULTS       6.8 Tianjin Automotive Industry Co Tianjin Automotive Industry Co: Company Details Tianjin Automotive Industry Co: Company Background Tianjin Automotive Industry Co: Financial Results       Table 6.7 TIANJIN AUTOMOTIVE INDUSTRY CO.: FINANCIAL RESULTS       6.9 Dongfeng Motor Company Dongfeng Motor Company: Company Details Dongfeng Motor Company: Company Background Dongfeng Motor Company: Financial Results       Table 6.8 DONGFENG MOTOR COMPANY: FINANCIAL RESULTS        6.10 Guangzhou-Peugeot        Table 6.9 GUANGZHOU-PEUGEOT: FINANCIAL RESULTS        6.11 Xi'an Qinchuan Automotive Co. Ltd.      7. CONTACTS       7.1 Chinese Government Organisations Ministry of Machinery Industry (MMI) The Economic & Trade Commission of the State Council State Planning Commission Ministry of Foreign Trade & Economic Cooperation (MOFTEC) China State Office of Machinery & Electronics Products Import and Export General Administration of Customs       7.2 Trade Promotion Organisations and Associations China Association of Auto Manufacturers China Council for the Promotion of International Trade (CCPIT)/China Chamber of International Commerce Information Center of Beijing Automotive Industry Information Institute of Communications       7.3 Major Importers China Imported Auto Trading Center China Vehicle Import and Export Corporation China National Automotive Industry Import & Export (I/E) Co. China National Technology I/E Corporation China National Machinery & Equipment I/E Corporation Beijing Automotive Industry Corporation (BAIC) Beijing Jeep Co. Ltd. China Automotive Industry International Corporation China Automobile Parts & Accessories Corporation China Urban Automobile General Corporation China National Automotive Trade Guangzhou Co. China National Automotive Trade Southwest Co. China National Automotive Industry I/E Corp Shanghai Automobile I/E Corporation Shandong Automobile Import and Export Corporation       7.4 Major Automobile and Component Manufacturers Aviation Industry of China Beijing Automotive Industry Corporation (BAIC) Beijing Jeep Co. Ltd. Beijing Warner Gear Co. Ltd. Delphi Automotive Systems Dana Corporation China National Aerospace Industry Corporation China National Automotive Industry Corporation (CNAIC) China National Heavy Duty Vehicles Corporation China National Special Automobile Corp., Ltd. China First (Changchun) Automobile Group Corporation (FAW) China North Industries (NORINCO) Vehicle Works Cummins Corporation Hunan Power Engine Plant Jinbei GM Automotive Co. Ltd. Nanchang Gasket Factory Shanghai Automotive Industry Corporation (SAIC) Shanghai Volkswagen Automotive Co. Ltd. Tianjin Auto Electrical Apparatus Factory Tianjin Automotive Industry Corporation Tianjin Automobile Works Zhongtong Vehicles and Machinery Group Boshan Electric Motors Factory Beijing Golden Thunder Classic Motors Co. Ltd.

Summary:

China's automotive industry has come a long way in a very short time. It has largely shaken off its planned-economy past, and is now on the cusp of becoming internationally active. The industry in China receives very favourable attention from the national and provincial governments, including real business incentives for the domestic industry to grow. This has meant that foreign companies investing in local production have been at an advantage over other companies competing in the Chinese industry from the outside. Although capacity for local demand for motorcycles has been reached, for most other vehicle types, especially private cars, capacity is a long way from being fulfilled. This leaves a large degree of room for expansion in the industry, both in volume terms, and in improving existing production lines. Development of ancillary industries, especially parts manufacturing and supplying, remains under-developed, and is becoming the focus of new political and financial attention. Both the supply side of manufacturing and the emerging wholesale distribution and retail industries have a huge growth potential that has only just begun to attract significant investment in their development. As the market in China has developed, so has the sophistication of demand. This has led to a recent increase in demand for more specialised vehicles. Such specialised vehicles are largely demanded by different sections of domestic industry, especially construction and distribution, but increasingly private vehicle owners are becoming more demanding of a greater variety of vehicle types. This is creating new niche sectors of demand for manufacturers to exploit.