Translated from Russian to English - www.onlinedoctranslator.

com

Ministry of Education and Science of the Russian Federation

Federal State Budgetary Educational Institution
higher professional education
"STATE UNIVERSITY OF MANAGEMENT"

As a manuscript

Alexandrov Ivan Alexandrovich

Experience in the development of the automotive industry in the

People's Republic of China and the possibility of its use in Russia
Russian Federation

specialty 08.00.14 - "World Economy"

Thesis
for the degree of candidate
economic sciences

Scientific adviser: doctor

in Economics, Associate Professor of the

Department of World Economy, Federal State

Budgetary Educational Institution of Higher Professional

Education "State University of Management" Kirillov

Viktor Nikolaevich

Moscow, 2014
 Content

INTRODUCTION ............................................... ................................................. .............3

CHAPTER 1. The role of the Chinese automotive industry in the context of current
trends in the development of the global automotive industry .............................15
1.1. World automotive industry in modern conditions: meaning, structure, main
development trends .............................................................. ................ fifteen
1.2. Peculiarities and Factors of Evolution and Formation of the Automotive Industry
of China ............................................................. ............................................... 38

CHAPTER 2. Structural changes in the automobile industry of the PRC at the present
stage .............................................................. ................................................. .....52
2.1. Nature, Dynamics and Structure of the Development of the Automotive
Industry and the Car Market of China .............................................................. 52
2.2. The development strategy of the automobile industry of China based on the
expansion of the scale of production and foreign economic relations .... 65
2.3. The role of state regulation in the development of the industry and
attracting foreign investment in the automotive industry of China 80

CHAPTER 3. Problems of expanding international economic cooperation of the

automobile industry of the PRC .............................................................. 96
3.1. Difficulties and Opportunities for Further Development of the Automotive Industry
in China .............................................................. ................................................. 96
3.2. Development of the automotive industry PRC based
using the advantages of internationalization in the context of the prospects for the development
of the global automotive industry .............................................................. ........... 104
3.3. Problems and opportunities for the development of the automotive industry of the Russian
Federation based on foreign experience and international cooperation with China
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116

Conclusion ................................................. ................................................. ........ 143

Literature ................................................. ................................................. ......... 149
Application ................................................. ................................................. ........ 170

2
 INTRODUCTION
Relevance of the research topic. At the present stage, car
Timber construction is one of the most important industries in both
developed and developing countries. The significant role of this industry lies in
the fact that, firstly, its development stimulates the development of a number
of other, related industries; secondly, it is capable of generating innovations,
which is a powerful factor in the country's economic development. The
successes of developed countries achieved in recent decades in the global
production and export of passenger cars are gradually "obscured" by
increased competition from developing countries (primarily China, India,
Brazil), and this is typical not only for the automotive industry, but quite
objectively for other manufacturing industries.
The development of China's economy as the largest representative of
the developing world in recent decades has been based on the use of the
mechanism of state planning. The strategic directions of modernization of the
national economy of China at the beginning of the 21st century suggest both
the intensification of research in high-tech sectors of the economy, as well as
the strengthening of the liberalization of the country's foreign economic
activity as one of the main conditions for further borrowing the advanced
technological experience of developed countries. The transition of the Chinese
economy over the past twenty years from an extensive to an intensive type of
socio-economic development and social reproduction could not but affect the
sectoral industrial policy, which began to transform, taking into account the
awareness of the need to develop knowledge-intensive industries, one of
which is the automotive industry. The reform of the country's economy, as
well as its accession to the WTO, led to an increase in its openness to foreign
partners.
The reasons for the intensive development of the automotive industry in
China are both the well-thought-out economic policy of the country, aimed
primarily at consolidating enterprises and enhancing cooperation with foreign

3
capital, and the huge potential of the country's domestic car market. Today,
the automotive industry of China is a unique, unparalleled example in the
world, when the national strategy for the development of the industry is
formed solely on the basis of foreign technologies, which become a
paramount, mandatory factor in the development of production. As a
result of this approach, China already in 2011 took the first position in the
world in the production of cars. The next stage is the production of national
competitive car models on the world market.one

Starting to implement the task of increasing the competitiveness of

automotive products in the world market in every possible way, the PRC is
carrying out large-scale technological transformations of production based
on foreign experience, including the use of international quality standards.
The formation of large integrated enterprises in the automotive industry,
which will then be transformed into global automotive concerns, is
recognized as the main direction for increasing the technical level of
production.
At the same time, it should be taken into account that the
development of the transport complex and transport infrastructure is one
of the key tasks of the modern economic policy of the PRC. Its development
is aimed at creating conditions for the growth of the quality of transport
services provided to the population, as well as at reducing the costs of
transporting goods. The environmental safety of transport operation is also
important. That is why the requirements for the organization of car
production in China will be the highest in the coming years. The latter will
be reflected in the need to ensure the growth of reliability, operational,
environmental performance, the development of service, the use of
energy-saving technologies in the automotive industry.

oneExperts estimate that about six to eight years are left for China's automotive products to reach the
level of Japan.

4
 In general, the relevance of the topic of the dissertation research is due to

Lena:

1) major changes in the geographical structure of the world market

cars, which was especially pronounced in post-crisis conditions;
2) the need for theoretical and practical justification and
rethinking the experience of development of the automotive industry in China;

3) the importance of China as the main foreign economic partner

Russia, as well as the opportunities for the development of the automotive industry in our country, taking

into account the existing practice of developing the industry in China;

4) the pressing problems of the development of the automotive industry

RF and the need for its modernization based on the intensification of
international economic cooperation with leading automotive companies.

The degree of development of a scientific problem. In recent years in

Foreign and domestic science has carried out a lot of research devoted to
both the study of the global car market and the analysis of the main trends in
China's socio-economic development. Recent studies include the work of
Chinese economists Li Xiangrong, Dong Ping, Huang Huai, Dong Yanhui, and
others. In these works, the analysis of the development of the automotive
industry in China is carried out from the standpoint of planning and reforming
the national economy. At the same time, the lack of study of the issues
studied in the work in the context of current trends in the development of the
world economy and the global automotive industry, taking into account the
growth of international competition in this market, taking into account the
uncertainty of the development of many industries in post-crisis conditions,
seems obvious.
At the same time, the problem of the development of the automotive
industry in Russia continues to be acute, since its accession to the WTO and the
increasing liberalization of foreign economic relations will gradually contribute to
the “reshaping” of the structure of the domestic automobile industry.

five
market. In this regard, the author believes that at the present stage it is
necessary to form a fundamentally new concept for the development of the
automotive industry, which should be based not on the use of foreign
experience in the development of the industry, but, first of all, on
strengthening international economic cooperation between Russian and
foreign manufacturers. car dealers. Partially, this is already being
implemented by Russian business structures, however, the remaining
problems in the development of the national automotive industry indicate a
serious scientific and methodological gap in this industry. This applies to such
issues as the effectiveness of attracting foreign investment in the industry, the
problems of localizing car production in Russia, the development and
implementation of innovations in the industry.
purpose of work - analysis of the main patterns, trends and problems

development of the foreign automotive industry on the example of China and the

development on this basis of proposals for the further development of the Russian

automotive industry, taking into account the further integration of the Russian

economy into the modern system of international economic relations.

To achieve this goal, the following maintasks :

- highlight the features of changes in the dynamics and structure of the development of

the temporary world car market, on the basis of which to determine the key
trends characteristic of the global and Russian automotive industry;
- identify the characteristic features of the evolution of the automotive industry in

China, which had the most significant impact on the development strategy of the industry;

- to characterize the geographical, organizational and foreign economic

the economic foundations of the development of the automotive industry in China at the present stage;

- show the importance of foreign economic relations and international

economic cooperation in the development of the automotive industry in China, on

the basis of which to assess the competitive positions of manufacturers of this

country in the global car market;

6
 - assess the role of state regulation of the automotive industry;
China's mindset in solving the main problems of industry development;

- to formulate the existing problems in the development of the automotive

China's industry and show the direction of its strategic development based on
the use of the advantages of internationalization;
- identify key problems in the development of the automotive
Russian industry in modern conditions and show the importance of
international economic cooperation for the formation of optimal
competitive strategies of Russian manufacturers in the global automotive
industry.
Object of study - Chinese car market in modern structure of the
global automotive industry.
Subject of study - the main trends of evolution, reformed and modern
processes of internationalization of the automotive industry in China, as well
as the peculiarities of the development of the Russian automotive industry,
taking into account structural changes in the global car market.
Theoretical and methodological basis of the study. For under- In preparing

this study, the works of Chinese economists on the development of the economy of

modern China, in particular, Wang Lolin, Wang Ping, Wang Xingling, Wang Tai, Wang

Cei, Wang Qian, Gun Zhong, Dong Guang, Dong Yanhui, Lang Senping played an

important role in the preparation of this study. , L Ming, Li Xingyao, Li Xiangrong, Li

Qingwen, Lini Su, Liu Ligan, Liu Xinhui, Mao Xingypan, Ming Xiang, Fang Weilian, Fan

Yefen, Hu Hao, Huang Huai, He Mingjun, Z Xingguan, Qiai Kuo, Zhao Xin, Cheng

Zheting, Chao Kuifu. A great contribution to the development of the main provisions

of the dissertation was made by the research of domestic scientists in the field of

analysis of the main aspects of the socio-economic development of China, such as

Balakina V.I., Boni L.D., Kuzyk B.N., Muromtseva Z.A., Naumova I.N., Ostrovsky A.V.,

Potapenko M.V., Potapova M.A., Reshetnikova M.S., Ryzhova N.P., Titarenko M.L.

