Although China’s annual car sales topped the world at 13.5 million in 2009, it is too early to celebrate.
The real winners, according to the author, are actually foreign companies.
China’s automotive industry depends heavily on foreign companies to supply parts. Especailly regarding auto electronics, engines, and transmissions, foreign company’s market share is 90% .
China has yet to have its own brand. Its advantage in automotive production is low cost laborers. he profit margin is quite low. Without its own brands, China’s astronomical auto sales volume can only help others.
Source: China Business Times, January 20, 2010