Policy favors industry consolidation, big names set to gain share

News
On January 23, 2013, the Ministry of Industry and Information Technology
(MIIT), jointly with 11 other ministries, released the guideline for merger
and reorganization of key sectors including automotives. The guideline
says that China aims to foster three to five large automakers with core
competitiveness, and increase the concentration ratio of top 10 auto
makers to 90% by 2015. It promotes auto and auto component industries to
achieve better scale and efficiency through consolidation. It also
encourages auto makers to expand in overseas markets with the leverage
of cross-board mergers.