Hlavní práce65992_zhaz01.pdf, 1.2 MB Stáhnout

University of Economics, Prague

International Business – Central European Business Realities

Market entry strategy of global corporations on the markets of China

Author: Ziye Zhao

utor o the i : o i䁞u쳌䁓 i ha i A ademi year: 2019/2020

Declaration:

hereby de are that am the oe author o the the i e tited “ ar䁞et e try trate y o oba orporatio o the mar䁞et o hi a” duy mar䁞ed out a quotatio he u ed iterature a d our e are tated i the atta hed i t o re ere e

ra ue o i ature

Acknowledgement

hereby wi h to expre my appre iatio a d ratitude to the upervi or o my the i

儘ላ齸 儘ላ齸 ̆ á翿 ላ̆ 儘 Rላ

Abstract

With the rapid deveopme t o o ia a d e o omi obaizatio the pro e o word e o omi obaizatio ha be ome a irrever ibe tre d the pro e o

obaizatio muti atio a ompa ie are the mo t importa t arrier However the hoi e o mar䁞et e try trate y i a 䁞ey i ue or the u e o muti atio a

orporatio Appropriate e try trate y wi have a i i i a t impa t o the uture ma a eme t a d bu i e per orma e o e terpri e hi wi a o bri hu e o ve ie e a d pro it to the e terpri e O the other ha d the peed a d ope o

hi e e e o omi rowth ma䁞e it u ique A o e o the mo t attra tive i ve tme t de ti atio or oba i ve tor amo t a the word' automobie ma u a turi

ia t ow have a torie i hi a Vo䁞 wa e Group i o e o the earie t i ve tor i hi a a d the ar e t orei automobie ma u a turer a d it e try a d deveopme t trate y ha bee very u e u hi term paper wi a ayze whi h

pe i i mode Vo䁞 wa e u e to e ter the hi e e mar䁞et a d a ayze the rea o behi d thi hoi e i detai

Key Word : ar䁞et E try trate ie uti atio a orporatio hi a Vo䁞 wa e

Contents

Theoretical Part...1

Introduction...1

Literature review...3

Discussion...5

1. Reasons for going global...5

1齸1 Dversfላ t儘儘 儘f 儘rላ 儘z t儘儘 ላ̆ t̆re齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸5 1齸2 Dversfy儘ላ 儘f t̆e b̆s儘ess齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸 5 1齸3 r儘ft m xmz t儘儘齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸6 1齸4 Gre ter Aላላess t儘 t e儘t齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸6 1齸5 儘mp 儘y str teላy s ላ̆ e by ላ 儘b m r et齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸7 1齸6 儘mpettve v 儘t ላe齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸7 1齸7 Attr ላt儘儘 儘f 儘wer ላ儘sts齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸 7 1齸8 H̆ላe ላ儘儘s̆mer m r et齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸 8 2. Entry Strategies for The New Markets...8 2齸1 Eq̆ty m儘 es齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸9

2 1 1 Joi t ve ture 9

2 1 2 er er a d A qui itio 9

2 1 3 trate i aia e 10

2齸2 N儘儘-eq̆ty m儘 es齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸10

2 2 1 Li e i 10

2 2 2 Fra hi i 11

2 2 3 Exporti 11

3齸1 H̆ላe p儘p̆ t儘儘 儘 w儘r f儘rላe齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸 12 3齸2 Eላ儘儘儘mላ e ers̆p齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸14 3齸3 mp儘rt 儘ላe 儘f 儘ter儘 t儘儘 tr e齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸15 3齸4 Rs儘ላ m e ላ ss 儘 儘ላre se 儘 ላ儘儘s̆mpt儘儘齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸 15 4. Specific Regulations Implemented by the Chinese Government...16 4齸1 E儘ላ儘̆r ላeme儘t p儘 ላy齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸16

4 1 1 ax pre ere e 17

4 1 2 La d pre ere e 18

4 1 3 Re io a pre ere e 19

4齸2 Restrላt儘儘 p儘 ላy齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸 19

Practical Part...21 5. Research background... 21 5齸1 ̆rp儘se 儘f t̆e rese rላ̆齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸 21 6. Introduction of Volkswagen group...21 6齸1 Bref 儘tr儘 ̆ላt儘儘 儘f t̆e e儘terprse齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸21 6齸2 Orላ 儘z t儘儘 Rtr̆ላt̆re 儘f V儘 sw ላe儘 ላr儘̆p齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸 23 7. Development of Volkswagen in China... 24 7齸1 Ăt儘m儘b e 儘 ̆stry 儘f ̆儘 儘 e r y st ላe齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸 24 7齸2 Hst儘ry 儘f 儘儘per t儘儘 betwee儘 V儘 sw ላe儘 儘 ̆儘 齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸 24 7齸3 se 儘mp rs儘儘 — Aላq̆st儘儘 儘f Š 儘 by V儘 sw ላe儘 ላr儘̆p齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸26 8. Branch of Volkswagen in China... 28 8齸1 Rxtee儘 ላ儘mp 儘es ss̆re 儘per t儘儘s 儘f t̆e VW ላr儘̆p 儘 vs儘儘齸齸齸齸齸齸齸齸齸齸齸齸齸齸 28 8齸2 A儘 yss 儘f R̆ 儘ላ̆ V儘 sw ላe儘 儘 FAW V儘 sw ላe儘齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸31

8 2 1 ha hai Vo䁞 wa e Automotive ompa y 31

8 2 2 FAW-Vo䁞 wa e Automotive ompa y 32

9. Conclusion: Analysis of the reason that Volkswagen uses joint venture to

enter the Chinese market... 34

9齸1 Fr儘m t̆e perspeላtve 儘f V儘 sw ላe儘齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸 34 9齸2 Fr儘m t̆e perspeላtve 儘f ̆儘 齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸39 10. Challenge, Opportunity and Suggestions...41

10齸1 RWOT 儘 yss 儘f V儘 sw ላe儘 儘 ̆儘 齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸41 10齸2 R̆ላላest儘儘s f儘r V儘 sw ላe儘 儘 ̆儘 齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸44 10齸3 R̆ላላest儘儘s f儘r m̆ t儘 t儘儘 ላ儘mp 儘es 儘 儘t̆er 儘 ̆stres齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸齸46 References...50

List of Table

abe 2— ae Voume o Vo䁞 wa e Group i 2019…… … ……… 35

abe 3— WO a ay i o Vo䁞 wa e i hi a……… ……42

List of Figure

Fi ure 2— he trate y or Further Growth i hi e e ar䁞et ………25

Fi ure 3— he i tributio o Vo䁞 wa e Group i hi a ………28

Fi ure 4— he Brie o ha hai Vo䁞 wa e … ……… ………31

Fi ure 5— he Brie o FAW Vo䁞 wa e … … ………33

Fi ure 6— he ae o -ro i the Fir t ha o 2019 i hi a ………37

Fi ure 7—U er Attribute-A e o -ro i hi a ………38

List of Used Abbreviations

A — ha hai Automotive du try Group orporatio FAW—Fir t Automotive Wor䁞 Group orporatio JA —Jia huai Automobie Group orporatio

Theoretical Part Introduction

E o omi obaizatio ha i te i ied ompetitio amo ompa ie a d or ed them to ee䁞 e ape their om ort zo e (home mar䁞et ) a d e ter i to i ter atio a

mar䁞et to expa d bu i e e i e the re orm a d ope i up hi a ha experie ed rapid e o omi a d o ia deveopme t a d be ome a importa t or e i the deveopme t o the word e o omy oday hi a i aready the e o d ar e t e o omy i the word hi e e midde- a whi h i the ate ory i voved with mo t o the pur ha e do e i the word ompri e o more tha ix hu dred miio peope with e o omi tatu ri i day by day here ore the hi e e mar䁞et i attra ti a rowi umber o muti atio a ompa ie who o ider hi a a a pote tia part er the e viro me t o i rea i y ier e ompetitio i the hi e e mar䁞et a y muti atio a e terpri e that wa t to ta䁞e a pa e a d deveop teadiy eed to ormuate a adequate mar䁞et e try trate y a d ma䁞e ea ibe de i io i the ba i or u e i the hi e e mar䁞et

hi term paper i divided i to two mai part i tota: theoreti a part a d pra ti a

part additio the mai re ear h method u ed i thi arti e i a a e tudy a d e o dary data a ay i Fir t o a the iterature review i trodu e the theorie reeva t to thi tudy a d a o i trodu e whi h tudie previou y me tio ed o thi topi were u ed or di u io i theoreti a part he author wi a ayze rea o or

ompa ie to o oba a d ive a overview about the exi ti orei mar䁞et e try trate y a d ari y it adva ta e a d di adva ta e A ter that the hara teri ti o

hi e e mar䁞et wi a o be i trodu ed At the e d o the theoreti a part the pe i i re uatio impeme ted by the hi e e over me t i expored to uide the reader throu h the pe i i bu i e a e o Vo䁞 wa e A a d FAW i the pra ti a

part the pra ti a part the term paper ir ty de ribe ba 䁞 rou d a d purpo e o re ear h the Vo䁞 wa e ba 䁞 rou d a d trate y o Vo䁞 wa e to e ter the

hi e e mar䁞et A ter that author ta䁞e the a qui itio o 䁞oda by Vo䁞 wa e a a a e ompari o a d a ayze the rea o o Vo䁞 wa e u e joi t ve ture to e ter the hi e e mar䁞et to ma䁞e o u io Fi ay a ordi to the a ay i o the

hae e a d opportu itie that Vo䁞 wa e wi e ou ter i hi a the author ive ome u e tio or the Vo䁞 wa e a d muti atio a ompa ie i other i du trie

