National Industrial Background
With a rapid and steady economic growth in 2005, the auto industry, one of the backbones in Chinese economy, has broken the record of production and sales volume once more: 5.70 million and 5.758 million respectively, increasing 13.54% compared with those of last year. With import of 160,000 cars, the total sales volume reached 5.92 million autos, which exceed the 5.8 million units of Japanese domestic market. As the result, China ranks the 2nd on the sales volume of auto industry all over the world, just next to US.
The latest forecasting indicates that the national vehicle population has reached 35.6 million units in 2005, and estimated number of 2010 is 56.7 million, and in 2020 it will be 131 million. The constant rapid growth of demand for automotives foresees a prosperous automotive market in China.
Regional Economic Background
Chongqing, the only municipality in the west of China, the economic center of the upper reaches of the Yangtze River and one of the most important auto production bases, has increased its GDP yearly at 16.9% in the past three years, with GDP of more than US$ 37 billion and per capita GDP of more than US$ 1356 in 2005.
With the implementation of the Western Development Project, the total investment in Chongqing will reach US$ 160 billion, including US$108.4 billion spent on 500 key projects during 2006 to 2010. The expected industrial turnover of 2010 is US$ 111 billion, increasing by 18% annually. The expected volume of auto production and sales is 1.5 million units, accounting for 15% in the whole country, and the expected sales revenue of automobiles is US$ 16.6 billion, ranking 4th in China in 2010.
Promoting economic growth through investment, consumption and export & import has been a successful attempt in Chongqing. People’s consumption pattern and ability has been changed and improved a lot. The market, especially the auto market enlarged quickly. The average sales growth of cars reached 15.6% in 2005.The sales of MAZDA and Nissan cars grew by 200% respectively in 2005, and Porsche and Ferrari both have their own dealership in Chongqing.
Introduction of Chongqing
With an area of 82,000 square kilometers and a population of 31 million, the largest area of administration in China and the nation’s most populous city, Chongqing is the 4th municipality city in China after Beijing, Shanghai and Tianjin.
Industry is the mainstay of Chongqing’s economy. There are almost 10,000 factories with fixed assets of US$12.1 billion and a working staff of 1.2 million. Chongqing is one of the six old industry bases of China. It is one of the four major automobiles and one of the main military production bases of China, at the same time it is one of the nine biggest iron & steel production centers and one of the three major aluminum production bases of China.
A powerful industry stems from a strong base of science and technology. Chongqing has nearly 1,000 scientific research institutions, 400,000 scientists and technical staff.
As the only municipality city located at the conjunction between the eastern part and the western part of China, Chongqing has the double role of the front opening to the East and hinterland in the Western Development Project with the superior economic geographical position.
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