Future drivers of the China automotive industry

Deloitte --- Sourcing from low cost suppliers in China is certainly not a new idea. All global OEMs source from China to some extent. However, progress in the auto industry has been slow. Recent trade statistics show that of the US$750 billion in exports from China, only about 0.3% are in auto OEM components – severely underperforming the potential.

With the savings potential of 10% - 40% or more on landed cost for simple components with high labour content, why has the progress been so slow? It has been slow because it is not easy. Companies wanting to leverage low cost sourcing in China face a number of key challenges.

Main contents:

·Sustainable strategies for China's automotive industry: Something old, something new

·Export readiness of CHina's automotive industry: The "ins" and "outs" of management issues