7
 In addition, for the analysis of key trends in modern automotive
industry in developed and developing countries, the author widely used the
works of Astafieva I.A., Belov V.A., Dorokhin S.A., Zagrebelnaya N.S., Karavaeva
E.G. ., Kovaleva P.A., Konakhina N.A., Kondratieva V.B., Kopylova A.S.,
Mayorova A.B., Morozova A.N., Morozova S.A., Pasko A.V., Pashkova V.I.,
Petrova S.B., Petrova M.A., Rudneva A.O., Samokhvalova V.V., Sitova A.N.,
Spichak E.A., Smirnova E.N., Khachaturova S. E., Khubieva A.P., Sharovatova
D.I., Shuvalova N.A., Shushkina M.A., Yakovleva A.A.
Information and source study base of the study. D For the
preparation of this dissertation, the author used the research of the
following Russian research organizations and educational institutions: the
Institute of the Far East of the Russian Academy of Sciences, the Institute of
World Economy and International Relations of the Russian Academy of
Sciences, the Institute of Economics of the Russian Academy of Sciences,
the All-Russian Research Market Market Institute, the All-Russian Academy
of Foreign Trade , Peoples' Friendship University of Russia, Moscow State
Institute of International Relations (University) of the Ministry of Foreign
Affairs of the Russian Federation, Diplomatic Academy of the Ministry of
Foreign Affairs, State University of Management. An important role in the
collection of statistical and factual materials of the dissertation was played
by the analytical data of state authorities (the Ministry of Industry and
Trade of the Russian Federation, the Ministry of Economic Development of
the Russian Federation, Rosstat),

Scientific novelty dissertation research is based on dark

substantiation of the role of China in the modern world automotive
industry in the context of the globalization of the world economy, taking
into account both the growing crisis in international economic relations
and the latest qualitative and structural changes in the global car market.

eight
 The most significantscientific results studies reflecting its scientific
novelty are as follows:
- as a result of the analysis of the fundamental factors of the development of the world

automotive industry, its importance in the development of the modern world

economy was determined, which consists in the fact that: this industry
stimulates the development of production and markets for many consumer
goods, concentrates the technologies of mass marketing and production, in a
number of developed countries it was the basis of intensive socio-economic
development and scientific and technological progress, it helps to strengthen
the monetary system and infrastructure of the country's economy; on the
basis of this, it was found that the world car market is undergoing a serious
qualitative transformation, which is manifested in a change in the pace of its
development, the transformation of the geographical, commodity and
corporate structure. The modern world car market is developing under the
influence of such latest trends as the growth of production volumes in
developing countries; active direct investment by leading automotive TNCs in
developing countries; creation of international strategic alliances; further
standardization of the model range;
- it is shown that the evolution of the automobile industry of the People's Republic of China differs

It focuses on an extensive and intensive path of development, but has always been

under strict control by the state, which made it possible, firstly, to solve the needs of

the country's economy automobilization, and secondly, to strengthen the foreign

economic component of the automotive industry, first on the basis of the massive

attraction of foreign investment in the industry, and then on the basis of its export

orientation; in this regard, it was concluded that: 1) the development of the economy

and foreign economic relations of the automobile industry of the PRC fully

corresponds to the basic theories of investment development; 2) throughout its

history, the automotive industry of the PRC has been characterized by high growth

rates of production and sales at a level that always significantly exceeds the growth

rate of the country's GDP;

nine
 - as a result of the analysis of the current state of the automotive industry

It was found that the PRC industry is characterized by such features at the
present stage as: a high level of concentration of companies in the
industry; limited and low level of geographic diversification of product
exports in the face of excess production capacity in the industry;
unevenness and significant differentiation of automobile manufacturing
capacities throughout the country; large-scale and comprehensive support
of the industry by the state; active use of foreign experience for the
development of the automotive industry based on copying the best
samples and borrowing advanced technologies;
- it is proved that in recent years there has been an active expansion
of the Chinese automotive industry to the world market, in particular, there
is an increase in exports based on the formation of a state research and
development base for exporting companies of automotive products, an
increase in lending for growth and expansion of exports, the development
of a credit insurance system for exports, and an increase in exports. cars of
Chinese brands, the implementation of a strategic alliance between
transport companies and car exporting companies, the formation of a
mechanism for protecting intellectual property rights, strengthening ties
between foreign and national manufacturers of automotive components.
The author came to the conclusion that the key barriers to further growth
in domestic demand for automotive products in China are: lack of policies
to encourage demand for cars in the country; high level of duties and
complicated procedure for purchasing a car; low level of assortment, prices
and service; lack of advanced technologies and R&D capabilities among
manufacturers; backwardness of technology and imperfect quality control;

- the main problems of the development of the automotive industry were identified;

mentality of the PRC at the present stage, in particular: the prevailing overheating

10
in branch; the policy of retaining most of the local car market, pursued by
foreign brands, while the number of patented Chinese car brands does not
exceed 10%; transport problems; emerging difficulties for Chinese
manufacturers in the development of foreign markets. To solve these
problems, it is necessary to carry out a systemic reform of the company
management mechanism; accelerate the transformation of the structure of
products and industries; development of ways to improve the efficiency of
the use of natural resources and energy; reduction of environmental load;

- it was proved that the development strategy of the automotive industry

Accordingly, the PRC should be based on the full-scale development of

international economic cooperation, which will accelerate the integration of
the industry into the global automotive industry, in particular, as the system
for marketing Chinese automotive products in the world market is liberalized,
the competitiveness of TNCs in the domestic market of the PRC will gradually
increase, i.e. cooperation between Chinese foreign partners will tend to
deepen;
- the factors that will influence the development
the Russian car market in the future, such as: government policy aimed at
stimulating domestic consumption and production; the low level of
motorization in our country and the high level of depreciation of the car
park; organization of new production facilities at the level of joint
investment cooperation between Russian and foreign car manufacturers
with strict compliance with localization requirements; further development
of an efficient credit system for the purchase of cars, carried out jointly by
manufacturers and banks; consistent implementation of the policy of
substitution of car imports by domestic production;

- it is shown that in modern conditions, cooperation between Russia and China in

the automotive industry is limited due to the uneven structure

eleven
economic ties between the two countries; At the same time, this
cooperation will develop for the following reasons: intensive increase in the
volume of car exports from China to Russia; the weakening of the
traditional markets of the leading exporting countries - the US and EU
countries, and the simultaneous increase in the competitiveness of China's
manufacturers; a high degree of institutionalization of cooperation at the
APEC level; reduction of import tariffs and removal of non-tax barriers as a
result of accession to the WTO, which will help reduce prices for cars
imported from China; China's increase in its investment presence in the
Russian automotive industry; complementarity and the existence of
common directions in the strategies of socio-economic development of the
two countries.
Practical significance dissertation research
is that its main conclusions and results:
- allow, from the standpoint of critical analysis, to assess the competitiveness

property of Chinese car manufacturers, which is important in terms of

in terms of assessing the prospects for the development of the global car market;

- are the basis for further research of regional markets

passenger cars of developing countries;
- can be used to comprehensively solve development problems
automotive industry in Russia;
- can be used in the educational process when conducting classes on
academic disciplines "International Economic Relations", "Mi-
new commodity markets”.

The dissertation was completed within the framework of the following points

scientific passports specialties HAC RF "World Economy" -08.00.14:

h. 17. World market of goods and services: development trends, industry and

corporate structure. Organization and technique of international trade;

12
 i. 25. The national economy of individual countries in the system of the world economy

private ties: problems of optimizing interaction and ensuring national

economic interests. International economic contradictions, their causes
and methods of resolution;
j. 26. Foreign economic interests of Russia in the world market and in
relations with individual countries and groups of countries. Geo-economic
problems of Russia, its strategic priorities and foreign economic prospects.

Approbation of work. The work was tested at the Department of

World economics and management of foreign economic activity of the
State University of Management. The main provisions of the dissertation
research were published by the author in 3 articles with a total volume of
3.8 pp. (including 1.2 pp - publications in a journal included in the list of
leading peer-reviewed scientific journals and publications of the Higher
Attestation Commission of the Russian Federation) and reported in
2013-2014. at conferences: “XIII International Scientific and Practical
Conference “Economics and Management in the 21st Century:
Development Trends” (Novosibirsk, 2013); XXIV International
Correspondence Scientific and Practical Conference "Scientific Discussion:
Issues of Economics and Management" (Moscow, 2014); XI International
Scientific and Practical Conference "Economics and Management: Analysis
of Trends and Development Prospects" (Novosibirsk, 2014). In addition, the
dissertation materials have already found application in the educational
process,
Scope and structure of work. The dissertation consists of an
introduction, three chapters, conclusion, list of references, list of used
abbreviations and applications. The main text of the work is set out on 152
pages. The bibliographic list includes 217 sources, of which 26 are in
English). The dissertation contains 23 tables, 13 figures and an appendix.
Inadministered the relevance of the topic is substantiated, the degree of its

13
development, purpose, tasks, object and subject of research, theoretical and

methodological foundations of the dissertation, scientific novelty, as well as theoretical

and scientific and practical significance of the work.

ATfirst chapter the features of the evolution of the automotive industry of

China in the structure of the global automotive industry are analyzed.

Insecond chapter the features of the structural transformation of the automotive

industry of the PRC at the present stage, including taking into account foreign economic

factors, are revealed.

