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    Automobile

    In the future, with the improvement of China’s automobile demand market in terms of the price,  the income and consumption structure of the residents, automobile credit and consumption environment, especially the new production of adapting market demand from joint ventures enterprises that be dominated by multinational corporations. It is expected that china will become the largest automobile market in the world in 10-15 years, with annual sales of 17 million vehicles. At present, the overall profit of China’s auto industry is higher than the international level, with the decline of product prices, which is likely to reduce the industry profit margins, but at the same time, the cost also has a large decline space, so the total profit may be maintained, or possible even to be improved. in addition, the country will further reduce some tax fees, it will provide some enterprises with decline space. If the scale of production and sales can be expanded with the price, the scale effect will be played, it will make the industry to maintain a good efficiency level. At the same time, the import cost was declined for some manufactures because of the decline of import tariff on automobile parts. This point has more obvious impact for high level products that adopted import automobile parts, and the technology also was improved. From the overall industry, the profitability of cars, automobile parts and accessories business is in the leading level, and it has higher return on investment.
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