Location Advantages and Strategy Selection of Changsha Auto Industry

Cheaper land, cheaper labor, cheaper capital and convenient mass transportation are determinants of auto industrial location in a completely competitive market. Empirically, Changsha, a city locating in the centre of south China and crossing two main transportation corridors, possesses the location advantages, namely possesses the comparative low cost to develop auto industry. Spatial location of Chinese motor industry is experiencing a dynamic evolution process which depends on the structural change in factor endowments as well as the strong growth of demand for automobiles. This trend brings a chance to Changsha to produce and market Complete Vehicles. According to the trend of nowadays automobile market, exclusive and rather exclusive motors are precedence for Changsha´s auto industry.