ATthird chapter the problems of the development of the automotive industry of the PRC

are considered, the prospects for its development are assessed, taking into account the factor of

internationalization of the economic life of the country; From the standpoint of China's

experience, the level of competitiveness of the automotive industry in Russia is assessed, and

the contours of strategic cooperation between Russia and China in the industry under study are

outlined.

fourteen
 CHAPTER 1. The role of the Chinese automotive industry in the context of
current trends in the development of the global automotive industry
1.1. The global automotive industry in modern conditions: the meaning,
structure, main development trends
The automotive industry, in terms of production, contributes to the
expansion of the tax base and state budget revenues, the creation of new jobs, the
development of auxiliary industries, including financial and credit institutions. If we
consider from the point of view of consumption, then the importance of the
automotive industry is associated with the development of the country's transport
complex, infrastructure sectors. More than 8 million people are employed in the
global automotive industry, which is about 5% of the population employed in the
production of goods.2
In recent decades, rapid processes of globalization have taken place in
the world economy, and the automotive industry is an example of such a
rapid economic integration of states. The world's largest automotive
concerns and corporations have begun to play a critical role in the changes
that are taking place in global industrial production. The process of
integration of regional automobile companies into the world global
economic system requires the participants in such relations to develop a
new level of development of the most important sectors of the economy that
are integrated into the world economic community. Massive international
mergers and acquisitions of companies in the automotive industry testify to
this. The largest automotive concerns actively support the rapid process of
international economic integration, as a result, the nature, level of
competition and the very structure of the global automotive industry are
changing. These processes are objective and require a new level of
development from the Russian automotive industry.

2Konakhina N.A. The development of the global automotive industry in the context of globalization: Abstract of the thesis. diss.
cand. economy Sciences, 08.00.14. - St. Petersburg, 2008. P.8; Konakhina N.A. Analysis of innovative technologies in the global
automotive industry // Innovations. 2008. No. 2 (112). S.60-61.

fifteen
 The rapid development of the automotive industry in Russia, China,
India, Brazil indicates that it is quite difficult for manufacturers from
countries with an emerging market to compete with large automotive
concerns from developed countries, even in their own national markets.
Therefore, the analysis of modern processes of mergers and acquisitions of
companies in the global automotive industry is necessary to develop
relevant methods and tools for more effective protection of their national
automakers.
The role of the automotive industry in the national economy, its potential,
as well as strategic development guidelines are determined by the role of road
transport in the infrastructure of the country's national economy. The leading
countries in the automotive industry are also leading in economic development.
The automotive industry has an impact on scientific and technological progress,
testifies to the level of effective demand and the standard of living of the
country's population. The role of the automotive industry in the GDP of
developed countries is extremely high (growth in the industry by 1% causes
GDP growth of 1.5%)3. The share of the automotive industry in the GDP of
developed countries ranges from 5 to 10%, although in China it does not yet
exceed 2%, even though China's automotive industry is the world's leader in
terms of output. The indirect impact of the automotive industry on GDP is
enhanced through related industries provided by orders from the automotive
industry. It is also important to take into account the fact that the development
of the automotive industry is involved in the formation of the labor market in
the home country.4, as well as in countries where the largest automotive
corporations place their foreign subsidiaries.
According to the author, the role of the automotive industry in the historical
development of the world economy and at its present stage is determined by the
following circumstances:

3National Bureau of Statistics of China: [website]. URL: http//www.stats.gov.cn

4For example, in the US, 15% of those employed in industry work in the automotive industry.

16
 - it stimulates the development of production and markets for many consumers;

Telsky goods;
- the automotive industry concentrates technologies of mass
marketing and production, and it is characterized by mass recycling of
products;
- in a number of developed countries, the automotive industry was the basis

intensive socio-economic development;

- the industry contributes to the strengthening of the country's monetary system;

- the industry contributes to the development of infrastructure sectors of the economy, in

in particular, construction, transport;

- the scientific and technological progress of many countries is based on the development

automotive industry.
The globalization of the world economy and the post-crisis conditions of
recent years have led to an intensification of competition, an increase in R&D
spending, and a slowdown in sales growth in most markets of developed countries
five. Under these conditions, firstly, it is difficult to remain absolutely independent in
the production of cars, and secondly, in the context of the relative stagnation of
world commodity markets, the largest developing countries are the main actors in
the global automotive industry, due to which, in the future, an increase in car
production is predicted at a moderate level. .
Under these conditions, the author of the dissertation believes thatthe

integration of Russian car manufacturers into the global automotive industry is

motivated by the following factors :

1) the growth of consumer requirements for product quality;

2) the need to preserve the existing share of both national and
world market for domestic car manufacturers;
3) the need to improve efficiency and competitiveness
produced automotive equipment.
The solution of these problems directly depends on the creation of conditions for

fiveTrifonovaIV The role of transnational corporations in the globalization of the world economy // Young scientist. 2013.
No. 9. pp. 243-245.

17
effective use of foreign direct investment (FDI) attracted to the country,
which is an incentive for the development of the competitiveness of the
automotive industry in Russia.
The total volume of world production of cars in 2013 amounted to 87.2
million units6The industry provides employment for millions of people. This
industry consumes about half of the global consumption of oil, rubber, about %
of glass production, 1/6 of steel production. According to available international
estimates, the average annual turnover of the global automotive industry is
2.75 trillion. Euro.7
Table 1. Main indicators of the world car market in 1996-2013

No. Index 1997 1999 2001 2003 2005 2007 2009 2011 2013
World
production
cars
one. 55497 59176 58375 58994 64497 69333 72262 80045 87250
(cargo and
cars),
thousand units, including:

2. Europe 18249 19841 20191 19822 20835 21396 22498 21118 19726
Northern and
3. South Ame 21847 22548 19784 18718 18947 19099 18712 17794 21136
rica
Asia and Oceania
4. 15148 16489 18071 20076 24292 28268 30524 40576 45751

five.Africa 253 298 329 378 423 570 528 557 636.5
including:
World production of passenger cars
Quantity
6. cars, 37125 39154 40593 42839 45902 49955 51247 59897 65386
thousand units

Changes for
7. 101.65 101.81 100.91 104.58 105.28 106.25 97.98 102.7 103.7
year, %
Sources: Calculated from International Automobile Manufacturers Association: Access
Mode: http://www.oica.net/category/production-statistics/
The automotive industry is currently the leading branch of the world
engineering and manufacturing industry in general for the following
reasons:

62013
Production Statistics [Electronic resource]. - Electron. Dan. - OICA, 2013. - Access mode: http://
www.oica.net/category/production-statistics/2012-statistics/
7China Association of Automobile Manufacturers: [website]. URL: http//www.caam.org.cn

eighteen
 - the needs of the world's population in cars continue steadily
to grow, even despite the unstable market conditionseight;
- the industry is high-tech and knowledge-intensive: firstly,
pulls up other industries related to the automotive industry; secondly, the
introduction of innovations in the automotive industry stimulates related
industries to improve their production, therefore, due to the large number
of such industries, there is a rise in the economy and industry as a whole;

- the automotive industry of developed countries is one of the most

profitable industries;
- car manufacturing is a strategically important industry,
the development of which indicates that the country has achieved a high
level of economic security.
At the beginning of the XXI century. The geography of the global automotive

industry was marked by three main areas of production concentration: the North

American, European and Asian markets. An important, albeit indirect, indicator of the

development of the automotive industry is the level of motorization, according to

which countries are usually divided into three main groups:

- developed countries with a high level of GDP and motorization (USA,

Japan, countries of Western Europe);

- developed countries with an average level of GDP and motorization (here

includes countries of the European Union that joined it after 2004);

- developing countries with high market potential
cars, a low level of GDP per capita and, as a result, a low level of motorization
(Russia is also included in this group of countries).
During 1980-2013. The rate of motorization in the world grew very
intensively and almost doubled the corresponding population growth.
During this period, the value of this indicator increased from 176 to 500 cars
per thousand inhabitants, and this indicator

eightFor
more details, see, for example: Bubnov V.V., Kizim A.A. Analysis of the world market for passenger cars // Scientific
journal of KubGAU. 2013. No. 88(04).

nineteen
developed countries, as a rule, exceeds 600.nineIn Russia, this indicator
remains low (271 cars per 1,000 inhabitants in 2013).9 10
Table 2. Leading countries of the world by the level of motorization (number of

cars per 1000 inhabitants

No. p.p. A country 2000 2001 2003 2005 2007 2009 2011
G. G. G. G. G. G. G. Growth rate
for 20002011
years, %

one. Iceland 562 576 601 632 653 667 669 18.7
2. New Ze- 620 0.3
landia 613 574 591 607 609 615
3. Italy 584 587 590 595 596 600 604 2.7
4. Germany 541 541 546 550 565 566 568 4.6
five. Australia 527 524 531 542 547 545 549 3.4
6. Switzerland 508 512 516 520 520 524 528 3.1
7. Austria 493 499 503 505 507 510 512 3.4
eight. Slovenia 452 459 470 481 493 505 511 17.2
nine. France 489 492 494 494 496 497 497 1.6
10. Spain 454 445 447 440 463 485 494 6.8

Russia 156 161 170 182 188 206 225 32.1

China eight10 12 fifteen 175.0

eighteen 22 53
India five 6 eleven 7
eleven fourteen 140.0 12
Source: Compiled from the World Bank Group's World Development Indicators 1996-2011
database.

