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>5.2.1 Customers’ basic situation
5.2.2 Marketing analysis for customers
  5.3 Analyzing Research Results from China Managers
6. Conclusion
   6.1 Introduction
   6.2 Conclusion
   6.3 Problems existing in Marketing Strategy of China’s Auto Industry
 6.4 My recommendations for Chinese automotive companies

Chapter 1 Introduction
1.1 Introduction Research Background
Since China became a member of the World Trade Organization in 2001, economic of China has been growing faster and faster. Statistics shows that China’s GDP has grown with 9.5 percent per year on average between 2001 and 2005. And in 2006, China’s GDP achieved US$2.109 trillion (Baker, M.J, 2000).
 
With China’s economy fast growth, the average disposable income and consumption increased from below 1,000 RMB in 1985 to almost 9,000 RMB and 3,000 RMB in 2004 for urban and rural area respectively. Economic indicator shows that the Chinese are becoming affluently and spend more money to improve their life quality, which makes more Chinese customers to purchase car.

The People’s Republic of China is with many ethnic groups, two major languages – though Mandarin is the national language – and 70 cities with over one million residents. Chongqing is the largest with 20 million, followed by Shanghai, 18 million and Beijing, 14 million. There are vast contrasts in the culture, geography and climate across China’s 3.7 million square miles. As an example, though 64% of the population lives in rural areas, 75% of the country’s wealth with a potential spending power of $3.3 trillion a year is controlled by urban residents (Charles W. L. Hill, 2002).
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