Literature review

Nowaday ma y ompa ie de ide to o i ter atio a or are aready i ter atio aized he ompa y produ e i orei ou try obtai materia rom di ere t ou trie or re io e produ t a d ervi e abroad a d eve tra er whoe departme t abroad A de i itio o e o omi obaizatio i “the i ter atio a i te ratio o ood te h oo y abor a d apita; that i irm impeme t oba trate ie that

i 䁞 a d oordi ate their i ter atio a a tivitie o a wordwide ba i ” (Ba

uo h Fra tz Geri er & i or; 2006)

e era ompa ie o i ter atio a be au e they wa t to row or expa d operatio he be e it o e teri the i ter atio a mar䁞et i ude e erati more reve ue ai i a e to a hu e o umer mar䁞et ompeti or ew ae i ve tme t opportu itie diver i i atio redu i o t a d re ruiti ew tae t Goi i ter atio a i a trate y that i i ue ed by a variety o a tor a d i u uay impeme ted over time ometime the over me t e oura e ompa ie to e ter their ou try' mar䁞et i a e ort to buid their ow e o omi y tem (Nei

Ko䁞emuer 2017)

ter atio a bu i e di er rom dome ti bu i e be au e ro i boarder mea deai with di ere t e viro me t Athou h the ompa y expa d it bu i e over ea to ai u ique opportu itie a d expa d it tar et audie e a d pro itabiity But the pro pe t o hi h reve ue houd ot bi d ompa ie to the ma y hae e they a e a they expa d obay A ou d expa io trate y i

ru ia or ompa ie to expa di i to orei mar䁞et ( hri tophe Gar ier 2017) here are di ere t a tor or a ompa y to o ider whe oi abroad Ba

uo h Fra tz Geri er & i or (2006) ormuated ive driver : poiti a

te h oo i a mar䁞et o t a d ompetitive a tor

he term o i ter atio a mar䁞et e try trate y i o te equated i the iterature with the term o i ter atio aizatio trate y i ter atio a a tivitie a d orei parti ipatio hu the term o i ter atio a mar䁞et e try trate y a be

we-de i ed a a “i titutio a orm o i ter atio a bu i e a tivity that e abe ompa ie to impeme t it bu i e trate y i a orei mar䁞et” (Laura arabe e 2012) he i ter atio a mar䁞et e try trate y te the ompa y how a d whe to ope up pe i i mar䁞et a d determi e the ir um ta e o the orei parti ipatio over a parti uar period o time Be au e o it importa e or o -term pa i a d u tai abe re ut hoo i a i ter atio a mar䁞et e try trate y i a ta 䁞 or e ior ma a eme t ome ompa ie eve have pe iaized departme t re po ibe or the pa i a d ormuatio o i ter atio a mar䁞et e try trate ie

epartme t i䁞e thi are o du ti re ear he to hep ma a er ide ti y pote tia

o atio or ew pa t uitabe mar䁞et or produ t au he or ood part er with ood etwor䁞 At thi poi t it i importa t to adapt ha i o ditio i ide a d out ide the ompa y a d o tro the e try pro e (Laura arabe e 2012)

Discussion

1 Rea o or oi oba

1 1 iver i i atio o or a izatio a uture

iver ity i or a izatio a uture be e it empoyee by reati a air a d a e e viro me t where everyo e a have the ame opportu itie a d hae e

i ere t wor䁞 team bri hi h vaue to the or a izatio re pe t i dividua

di ere e a d be e it the wor䁞pa e by reati ompetitive adva ta e a d improvi wor䁞 e i ie y hi how that the adva ta e o utura diver ity i to i d the be t tae t or the ompa y whie havi a better ima e a d reater opportu itie i the mar䁞et

uture i a i ta ibe term a d it i hardy to de i e Ho tede (1980) de i ed that “ uture i the oe tive pro rammi o mi d whi h di ti ui he the member o o e huma roup rom a other… uture i thi e e i ude

y tem o vaue ; a d vaue are amo the buidi bo 䁞 o uture ”

1 2 iver i yi o the bu i e

he i ter atio a expa io aow the ompa y to diver i y it bu i e i evera 䁞ey way Fir t ompa y expa d i ter atio ay to diver i y their a et hi move a prote t the pro it o ompa y rom u expe ted eve t For i ta e ompa ie with i ter atio a bu i e a o et e ative rowth i o e mar䁞et by u e uy operati i a other mar䁞et ompa ie a a o utiize i ter atio a mar䁞et to au h u ique produ t a d ervi e whi h a hep mai tai a po itive reve ue tream additio the ompa y a e tabi h o e t with uppier o the i ter atio a mar䁞et a d utiize raw materia a d re our e that are ot avaiabe i the dome ti mar䁞et

For i ta e Xiaomi i o e o the mo t popuar martpho e ma u a turer i hi a a d ee䁞 to expa d i dia i the ext ew year additio to mobie devi e the ompa y i a o pa i to e ee tri odi bi y e

e -baa i ooter it e ba d a d other produ t hi wi e abe it to rea h a wider audie e a d diver i y it operatio

1 3 ro it maximizatio

e o omi pro it maximizatio i the hort-term or o -term pro e by whi h ompa ie may determi e the pri e i put a d output eve that ead to the maximum pro it Neo a i a e o omi i urre t mai tream method o mi roe o omi u uay modei ompa ie a maximizi pro it ro it maximizatio i a ba i obje tive o ea h bu i e irm whether the ompa y i operati i a per e ty ompetitive mar䁞et or a mo opoy mar䁞et oday hi a i the e o d ar e t e o omy ou try or bo 䁞 i the word he hu e mar䁞et pote tia a provide a o iderabe pro it i a irm hoo e to e ter hi e e mar䁞et

1 4 Greater A e to tae t

oi bu i e i i ter atio a mar䁞et a o ive bu i e e a e to a ar er a d more diver e tae t poo Empoyee who pea䁞 di ere t a ua e a d u der ta d di ere t uture e ha e o e tio with a wider u tomer ba e

ter atio a bra d with a ood reputatio wi bri top tae t to the ompa y E terpri e a a o et up oba wor䁞 team i a way that aow or y er y i buidi a oba bra d ma y a e i ter atio a abor a provide ompa ie with u ique adva ta e u h a i rea ed produ tivity adva ed a ua e 䁞i

a d diver e edu atio a ba 䁞 rou d et

For exampe whe Net ix expa ded to Am terdam earier thi year the ompa y prai ed the ity or e abi Net ix to hire mutii ua a d i ter atio a

empoyee who were pro i ie t “u der ta di o umer a d uture i a

re io o Europe ”

additio i ter atio a tae t oud a o i rea e the i ovatio output withi the ompa y For exampe that i o e o the rea o why orei mar䁞et that we ome oba e trepre eur a d 䁞ied wor䁞er te d to have de er a d more

1 5 ompa y trate y i uided by oba mar䁞et

he vi io i to outi e the dire tio o the ompa y a d the vaue that wi uide the pro e t pre e t the purpo e o the ompa y by o u i o the uture a d the purpo e o the or a izatio ' exi te e ome ompa ie have a oba

mar䁞et-drive vi io a d are wor䁞i toward that oa

1 6 ompetitive adva ta e

ompa ie a o hoo e i ter atio a expa io to ai a ompetitive adva ta e over their riva For exampe ompa ie that expa d i mar䁞et where their ompetitor do ot u uay have a ir t-mover adva ta e whi h aow them to e tabi h tro bra d aware e with o umer be ore their ompetitor

ter atio a expa io a a o hep ompa ie ai a e to ew te h oo ie a d i du try e o y tem whi h may reaty improve their operatio

ter atio a bu i e a a o e ha e the per eived ima e o ompa y be au e

oba operatio a hep buid ame bra d re o itio to upport uture bu i e e ario u h a o tra t e otiatio ew mar䁞eti ampai or eve urther expa io

the ompa y doe ot e ter a mature mar䁞et with their ow outio but ompetitor do it he ompa y ot o y mi the our e o i ome but a o o e other vauabe a et that a be u ed to promote ompa y at home a d abroad

ome a e a tro dome ti ompa y et overru by a maer ompa y that u eed obay a d row bi throu h oba y er ie

