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Case Title:

Chinese Automakers’ International Drive

Publication Year : 2007

Authors: Sandhya Hotchandani, Joel Sarosh Thadamalla

Industry: Automobiles

Region:China

Case Code: INA0093A

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:

Following the footsteps of their Asian predecessors Japanese and South Korean automakers all major Chinese automakers like Geely, Cherry and other leading auto companies aspired to become global players. With the advantages of low cost production and government support, Chinese automakers primarily targeted US and European market to sell their cars and consequently become powerhouse in global automotive industry.

Nevertheless, Chinese automakers had many obstacles to overcome before selling cars in international markets. The image of poor quality, weak design and lack of distribution networks hindered the progress. Besides, the world automotive market was saturating and analysts opined that the growth prospects were better in China itself.

Pedagogical Objectives:

  • To discuss the global and Chinese automotive industry scenario
  • To discuss international market entry barriers and strategies to overcome them
  • To discuss challenges faced by Chinese automobile manufacturers in their quest to go global.

Keywords : Chinese Automakers; China Cars; Industry Analysis Case Study; Automobile Industry; Globalisation; International Markets; Expansion Strategies; Shanghai Automotive (SAIC); First Automobile Works (FAW); Dongfeng Motor Corporation; Geely Automobile; Chery Automobile; Challenges of globalisation; Exports; Low cost production

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