New Study From IBM and University of Michigan Explores China’s Automotive Industry Future

New Study From IBM and University of Michigan Explores China’s Automotive Industry Future

A new study released today by IBM and the University of Michigan Transportation Research Institute’s Office for the Study of Automotive Transportation (OSAT) reveals the Chinese automotive industry is facing a number of significant challenges as it continues its expansion. The need to adapt to a market economy, a lack of technology and knowledge transfer from joint ventures, and infrastructure, air quality, and oil supply challenges all combine to create an uncertain future for the Chinese automotive industry, according to the study.

The results from “Inside China: The Chinese View Their Automotive Future” were part of extensive research which gathered the opinions of leaders from the Chinese automotive and government industries, complemented by views from academic experts. The study was designed to deliver a unique insider’s view from Chinese experts on the potential challenges their industry will face. The full study is available at IBM’s website for download.

The Chinese automotive industry has grown dramatically over the past decade. According to the National Bureau of Statistics of China, in 1993 a mere 220,000 cars were produced in China. By 2004 that number jumped to 2.34 million units produced. Fueling this production growth has been a rise in regional demand throughout Asia. Within China the number of new car registrations is expected to grow steadily rather than exponentially over the next 10 years.

Read the complete Press Release