1 7 Attra tio o ower o t

he o t tru ture o deveoped mar䁞et are hi h a d ompa ie may tra er their operatio to re io a d ou trie with ower o t o produ tio O e the ompa y tart operati i a eo raphi area it be ome ea ier a d pro itabe to mar䁞et their produ t i that area ompa ie are oo䁞i or better a d heaper re our e i over ea mar䁞et to redu e produ tio o t a d ai ow o t adva ta e Re our e that a bri ow o t adva ta e i ude raw materia

abor a d te h oo y

1 8 Hu e o umer mar䁞et

hi a ha experie ed rapid a d teady e o omi rowth i the pa t 20 year a d it pur ha i power ha reaty i rea ed hi a ha be ome the e o d ar e t e o omy a d a hu e a d promi i o umer mar䁞et i today' word

re e t year de pite the i rea i oba e o omi i tabiity hi a' e o omi per orma e remai tro a d the mar䁞et o ti ue to row teadiy A a re ut o the over me t' variou e o omi optimizatio mea ure hi e e

o umer are more o ide t tha ever he Nie e hi a o umer re d dex ored 114 i the third quarter ompared to a oba ra 䁞i o 107 o umer o ide e ha tra ated i to heathy o umptio eve a ro the ou try ompa ie eed hu e o umer roup i䁞e hi a to improve the bu i e

2 E try trate ie or he New ar䁞et

Whe muti atio a orporatio pa to expa d over ea they wi a e evera

e try mode Root (1994) de i e a i ter atio a mar䁞et e try mode a a

“i titutio a arra eme t that ma䁞e po ibe the e try o a ompa y’ produ t te h oo y huma 䁞i ma a eme t or other re our e i to a orei ou try ”

here are two mai mode o mar䁞et e try Forei mar䁞et provide u ique bu i e opportu itie or ou trie Ea h ou try a o po e pe ia hae e to over ea ompa ie tryi to e ter the e mar䁞et E terpri e a ee t e ter orei mar䁞et throu h the equity mode whi h a i vove joi t ve ture mer er trate i aia e a d a qui itio or a o -equity mode u h a

i e i ra hi i a d exporti he tru ture o the ompa y the ature o the orei mar䁞et a d the re uatio o the tar et ou try are a a tor that determi e whi h mode i avaiabe Formuati a mar䁞et e try trate y i vove a omprehe ive a ay i o pote tia ompetitor a d pote tia

o umer Reeva t a tor that mu t be o idered whe determi i the ea ibiity o e teri a parti uar mar䁞et i ude trade barrier o aized 䁞 owed e o aized pri e ompetitio a d export ub idie

2 1 Equity mode 2 1 1 Joi t ve ture

A joi t ve ture i a bu i e arra eme t i whi h two or more partie a ree to poo re our e to ompete a pe i i ta 䁞 hi ta 䁞 a be a ew proje t or a y other bu i e a tivity a joi t ve ture ea h parti ipa t i re po ibe or the pro it o e a d o t a o iated with it Joi t ve ture typi ay u ed whe muti atio a e terpri e tryi to a e a ew mar䁞et whi h they are u amiiar with hi 䁞i d o mode ive a ha d or them to ai ae e i ie ie by ombi i a et a d operatio hare ri 䁞 or major i ve tme t a e 䁞i a d apabiitie a we

O the other ha d parti ipa t i joi t ve ture a o u er ome ri 䁞 For i ta t ower auto omy whi h mea that i ve tme t auto omy be ome a ommo de i io A proje t a reeme t a d meeti houd be e e tivey ormaized i the orm o i ed meeti mi ute or do ume t U reiabe part er o i t o i tere t a be the ri 䁞 o joi t ve ture a we

here ore the u e o joi t ve ture depe d i ar e part o whether the ri ht part er are ou d

2 1 2 er er a d A qui itio

A mer er i a a reeme t to ombi e two exi ti ompa ie i to o e ew ompa y here are variou type o mer er a d a qui itio o a ou t o variou rea o behi d e terpri e to ompete mer er a d a qui itio

er er a d a qui itio are u uay made to expa d the rea h o the e terpri e expa d i to ew area or ai mar䁞et hare A reat amou t o muti atio a e terpri e wi ai hi her ae a d pro it a ter the a tio Not o y u h diver i i atio i a other major uperiority whe e terpri e ha mer er or a qui itio a ompa y whi h beo to di ere t i du try

Neverthee there i o doubt that mer er a d a qui itio i a a tivity that o t time e er y a d mo ey he pri e o &A i hard to e timate be au e there i o ta dard or u i orm way to i d ri ht pri e he whoe pro e i time o umi to oe t i ormatio ater ta e ompa y i te ratio

a o eed i i i a t i ve tme t o time a d mo ey o eque ty u i thi 䁞i d o mode hi her require the e terpri e who ha abu da t tre th a ot a ompa ie a ompete the mer er or a qui itio without tri䁞i a bowi

2 1 3 trate i aia e

A trate i aia e i a a reeme t betwee two i depe de t bu i e e titie to hare re our e i order to a hieve a ommo oa trate i aia e parti ipa t remai i depe de t a d do ot orm ew e titie i䁞e joi t ve ture a d other type o part er hip hey retai auto omy a d o te wor䁞 o imited proje t rather tha o oi bu i e reatio hip trate i aia e ive a i ta e or e terpri e to ai hi her e i ie y o expa d

ar er mar䁞et a d u tomer ba ed

At the ame time trate i aia e a hep ompa ie ai po itive bra d aware e i ew mar䁞et he oba aia e provide ew i i ht a d idea

or exi ti produ t i e or ervi e opportu itie Over time thi provide a opportu ity to improve the quaity o i dividua produ t or ervi e he

e ative a pe t o trate i aia e i ude : o i t o ow er hip aim whe two or more ompa ie joi ty provide a ew produ t or ervi e to a

pe i i mar䁞et or uture o i t duri ooperatio

2 2 No -equity mode 2 2 1 Li e i

Li e i mea ompa y aow omeo e e e to u e their i tee tua

property o o or de i i ex ha e or ee U der the i e i mode

ompa ie e i e e to other u uay maer ompa ie to u e i tee tua

property bra d de i or bu i e pa he e i e e are u uay o -ex u ive whi h mea they a be od to mutipe ompeti ompa ie ervi the ame mar䁞et U der thi arra eme t the i e or oud o tro the u e o it i tee tua property but a ot o tro the

i e ee' bu i e operatio

Li e i typi ay ive a i ta e to e terpri e i oweri o t e try ater ative the ompa y doe ot eed to i d u d or ommer iaizatio o it produ t ime i opportu ity With i e i ompa ie a et their i ovatio to mar䁞et a ter a we Li e i a o ee䁞 to uara tee the

ati a tio o both partie parti uary i i tee tua property

t i worth me tio i that i e or e eray ha o o tro o mar䁞eti pro ram a o iated with produ t produ ed u der i e e hi imit the eve

o ompa y e a eme t

2 2 2 Fra hi i

Fra hi i i a arra eme t i whi h the ra hi or aow the ra hi ee to u e bu i e mode or bra d ame or a ee t aow the ompa y to o du t bu i e a a i depe de t bra h o the pare t ompa y i e ra hi or A o oi reatio hip i whi h the ra hi or provide ra hi ee with

i e ed bu i e privie e a d a i ta e i or a izatio trai i mer ha di i mar䁞eti a d ma a eme t i ex ha e or mo etary

o ideratio

Fra hi or a et o t e e tive expa io throu h ra hi i ra hi ee ha de the re ear h a d u di or outet i ra hi or hai whi h mea

ra hi or do ot have to pe d ow apita or reque t additio a u di rom ba 䁞 or i ve tor i order to row bu i e hey a et upport rom ra hi ee o equipme t uppie a d i tru tio O the other ha d the ra hi ee wi a ree to oow trai i a d i tru tio but ra hi or may ot be abe to ma䁞e ha e without ru i i to di a reeme t Fra hi ee are ti i depe de t bu i e e a d e otiatio may be e e ary

2 2 3 Exporti

Exporti i a way or a or a izatio to expa d produ t or ervi e to orei mar䁞et without havi to i ve t i proje t u h a a iitie i that mar䁞et here are two mai exporti method dire t exporti a d i dire t exporti ire t exporti i a way to provide better o tro over di tributio

a d ta䁞e adva ta e o e o omie o ae i produ tio dire t exporti aow a or a izatio to o u o produ tio a d avoid export pro e

