Car manufacturers are excited about doing business in China, but the country still presents plenty of obstacles, as several recent events make clear. Beyond the recent trade dispute over tires, there are a host of challenges for Western manufacturers, ranging from difficulty in enforcing contracts to maintaining intellectual property rights.
But there is good news. China has rebounded resoundingly from the global recession. For the year, auto sales are up a robust 32 percent. More growth is predicted.
J.D. Power forecasts that Chinese consumers will be buying more than 11.4 million vehicles annually by 2015. The reasoning is simple. The U.S. has about 820 vehicles for every 1,000 people. China today has roughly 34 vehicles per 1,000 people.