Currently, about 20% of the world's population lives in developed

countries, but these countries account for 80% of the world's car fleet. The
level of motorization in large developing countries - China and India -
continues to be low and amounts to 58 and 18 cars per 1,000 inhabitants,
respectively.elevenThat is why in the future we can expect that such a low
figure will contribute to the growth of demand from these countries for
cars, i.e. passenger car markets of these global economic entities have a
high unrealized

nineMotorvehicles (per 1,000 people) [Electronic resource]. - The World Bank, 2013. - Access mode: http://
data.worldbank.org/indicator/IS.VEH.NVEH.P3
10Russiaranks 46th in the world in terms of provision of vehicles [Electronic resource]. - Analytical
agency "Avtostat", 31.05.2012. - Access mode: http://www.autostat.ru/news/view/10465/
eleven There.

twenty
potential. Similarly, in Russia, the level of motorization is low compared to
developed countries, so the growth rate of motorization in our country is
much higher than in developed countries.
As you know, less than 20% of the total population of the planet lives
in developed countries, while their residents own as much as 80% of the
world's car fleet. If we consider the level of motorization of the largest
developing countries - China and India, then it will be only 53 and 14 cars per
1000 inhabitants, respectively. Therefore, the low level of motorization can
be expected to contribute to the volume of demand from these countries in
both the medium and long term. In Russia, the level of motorization also
remains relatively low, so the growth rate of motorization in recent decades
has significantly exceeded the level of the leading developed countries,
excluding, of course, the crisis years of 2008-2009. According to available
forecasts, Russia will reach the level of motorization of countries such as the
UK, France, and Japan only by 2025,12

Historically, regional car markets are distinguished by characteristics

that have determined both the nature and structure of these markets and
the strategies of the leading manufacturers in their respective regions. So,
for example, gigantism was initially characteristic of US manufacturers.
Equipped with large engines (up to 6.0 liters of working volume), they were
extremely uneconomical and were mostly not used for their intended
purpose (off-road). Now American cars look a little different. And half of all
cars sold in America are pickup trucks, SUVs or minivans. Large executive
sedans are also popular. From a technical point of view, the dream of an
American is a car with a large engine, an automatic transmission, a selector
located on the steering column, and a capacious trunk.

12By2025 Russia will catch up with Japan in terms of motorization. Press release [Electronic resource]. - RBC -
Personal Finance, 19.08.2013. - Access mode:http://lf.rbc.ru/news/press/2013/08/19/229748.shtml

21
products in a short time, gain access to new technical solutions, inventions
and markets. A significant synergistic effect is achieved from joint purchases
and sales, increasing the efficiency of the sales and service network. It is not
uncommon for automakers to become major shareholders in others
through strategic alliances for joint R&D or manufacturing projects. Analysis
of the most famous alliances and merged companies - GM-Toyota, GM-
Renault-Nissan, GM-Fuji Heavy Industries Ltd, DaimlerChrysler-Hyundai
Motor
- showed that not all of them function successfully and more than half break up without

realizing the intended goals and without overcoming the difficulties that arise in the way

of their development (defining the common goals of the association, managing and

coordinating the interests of the participants, the possibility of damaging the image of the

alliance due to mistakes or failures of one of the partners, the danger of information

leakage, etc.)13.

The automotive industry in Europe is characterized by a certain

"restraint" in comparison, for example, with cars produced in the USA:
smaller dimensions, smaller engines and less spacious interiors. Cars of
European manufacturers have a precise division into classes and all classes,
from small cars to executive sedans, are mostly produced in Europe.

The automotive industry in Asian countries also reflects its own

specifics. These cars most often have narrow or small headlights and
smooth body lines. Cars made in Japan are very good from a technical point
of view, and in terms of the options offered, a Japanese car for the domestic
market can often outperform an American or European one. Also,
environmental friendliness and economy are put at the forefront in Japan.
fourteen. Very popular in Asian countries are small and medium cars, as well as

13For more details, see: Zagrebelnaya N.S. International Competitiveness of US Automotive Companies: Abstract of
the thesis. diss. ... cand. economy Sciences, 08.00.14. - M.: MGIMO MFA RF, 2009. P.16-17.
fourteenIlyukhina
Ya.Yu. Geography of the Japanese car market // Proceedings of the IV International Student
Electronic Scientific and "Student Scientific Forum 2012" [Electronic resource]. - Russian Academy of Natural
Sciences, 2013. - Access mode:http://www.rae.ru/forum2012/270/1856

22
sports cars, the basis for which are most often serial sedans. Much attention
is paid to the engines and driving characteristics of cars, which should satisfy
lovers of active driving.
It should also be pointed out that the modern philosophies and
ideologies of various regional markets have had a strong influence on each
other and made the car a more international product. Therefore, when a
manufacturer is preparing to release a new car model, he immediately
counts on the preferences of consumers in several countries where this car
will be sold.
The share of passenger cars in the structure of the modern world car
market accounts for over 70% of production, while commercial vehicles
account for a little more than 20%. Despite the fact that global car
production covers all regions of the world, the dynamics of production
development in them differ significantly.
The basis of the structure of the world market is made up of passenger
cars, their share in the global economy accounts for about 72.6% of production,
as well as a significant share in the structure of the global automotive market is
occupied by commercial vehicles, this group accounts for 22.0% of the total
transport production. Trucks account for only 4.8% of the entire global car
market. The smallest share in the structure belongs to buses 0.7% of the world
car market.
Modern world car production covers all regions of the world without
exception, however, the dynamics of production development in individual
regional markets varies significantly. In general, the dynamics of world car
production in the world is characterized in the following figure.

In 2000-2013, according to the International Association of Automobile

Manufacturers (OICA), the production of cars in the world grew very intensively
and increased from 58 to 84 million units.fifteenAutomotive products

fifteenProduction statistics [Electronic resource]. - International Organization of Motor Vehicle Manufacturers, 2014. -

23
occupies an important place in international trade. Thus, the value of exports
of cars and automotive components is estimated at 1.3 trillion. dollars, which
is about 7% of world exports of all goods. At the same time, the average
annual growth rate of international trade in automotive products is uneven.
So, in 1980-2011. this indicator fluctuated from 4 to 17%, although for the
crisis year of 2009 this figure was 31%, and in the subsequent - 29%.16Such
an unstable environment is explained by the significant exposure of the
automotive industry to the influence of other factors, such as the dynamics
of the national currency, raw material prices, interest rates, inflation.

According to the author's calculations, at the end of 2013, the USA, the
EU and Japan, which have been the traditional leaders of the global
automotive industry for several decades, account for 42% of the world's car
production, but this figure continues to decline from year to year, which,
obviously due to the ongoing transfer of production of a number of
automotive TNCs to the developing markets of Latin America and Southeast
Asia. Manufacturers in these countries seek to increase their
competitiveness by actively borrowing the experience of these TNCs and, at
the same time, developing their own technologies. Therefore, restructuring
processes are accelerating in the global automotive industry, radically

Access Mode: http://oica.net/category/production-statistics/ .

16International
trade statistics [Electronic resource]. - World Trade Organization, 2012. - Access mode: http://
www.wto.org/english/res_e/statis_e/its2012_e/its2012_e.pdf (access date: 09/10/2013).

24
reshaping the structure of the global car market. Developing countries, mainly the

countries of the BRICS community, are starting to play an increasingly important role in

the global car market. At the same time, the strengthening of China's position in the

automotive industry is especially noticeable - from 0% in 1980 to 25.3% in 201317.

The global financial and economic crisis of 2008-2009 had an extremely

negative impact on the development of the global automotive industry, as
there was a significant decrease in demand for cars due to economic
uncertainty and a decrease in the number of jobs in many companies, the
curtailment of a number of loan programs for the purchase of cars (this, in
turn led to a crisis of overproduction).
At the same time, in the post-crisis years, the dynamics of market
development recovered, which suggests that pre-crisis trends in the global car
market will continue. In particular, the volumes of production and international
trade will grow, the share of developed countries in world exports will continue to
decline, and the positions of developing countries in the global automotive
industry will be strengthened.

Rice. 1. Average annual growth rates of world passenger car production

cars, % to the previous year
Source: compiled by the author according to: World Motor Vehicle Production [Electronic
resource]. - The International Organization of Motor Vehicle Manufacturers. - Access mode: http://
www. oica. net/category/production-statistics/
These data show that global production

17There.

25
cars, as well as the dynamics of the world economy as a whole, is not
characterized by stable growth rates. The continued positive dynamics of the
market during the crisis (with the exception of 2009) and post-crisis years is
explained by the fact that even in the face of uncertainty in the global
economy, developing countries continued to increase car production
During the period 2000-2013. China remained the most intensively
growing car market, where production volumes over the specified period
increased by more than 20%, and its share in the total car production in the
Asia-Pacific region (APR) reached 44% in 2012.17At the same time, it should
be noted that the increase in China's share occurs in the context of intensive
growth in the automotive markets of other developing countries in the
region.
Period 2008-2009 marked a downward trend in car production
worldwide, but the North American market had the largest decline, as it
became the center of the resulting financial and economic crisis. Europe also
suffered significant losses as a result of the crisis, while the decline in car
production in Asian countries was not significant.