E terpri e a i rea e ompetitive e i the ew mar䁞et throu h exporti it a aow ompa ie to ai expo ure to ew idea ma a eme t pra ti e mar䁞eti te h ique a d way o ompeti whi h a hep ompa ie to better po itio bu i e i the over ea mar䁞et to i rea e ompetitive e What’ more thi 䁞i d o mode a hep e terpri e to exte di produ t i e

y e the dome ti mar䁞et produ t mi ht be approa hi the e d o it i e y e u h a i ta e i di a export mar䁞et woud be idea i order to exte d the i e y e o the produ t

additio muti atio a orporatio who u der the exporti mode wi

be expo ed to ex ha e ri 䁞 Without proper hed i the or a izatio may u er i i i a t ex ha e o e due to the e o omi o ditio o the tar et orei mar䁞et the ex ha e rate may au e the exporter ’ ommodity pri e i the tar et mar䁞et to be expe ive thereby o i mar䁞et hare i the ho t

ou try he they mu t be pro i ie t i o a aw a d re uatio

3 hara teri ti o hi e e ar䁞et

For a y e terpri e the hi e e mar䁞et i u doubtedy the mo t hae i mar䁞et i the word be au e it' broad a d ompex whi h ma䁞e it u predi tabe

t i or thi rea o that muti atio a empha ize the importa e o u der ta di the mar䁞et re e t year with the rapid deveopme t o e o omi obaizatio e pe iay a ter hi a' e try i to the word trade or a izatio hi a' mar䁞et e viro me t ha reaty improved However a hi a i a o iai t ou try a d impeme t a o iai t mar䁞et e o omy y tem whi h i quite di ere t rom the we ter apitai t y tem the deveopme t o hi a' mar䁞et e viro me t ha it ow u ique hara teri ti :

3 1 Hu e popuatio a d wor䁞 or e

hi a i the mo t popuated ou try i the word a d i home to approximatey

From the per pe tive o e der tru ture the mae popuatio i 713 51 miio the emae popuatio i 681 87 miio a d the tota popuatio ex ratio i 104 64 (100 wome )

From the per pe tive o a e tru ture the wor䁞i a e popuatio a ed 16-59 i 897 29 miio a ou ti or 64 3% o the tota popuatio ; the popuatio a ed 60 a d above i 249 49 miio a ou ti or 17 9% o the tota

popuatio o whi h the popuatio a ed 65 a d above i 166 58 miio a ou ti or 11 9% o the tota popuatio

From the per pe tive o urba -rura tru ture the urba re ide t popuatio i 831 37 miio a i rea e o 17 9 miio over the e d o a t year; the rura

re ide t popuatio i 564 01 miio a de rea e o 12 6 miio ; the proportio o urba popuatio i the tota popuatio (urba izatio rate) i 59 58% a i rea e o 1 06 per e ta e poi t over the e d o a t year

O the other ha d the umber o hi e e aborer ha a ab oute adva ta e i i ter atio a ompari o t wor䁞 or e amou t to 906 5 miio a d the

abor or e i i rea ed by 10 miio per year a d the e tire EU ha o y 500 miio aborer t i the mai driver o it e o omi rowth

Athou h with the ha e o a e tru ture the umber o wor䁞i a e popuatio a d it proportio i the tota popuatio have de i ed or eve

o e utive year i e 2012 the abor uppy i ti at a hi h eve Neary 900 miio peope o wor䁞i a e ot o y provide a importa t upport or the u tai abe a d heathy deveopme t o e o omy a d o iety but a o provide a reiabe uara tee or the o ti uou reea e o "demo raphi divide d" a d "tae t divide d"

From the per pe tive o the ae o abor uppy eary 900 miio abor or e ra 䁞 ir t i the word more tha the tota popuatio o mo t ou trie

oreover hi a i i the a eeratio period o urba izatio deveopme t A ordi to the peed o urba popuatio i rea i by o e per e ta e poi t

every year the tra er o rura urpu abor wi o ti ue or at ea t 20 year a d a ar e umber o rura urpu abor wi o ti ue to provide ri h abor re our e or the deveopme t o i du triaizatio a d ervi e i du try

From the per pe tive o the quaity o abor uppy the avera e edu atio period o the wor䁞i a e popuatio i hi a ha rea hed 10 5 year whi h i equivae t to the edu atio eve o the e o d rade o e ior hi h hoo

By 2020 the avera e year o edu atio or the mai wor䁞i a e popuatio wi be i rea ed to 11 2 year a d the avera e year o edu atio or the ew

abor or e wi be i rea ed to 13 5 year whi h i equivae t to the eve o the ir t year o U iver ity he obviou improveme t o the overa edu atio

eve o the abor or e i o du ive to improvi the 䁞i o the abor or e a d providi tro upport or the e o omi a d o ia deveopme t

3 2 E o omi eader hip

hi a ha be ome the e o d ar e t e o omy a d o e o the oba e o omi

eader e pe iay i the ied o o umptio he hi e e e o omy pay a irrepa eabe roe i the e o omie o the word hi e e G rom 4587 6 biio yua i 1980 to 990 865-biio -yua i 2018 hi a’ hare o G i reatio to oba output we t rom 1 7% i 1980 to 15 8% i 2018

From the per pe tive o e- ommer e athou h hi a' G a ou t or about 15% o the word' G the proportio o e- ommer e ha ex eeded 40% ar hi her tha hi a' G hi a ha a ar e popuatio a d o our e there are ma y ter et u er hi a ha about 800 miio ter et u er whi h i ar er tha Europe a d the U ited tate he ae o hi a'

ro -border e- ommer e ha ra 䁞ed ir t i the word overi mo t ou trie a d re io a d i popuar with o umer

From the per pe tive o mobie payme t hi a' ae o mobie payme t tra a tio i mu h ar er tha tho e i the U ited tate u h a We hat a d Aipay hi a' i a ia y tem i ot o deveoped o the popuarity o

3 3 mporta e o i ter atio a trade

ter atio a trade i embedded i the part o the hi e e e o omy repre e ti 47% o it G i e the re orm a d ope i up hi a' i ue e o Goba trade ha bee i rea i day by day At pre e t hi a i the word' ar e t exporter a d the e o d ar e t importer

hi a' import have a wide impa t o the word he di per io o hi a' import re io i hi her tha that o the U ited tate hi a i the ar e t importer o 41 ou trie a d re io more tha 36 o the U ited tate

hi a' hare o import to A ia A ri a a d O ea ia ex eed that o the U ited tate a d it hare o import to outh Ameri a a d Ea ter Europe a o ex eed that o the U ited tate At pre e t hi a i the ar e t importer o iro ore rude oi oybea opper otto eather a d other raw materia

a we a i te rated ir uit L pa e a d other pare part

O the other ha d the quaity o hi a' orei trade deveopme t ha bee improved he proportio o hi h-te h hi h-quaity a d hi h vaue-added

orei trade produ t ha i rea ed a d the mar䁞et hare ha i rea ed La t year hi a' export o hi h-te h produ t a ou ted or about 30% o the tota export whi h how that hi a' orei trade i deveopi toward hi h quaity

3 4 Ri i midde a a d rea e i o umptio

A o 2017 hi a ha the ar e t midde a i the word ex eedi that o the U ited tate he weath o hi a’ midde a ha i rea ed ix- od (600%) i thi e tury ompared to the 115% i rea e i the re t o the word

From the per pe tive o bi data hi a wa the ou try with the tro e t weath rowth i the A ia- a i i re io i 2017 he tota vaue o weath i rea ed by U $ 1 7 triio to U $ 29 triio e o d o y to the U ited

tate ra 䁞i e o d i the word At the ame time hi a' midde- a

umber ha rea hed the word' umber o e-385 miio peope a d more tha 400 miio peope are expe ted by 2020

he ri e o the midde a drive o umptio up radi he i i i a t i rea e i the i ome o midde- a amiie ha brou ht about hu e o umptio apa ity For exampe the requireme t o midde- a amiie or quaity i e to pu h them pe d more hi a' retai ae o o umer

ood rew 10 4 per e t year o year i 2017 ota retai ae o o umer ood hit 33 23 triio yua ($4 84 triio ) Amo t every o umer ate ory ha a tota dema d o te o biio o yua he midde a ha ormed a

tro o umer or e whi h pur ue the dema d or quaity o umptio promote u tai abe e o omi deveopme t a d promote pro re i a

a pe t o o iety

4 pe i i Re uatio mpeme ted by the hi e e Gover me t

he hi e e over me t we ome a appropriate muti atio a e terpri e to e ter hi e e mar䁞et But with the reat ha e i hi a' e o omi ituatio a d i ve tme t e viro me t，there ha a o bee a i ht ha e i the hi e e

over me t' attitude toward muti atio a here are ome di ere t pre ere tia poi ie or di ere t i du try he hi e e over me t ha bee o eri pre ere tia poi ie to muti atio a ompa ie that meet the ta dard i udi oweri or exempti i ome taxe

A y orei ompa y oo䁞i to et up o a produ tio i hi a houd ir t o ut the “ atao ue or the Guida e o Forei ve tme t du trie i

hi a” whi h divide orei i ve tme t proje t i to ‘e oura ed’ ‘re tri ted’

a d ‘prohibited’

4 1 E oura eme t poi y

re ere tia poi ie or orei -i ve ted e terpri e i ude tax pre ere e a d pre ere e re io a pre ere e orei i ve tme t pre ere e et

