Before China became a WTO member, there were worries the country’s auto industry would be crushed by floods of imported vehicles as the market opened up. Ten years on, how has the industry developed?

Chang Xiaonan still remembers the first car he bought ten years ago was a Japanese Lexus. He was one of the lucky few who could afford a car in China at the time, then still considered a luxury.

Chang Xiaonan said, "Ten years ago, few families owned a car. Most of the car users were government officials and business owners. It’s only in the last decade that cars have become part of ordinary family life."

Now, as a dealer with three garages, he expects cars to become even more popular, especially as prices have fallen.

Chang Xiaonan said, "Chinese people are one of the beneficiaries. Some brands like Santana cost more than 150,000 yuan, or 23,000 USD ten years ago, but now, the same brand costs less than 12,000 USD."

This is welcomed by customers. A car buyer said, "I think cars are much cheaper now and there’s more choice of models. More Chinese people can afford a car."

With China’s entry into the WTO, China removed many restrictions on foreign investment in the sector and cut tariffs on imported cars to 25 percent from 200 percent. The government also cancelled auto import quotas in 2005.

Chang'an is one of the top domestic automakers in China. Xu Liuping, its chairman, says the biggest change from WTO membership is full market competition.

Xu Liuping said, "China opened its market following WTO admission. In the face of such huge competition, indigenous brands have grown stronger. For example, in 2000, there weren’t many indigenous brands to talk about, but in 2010, they represent around 30% of the passenger car market."

Xu says in order to survive and thrive, domestic brands are forced to increase their innovation and leverage global resources.

Xu Liuping said, "For example, Chang'an has set up R&D centers in China, Italy, Japan, and United States. Foreign companies can utilize China’s broad market, and China can also leverage foreign R&D resources to strengthen our own skills and innovation."

Looking into the future, Chang'an is seeking new opportunities to further grow its market share.

Xu Liuping said, "We will not only make small and economic cars, but will also move into the mid and higher end of the market, because these represent bigger profits. In the meantime, we are building more new energy vehicles as the industry is gradually shifting from gasoline cars to hybrid and full electric vehicles. Furthermore, we will provide more finance to dealers and consumers to help more Chinese people realize their car-owning dreams."

In 2000, China was producing two million vehicles. In 2009, 14 million vehicles were manufactured in China, surpassing the United States as the world’s largest auto maker.

Source:cntv.cn