The analysis of international competitiveness of China's auto manufacturing industry - Dissertation Example

With the boost in expansion of the industry the international auto industry has become a key sector of the economical growth for each and every country in the world. The auto manufacturing industry has shown a great development and registered a growth rate of thirty percent increase in the last few decades in-between 1995-2005. The world’s auto manufacturing industry has produced and accounted for a sixty six billion cars, trucks, vans and buses during 2005. The auto manufacturing industry has been the single vast engine of the economic growth in the world.

With the deepening development of the economic globalization the auto manufacturing industry has obtained rapid and robust development in the recent years and has gradually established itself as the pillar of the nation’s economy. The auto manufacturing industry has contributed immensely towards the nation’s economy by means of production and job creation in the economy. As per the reports, a production of the sixty million vehicles paved the way for an employment of about nine million people directly in the production and the manufacturing of the automobile parts.

This accounted for over the five percent of the total manufacturing employment worldwide. It was approximated that each direct auto manufacturing job sustained that least five percent of the circuitous jobs in the society resulting in more than a fifty million jobs in the in the auto manufacturing industry. The actual results also meet the approximated figures in terms of the jobs opportunity provided by the auto manufacturing industry globally. In addition the auto manufacturing industry also provided employment opportunities for the in the manufacturing of the related goods and the service industry.

The vehicles produced by the auto manufacturer are essential in the functioning of the global economy and to the welfare of the world’s citizen. The global auto manufacturing industry also accounts for the chief innovator. The industry has developed through a constant research and development process of the technology which in turn facilitated for the cost effectiveness in production. This assures that the technological development in the auto manufacturing industry provides the backbone of a strong economy through the cost effective advantage.

Studies showed that the greatest auto manufacturing producing countries had invested in lump sum over their technological research and development wing for a smooth operation in the auto manufacturing sector. The entire world accounted for an investment of €84 billion on the research and development wing in the auto manufacturing sector. Auto manufacturing also accounted for a major contributor of revenue in the government sector all around the world making a contribution of more than €400 billion (OICA is the Voice Speaking on Automotive Issues in World Forums, 2007).

Growing environmental concerns amongst the consumers and the hike in the fuel prices are inspiring the auto manufacturing manufacturer to expand the portfolio of the small cars and this make a shift in the production of the automobiles for the future industry growth. This accounted for one of the competitive advantage of the automobile industry. For competing in the international auto manufacturing industry a nation needs to diversify into a new manufacturing model that will