4 1 1 ax pre ere e

 he i ome taxe

 he i ome tax rate o orei -i ve ted e terpri e ha be 15%; 3% o a

i ome tax ha be exempted

 E terpri e with orei i ve tme t ha be exempted or two year a d redu ed by ha or three year ; i the output vaue o export produ t rea he more tha 70% o the output vaue o the e terpri e' produ t i the ame year a ter the expiratio o the period the tax ha be evied at the rate o 10%; i the adva ed te h oo y e terpri e exte d or three year the tax

ha be evied at the rate o 10%

 E terpri e e a ed i e er y a d tra portatio o tru tio u h a port a d wharve with a operatio period o more tha 15 year a be exempted rom e terpri e i ome tax rom the ir t year to the i th year a d ha o the e terpri e i ome tax rom the ixth year to the te th year

 E terpri e with orei i ve tme t i ervi e i du trie with orei i ve tme t o more tha U $5 miio a d operatio period o more tha 10 year ha be exempted rom e terpri e i ome tax i the ir t year rom the year whe they tart to ma䁞e pro it a d redu ed by ha i the e o d a d third year

 Hi h a d ew te h oo y e terpri e ha e joy two-year exemptio rom e terpri e i ome tax a d ix-year ha redu tio i e terpri e i ome tax the output vaue o export produ t i the urre t year rea he more tha 70% o the output vaue o produ t i the ame year a ter the expiratio o the period e terpri e i ome tax ha be evied at the rate o 10%

 Vaue-added axe

he ba i tax rate o vaue-added tax i 17% a d a ow tax rate o 13% i et; A

orei -i ve ted e terpri e meeti the oowi o ditio a e joy the orre po di i ome tax pre ere e:

 he hi h-te h a hieveme t tra ormatio proje t o the mai i tee tua

property ri ht wi retur 50% o the vaue-added tax o a hare withi ei ht year ;

 he e -u e equipme t required by the e terpri e a d the te h oo y (i udi o tware) a d upporti part pare part imported with the equipme t exemptio rom u tom dutie a d import vaue-added tax;

 o tware ompa ie ei o tware produ t deveoped by them eve are

evied VA at a tatutory tax rate o 17% a d the portio o their a tua

VA burde ex eedi 3% i evied a d re u ded he tax re u d i ot i uded i the ope o orporate i ome tax oe tio

 he vaue-added tax o te h oo y e terpri e a d hi h-te h proje t a be ba ed o the previou year a d the ewy added VA a be divided i to part a d 50% wi be retur ed withi three year ;

 ir uit ma u a turer i trodu e i te rated ir uit te h oo y a d ompete et o produ tio equipme t i dividuay imported equipme t a d i trume t or i te rated ir uit a d imported produ tio raw materia

a d o umabe or their ow u e whi h are exempt rom u tom dutie a d import vaue-added tax;

4 1 2 La d pre ere e

 Forei i ve tme t i the o tru tio a d operatio o tra portatio i ra tru ture proje t a ma䁞e u u e o the adva ta e o the a iitie operate the ervi e a iitie withi a ertai ope o the proje t a ordi to aw a d u der the ame o ditio ive priority to the tra er o a d u e ri ht ao the tra portatio i ra tru ture or deveopme t a d operatio a d e joy pre ere tia a d pri e

the ame amou t a d the a d tra er pri e a be redu ed by 15% a ordi to the urre t a d pri e

 For the proje t a d with a o e-time i ve tme t o more tha U $4 miio 50%

di ou t wi be ive to the retai ed part at the mu i ipa eve a ordi to the over me t uida e pri e a d a other 5% di ou t wi be ive to the o e-time payme t

4 1 3 Re io a pre ere e

 oa ta e o omi ope zo e

For produ tive orei -i ve ted e terpri e o ated i the oa ta e o omi a d e h oo i a eveopme t Zo e a d the ity where the e o omi a d e h oo i a eveopme t Zo e i o ated the e terpri e i ome tax ha be

evied at a redu ed rate o 24% Amo them i it i a te h oo y i te ive or 䁞 owed e i te ive proje t or a proje t with a orei i ve tme t o more tha 30 miio U doar a d a o time or i ve tme t re overy or a e er y tra portatio or port o tru tio proje t a ter bei approved by the tate Admi i tratio o axatio the e terpri e i ome tax may be evied at a redu ed rate o 15% a d the o a i ome tax ha be exempted

 Hi h-te h du tria eveopme t Zo e

For orei -i ve ted e terpri e o hi h-te h e terpri e o ated i hi h-te h i du tria deveopme t zo e the e terpri e i ome tax ha be evied at a redu ed rate o 15% Where the produ tive orei - u ded e terpri e re o ized a hi h-te h e terpri e have a a tua operatio period o more tha 10 year they may be exempted rom e terpri e i ome tax i the ir t a d e o d year

rom the pro it-ma䁞i year

4 2 Re tri tio poi y

For hi a everey re tri t orei ompa ie ’ i voveme t i the ied o petro hemi a e er y a d tee ommu i atio e tor term o ma u a turi i du try hi a i ow ba i ay ope to the out ide word Remai i re tri tio are mai y i a ew i du trie u h a automobie hip a d air ra t For the automotive i du try the hi e e over me t a o ha ome

re tri tio he over me t ha re tri ted the proportio o orei i ve tme t i hi a' automobie ma u a turi e terpri e

However tarti i 2018 the hi e e over me t wi raduay a e the

o - ta di re tri tio o the proportio o orei hare i the ext ive year By 2020 hi a wi i t re tri tio o orei i ve tme t i ommer ia vehi e ; by 2022 hi a wi i t re tri tio o orei hare i a other pa e er vehi e A ter the e d o the ive-year tra itio period a re tri tio wi be

i ted i the whoe automobie i du try At pre e t a orei - u ded e terpri e i hi a eed to e tabi h a joi t ve ture with a hi e e e terpri e a d the

hi e e party' hare mu t ot be e tha 50%

Practical Part

5 Re ear h ba 䁞 rou d

With the rapid deveopme t o e o omi obaizatio the automobie i du try i o e o the eadi a d mo t typi a i du trie he peed a d ope o hi e e e o omi rowth ma䁞e it u ique A o e o the mo t attra tive i ve tme t de ti atio or oba i ve tor more a d more word' automobie ma u a turi ia t ow have a torie i hi a Vo䁞 wa e Group i o e o the eary muti atio a ompa ie that e tered the hi e e mar䁞et a d the ar e t

orei automobie ma u a turer Vo䁞 wa e roup pay a eadi roe i the hi e e automobie mar䁞et

5 1 urpo e o the re ear h

orre t e try trate y wi have a i i i a t impa t o the uture ma a eme t a d bu i e per orma e o e terpri e it wi a o bri hu e o ve ie e a d pro it to the e terpri e he re ear h purpo e o thi part i to expore whether the Joi t Ve ture i the mo t e e tive e try trate y or Vo䁞 wa e or eve muti atio a e terpri e to e ter the hi e e mar䁞et hrou h the mai re ear h method u ed i thi part: a a e tudy a d e o dary data a ay i to a hieve a obje tive a d a urate evauatio o the e try trate y o Joi t Ve ture by Vo䁞 wa e roup o hi e e automobie i du try a d provide redibe a d po ibe u e tio or uti atio a orporatio i other bra he o i du trie

6 trodu tio o Vo䁞 wa e roup 6 1 Brie i trodu tio o the e terpri e

he Vo䁞 wa e Group wa ou ded i 1938 a d i headquartered i Wo bur Germa y t i the ar e t automotive ompa y i Europe a d o e o the mo t power u muti atio a ompa ie i the word' automotive i du try 2019 the tota ae voume o Vo䁞 wa e Group rea hed 10 97 miio vehi e a i rea e o 1 3% over the previou year a d it o e a ai wo the top ae voume o oba automobie e terpri e U der the out ta di ae per orma e

the roup' ae reve ue rea hed 252 6 biio euro a i rea e o 16 8 biio euro or 7 1% over the previou year

With a ua deiverie to u tomer toppi the 6 miio mar䁞 the Vo䁞 wa e bra d i a 䁞ey piar i the u e o the Vo䁞 wa e Group Wo bur i the bra d’ erve e ter – the ity i ot o y home to bra d headquarter a d the deveopme t e ter but a o where the mai pa t i o ated Vo䁞 wa e operate over 50 produ tio o atio o a ive o ti e t a d empoy more tha 200 000 peope With ome 70 di ere t mode Vo䁞 wa e ha a pre e e i a

major mar䁞et e me t a d amo t every ou try arou d the word (Vo䁞 wa e - ew room om 2019)

