The Next Five Years: Auto Industry's Top 10 Enterprises to Dominate 90% of Market Share

May 30
07:10

2024

jodie mht

jodie mht

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In the next five years, the automotive industry is set to undergo significant transformation, with the top 10 enterprises expected to control 90% of the market share. This ambitious goal is part of the "Industrial Transformation and Upgrade Planning (2011-2015)" initiative, which aims to enhance the industry's efficiency, promote energy-saving technologies, and encourage mergers and acquisitions (M&A) among leading companies.

Summary

The automotive industry is poised for a major shift over the next five years,The Next Five Years: Auto Industry's Top 10 Enterprises to Dominate 90% of Market Share Articles with the top 10 enterprises projected to capture 90% of the market share. This goal, outlined in the "Industrial Transformation and Upgrade Planning (2011-2015)" initiative, aims to boost industry efficiency, promote energy-saving technologies, and encourage mergers and acquisitions among leading companies. The plan also emphasizes the development of new energy vehicles and aims to reduce average fuel consumption for new passenger cars to 5.9 liters per 100 kilometers by 2015.

Industry Transformation and Market Concentration

Current Market Concentration

As of 2012, the top 10 automotive enterprises accounted for 82.2% of the market share. The "Industrial Transformation and Upgrade Planning (2011-2015)" initiative aims to increase this concentration to 90% by 2015, representing a 7.8% growth. This plan encourages the development of energy-saving and new energy vehicles and supports M&A activities to form 3 to 5 large automotive enterprise groups with core competitiveness.

Encouraging Mergers and Acquisitions

The initiative emphasizes the importance of M&A to consolidate the industry. By 2015, the goal is to have 3 to 5 large automotive enterprise groups that can compete globally. This consolidation is expected to enhance the industry's overall efficiency and competitiveness.

Energy-Saving and New Energy Vehicles

Fuel Efficiency Goals

One of the key targets of the initiative is to reduce the average fuel consumption of new passenger cars to 5.9 liters per 100 kilometers by 2015. This goal aligns with global efforts to reduce greenhouse gas emissions and improve fuel efficiency.

Production and Sales Targets

The plan also aims to produce and sell a cumulative total of 500,000 new energy vehicles by 2015. This includes electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs), which are seen as crucial for reducing the automotive industry's carbon footprint.

Technological Advancements

The initiative calls for significant investments in research and development (R&D) to advance key technologies such as internal combustion engines, transmissions, and lightweight materials. It also emphasizes the need to develop core technologies for power batteries, motors, and management systems.

Independent Brand Development

Challenges and Opportunities

The development of independent brands is a critical aspect of the industry's transformation. Currently, joint venture enterprises dominate the market, but the initiative aims to increase the market share of independent brands. This shift is expected to create opportunities for companies like Chery, Geely, BYD, and Great Wall Motors.

Incremental Growth

The growth of independent brands is expected to come from incremental advancements in technology and product development. However, these brands face challenges in catching up with established joint venture enterprises in terms of technology and market presence.

Infrastructure and Market Promotion

Infrastructure Development

The initiative emphasizes the need to develop infrastructure to support new energy vehicles. This includes building charging stations and other facilities to make it easier for consumers to adopt new energy vehicles.

Market Promotion

The plan also calls for pilot demonstrations and market promotion activities to encourage the adoption of new energy vehicles. This includes exploring new market promotion models and improving the management system for energy-saving vehicles.

Conclusion

The "Industrial Transformation and Upgrade Planning (2011-2015)" initiative sets ambitious goals for the automotive industry, aiming to increase market concentration, promote energy-saving technologies, and support the development of new energy vehicles. By 2015, the top 10 automotive enterprises are expected to control 90% of the market share, and the industry is set to produce and sell 500,000 new energy vehicles. These changes are expected to enhance the industry's overall efficiency and competitiveness, paving the way for a more sustainable future.

Interesting Stats

  • As of 2021, China is the largest market for electric vehicles, accounting for 41% of global EV sales (IEA).
  • The global automotive industry is expected to invest over $300 billion in electric vehicle technology by 2030 (Reuters).
  • By 2025, it is estimated that 20% of all new car sales globally will be electric vehicles (BloombergNEF).

References