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Gm Swot In China

THE CHINESE AUTOMOTIVE INDUSTRY
Overview and Forecast
2003 heralded the coming-to-life of the Chinese automobile industry. Passenger car sales and
production both eclipsed 75 percent growth rates, while automakers posted banner profits.6 Not
unexpectedly, this market explosion prompted a bevy of new entrants, whose subsequent
competition for market share reduced prices and drained the once limitless demand. Nevertheless,
even with the fall from rosy profit margins and breakneck sales growth, China still represents the
fastest growing automobile market in the world with far-reaching potential in sales and
complementary services (see Exhibit 1). A record 1.7 million new vehicles were sold in China in
the first three months of 2006.7 With the strong start, vehicle sales should surpass that of Japan,
placing China as the world's second largest automobile market, behind only the United States.
The driving force behind the growth in automobile sales has been the burgeoning of......


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Approximate Word Count: 4223
Approximate Pages: 17 (250 words per double-spaced page)

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