The post-crisis stagnation of the North American market is explained

by such manifestations as problems in the US mortgage lending sector and
an increase in fuel prices. It is necessary to take into account the structure of
car production in the USA, since the model range of the largest automobile
corporations in the USA is represented mainly by SUVs and minivans, and it
is these types of cars that are primarily experiencing a decrease in popularity
and demand. In this regard, the US automotive TNCs began to gradually
reorient themselves towards the implementation of

Author's calculation according to: 2012 Production Statistics [Electronic resource]. - Electron. Dan. - OICA, 2013. - Access
17

mode:http://www.oica.net/category/production-statistics/2012-statistics/

26
non-core assets, production of more compact cars. However, the domestic
market positions of leading companies such as Ford and General Motors, at
least for the coming years, will be lost.

I । Sales volume, thousand units — ♦ — Growth per year, %

Rice. 2. Dynamics of car sales in the world in 1996-2013nineteen
Source: compiled and calculated by the author according to the International Association of
Automobile Manufacturershttp://www.oica.net
From the data above, it follows that during 1996-2012. the average growth
rate of the world car market was at the level of 2-4% per year. The exception
to this trend is 2009, which was characterized by a market collapse of more
than 6%, as well as a sharp post-crisis recovery of the market at a growth
rate of 14.6% in 2010, due to both the recovery of the economies of the main
consumer countries and satisfaction pent-up demand. In general, the
growth rate of sales in the world market

If we consider the dynamics of sales in individual markets, then it is unequal.

Thus, in emerging markets, the automotive industry is rapidly developing. At
the end of 2011, China finally became a leader in the global automotive
industry.

nineteenincluding all types of vehicles, incl. trucks and busessti, ahead in terms of volume
total US production. Other large developing countries - India and Brazil -
even though they lag behind China in terms of motorization and the
development of the automotive industry, nevertheless
27
show significant growth rates. If the current growth rates in the automotive
industry of India and China continue, in the next ten to fifteen years, more
than half of all car sales in the world will come from the "big three" of the
United States, India and China. In turn, despite the decline in sales during
the crisis, they will strive to maintain their position in the market as one of
the largest manufacturers.

In general, the positions of developed countries in the global automotive industry are

the last few years have weakened significantly. Thus, in 2005-2012, the share
of this group of countries in world car sales decreased from 80% to 60%. The
largest market in this group is the US market, which accounts for 1/3 of the
registered vehicles in the world. It would seem that the US market is
oversaturated, but with such a large vehicle scrapping base, the US share of
global sales will remain stable in the coming years. In turn, the decline in the
share of Europe and Japan in car sales in the world will continue to decline.

As for the regulation of international trade in automobiles, thanks to

the activities of the WTO, in recent years, the vast majority of developed
countries have seen a decrease in import tariff rates for automotive
products. This happened mainly at the initiative of the countries that are the
most competitive in the world automotive industry - the USA, Germany,
Japan, Italy, Great Britain, France, and Sweden. On the contrary, in the
developing BRICS countries, as well as Argentina, South Korea, Mexico, the
automotive industry continues to enjoy support from state regulation. In
most cases, countries resort to expanding the list of non-tariff measures,
which will include various instruments of technical, trade, financial, credit
and administrative policy, such as the application of anti-dumping duties,
licensing, quotas (contingenting), subsidies to national producers, technical
barriers. At the same time, it should be pointed out that the scope of trade
and political instruments is characterized by the use of a differentiated
approach by a number of countries towards their foreign trade partners,
taking into account their specifics, the nature of competition and the level of
social

28
economic development. For example, within the EU, a whole range of bilateral
agreements has been developed to take into account non-tariff and tariff
barriers of specific countries, as well as the size of their market and the specifics
of national legislation.
Protectionism in international trade encourages large automotive
TNCs to export capital to other countries on the basis of a foreign direct
investment mechanism. Based on the use of direct investment, countries are
characterized by four stages: importing cars (as a preliminary stage),
assembling cars of leading TNCs at local factories using imported
components, assembling products using local components, and the stage of
mass production of cars.

The change in the share of developing countries in world production

and sales of cars is typical for a relatively short period of 2004-2012, when,
for example, only China increased car sales in the world market by 9 times
(2.3 million to 18.4 million). ); at the same time, the share of this country in
the total number of registered vehicles in the world over the same period
increased from 1.2% to 9%.

29
 Brazil; 3%
other countries;
23%
USA; 32%
Canada; 3%
UK^^^H;4%Russia;4%^

France; 4% Italy; 5%Ggermany;6%

Rice. 3. Geographic structure of the world car PRC; nine%

fleet (in % byJapan;7%

major countries) in 2012.
Source: International Organization of Automobile Manufacturers (OICA). Production
Statistics 2012-2013
The process of motorization of these two states is still at an early stage.
China has been in the economic growth zone for motor vehicle sales since
the middle of the last decade, when sales grew much faster than overall
growth in per capita income. Because this is a relatively new car market
(there were virtually no significant commercial sales until the mid-1990s), the
registered vehicle fleet is still only a quarter of that of the US. Brazil has been
in its optimum zone for the past decade, which explains the resilience of car
sales in this country. In India, per capita income, which stood at $2,800 in
2009, still remains well below this threshold.

Shares in world production of vehicles at present

almost correspond to shares in world consumption. The exceptions are the
United States and Japan. The United States has been importing a large share
of the vehicles consumed in its domestic market since the mid-1970s, while
Japan has been an export generator, having dominated the global
automotive industry for much of the past few decades. Reaching out to
emerging market countries - Brazil, China and India - to further

thirty
increasing shares in world production as car manufacturers shows that it is
increasingly economically feasible to manufacture their vehicles in the
countries with the fastest growing markets in the world. The table below
shows the main car manufacturing countries. The undisputed leader in the
production of passenger cars belongs to China. Moreover, it was the period
of the global economic crisis that helped the Chinese automotive industry to
become a leader (in the pre-crisis year 2008, the world leadership in the
production of passenger cars belonged to Japan). But if Japanese
manufacturers are mainly export-oriented, then Chinese car companies
direct their efforts to meet domestic demand.

Table 3. Leaders in the world production of passenger cars

2008 2009 2010 2011 2012 2013 Share in the world
G. G. G. G. G. G. Average annual pow pro-
A country
growth rate in leadership in 2012
(million units)
2008-2012, % G., %
China 6.7 10.4 13.9 14.5 15.5 18.0 + 33.7 27.6
Japan 9.9 6.9 8.3 7.2 8.6 8.2 - 3.4 12.6
Germany 5.5 5.0 5.6 5.9 5.4 5.4 - 0.1 8.3
USA 3.8 2.2 2.7 3.0 4.1 4.3 + 2.6 6.6
South Korea 3.5 3.2 3.9 4.2 4.2 4.1 + 3.4 6.3
India 1.8 2.2 2.8 3.1 3.3 3.1 + 14.4 4.7
Brazil 2.5 2.6 2.8 2.5 2.6 2.7 + 1.6 4.1
Russia 1.5 0.6 1.2 1.7 2.0 1.9 + 5.3 2.9
Mexico 1.2 0.9 1.4 1.7 1.8 1.8 + 10.0 2.8
Spain 1.9 1.8 1.9 1.8 1.5 1.7 - 2.1 2.6
France 2.1 1.8 1.9 1.9 1.7 1.5 - 5.7 2.3
Great Britain 1.4 1.0 1.3 1.3 1.5 1.5 + 1.4 2.3
Czech Rep. 0.9 1.0 1.1 1.2 1.2 1.1 + 4.4 1.7
Canada 1.2 0.8 1.0 1.0 1.0 1.0 - 3.3 1.5
Total in the world 63.1 65.3 100.0
Source: International Organization of Automobile Manufacturers (OICA). Production
Statistics 2008-2012.
The automotive market in Asia, even excluding Japan, is currently
larger than Western Europe, and is ready to displace North America as the
largest regional car market no later than the middle of this decade. It is also
likely that Asian markets will be the main driver of long-term growth in
global demand for motor vehicles. Most Asia-Pacific governments have
eased or eliminated import restrictions on vehicles

31
funds, lowered excises on cars, and simplified certification procedures and
liberalized car lending, leaving few or no regulatory barriers to further
market growth in these countries.

During the crisis, it became obvious that car sales in developed

countries tend to decline more significantly than in developing countries. In
developing countries, on the contrary, with positive GDP dynamics, a more
significant increase in sales of new cars is observed. Such a correlation
between the dynamics of GDP and car sales in different groups of countries
indicates that the crisis does not generally lead to any significant decrease in
car sales on the world market as a whole, although the geographical
structure of sales may change significantly.

In addition, the crisis showed that the largest transnational

corporations in the global automotive industry are forced to move from
development strategies to survival strategies. However, the methods and
tools of "survival" differed from country to country. Thus, some countries
preferred to use the mechanism of state support; others, on the contrary,
relied entirely on the market mechanism. In general, all anti-crisis measures
in the automotive industry are united by the fact that they were aimed at
providing financial assistance to the largest manufacturers. Again, in China,
this situation was characterized by a pronounced national specificity, when,
with a decrease in export volumes, the Chinese government sought to
expand the domestic market as much as possible.eighteen
The corporate structure of the modern world car market is represented by
the largest TNCs, which, in terms of the volume of added value created (about 25%
of sales), are quite comparable to the GDP of a number of countries in the world.
The largest players in the global automotive market are

eighteenSee:
Pasko A.V. Modern strategies for the development of transnational corporations in the global car market
(on the example of the Swedish company Volvo): Diss. cand. economy Sciences, 08.00.14. - M.: GUU, 2011. P.78.