Fi ure 1—Vehi e rodu tio Lo atio o Vo䁞 wa e

our e: VW Group hi a A u Review o 2019

he Vo䁞 wa e Group’ produ tio etwor䁞 i ompri ed o 124 o atio i whi h pa e er ar ommer ia vehi e a d motor y e a we a powertrai a d ompo e t are ma u a tured With 72 o atio Europe remai Vo䁞 wa e mo t importa t produ tio re io or vehi e a d ompo e t here are 28 ite i Germa y ao e he A ia- a i i re io ha 33

o atio Vo䁞 wa e ha ix o atio i North Ameri a a d i e i outh

Vo䁞 wa e Group’ RAN FOR 2025+ trate y roed out i 2016 mar䁞ed the be i i o a ar-rea hi tra ormatio pro e he bra d i to be ome a

eadi pro itabe voume ma u a turer a we a payi a eadi roe i the ew word o automobiity i the o term Ao ide i i i a t improveme t i e i ie y a d produ tivity Vo䁞 wa e i a o o u i o a oba mode

o e ive: Vo䁞 wa e wi be au hi more tha te ew mode per year ma y o them UV up to 2020 he ir t mode rom the u battery-ee tri

uy- o e ted amiy wi the ma䁞e their debut rom 2020 he bra d mi io : the i o i ar o the ee tri a e mu t be a Vo䁞 wa e (Vo䁞 wa e - ew room om 2019)

6 2 Or a izatio a tru ture o Vo䁞 wa e roup

he Vo䁞 wa e Group i o e o the eadi mutibra d roup i the automotive i du try he ompa y’ bu i e a tivitie ompri e the Automotive a d Fi a ia ervi e divi io A bra d withi the Automotive ivi io – with the ex eptio o the Vo䁞 wa e a e er ar a d Vo䁞 wa e ommer ia

Vehi e bra d – are i depe de t e a e titie (Vo䁞 wa e - ew room om 2019)

he Automotive ivi io ompri e the a e er ar ommer ia Vehi e a d ower E i eeri bu i e area he a e er ar Bu i e Area e e tiay o oidate the Vo䁞 wa e Group’ pa e er ar bra d a d the Vo䁞 wa e ommer ia Vehi e bra d A tivitie o u o the deveopme t o vehi e a d e i e the produ tio a d ae o pa e er ar a d i ht

ommer ia vehi e a d the e ui e part bu i e he produ t port oio ra e rom ompa t ar to uxury vehi e a d a o i ude motor y e a d wi

raduay be uppeme ted by mobiity outio (Vo䁞 wa e - ew room om 2019)

he ommer ia Vehi e Bu i e Area primariy ompri e the deveopme t produ tio a d ae o tru 䁞 a d bu e rom the a ia a d AN bra d the

orre po di e ui e part bu i e a d reated ervi e he ommer ia

vehi e port oio ra e rom i ht va to heavy tru 䁞 a d bu e (Vo䁞 wa e - ew room om 2019)

he a tivitie o the Fi a ia ervi e ivi io ompri e deaer a d u tomer i a i vehi e ea i dire t ba 䁞i a d i ura e a tivitie a we a eet ma a eme t a d mobiity o eri (Vo䁞 wa e - ew room om 2019)

With it bra d the Vo䁞 wa e Group i pre e t i a reeva t mar䁞et arou d the word he 䁞ey ae mar䁞et urre ty i ude We ter Europe hi a the U A Brazi Ru ia exi o a d oa d

7 eveopme t o Vo䁞 wa e i hi a 7 1 Automobie i du try o hi a i eary ta e

At the be i i o the ou di o the eope' Repubi o hi a the automobie i du try wa ompetey ba 䁞 a d there were o mature automobie a torie U ti Juy 15 1953 the rou dbrea䁞i eremo y o the Fir t Automobie Fa tory wa hed U der di i ut o ditio "FAW" buit a d produ ed whie buidi a ar ity i o y three year Juy 1956 the ir t Jie a bra d automobie tepped o the produ tio i e At that mome t hi a e ded the hi tory o ot bei abe to ma u a ture automobie i bat he a d the automobie i du try o ew hi a o i iay tarted

But at that time the automobie mar䁞et i Europe the U ited tate a d Japa had e tered a ta e o rapid deveopme t or eve o e to aturatio whie the ordi ary peope i hi a were ti ar away rom ar 1978 u der the

eader hip o e Xiaopi the hi e e over me t be a to arry out e o omi re orm a d ope i -up poi ie i trodu e orei u d a d adva ed ie e a d te h oo y to a eerate hi a' moder izatio pro e a d improve it i ter atio a ompetitive e Whether at that time or ow the automobie i du try i u doubtedy the 䁞ey to a hieve thi oa

7 2 Hi tory o ooperatio betwee Vo䁞 wa e a d hi a

repre e tative had i itia di u io with Vo䁞 wa e whi h eve tuay re uted i a joi t ve ture i 1984: ha hai Vo䁞 wa e A ordi to hi a' poi y o attra ti orei dire t i ve tme t i the automotive mar䁞et joi t ve ture are eve y di tributed: hi e e harehoder ow 50% o the equity a d Vo䁞 wa e harehoder ow the other 50% he o tra t period o the joi t ve ture ompa y i 25 year

he u dame ta oa o thi joi t-ve ture i uded buidi the a ta a a d buid up it ow e i e ma u a turi pa t additio he hi e e part er are re po ibe or a d abor buidi materia a d e er y avaiabe to the joi t-ve ture he Vo䁞 wa e Group or their part ommitted them eve to de i i the ma u a turi te h oo y 䁞 owed e o produ tio pro e a d pa i o the e e ary ma a eme t experti e

By the 90 hi a' e o omy had improved i i i a ty Vo䁞 wa e a d FAW ooperated to e tabi h FAW Audi harehodi tru ture to 60% or FAW 30%

or Vo䁞 wa e a d 10% or Audi 1996 FAW Audi 200 V6 wa o i iay

au hed

Fi ure 2— he trate y or Further Growth i hi e e ar䁞et

our e: VW Group hi a A u Review o 2012

Apri 23 o 2012 i Wo bur Vo䁞 wa e i ed two a reeme t with it hi e e heart i the hi e e mar䁞et O e with A ( ha hai Vo䁞 wa e Automotive ompa y) about Urumqi pa t a d a other with FAW (FAW-Vo䁞 wa e Automotive ompa y) to exte d the Joi t Ve ture o tra t o reatio with the trate y o GO We t a d Go outh or urther rowth

here i o doubt that hi a i o e o the reat mar䁞et or ee tri vehi e i the word 2017 the tur over o batterie a d hybrid vehi e i rea ed by eary 80 per e t ompared with the previou year rea hi 555 000 u it a d putti

hi a i eadi po itio i the word here ore a i poi t to ee tri ity re po e to thi a urther joi t ve ture wa ou ded 2017 with JA -Vo䁞 wa e ex u ivey dedi ated to the produ tio o e-vehi e he ir t mode the ee tri

UV E20X1 wi ome o to the mar䁞et at the o 2020

7 3 a e ompari o — A qui itio o Š䁞oda by Vo䁞 wa e roup

Š䁞oda i o e o the ode t ar bra d i the word with it 120 year hi tory Foowi the poiti a ha e i 1989 the ew ze h over me t de ided to privatize the ompa y a d wa ee䁞i a tro orei i ve tor wordwide he i a hoi e wa betwee the Fre h ar ma䁞er Re aut a d the Germa roup Vo䁞 wa e Whie Re aut o ered ma u a turi o it ow mode Re aut 18 VW u der tood mu h better the ze ho ova䁞ia uture a d it e i eeri a d i du tria traditio VW promi ed that a ter the a qui itio o 䁞oda Auto they wi provide te h i a a d i a ia upport or Š䁞oda to deveop ar o their ow bra d 1991 Vo䁞 wa e ir t a quired 70% o the hare o 䁞oda Automobie ompa y a d o ti ued to wor䁞 hard or the ext 9 year 2000 it a quired the remai i 30% 䁞oda o i iay be ame a whoy-ow ed

ub idiary o Vo䁞 wa e

A ter be omi a whoy-ow ed ub idiary o Vo䁞 wa e 䁞oda reied o Vo䁞 wa e ' te h i a adva ta e a d ma a eme t experie e to ma䁞e it bra d o ar re-e tabi h hi h-quaity a d per o aized ima e a d ha made

ma u a tured a o i hi a Ru ia dia ova䁞ia the U䁞rai e a d Kaza䁞h ta 2019 more tha 1 423 miio Š䁞oda bra ded ar were ma u a tured i Europe a d A ia a d od wordwide we ty-ei ht year a ter joi i the Vo䁞 wa e Group Š䁞oda ha e ured a a ti pot i the voume e me t o the i ter atio a ar mar䁞et ae a d operati i ome rea hed a ew re ord hi h a we

Foowi the i orporatio o Š䁞oda i to the tru ture o Vo䁞 wa e the ae o the Vo䁞 wa e Group ha bee expa ded whi h a orm a ae e e t he e e t o ae bri the u u e o re our e the u i te ratio o re our e redu e the o t o ma a eme t raw materia produ tio a d other i 䁞 thereby redu i the tota o t Vo䁞 wa e a a o pe iaize i produ tio a d

ervi e or di ere t u tomer or mar䁞et to meet the eed o di ere t o umer ; o u e ou h u d o re ear h de i deveopme t a d produ tio pro e improveme t et to qui 䁞y au h ew produ t

