China 'is the most powerful nation in car manufacturing'

Date: 19/8/2011

China "without a doubt" wields the most power within the international automobile manufacturing industry.

Such is the opinion of Freelance Motoring Journalist and Photographer Carlton Boyce, who notes that the country produces around 14 million cars every year.

In terms of nations that could demonstrate strong growth in this area in the future, he points to Indonesia.

Although it only currently produces around half a million cars annually, Mr Boyce says its government is keen to support research and development, allowing spending on this to be offset against tax.

This gives Indonesia a "big advantage," while there is also a lack of VAT on materials or import levy in relation to the automobile industry, he notes.

"The Asia-Pacific manufacturing countries have got together to talk about fair trade. So within that, that gives them a huge competitive advantage amongst themselves [to succeed in the industry]," Mr Boyce adds.

Jonathan Visscher, spokesperson for the Society of Motor Manufacturers and Traders, recently said that in addition to output, emerging markets will also play an integral role at the buying end of the supply chain.

He notes that in China there is particularly strong demand for vehicles by Bentley, Rolls-Royce and other luxury brands.

Posted by Mary Treen