How do foreign auto suppliers need to compete differently in China market?

The China auto market is surging as the most fascinating place for the global auto industry today. All major foreign auto OEMs have been aggressively expanding their business in China, and expecting most of their global sales growth to come from China in the next decade. Following the move of foreign OEMs, many foreign auto suppliers also entered the China market, either to serve their traditional OEM customers, or to look for new business opportunities. Among them, one of the global exhaust system suppliers is very interested in China and invited us to conduct a case study on their China operations. In this thesis, we analyzed the dynamics of China auto market and the challenges to foreign OEMs and suppliers. Being driven by the market's rapid growth, tough competition, increasing margin pressures, global pressure on low-cost country sourcing and the Chinese government regulations, foreign OEMs have been increasing their efforts on the localization of manufacturing and product development. We first examine the current strategic role of China operations for major foreign OEMs in China, and the current and future requirements from foreign and Chinese OEMs on auto suppliers in China.

Department dc:contributor.department

System Design and Management Program.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2006

Author dc:creator

• Jin, Hao (Hao Howard)

Advisor dc:contributor.advisor

• Donald Rosenfield.

• System Design and Management Program.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/34626

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/34626