AUTO INDUSTRY NEWS

Chinese cities vying for the title of Motor City

Chinese cities vying for the title of Motor City image

Text: Eric Tipan / Photos: Lifan | posted October 31, 2013 14:26

Now we ask, which city is primed to be the next “Detroit”?

Almost all of the auto manufacturing that happens in China is concentrated on the Eastern Seaboard.  Toyota is the furthest inland with a plant in Chengdu. 

China’s capital, Beijing, doesn’t even break double digits in market share and fails to crack the top 4 cities that produce vehicles in the world’s most populated country.

Shanghai is number 1 with 19.8% market share. Changchun is a far 2nd with 14.2%, Wuhan follows at 13.9% and Chongqing rounds it out at 13.7%.

Despite Shanghai’s domination, Changchun is putting has put in some serious investment money since 2000 to keep up with its reputation as the “cradle of China’s automotive industry”.

Chongqing is targeting an output of 3.2 million vehicles by 2015 and has poured in 1.6 billion yuan to achieve that.

Wuhan, on the other hand, is the most geographically poised to attract the most auto business.  With 2 of China’s main rivers flowing on both side and the country’s largest railway line running through it, it would be the easiest and quickest to access for major businesses brining in raw materials.

The Chinese government has set certain policies to make it conducive for foreign auto manufacturers to invest heavily in auto production as a joint venture with local Chinese companies.

It all comes down to accessibility and the ease of doing business.  Two main factors that will determine who wins the right to be called Asia’s “Motor City”.