Major Automakers Jumping Into China Market
The major auto makers from Asia, Europe and US are all currently manufacturing cars specifically for the Chinese market. They are introducing many new cars that cater to the more affordable market. The auto makers want a foothold in this potentially huge market so much that they are willing to take sacrifice intellectual property rights.
These car makers are willing to make these concessions because they see huge potential for this market in the future and are partnering up with some large Chinese companies to produce affordable, low frills cars that meet Chinese consumers needs for a low budget car that offer a basic, entry level car. China consumers are beginning to prosper more than they ever have in the past and are reaping the rewards of a more capitalist society. One of the first things they purchase once they have the funds is an automobile. A car means some degree of independence and the ability to travel for employment or for recreational purposes is becoming more prominent throughout the more populated areas of this growing country.
This could lead to a potentially large increase in the sales of automotive equipment in this large market, such as Car Lifts, Floor Jacks, engine hoists and tire changers.
General Motors is jumping into the market with an affordable vehicle. So are VW, Toyota, Nissan, Honda and most other manufacturers. These cars will not be sold in other countries, at least for now. The Chinese Government has imposed strict rules that require these outside auto makers to follow onerous guidelines in order to be able to sell in the country. This means no proprietary technology. They must share their technology with their Chinese counterparts.
With over a billion in population, one major side effect could be large traffic jams that are prominent in other major cities throughout the USA and other developed nations.