China's Support Programs For Automobiles And Auto Parts Under The 12th Five-Year Plan

EXECUTIVE SUMMARY

In 2009, as the global economy reeled from the financial crisis and major automotive companies in the U.S. and elsewhere stood at the edge of collapse, China became the world's largest auto producer and the world's largest automotive market. In 2010, China produced more than twice as many motor vehicles as the United States, 90 percent more than Japan, and more than all of Europe combined. China has also become a major source of automotive parts for the rest of the world, including the big three U.S. automakers. These trends are likely to intensify over the coming years. China plans to invest more than $18 billion over the next ten years to become the world's leading producer of electric and hybrid vehicles and their key components. It also aims to increase its exports of completed automobiles, move up the value chain of auto parts production, and promote its indigenous automotive brands and intellectual property around the world.