32
the following companies:

Table 4. Largest TNCs in the global car market in 2013 by sales and
assets

Company A country Assets

Volume of sales
Volkswagen Group Germany 254.0 408.2
Toyota Motor Japan 224.5 371.3
Daimler Germany 150.8 211.9
Ford motor USA 134.3 190.6
BMW Group Germany 98.8 165.5
General Motors USA 152.3 149.4
nissan motor Japan 113.7 133.4
Honda motor Japan 96.0 140.9
Hyundai Motor Korea 75.0 114.3
SAIC China 75.0 48.1
Note. * - all indicators - in billions of US dollars
Source: compiled from: The World Biggest Public Conpanies [Electronic resource]. - Forbes Magazine, 2013. -
Access mode:
http://www.forbes.Com/global2000/#page:1 sort:0 direction:asc search:filter:Auto%20%26%20Truck%20Manuf
acturers filler::\ll%20counlries filler::\ll%20slales

However, even such large monopolies, in order to stay on the market

and ensure their survival, had to resort to drastic measures. At the end of
the 1990s, a wave of cross-border acquisitions took place in the global
automotive industry, as well as partnership mergers, the creation of joint
ventures and industrial cooperation agreements, the formation of broad
strategic alliances (combining some operations or activities, but retaining
independence.

33
10

- eight

ANDGrowth rate of world GDP per capita, %—■—Tempoannual sales growth,%

Rice. 4. The ratio of the growth rates of the world economy and the
volume of car sales in the world in 1996-2012.
Source: compiled by the author based on:
1) World Economic Outlook 2013: Transition and Tensions. - IMF, October 2013. P.153.
2) 2013 Production Statistics [Electronic resource]. OICA, 2014. - Mode of access: http://
www.oica.net/category/production-statistics/

□ GDP growth, % □ Car sales growth, %

Rice. Fig. 5. Correlation between the dynamics of GDP and car sales in the markets of the

leading countries under the influence of the 2008-2009 crisis.

Assessing competitive relations in the modern world car market, it

should be noted that the competitiveness of the leading US TNCs, which were
previously leaders in the global automotive industry, continues to decline.
Thus, in modern studies of international
competitiveness of automotive companies has been revealed, reduction

34
potential demand, the change in the structure of sales and the increase in
sales of cars in Asian countries weaken the competitive position of American
automakers in the national and world markets. The main reason for this is the
relatively high level of production costs for American automakers, requiring
intensive efforts to reduce the costs of developing, manufacturing and
introducing products to the market, as well as through the use of
outsourcing.21According to the author's calculations, in the pre-crisis five
years (2003-2008), car production in the United States decreased by 12%,
while in China it increased by 2.4 times. The share of China in the world
production of automobiles has increased from 6 to 12% in the indicated years
alone.22
Table 5 summarizes the trends in the development of the Russian and world

passenger car markets.

Table 5. Key trends in the development of the Russian and world market
kov cars
Trends World car market Russian car market
- in the field - increase in production volumes- increase in production of foreign cars;
production in developing countries;
- an increase in the number of automobile
- active implementation of directplants producing foreign brands;
investments by leading - development and production of cars
automotive TNCs in developing "under the Russian consumer";
countries; - tightening the regime of industrial
- creation of international assembly and increasing the level of
strategic alliances; localization of car manufacturers;
- further standardization of the - expansion of production of imported
model range. automotive components;
- creation of strategic alliances;
- formation of automobile clusters.

- in the field of - increase in the number of cars - pent-up demand due to unsaturation of
consumption sold from the market;
21Zagrebelnaya N.S. International Competitiveness of US Automotive Companies: Abstract of the thesis.
diss. cand. economy Sciences, 08.00.14. - M.: MGIMO MFA RF, 2009. P.6.
22Author's calculations for:http://oica.net/category/production-statistics/ statistics 2003-2008

35
 couple per capita; - increase in sales of domestically
- growth in the share of assembled foreign cars;
developing countries in world - increase in the number of dealerships;
exports of cars; - increasing the availability of car
- increase in sales of Asian loans;
brands, including in developed - growth of the car insurance market;
markets;
- Expansion of the budget car - increase in sales of used cars.
segment.

The above trends have influenced the change in the strategies of the
leading TNCs in the global automotive industry, which is reflected in:
- formation of associations of global manufacturers working on
the basis of outsourcing in the field of production, marketing and R&D;

- further processes of concentration of production and capital on the basis of

mergers and acquisitions;

- reorganization of foreign divisions of TNCs due to an oversupply of

capacities in the global automotive industry;

- implementation of a deep integration strategy, i.e. unification into a single

production and sales network of automotive productions geographically

distant all over the world;
- deepening the deployment of automotive production in different countries on

the basis of capital investments abroad (both direct and portfolio);

- Increasing attention to safety and environmental compliance
requirements, which are becoming one of the most significant factors in
foreign marketing of automotive TNCs;
- increasing the level of innovation in automotive products,
what becomes a significant tool of the growing competition in this market;

- preserving the uniqueness and specificity of individual car markets in

regions, even under the influence of the globalization of the global automotive industry.

Post-industrialization and the new technological mode of socio-

economic development of the leading countries of the world have a serious
impact on the foreign strategies of automotive TNCs. Strategic alliances for
joint marketing and research

36
research work, the use of the latest technologies for organizing production
and management allow the largest automotive giants to form additional
needs, develop better products, conclude agreements on the division of
markets, complement each other due to the lack of certain resources. The
budgets of the leading automotive TNCs are constantly increasing spending
on research and development, which is associated with the introduction of
new types of fuel; diversification of the model range in terms of price, quality
and functionality; implementation of environmental measures; measures
related to the safety of the vehicle structure.

Crisis of 2008-2009 became a serious test for the global car market, and
the key reason for the crisis was a decrease in consumer demand for cars
around the world due to the high degree of uncertainty in the global
economy, the curtailment of a number of credit programs for consumers in
many countries, and rising unemployment. These reasons led to the
overproduction of cars, as well as limited access to credit funds to replenish
the fixed assets of manufacturers. Recent studies indicate that the high
income elasticity of demand, characteristic of automotive products, had the
greatest impact on the decline in sales.23All the leading automotive
multinationals experienced a decline in sales, which changed their strategies
in the global car market.

1.2. Features and factors of evolution and formation of the automotive

Chinese industry
The role of the automotive industry in the modern national economy, as
well as the prospects for the development of this industry, depend on the
place that road transport occupies in the country's infrastructure, its overall
role in the socio-economic development of the country. The automotive
industry directly affects scientific and technological progress. In its turn,

23Petrova M.A. The influence of foreign economic policy on the development of the Russian automotive market: Abstract of the thesis. diss.
cand. economy Sciences, 08.00.14. - M.: MGIMO MFA RF, 2013. P.17-18.

37
the indicator of provision with cars indicates the purchasing power of the
population, and hence the standard of living.
The evolution of the global automotive industry has shown that at the present
stage this industry has become truly global, influencing the development of other
sectors of the world industry and economy. Together, these industries contribute to
a fairly high level of employment in developed countries, which are the main centers
of the automotive industry. In this group of countries, the contribution of the
automotive industry to GDP is about 10%.24
Less than ten years ago, both the automotive expert community and the
townsfolk were far from thinking that in a very short time, a powerful
automotive industry would develop on the territory of our southern neighbor
and come out on top in the world in terms of the number of vehicles
produced. Then we saw samples of Chinese cars on our roads and with
considerable skepticism, then many witnessed the expansion of hitherto
unknown brands and models to the Russian market. Today, one can observe a
quite balanced attitude of specialists and motorists to a car from China,
especially since some brands have already managed to become part of the
Russian automotive industry.24
The history of the automotive industry in the PRC differs significantly
from the features of the evolutionary development of other industries in this
country associated with the production of mass products. The fact is that
China began to export most of its consumer goods even when the country's
domestic market was rather narrow. The production of automobiles in China,
on the contrary, began to develop intensively only in the last decade and a
half, in the conditions of rising incomes of the population and an increase in
domestic demand from the population for cars. In 2013, over 22 million cars
were produced in China. In addition, the automotive industry continues to
show strong growth rates that are higher than GDP growth.

24See,for example: Sarygulov M.A. About one empirical indicator of the innovative development of the industry //
Problems of the modern economy. 2013. No. 3 (47).

38
countries (in 2013, the increase in car production amounted to 14.7%25, while
GDP growth is only 8.3%). Obviously, the success of the automotive industry is
associated with a favorable economic situation in the country. At the same
time, as studies indicate, with such high growth rates, Chinese automobile
corporations were not interested in entering the competitive markets of the
US and the EU, which have been stagnating in recent years.26Moreover, unlike
Japan and South Korea, Chinese cars are both local and all brands of cars
produced abroad. The latter account for over 70% of sales.

In the evolution of the automobile industry of the PRC, depending on the goals and

objectives set by the state for the development of the industry, the author singles out the

following periodization:

Stage 1. 50s-60s. The development of the automobile industry of the PRC

based on the orientation towards the needs of the military-industrial complex.
History of Chinese Automotive industry begins in 1953, when the first
automobile plant was founded in Changchun (Jilin Province). 1956 can be
considered the birth year of the PRC automobile industry, when in Changchun,
with the participation of Soviet specialists from the FAW (First Automobile
Works - First Automobile Plant), the first truck Jiefang (“Liberation”) was
produced, which is a copy of the ZIS-150 car. Assembly in China was able to
establish exclusively sponsorship of the USSR. Further, in 1958, the second
BAW plant (Beijing Automobile Works - Beijing Automobile Plant) was built, the
products of which were focused on military needs; The most famous was the
army passenger car with increased capacity BJ212. In 1958, the production of
Yuejin (Yuejing) NJ130 trucks began in Nanjing, based on the GAZ-51. In 196327

25In 2013, more than 20 million cars were produced in China [Electronic resource]. - ChinaPro - Business magazine about

China, 01/16/2014. - Access mode: http://www.chinapro.ru/rubrics/1/10314/.

