Case | HBS Case Collection | November 2006 (Revised March 2007)

Lifan Group - Automobile Production in China

by Felix Oberholzer-Gee, Tarun Khanna and Elizabeth Raabe

Abstract

Lifan Group, one of China's premier motorcycle companies, considers entering automobile production. The company plans to assemble a midsize sedan, hoping it will be able to sell this car to affluent families in China and to export it. Domestic demand for cars is growing rapidly in China, but car prices have been falling, at times quite dramatically. Allows analysis and discussion of Lifan's decision.

Keywords: Product Development; Decision Making; Demand and Consumers; Price; Auto Industry; Manufacturing Industry; China;

Citation:

Oberholzer-Gee, Felix, Tarun Khanna, and Elizabeth Raabe. "Lifan Group - Automobile Production in China." Harvard Business School Case 707-443, November 2006. (Revised March 2007.)