Niche Market Exploitation for Competitiveness Constuction of China's Local Automotive Companies

Abstract

Despite the high growth of Chinas automotive industry, Chinas domestic auto market has still been dominated by Sino-Foreign automotive joint ventures, and the competitiveness development of Chinas local automotive companies have attracted high attention from both sectors of government and academics. Experience from another latecomer, KIA, has set a successful competitiveness construction example for Chinas local auto companies through exploiting niche market of small sedans by strict cost control but extensive product promotion. Considering specific characteristics of Chinas automotive market, niche market exploitation of West China and SUV market can be an effective approach for competitiveness construction of Chinas local auto companies, based on the experience of Great Wall Motors, which is summarized through the comparison between Great Wall Motors and Shanghai Automotive Industry Group.

Keywords: Competitiveness, Niche Market Exploitation, Automotive Company