Lee Xiangong. Trends and prospects for the development of the passenger car industry in China: Diss. cand. economy Sciences,
26

08.00.14. - M.: RUDN, 2010. P.85.

27Morozov S.A., Korobov D.G. Automotive industry of China: from origins to prospects // Journal

39
Thus, the young auto industry took its first steps in accordance with the
planned distribution economy, introduced to Chinese soil by advisers from the
USSR. Its main products were medium-duty trucks designed to meet the
needs of the national economy and the armed forces.
It should be noted that until the mid-1930s of the last century, there
were practically no cars in China, and the first cars on the market were
imported cars made in the United States, and then Japan. Cars of that time
were a luxury item in China, and the government strictly limited their
production so as not to exacerbate road and fuel problems. As for the ratio of
imports and domestic production in the early years of the development of the
automobile industry in China, imports at this stage exceeded investment in
domestic production of automobiles by four times.
Stage 2. 60s-70s. A period of self-reliance. AT1965 The government of
Mao Zedong decides to cancel the obligations of the Soviet Union to provide
technical assistance in the construction of industrial enterprises, thus refusing
scientific and technical assistance from the USSR. The country was waiting for
the policy of the "Great Leap Forward" based on its own strength. As a result,
for ideological reasons, the production of cars was practically stopped, an
attempt to replace professionalism with the enthusiasm of the masses in all
sectors of heavy industry led to the fact that the work of automobile plants
was increasingly reduced to the functions of car repair enterprises.

It should be noted that during this period of development of the national

automotive industry, the main attention was focused on meeting the needs of the army

and the state economy, so the production of off-road vehicles and trucks played an

important role. But already with the beginning of the reforms (see the next stage), great

importance began to be given to the development of the passenger car industry based

on attracting foreign investment.

Stage 3. Late 70s. The period of the "big leap" based on attraction

automotive engineers. 2012. No. 2 (73). C.12.

40
foreign investment. ATIn 1978, under the leadership of the Chinese Communist Party, actually headed by Deng Xiaoping, reforms began, called the "Reform and

Opening up Policy", aimed at revitalizing the economy and eliminating the negative consequences of the experiments of the Great Leap Forward period. At the

initial stage, the reforms were characterized by the absence of any clear strategic plan for implementation and were measures to solve current problems. In order

to motivate productivity growth at the initial stage of reforms, the country's leadership encouraged the creation and development of small private organizations,

often owning artisanal methods of production - which led to an increase in the number of enterprises engaged in the automotive industry, but unable to produce

modern, high-quality products. At the same time, state-owned enterprises remained unprofitable due to the inefficient use of production capacities. The way out

was found in protectionist measures and attraction of foreign investments, by creating conditions for foreign automakers, which ensured the expediency of

organizing joint ventures in the country. The global auto giants were offered, on the one hand, high duties on imported products, reaching 200% in some periods,

and, on the other hand, an immense sales market and an excess amount of labor, which promised to ensure high profitability of production. In addition, quotas

were introduced, limiting the volume of car imports to 30,000 units. in year. The way out was found in protectionist measures and attraction of foreign

investments, by creating conditions for foreign automakers, which ensured the expediency of organizing joint ventures in the country. The global auto giants were

offered, on the one hand, high duties on imported products, reaching 200% in some periods, and, on the other hand, an immense sales market and an excess

amount of labor, which promised to ensure high profitability of production. In addition, quotas were introduced, limiting the volume of car imports to 30,000 units.

in year. The way out was found in protectionist measures and attraction of foreign investments, by creating conditions for foreign automakers, which ensured the

expediency of organizing joint ventures in the country. The global auto giants were offered, on the one hand, high duties on imported products, reaching 200% in

some periods, and, on the other hand, an immense sales market and an excess amount of labor, which promised to ensure high profitability of production. In

addition, quotas were introduced, limiting the volume of car imports to 30,000 units. in year. high duties on imported products, reaching 200% in some periods,

and, on the other hand, an immense sales market and an excess amount of labor, which promised to ensure high profitability of production. In addition, quotas

were introduced, limiting the volume of car imports to 30,000 units. in year. high duties on imported products, reaching 200% in some periods, and, on the other

hand, an immense sales market and an excess amount of labor, which promised to ensure high profitability of production. In addition, quotas were introduced,

limiting the volume of car imports to 30,000 units. in year.

For the first 3-5 years, the newly created enterprises were exempted from
paying a number of taxes, but the condition of equal equity participation of both
parties in the joint ventures being created was obligatory. The level of localization of
the production of components during the first year of operation was to reach 40%,
and in the next three years - 80%. This is how the main funds for the future growth
of the Chinese automobile industry were created. Foreign concerns also put forward
their conditions, imposing restrictions on the export of products manufactured
under license in the PRC, thereby defending their positions in the international
market, not allowing Chinese cars to enter it, the price

41
which would be much lower than European or Japanese counterparts.

As mentioned above, before the arrival of foreign investors, the

automotive industry of the PRC was represented only by state-owned
factories, the purpose of which was to meet the needs of the domestic market.
The rejection of the administrative-command methods of managing the
automotive industry as part of the reform of the PRC economy led to the
formation of state-owned companies with relative independence, and the
main goal of these enterprises was to maximize profits. That is why the
production policy of the companies was adjusted taking into account the
growth of production profitability and market requirements. Beginning in
1983, the PRC Macroeconomic Administration began to implement a policy of
accelerating the qualitative development of the automotive industry,

In the mid-1980s, when the policy of state regulation of the industry was
slightly weakened, and the income of the population began to grow, the country
began a massive import of used cars from Japan. At the same time, domestic
production of private labels also increased. Thus, from 1986 to 1993 domestic
production of automobiles tripled. At the current stage, in order to support national
manufacturers, the government has significantly increased the amount of import
duties on automotive products, which contributed to the serious protection of the
PRC automotive industry and at the same time contributed to the growth of
production capacity in the industry.
Also in the 1980s. the world's largest automotive transnational
corporations appeared in the country, which began to both organize joint
ventures and build their own factories for the production of cars. This period
of corporate revival of the PRC industry ended with the opening of the country
to attract foreign investment through the development of cooperation with
leading automotive TNCs.
We associate the importance of the arrival of foreign investors not so much with

42
the arrival of large capital investments in the country, as well as with the latest
technologies of international automobile concerns. Thus, the first plant with
foreign participation was built in Shanghai by the Volkswagen concern for the
production of Santana cars.28It was the first international concern that accepted
the terms of the game dictated by the Chinese side, was the Volkswagen concern,
which created the first Shanghai-Volkswagen joint venture in 1984 with the
merger of the Shanghai Automotive Industry Group, and in 1985 the second
— FAWVolkswagen. Volkswagen Santana was chosen as the first model put on
the assembly line, which proved itself well in production and sales in Brazil
and became a truly “people's car” in China - the output of this model reached
200 thousand units. in year. Subsequently, Dongfend-Citroen, Chang'an
Suzuki, Shanghai GM, Guangzhou Honda, Beijing Jeep factories appeared, by
2004 foreign investments reached 20 billion US dollars. Today, cars of almost
all world brands are produced in China. Joint ventures for the production of
commercial vehicles were created. Thus, in the early 1980s, the Chinese
government and Daimler-Benz Corporation established Baotou Beifang
Benchi Heavy-Duty Truck, known as Beifang Benchi (Northern Benz), which
produces cars using Daimler-Benz technology, but under its own brand. It
should be noted that, as a rule, SKD assembly of cars was carried out at the
plants of these companies, when cars were assembled from ready-made kits,
which, due to low production costs, ensured an exceptionally favorable
position for the leading automobile concerns in the Chinese car market.

Other truck manufacturers also created their own joint ventures with
Western partners - CNHTC (China National Heavy Duty Truck Corporation),
which created alliances with Steyr and Volvo, known for the production of
HOWO trucks, and Shaanxi Automobile Group Co. Ltd, one of whose products
are heavy trucks,

28Brief
overview of the automotive industry in China [Electronic resource]. - Portal "Four wheels", 04/14/2013. -
Access mode:http://www.fou--wheel-drive.ru/kratkiy-obzor-avtomobilnoy-promyishlennosti-kitaya/

43
produced jointly with MAN.
To date, such large concerns as BMW, Daimler, Ford, General Motors,
Honda, Peugeot Citroen have established a number of joint ventures in the PRC,
and their total investment in the country's automotive industry has exceeded $20
billion, which once again indicates a huge the role of foreign investment in the
development of the automotive industry in China.
Stage 4. 90s - 2000s Development of own car brands. It is noteworthy
that until the mid-1990s. China's automotive industry has developed extremely
unevenly, and only since 1994 has a period of stable development begun.
Already in 2003, the PRC took the fourth place in the world in car production,
producing 4.44 million units, and in 2006, with a total output of 5.5 million
cars, it outstripped Germany.29At the same time, the development of many
Chinese brands, such as Great Wall, Chery, BYD, Lifan, Geely, Hafei, JinBei,
became possible thanks to close cooperation with the leaders of the world
automotive industry and the production of foreign brand cars in China. Design
and design solutions were borrowed both on a licensed basis, and often
without the knowledge and even against the wishes of the copyright holders.
Such techniques became one of the characteristic features of the Chinese
automobile industry in the second half of the 1990s and the first half of the
2000s, as evidenced by numerous examples. As a rule, lawsuits brought
against Chinese concerns and sanctions imposed did not give the desired
result, since the losses incurred by European and Japanese manufacturers by
such plagiarism are incomparable with the profit derived from cooperation
with the PRC.

