The automotive market in China is a promising one, with significant business opportunities for multinational companies. However, it also presents challenges and risks. Based on market insight and past experience, Arthur D. Little assesses the outlook for the Chinese automotive market and identifies five key topics that should be on the CEO agenda for any international automotive OEM doing business in China. The market is expected to experience growth of 15% p.a. for the next three to four years, with growth in market volume slowing down between 2013 and 2015 to 7% p.a. Local automotive brands are likely to increase their market share, but there will also be significant opportunities for international automotive OEMs. The market is expected to mature, with a change in the ratio of first-time to second-time car purchasers.
