The Impact of Multinational Auto Manufacturers on the Market Structural of Chinese Saloon Car Industry

Abstract:The paper studies the structural characteristics of Chinese Saloon Car market of 1993-2002 by three market structural indexes: rate of market concentration, HHI index and logarithm variance of manufacturer scale. We prove that the Saloon Car market that once was largely occupied by several monopolies has gradually developed into a multivariate competitive market. Although the multinational auto manufacturers still have a strong control of national auto market, the violent reaction of oligopoly with the continuing opening of the market is emerging. After WTO accession, the recombining situations of Chinese auto industry, which are participated by multinational auto manufacturers, have been fixed on the whole, but it is not the result of sufficient market competition. The Chinese auto market will still face danger of being shuffled after the transitional period of WTO. It is possible to create a more stable and mature market structure only after Chinese Saloon Car industry carries through a reconstruction which based on a more fairness and orderly competition