According to the author, the development of own automobile brands

was due to the rapid growth in demand for automotive products at this stage.
Rising demand, coupled with high duties on car imports,

29On the state of the world car market in 2007 // BIKI. 2007. No. 35-36 (1931-1932). C.9.

44
also helped to attract some foreign car manufacturers who built their factories in China.

However, prior to China's accession to the WTO, local companies enjoyed some comparative

advantages. The domestic automobile market was not yet saturated, and about half of the

developed unique Chinese car brands did not receive their further development. Accession to

the WTO in 2001 contributed to an even wider opening of the national market of the PRC to

foreign investors, but the state did not evade strict control of the industry. In connection with

such a policy of regulation, the owners of controlling stakes in almost all factories producing

foreign cars have become companies of national origin. The largest of them are FAW, SAIC,

DFM, BAIC, who organized the production of cars of several foreign brands of leading concerns.

So, for example, FAW still produces cars under the brands Audi, Daihatsu, Mazda, Toyota,

Volkswagen at several enterprises. In turn, DFM produces Citroen, Honda, KIA, Nissan, Peugeot,

Renault cars. Simultaneously with well-known foreign brands, these Chinese companies also

produce cars of their own brands. However, the share of foreign cars in their total production

volume is much higher. Simultaneously with well-known foreign brands, these Chinese

companies also produce cars of their own brands. However, the share of foreign cars in their

total production volume is much higher. Simultaneously with well-known foreign brands, these

Chinese companies also produce cars of their own brands. However, the share of foreign cars in

their total production volume is much higher.

It is noteworthy that the reforms carried out in the country have led to the
fact that large international automobile concerns have taken the path of
organizing their production in China based on work with several domestic
manufacturers. In addition to joint ventures for the production of cars proper, a
large number of enterprises for the production of assembly equipment and
components were organized. Geographically, most of these enterprises were
concentrated in the densely populated and relatively developed eastern part of
the country.thirty
Returning to the problem of import liberalization, we note that in
accordance with the obligations assumed by the PRC to the WTO, the country

thirtySee:
Alimallaev F.L. Geography of China's Industry: Historical Forms and Modern Trends of Development: Diss.
cand. geogr. Sciences, 11.00.02. - St. Petersburg, 2000.

45
work on the development of legal acts on the ground. Huge work has been
done to amend the legislative acts regulating the country's foreign economic
relations.
Of great importance in the liberalization of the automotive industry and
attracting foreign investment in this industry was the implementation of a new
industrial policy in the automotive industry, which was adopted in 1994 as part
of a ten-year program for the development of the automotive industry.31In
accordance with this program, there were to be 9 large manufacturers of
automotive products in China. At the same time, there were a number of
restrictions on joint ventures manufacturing products for the domestic
market. Thus, these enterprises could not be more than half owned by foreign
concerns, although such a requirement did not apply to manufacturers of
automotive components with foreign participation. The purpose of the
Program was to stimulate the development of national manufacturers and
create conditions for R&D and subsequent production of quality products
based on the use of advanced foreign experience. The government of the
country, supporting manufacturers, also sought to develop companies
supplying components and materials.
The result of the reforms mentioned above, in the mid-90s. a joint
venture was formed between General Motors (GM) and Shanghai Automotive
Industry Corporation (SAIC), as well as a number of other joint ventures. At
present, there are more than 25 such enterprises in China with the
participation of foreign investors producing finished cars, and much more
enterprises producing equipment and components for car assembly32. Despite
this, every joint venture must be approved by the government.

Table 6. Automobile manufacturing enterprises in the PRC with the

participation of foreign capital
Chinese joint venture partner
Foreign
FAW SAIC ChangAn Dongfeng BAIC
concern

46
 Daimler Beijing Jeep
Corporation
ChangAn Ford
Ford
Automobile
31Barabolina A.I., Khuziyatov T.D. Innovative aspect of the national automobile policy of the People's Republic of China at
the present stage // Problems of the modern economy. 2009. No. 3 (31).
32Wang Thai. A look at 30 years ago // Automotive industry. 2008. No. 9. pp.105-110.

47
 Corp.
Shanghai General
Motor Corp.
General Motors SAIC-GM-Wuling g
Automobile Co.,Ltd.

Dongfeng
Honda Au-
Honda motor tomobile
(Wuhan) Co.,
Ltd.

Dongfeng
Kia Motors nissan diesel
Automobil e
Co.,Ltd.
FAW Mazda Motor Sales
Mazda
Co., Ltd.
Peugeot Dongfeng
Citroen Peugeot
Citroen
automobiles
Limited

Chongqing
Suzuki
Changan Suzuki
Automobile Corp.

FAW Huali (Tianjin)

Automobile Co., Ltd. (Tenos)
Tianjin FAW Toyota
Automobile Co., Ltd.
Toyota F.A.W. Toyota Automobile
Sales Co.,Ltd.
FAW Toyota (Changchun)
Engine Co., Ltd.
Changchun FAW Feng-yue
Automobile Co., Ltd.

FAW-Volkswagen Au-
Volkswagen Shanghai Volkswagen
tomobile Co.,Ltd.
Automotive Company
Shanghai Sunwin Bus
Volvo
Corporation
Source: compiled by the author.
Stage 5. 2000s - present: The stage of development of foreign trade in
cars. AT2000s China's automotive industry is moving towards replacing
foreign manufacturers with its own car factories, 100% of whose capital is
owned by the state or private companies. As of today, out of more than 130
automotive manufacturers, only one quarter are enterprises with foreign
capital participation. However, foreign investors are not slowing down their
activity in China, as they are attracted to the PRC by a high rate of return at
the level of 30%.

The development of the Chinese car market in the last decade and a half
was largely due to the country's accession to the WTO, which gave a serious
impetus to the socio-economic development of China, which by 2013 was

48
came in second place in the world in terms of GDP produced (13.3 trillion
dollars in purchasing power parity).31For the period 2000-2013. China has
moved from the bottom group of middle-income countries to the middle, and
the country's human development index was 0.7.32
Returning to the question of the dynamics of demand for cars in the Chinese market, we

note that for all the years the government has been pursuing a consistent policy aimed at

limiting the growth of cars on the roads, as a result of which, in the conditions of production

growth, sales growth slowed down already in 2004. Therefore, Chinese manufacturers for

the first time began to reorient themselves to foreign markets, primarily the US and the EU,

which happened, in particular, under pressure from foreign competitors.

The export orientation of the PRC automobile industry arose

spontaneously, in contrast to, for example, South Korea and Japan, where the
export orientation was conceived from the very beginning. From China, the
world market was offered those cars that were in significant demand in the
domestic market. So, in the 90s. they were small Japanese minibuses
produced in China under license; large licensed SUVs. The quality and
consumer properties of export products were dictated by the domestic market
and the level of development of the automotive industry ten years ago. At
present, such a type of car as a modern golf sedan with an engine of up to 2
liters and a cost of up to 16 thousand dollars is popular in China.
Investment processes in the automobile industry of the PRC are linked by
domestic researchers within the framework of the “flying geese paradigm” proposed
by the Japanese economist K. Akamatsu and explaining the three phases of the
industry's development. Thus, it is believed that the Chinese automotive industry has
passed the first phase, when products enter the economy through imports from
foreign manufacturers; the second, when the satisfaction of national demand

31China Economy Overview [Electronic resource]. - Central Intelligence Agency: World Factbook, 2014. - Access mode:
https://www.cia.gov/library/publications/the-world-factbook/geos/ch.html
32Human Development Report 2013. The Rise of the South: Human Progress in a Diverse World [Electronic resource].

- United Nations Development Program, 2014. - Mode access:

http://hdr.undp.org/sites/default/files/reports/14/hdr2013_en_complete.pdf

49
promotes the opening of new local industries. Today, the Chinese automotive
industry is in its third phase, when surplus production is exported to foreign
markets.33
In general, I characterize the dynamics of the car market in China over the
past half century, it can be noted that it has two stages: the stage of extensive
development (1956-1999) with minimal growth rates, and the stage of intensive
development (2000-2013) with production growth rates exceeding the country's GDP
growth rates (see Fig. 6).

Rice. 6. Dynamics of car production in China in 1956-2013

Source: compiled by the author according to: Automotive Statistics [Electronic resource]. - China
Association of Automobile Manufacturers, 2014. - Access mode:
http://caam. org. cn/english/newslist/a101-1html
Under the conditions of assuming WTO obligations, as well as the policy of
state regulation of the industry, China does not increase the volume of
imports of finished automotive products, but focuses on the import of main
components and components; we are talking, first of all, about car kits for
assembly plants, while the volume of imports of cars assembled within the
existing quotas is growing at a low pace. Such an indirect restriction of
imports, given the stable demand in the domestic market

33See:I. V. Dolgikh, Automotive industry of China according to Akamatsu theory [Electronic resource]. - Scientific
and technical library of Tomsk Polytechnic University. - Access mode:
http://www.lib.tpu.ru/fulltext/c/2013/C23/V1/019.pdf

fifty