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need someone reliable to help me complete a report?I will attach the document about requirements?tips is negotiable as long as your answer is satisfied by me. This report is about Chinese Auto Market?there are three companies choosed?BMW, BENZ and AUDI. The products will be compared from those companies are 5 series?E class and A6 series. PLEASE read the attached documents carefully? it is really important. Using the font called calibri and font size 11.

Running head: Chinese auto market Summary of the Chinese Auto Market Your name Your institution Date of submission Chinese Auto Market 2 Introduction


The ever advancing technology and the increased environmental conservation awareness


has greatly revolutionized the automobile industry. There is an increasing pressure from the


environmental agencies requiring automakers to adopt fuel-efficient technology innovations and


clean sources of energy when designing and manufacturing their products. In addition the


decreasing oil reserves in most states has necessitated the need of producing vehicles with energy


star certifications. Most of these vehicles are designed with the latest technology making them


more luxurious, sleek and more appealing to potential car owners. Some of the mid-class


luxurious sedans include Audi A6, Benz E, BMW 5 series and Cadillac CT6. As a rapidly


developing country, China is one of the countries that forms the largest market share for the


luxurious cars produced by various companies such as General Motors, Toyota, BMW and Audi.


The following section provides a summary of luxury automobile market in China (Calabrese,




Summary of the Chinese Auto market.


China has been the largest auto market since 2009 when Chinese car buyers became more


value-oriented compared to buyers in other countries such as UK, Germany and U.S. The


automakers especially Audi, BMW and Mercedez- Benz sold a total of 21.1 million cars, which


was a 7.3% increase from the sales in 2014. However, the growth of the Chinese auto market had


was 16% and 10% in 2013 and 2014 respectively, which implies that the auto market for luxury


cars slightly deteriorated in 2015. The deceleration in the country?s market growth may be


attributed to economic recession and the changing attitudes as well as behavior towards the


purchase of luxury cars. A study conducted by McKinsey on 4,000 car owners indicated that Chinese Auto Market 3 unlike in the previous years when car ownership was perceived as a symbols of class and status,


Chinese car buyers have become less status-conscious when buying cars. The drop in the market


for luxury cars in 2015 may also be attributed to the move by most Chinese people to purchase


second-hand cars, rely on e-hailing services, lease cars and adoption of car sharing services


(Zhao & Lv, 2009).


The Chinese car market is mainly composed of luxury car models compared to other


countries in Europe and the United States. Although the market is the largest in the word, it has


been monopolized by few companies including Mercedes-Benz, Audi and BMW, which is


evident from the Beijing streets that are flooded with car models from these companies.


Consequently, the competition in the auto market is lower compared to other countries, which


increases the cost of the luxury cars. Another factor that may be elevating prices of the luxury


cars in the Chinese market are the policy factors and the unfavorable customs duties. For


instance China imposes a 17% VAT, 26% customs duty and 30% consumption tax on the


production, purchase and ownership of luxury cars. According BMW dealers in China, BMW


cars made in China are much expensive than those manufactured and sold in U.S markets


(Fetscherin & Sardy, 2008). Thus, overpricing of the cars is one of the key drivers of the


diminishing auto market in China.


Although the Chinese auto market deteriorated in 2015, the growth is likely to accelerate


in 2016 by at least 8% as indicated by a 7.7% growth during the first quarter of 2016. The


initiatives by the Chinese government to offer tax breaks and tax reliefs on smaller capacity


engine cars will revive the auto sales casing a further increase in the country?s auto market.


Although the Chinese auto market is almost monopolized by BMW, Audi and Mercedes-Benz, Chinese Auto Market 4 there are other brands from which car buyers can choose from depending on their budget. By


May 2016, Chinese market had over 130 brands of passenger vehicles, which is the largest brand


portfolio on any auto market around the world (Gao, 2002) Chinese Auto Market




Zhao, Z., & Lv, Z. (2009). Global supply chain and the Chinese auto industry.Chinese


Economy, 42(6), 27-44.


Gao, P. (2002). A tune-up for China's auto industry. The McKinsey Quarterly, 144-156.


Fetscherin, M., & Sardy, M. (2008). China shifts into gear in the global auto


market. Globalization of Chinese Enterprises, New York: Palgrave MacMillan, 181-193.


Calabrese, G. (Ed.). (2016). The greening of the automotive industry. Springer. 5


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