Case Study

Honda in China: Government Regulations and Firm`s Strategy

Honda second largest and most dynamic auto market. Its cost advantage and high potential domestic market has attracted automajors to set up their manufacturing unit in the country. However, in a bid to accelerate the technology's pace, the government has forced the foreign China’s automobile industry, with its incredible growth seems to be on the verge of creating catalytic shifts in the global automobile industry, which has been dominated by the European and US carmakers since a century. The strong support of the government has made it become the world's automakes to share their technology know-how. As a result, Honda – Japan’s first automaker to expand into China – has reshaped its strategies to work towards creating an entirely new ‘Made in China’ brand that will serve its long-term interests in the Chinese car market, and as well conform to the government's regulations.

QUESTIONS:-

1.      Examine the role of Chinese government in the success of Chinese automobile industry.

2.      Do the SWOT Analysis of the case study.