China’s Auto Makers Look Homeward For M&A

From Wall Street Journal:

Despite major steps for Chinese auto makers in overseas expansion during the past year, companies are now expected to be more cautious in overseas acquisitions while accelerating their pace in domestic mergers.

Based on a survey of 50 executives from China’s auto manufacturers and suppliers, a report issued by the consulting firm, AlixPartners, forecasts that China’s auto sales will continue to grow by 20% in the next five years. In order to achieve sustainable growth, Chinese auto companies will focus on technology upgrades, after-sale services and internal management in the domestic market.

According to the report, China’s automobile industry has remained the most dispersed in the world. The top five manufacturers in China comprise only 50% of market share, compared to 87% in Japan and 65% in the United States.

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