Strategic directions for the development of the passenger car market in China

The Chinese passenger car market is one of the most dynamic and structurally complex automotive markets in the world, which leads to the need for a thorough analysis of the strategies of key market players in order to develop an effective model of strategic behavior of automakers. The ability to make the right strategic choice in the face of fierce competition and an ever-changing external environment is becoming a key factor in the success of Chinese automakers. The purpose of the study is to identify strategic directions for the development of participants in the passenger car market in China based on the analysis of quantitative indicators of market concentration. The article discusses the methodological aspects of the analysis of the passenger car market in China, conducted in order to form strategic directions for the development of automakers. The issues of determining the product and geographical boundaries of the market, indicators for assessing concentration and market power, assessing barriers to entry into the industry and competitive constraints are investigated. The analysis of the Chinese passenger car market was carried out for the period 2015-2024, covering key structural changes, market redistribution between foreign and Chinese brands. To quantify market concentration and the level of competition, the concentration indicator system, the Herfindahl-Hirschman index, the entropy and relative entropy indices, and the Gini coefficient were used, which made it possible to assess both the distribution of market shares between automakers and the degree of market power of the leading players. The competitive strategies applied by the players of the passenger car market are considered. In the course of the research, the authors concluded that the successful behavior of automakers requires an integrated approach combining elements of various strategies. The results of the study make it possible to determine the strategic directions of development of market participants, taking into account current structural changes and projected trends related to changes in the external environment.