Rethinking "Made in China" Cars and Parts

The Boston Consulting Group---China not only represents the fastest-growing car market in the world, but also offers some of the lowest labor costs, at just 3 percent of European or Japanese manufacturing wages. Moreover, China can be expected to retain its labor cost advantage for a long time, thanks to its enormous pool of increasingly mobile workers, both skilled and semiskilled. To date, however, global auto OEMs and suppliers have focused primarily on establishing positions in China's domestic auto market, and have paid far less attention to developing China as a low-cost base for assembly and sourcing for export. Until very recently, general "wisdom"  had it that China just was not yet a competitive manufacturing and sourcing base.

Main contents:

·China as an Assembly Base for Export

·China as a Base for Sourcing