This Day, That Year

Editor’s Note: This year marks the 40th anniversary of China’s reform and opening-up policy.

Since the first domestically produced vehicles were made by the First Automobile Works in 1956, the automobile industry in China has seen explosive growth.

In 2001, China joined the World Trade Organization. To compete with imported products, automakers launched more locally produced models and started to lower retail prices to more affordable levels.

As a result, the car market grew by 62 percent in 2002 and 83 percent in 2003, and many overseas companies, including BMW, Fiat-Chrysler, Ford, Hyundai, Mazda, Mercedes, Nissan, Toyota and Nissan formed joint ventures in China.

By 2009, China had surpassed the United States to be the world’s No 1 market for production and sales of automobiles, with 13.8 million automobiles sold.

The country’s emergence as the world’s largest auto market has fueled a burgeoning domestic auto industry that is competing alongside global players.

Domestic automakers have also been expanding overseas by launching new models and marketing strategies to challenge the established brands. Geely, one of the fastest-growing domestic automakers, owns Swedish brand Volvo and Malaysia’s Proton, and has unveiled its own brand Lynk & Co, with the aim of competing with international brands such as GM and Volkswagen.

In 2015, China overtook the US to be the world’s largest market for electric and plug-in hybrid vehicles, with sales totaling some 340,000 units, according to the China Association of Automobile Manufacturers. The government’s promotion of electric vehicles has spurred domestic automakers to master the relevant technologies.