China`s Car Industry

China’sCar Industry

TheBenefits and Consequences of the growing car industry in China

Themain advantages of the developing car industry is the creation of amarket for both local car industry as well as the international carindustry. Statistics shows that as from 2002 the demand for cars inChina has been increasing, and this has made foreign carmanufacturers like BMW make profits. In 2012, for example, theprofits of BMW rose to € 1.35 billion from € 1.14billion (Ewing,2012). This rise in profits was as a result of the rise in the saleof BMW vehicles in China. Another benefit is that the developing carindustry has led to improvement in infrastructure. Because theindustry is developing, there is a need for an appropriate roadnetwork. As a result, the country has been investing billions intodeveloping its highway networks. Statistics show that from 2004,China’s entire road network is ranked third in the world, and thevalues are expected to double by 2020. Another major benefit is thedevelopment of towns and cities. A good example is the Shanghai’sJiading District, which was once semi-rural now boasts of having aworld class Formula One racetrack. The Formula One racetrack drawscrowds making the business of the locals whenever there is an event.

Onemajor consequence is the increase in the number of accidents anddeaths. In 2007, alone, the country recorded five point one roadaccidents deaths for every 10,000 automobiles, according to the ChinaTraffic Safety Forum. China experience congestion, increase in fuelprices because of high demand, and the probability of a new fuel tax(Greimel, 2012). All as a result of an increase in the number ofvehicles. One of the market analysts at the country’s biggest carmarket, Qie Xiang, supports this argument. Another consequence is theimplications to the environment. Most of the air pollution in Beijingis as a result of exhausts from cars, and this is evident by dirtyhaze in the city.

Socialengineering approach to increasing number of vehicles in China

Theapproach suitable for China is the integration of resources outsidethe industry through external communication. The recipients ofexternal communication include the customers, investors as well asthe general public. The purpose of involving these people is to letthem know of the new changes. Through the participation of variouspeople, solutions can be got on ways, for example, how to accommodatethe increasing number of vehicles. A perfect example is where theprivate sector are encouraged to construct spacious parking so as toenable decongestion of the cities (Ding, Wang, &amp Wang, 2011). InShanghai, for example, there are so many new motels and restaurantsthat have opened shop but, unfortunately, these motels luck parking.The manager of a hotel having 230 rooms said that the hotel has only60 parking spaces. However, he says the parking is enough to satisfythe demand. Such perceptions by many businesses are what leads tocongestion, and thus traffic, in the city. Through externalcommunication, a forum can be created where the various players areinvited and educated in various ways to deal with the rising numberof cars in China. The forum serves the purpose of ensuring that allthe players are in sync with the various steps taken in improving theconditions.

Technologyfix to the growing number of cars in China

Thetechnology remedy to the ever growing number of cars in China wouldbe to build underway tunnels with a suburban light-rail line so as topromote public transport. According to the article “Dream Machines-Cars in China”, most of the vehicles on the road are the personalvehicles, and hence when the people find an effective means oftravelling from one place to another, they are likely to adopt it.Electric trains, for instance, are very fast and would, therefore,appeal to many people in China. This group of people will use thetrain network instead of purchasing their cars for individualtransportation. The vehicles in the cities will likely go down withtime if this technology is applied.

Atthe same time, more new ring roads can be opened so as to decongestthe cities. The ring roads provide alternative ways of reaching aparticular destination without necessary passing through a city.Since the cities are usually characterized by traffic jams, thisapproach will save help in decongesting the city by preventingunnecessary congestion in the city. The ring roads could also be madein a way that there are no roundabouts. Once roundabouts are doneaway with, there will be a continuous flow of traffic instead ofjams, usually caused by the roundabouts. Old roads could also beexpanded by the addition of new lanes so as to accommodate as manyvehicles as possible at a go. When these technologies areimplemented, the country will be able to reduce the unnecessarypurchasing of vehicles, while at the same time providing means ofaccommodating the increasing number of vehicles in the country.


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