ABSTRACT
Min Zhao Introduction In the past ten years, the production of motor vehicles in China has seen an average annual growth rate of 15 per cent, compared to a world average of 1.5 per cent in the same period. China produced 4.4 million vehicles in 2003 (OICA, 2004) with a growth of 35 per cent from 2002, becoming the fourth largest vehicle manufacturer in the world, after America, Japan and Germany. Rising consumer wealth levels have been a major contributory factor to the sudden explosion in the car market. According to the world market research centre, Chinese consumers’ purchasing power has risen to $5500, which has historically been the level of car consumption in other markets. With 4.5 million vehicles sold in 2003, China now is the fourth largest automobile market in the world (WMRC, 2004). Several institutes argue that China’s vehicle market is set to almost double to 2008, challenging Japan for its position as the world’s second-largest auto market.
