China is currently the world's third biggest automobile manufacturer. Approximately 8 million vehicles were manufactured in China in 2007. The Asian country manufactures and exports automotive services and parts throughout the world.

China is one of the world's prolific automobile manufacturing countries. It clocked an annual production of approximately 8 million vehicles in 2007. Major Chinese automobile companies include Dongfeng Motor Corp (DMC) and China First Automobile Group Corp (FAW).
History

China's automotive industry starts in 1931, when Zhang Xueliang made one truck called Ming Sheng. However, it was only in 1956 when the first automobile factory, First Automobile Works started production. A second factory- Second Automobile Works was established in 1968. Second Automobile Works later became known as Dongfeng Motor Corporation.

Collaboration
The 1980s saw many Chinese automobile companies collaborate with foreign car makers to manufacture vehicles. For example, First Automobile Works in collaboration with Volkswagen made the Volkswagen Jetta car. Citroen of France in collaboration with Dongfeng Motor Corporation made the Citroen Fukang line of vehicles.

The 1990s saw many privately owned Chinese vehicle manufacturers enter the market. Great Wall Motors and Geely Automobile are prime examples. A few companies were formerly defense firms like Hafei Motor and Changhe. The Asian country presently has more than 6,500 companies manufacturing cars and its ancillaries.

The Chinese Government encourages the development and manufacture of fuel efficient vehicles. Clean fuel is also encouraged. It is done with the aim to optimize the country's fuel consumption. Auto parts attract lower duties. Imported auto parts are subject to lower tariffs.