O the other ha d throu h the a qui itio o Š䁞oda Vo䁞 wa e Group with the improveme t o produ tivity a d ae etwor䁞 the mar䁞et hare ha a o i rea ed hu a hievi the oa o Vo䁞 wa e ' eader hip i the i du try t a be aid Vo䁞 wa e re ued Š䁞oda a d 䁞oda a o brou ht o iderabe be e it to Vo䁞 wa e hi i a wi -wi re ut

ummary whe Vo䁞 wa e e tered the ze h mar䁞et they ho e to e ter by a qui itio whi h depe d o the poiti a e viro me t Be au e at that time the

ze h over me t e oura e the tra ormatio o ompa y privatizatio Vo䁞 wa e ha a hieved reat u e i the ze h mar䁞et throu h the a qui itio o we-䁞 ow o a bra d ue to the ompetey di ere t poiti a

y tem a d o ia e viro me t o hi a a d Europe promote them to e ter the hi e e mar䁞et i a more appropriate mode rather tha bi dy u i a i e u e u mode e ter other mar䁞et

8 Bra h o Vo䁞 wa e i hi a

8 1 ixtee ompa ie a ure operatio o the VW roup a d divi io

Fi ure 3— he i tributio o Vo䁞 wa e Group i hi a

our e: VW Group hi a A u Review o 2019

urre ty Vo䁞 wa e Group ha ixtee Vo䁞 wa e ompa ie a d ub idiarie (i udi i a e a d ae ompa ie ) a over hi a but the mo t importa t a d

ore o the Vo䁞 wa e roup are two ode t joi t-ve ture or ma u a turi : ha hai Vo䁞 wa e Automotive ompa y ( A Vo䁞 wa e )

FAW-Vo䁞 wa e Automotive ompa y (FAW Vo䁞 wa e )

A Vo䁞 wa e urre ty ha ix produ tio ba e with A ti a it headquarter i udi Urumqi Yizhe Na ji Ni bo ha ha a d

ha hai A d A ti a the R & e ter o ha hai Vo䁞 wa e

he A ti pa t i ha hai with tota produ tio apa ity i 820 000 vehi e per year urre ty it i mai y re po ibe or the produ tio o Vo䁞 wa e '

a ua produ tio apa ity o 360 000 u it At pre e t it i mai y re po ibe or the produ tio o Vo䁞 wa e a at a d 䁞oda uper he Zhe yi a t i Jia u with a a ua produ tio apa ity o about 300 000 vehi e t i mai y re po ibe or the produ tio o Vo䁞 wa e New a ta a 䁞oda rapid he Urumqi pa t i Xi jia with a ua produ tio apa ity i about 50 000 u it whi h a be expa ded to 300 000 u it per year i the ater period t i mai y re po ibe or the produ tio o ew a ta a he Ni bo pa t i Zhejia with a a ua produ tio apa ity o 300 000 vehi e urre ty it mai y produ e

䁞oda New O tavia a d O tavia ouri he ha ha pa t i Hu a with a a ua produ tio apa ity o 300 000 vehi e

FAW-Vo䁞 wa e urre ty ha ive produ tio ba e with ha hu a it headquarter i udi Fo ha ia ji he du Qi dao a d ha hu A d

ha hu a the R & e ter o ha hai Vo䁞 wa e

he ia ji pa t with a a ua produ tio apa ity o 300 000 u it At pre e t it i mai y re po ibe or the produ tio o two 䁞i d o UV ba ed o the

QB pat orm he Qi dao a t i ha do with a a ua produ tio apa ity o about 300 000 vehi e t i mai y re po ibe or the produ tio o Bora Bev a d ome 䁞i d o ee tri vehi e he Fo ha pa t i Gua do with a ua produ tio apa ity i about 300 000 u it t i mai y re po ibe

or the produ tio o Audi Q2L he he du pa t i i hua with a a ua

produ tio apa ity o 600 000 vehi e urre ty it mai y produ e Jetta a d a ota he ha hu pa t i Jii with a a ua produ tio apa ity o 1000 000 vehi e urre ty it produ e Audi Q5 a d other Audi mode

ummary the Vo䁞 wa e Group et up a torie ae departme t a d R &

e ter i the e pa e or ma y rea o Fir t o a ha hai Beiji a d Gua do are de ey popuated area with a ar e midde a a d i ome

eve ar hi her tha the atio a avera e A d the e itie have more hi h-edu atio tae t whi h i o du ive to the u e o tae t or Vo䁞 wa e

he the three ea ter provi e o hi a are heavy i du tria itie with a ot o mi era re our e abor or e a d a ompete i du tria y tem o it i more

uitabe or Vo䁞 wa e to et up ma u a turi pa t there Fi ay ia ji

Qi dao Na ji a d Ni bo are a oa ta itie whi h are o ve ie t a d heaper or port tra portatio he e e o d-tier itie ot o y have the adva ta e o ow etti a d operati o t but a o the e ha eme t o

o umer o umptio apa ity i the e area i eadi to the rapid rowth o dema d or orei ma u a tured produ t a d produ t

O the other ha d u it ae by the Vo䁞 wa e Group ro e to 11 0 miio vehi e i 2019 – a ew re ord de pite a hae i a d hi hy ompetitive mar䁞et e viro me t ae reve ue ro e by 7 1% to €252 6 biio

abe 1— he Vehi e ae a d Reve ue o Vo䁞 wa e i 2019

our e: VW Group hi a A u Review o 2019

At 4 9 miio vehi e u it ae i the Europe/Other mar䁞et re io were up 2 5% ompared with the previou year ae reve ue i rea ed to €154 0 biio

the A ia- a i i re io the ae o hi e e joi t ve ture – amou ted to a tota o 4 5 miio vehi e At €44 0 biio ae reve ue ex eeded the prior-year eve Both ae a d reve ue have ex eeded o e third o the Vo䁞 wa e Group hi e e joi t ve ture have be ome the mo t importa t part o Vo䁞 wa e

8 2 A ay i o ha hai Vo䁞 wa e a d FAW Vo䁞 wa e 8 2 1 ha hai Vo䁞 wa e Automotive ompa y

1984 ha hai Vo䁞 wa e wa ou ded t wa the ir t Joi t-ve ture betwee ha hai Automotive du try orp a d Germa Vo䁞 wa e i the hi e e mar䁞et i e the hi e e re orm A d ve tme t ratio o both partie i 50%

he produ tio tarted a year ater by buidi the Vo䁞 wa e a ta a the e o d e eratio o Europea Vo䁞 wa e a at he produ tio a d improvi o the mode too䁞 over the 29 year ti 2012 2012 Vo䁞 wa e

i ed a a reeme t with A about Urumqi pa t i reatio with the trate y o GO We t a d Go outh or urther rowth

A ter the ir t e o d a d third pha e o te h oo i a tra ormatio proje t a d a et a qui itio ha hai Vo䁞 wa e ha ow ormed a ayout o ive major produ tio area a d a te h oo y deveopme t e ter

Fi ure 4— he Brie o ha hai Vo䁞 wa e

our e: VW Group hi a A u Review o 2019

he ompa y i headquartered i A ti ha hai a d ha e tabi hed produ tio ba e i Na ji Yizhe Urumqi Ni bo a d ha ha A Vo䁞 wa e produ e a d e produ t o the Vo䁞 wa e a d 䁞oda bra d

overi mar䁞et e me t u h a A0 A B UV a d V urre ty the ha hai Vo䁞 wa e ompa y a o produ e ear boxe a d modem e i e or other bra d u h a 䁞oda a d Vo䁞 wa e Ba ed o the e two major bra d ha hai Vo䁞 wa e urre ty ow a at i ua oo Fabia O tavia a d other mode

8 2 2 FAW-Vo䁞 wa e Automotive ompa y

FAW Vo䁞 wa e o Ltd wa e tabi hed i 1991 a the e o d joi t ve ture with Fir t Automotive Wor䁞 (FAW) t i a ar e- ae eda ar ma u a turi

ompa y joi ty operated by hi a FAW Group o Ltd Vo䁞 wa e AG a d Audi AG t a o i the ir t moder eda i du tria ba e i hi a to be buit o the ba i o e o omi ae

February 24 1995 wa a other memorabe day or FAW-Vo䁞 wa e he ir t 300 Jetta ar exported by the ompa y or the ir t time were oaded at aia

ort a d od to ya mar t a o mea FAW-Vo䁞 wa e o i iay we t abroad

additio to automobie ma u a turi FAW-Vo䁞 wa e a o atta he reat importa e to the utivatio o tae t O ar h 6 1995 the ompa y hed a i i a reeme t a d a eremo y or hiri tea her i ooperatio with Jii U iver ity o e h oo y

O November 13 1995 FAW Germa Vo䁞 wa e a d Audi joi ty i ed a o tra t i Beiji or Audi ar to be i orporated i to FAW Vo䁞 wa e produ tio a d ha i the harehodi tru ture to 60% or FAW 30% or Vo䁞 wa e a d 10% or Audi

Fi ure 5— he Brie o FAW-Vo䁞 wa e

our e: VW Group hi a A u Review o 2019

he ompa y i headquartered i ha hu Jii A ter 28 year o deveopme t FAW Vo䁞 wa e ' produ tio apa ity ayout ha overed Jii

ha hu ( orthea t) i hua he du ( outhwe t) Gua do Fo ha ( outh hi a) a d ha do Qi dao (Ea t hi a) a d ha eve pro e io a

produ tio pa t i udi e i e pa t a d tampi e ter FAW-Vo䁞 wa e produ e a d e Vo䁞 wa e a d Audi bra d Ba ed o the e two major bra d FAW-Vo䁞 wa e urre ty ow Jetta Go Bora Audi A4L Audi Q3 a d other mode

ummary the u e o joi t ve ture betwee Vo䁞 wa e a d hi e e ompa ie whi h i ude ha hai a d FAW it ha reaty promoted the

deveopme t o hi e e automobie i du try Vo䁞 wa e ha a hi h eve o te h oo y i produ tio a d deveopme t a d aow A a d FAW to hare their adva ed te h oo y a d utti -ed e ma hi ery thu they provided adva ed te h oo y a d experie e or the hi e e automobie i du try

a orda e with the ri orou quaity pro e a d te h i a ta dard o Vo䁞 wa e the y tem apabiity a umuated over the year ha bee opied per e ty whi h ot o y bri the o ept o ea produ tio a d quaity ma u a turi to a part o the hi a but a o o tribute to the up radi o

o a automobie i du try a d the tra ormatio o e o omi mode additio Vo䁞 wa e ha adva ed ma a eme t method orporate o ia re po ibiity

o ept a d ma y di ere t bu i e o ept whi h provide a rea a d e e tive exampe or ma y hi e e automobie i du try

Whie expa di it ow produ tio ae the ha hai a d FAW Vo䁞 wa e a o arried out the o aizatio o eda to revitaize hi a' ar part i du try

hi ambitiou y tem proje t a ro re io a d i du trie ha drive a ar e umber o upporti i du trie or te h oo i a pro re A oid ou datio ha bee aid or i ter atio a-eve part produ tio At pre e t more tha 400

ompo e t ompa ie upporti ha hai a d FAW Vo䁞 wa e have bee widey ee ted a uppier by other automobie ma u a turer a d ome have bee i uded i the i ter atio a pro ureme t ra 䁞 Vo䁞 wa e Group ( hi a) o ti uou y promote it pra ti e i the ied o ew e er y vehi e mobie mobiity a d mart itie a d wi hep promote the revoutio o the hi e e automotive i du try with u tai abe outio

9 o u io : A ay i o the rea o that Vo䁞 wa e u e joi t ve ture to e ter the hi e e mar䁞et

9 1 From the per pe tive o Vo䁞 wa e

Ri ht at the tart o the e o omi re orm i hi a a d Vo䁞 wa e Group re o ized hi e e mar䁞et opportu itie Be au e at that time the automobie

eve o e to aturatio whie ar were ti out o rea h or ordi ary peope i hi a

Fir t o a i the eary whe Vo䁞 wa e e tered the hi e e mar䁞et joi t ve ture were the be t hoi e due to hi a' poi ie to prote t the dome ti mar䁞et a d hi e e mar䁞et a tor Athou h the ae o hi e e mar䁞et i hu e a d the pur ha i power o o umer roup i tro the u ique e o

hi e e mar䁞et i ti o e o the a tor to be o idered here are bou d to be ma y ompetitor i the hu e mar䁞et he joi t ve ture mode a hep Vo䁞 wa e Group u der ta d the ituatio o hi e e mar䁞et poiti a poi ie (redu e poiti a ri 䁞 ) a d bu i e y tem more eary

e o dy the joi t ve ture e try mode hep Vo䁞 wa e to obtai more u d a d expa d the produ tio ae i hi a more moothy

2019 the ae voume o Vo䁞 wa e Group i hi a i rea ed by 0 6% year o year to 4 2336 miio vehi e a ou ti or 38 6% o the oba ae voume o Vo䁞 wa e Group Vo䁞 wa e Group' operati pro it rom

hi e e joi t ve ture i 4 4 biio euro (39 9 biio yua ) a ou ti or 30 5% o the roup' tota pro it

abe 2— ae voume o Vo䁞 wa e Group i 2019

our e: VW Group hi a A u Review o 2019

With obtai i more u d a d ew e er y vehi e are a deveopme t tre d o the hi e e automobie i du try Vo䁞 wa e i i rea i produ tio o ee tri vehi e a d i prepari to ope two ee tri vehi e produ tio pa t i A ti a d Fo ha hi a i 2020 he e hi e e pa t wi have a produ tio apa ity o 600 000 vehi e whi h wi rea h about 1 miio by the e d o 2022

ompared with other pio eeri ompa ie i the ee tri vehi e mar䁞et Vo䁞 wa e i abe to a hieve i du tria produ tio a ter he Vo䁞 wa e wi

overta䁞e e a a the eader o the ee tri vehi e i du try with hi a a it 䁞ey batte rou d

hirdy throu h the joi t ve ture mode Vo䁞 wa e a redu e i ve tme t a d other expe e a d the deveopme t ri 䁞 i redu ed

A ordi to the o tra t i ed betwee Vo䁞 wa e Group a d A the i ve tme t proportio o both partie i 50% whi h a redu e the i ve tme t ri 䁞 a d avoid the o o u d O the other ha d 50% i the mo t equa

proportio whi h hep the two partie to ommu i ate o a equa ooti At the be i i o ooperatio Germa Vo䁞 wa e i ve t mo ey a d te h oo y ha hai Vo䁞 wa e pay to buid a torie a d pur ha e produ tio i e

Juy 2007 ha hai Vo䁞 wa e a d Germa Vo䁞 wa e i ed a joi t tateme t that the two partie wi ooperate to deveop a ew ar ba ed o Germa Vo䁞 wa e ' ext- e eratio B- a pat orm or the oba mar䁞et

hi i di ate that ha hai Vo䁞 wa e ' re ear h a d deveopme t wor䁞 i raduay i te rated i to the Vo䁞 wa e Group' oba deveopme t y tem For more tha 20 year ha hai Vo䁞 wa e ha i ve ted more tha 3 biio yua i the deveopme t ied t ha ot o y utivated a hi h-e i ie y a d hi h-quaity produ t deveopme t team but a o e tabi hed a te h oo y deveopme t e ter with ompete u tio a d i ter atio a adva ed eve

ha hai Vo䁞 wa e provide a oid te h i a uara tee a d redu e the

Fi ay the partie o the joi t ve ture provide di ere t re our e adva ta e to the ea h other Joi t ve ture e try mode hep Vo䁞 wa e u e the e re our e more uy to improve the de ree o ompetitive e a d have a better oothod i the hi e e mar䁞et

hi e e mar䁞et FAW Vo䁞 wa e i amou or produ t are oid a d durabe with tabe a d reiabe per orma e a d hi h bra d aware e A d produ t mar䁞et e me tatio o FAW Vo䁞 wa e i better tha other bra d with a tro perti e e

FAW Vo䁞 wa e are deepy oved by peope e pe iay UV mode i very popuar amo the you roup With the i rea e o the a e o the a ter-80

rowd the a ter-90 rowd ha raduay be ome the mai or e o ar buyi hey are i dividuai ti a d i depe de t pur ui a hio a d dema di hi her quaity

Fi ure 6— he ae o -ro i the Fir t ha o 2019 i hi a

our e: hi a Automobie du try A o iatio - ata e ter

Fi ure 7—U er Attribute-A e o -ro i hi a

our e: hi a Automobie du try A o iatio - ata e ter

the UV ied ta䁞i Vo䁞 wa e -ro produ ed by FAW-Vo䁞 wa e a a exampe it ae i rea e rom 6 430 i Ja uary to 11 919 i Ju e o whi h

ae i Ju e i rea ed by 18% rom the previou mo th ota ae o -ro i the ir t ha o 2019 are 53 502 A d the avera e a e o o umer who pur ha e

-ro i 31 year od a d the mai o umer roup are betwee 25 a d 35 year od t a be ee that the majority o u er are i the a ter-90 Vo䁞 wa e wi

o u o the UV ied a d o ti ue to expore a d i trodu e more ex ee t UV mode ba ed o o umer dema d

O the other ha d FAW roup urre ty ha adva ed ew e er y te h oo ie u h a 䁞ey te h oo ie o ow e er y pu -i hybrid pa e er vehi e Vo䁞 wa e Group wor䁞 with FAW Group a d tra orm the adva ed ew e er y te h oo y adva ta e i to produ t adva ta e a d i te rate them with the tre d o i tei e t i ter o e tio hey au h the pu -i hybrid ver io o