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World Automotive Industry Opportunities in China

January 06, 2023

“With the implementation of the 13th Five-Year Plan and the landing of “Made in China 2025,” China’s own brands are ushering in new opportunities for development. The rise of China’s own brands is changing the global auto industry landscape and will make the world more Many consumers enjoyed the dividends brought by China's own brand cars.” Wang Xia, president of the China Council for the Promotion of International Trade’s automotive industry, gave an inspiring opening and opened the curtain for the 7th Global Automotive Forum.
From June 6th to July 7th, the hot Chongqing once again welcomed the Global Automobile Forum co-sponsored by the Automotive Industry Sub-Council of the China Council for the Promotion of International Trade and the Organizing Committee of the Chongqing International Automobile Industry Exhibition. During the new round of strategic opportunities for industrial development, the “Thirteenth Five-Year Plan” and “Made in China 2025” undoubtedly provided the “China Opportunity” for the automotive industry. This is the theme of this forum.
Chinese car companies will enter the world stage
Referring to the "Thirteenth Five-Year Plan", the Deputy Secretary-General of the China Association of Automobile Manufacturers (hereinafter referred to as "China Automobile Association"), Jian Jianhua, recently presented a set of figures for the "13th Five-Year Plan" of the automotive industry: "China's automobile production and sales scale by 2020 With 28 million to 30 million vehicles, 5 to 6 auto companies have entered the top 20 of the world's auto companies; autonomous brand vehicles account for more than 50% of the domestic market, and 5 to 10 Chinese auto brands have become world-renowned products; by 2020 In 2011, the sales of Chinese brand new energy vehicles will reach 1 million."
In this regard, Deloitte China chief economist and partner Xu Sitao expressed at this forum that during the “Thirteenth Five-Year Plan” period, China’s auto industry still faces many challenges, such as the continued slowdown in macroeconomic growth, and the gradual subsidy policy for new energy vehicles. Slope retreat, and the problem of excess capacity in the upstream and downstream industries. Ashvinchotai, Managing Director of the Asian Automobile Information Agency in London, expressed his concern about the current structure of the Chinese auto industry: At present, the Chinese auto industry is overcrowded, and the Chinese auto market will inevitably undergo large-scale mergers and reorganizations to adjust the structure. By then, China’s own brand will The profit rate may show a continuous decline.
However, as Dong Yang, executive vice chairman of the China Automotive Industry Association, said recently, the “Thirteenth Five-Year Plan” period is likely to become the best period for the development of China's auto industry. Many industry experts agree with this forum. Wang Xia example, in recent years, Chinese car companies have gained a lot of valuable international car brand technology and shares, and Chinese car companies are becoming an important force in the global car scene. “The changes in the auto industry over the next 10 years will probably be more than the past few decades.” Wang Xia judged that “new energy vehicles and intelligent network-linked vehicles will become the main tone for the future development of the automotive industry.”
Although new energy cars are hot, they cannot lack of cold thinking
According to Wang Xia, in 2015, China’s new energy vehicles sold more than 330,000 vehicles, surpassing the United States for the first time, becoming the world’s number one. Wang Xia proposed that China's new energy vehicles have already reached the peak stage and began to enter the lead stage with independent intellectual property rights. In fact, China, as the world's largest new car market, is large enough to support the survival and development of the new energy industry chain. Wang Xia asserted: "New energy vehicles are expected to take the lead in China to become mainstream products in the market."
Today, with the rapid development of new energy vehicles, many industry experts have put forward “cold thinking”.
According to Lin Min, executive vice president of Yundu New Energy Automobile Co., Ltd., the electric vehicle industry ushered in a policy dividend in 2013. He believes that according to the development period of the average development period of 36 months, the blowout of positive development of new energy vehicles will be ushered in the second half of 2016 and 2017.
Frank Bai, the executive vice president of Hella China, proposed that once new energy vehicles leave the question of where policy support is going, he believes that new energy vehicles will usher in an ever-increasing number of new challengers regardless of policy support. How to introduce new technologies at the right time to meet the new needs of the market and customers is the most important issue for new energy car companies.
"Internet" profoundly affects the reform of the automotive industry
“The technological revolution characterized by the fusion of information technology and manufacturing services is in the ascendant, and Internet technology is causing profound changes in the world's automobile pattern.” When it comes to the future impact of intelligent networking technology on the automotive industry, the 11th National CPPCC Proposal Wang Ruixiang, deputy director of the committee and president of the China Machinery Industry Federation, said. Leyi's vice president, LeTV's CEO, and Yuepai Le, chairman of the company, agree deeply: "The 'Internet' is not the future but it is now."
Feng Xingya, executive director and executive deputy general manager of GAC Group, pointed out that the profound impact of “internet” technology on the automotive industry lies not only in the products, but also in the changes of the consumer groups. According to his calculations, by 2020, the proportion of buyers in the 80s and 90s and the new generation of cars will exceed 50%. With the new generation of consumers becoming the main force, He Yi analysis, driverless driving will become the inevitable road for the future of the car. Based on this, there will not be too many young consumers wanting to own their own cars. Therefore, sharing travel or will Become the ultimate form of car traffic in the future.
Zhu Huarong, president of Changan Automobile, proposed that the application of "internet" technology makes it possible for auto companies to rebuild new service systems.
Perhaps as predicted by Wang Ruixiang, with the successive introduction of new industrial policies, the Chinese automobile industry will open a new chapter in the “13th Five-Year Plan” period on the basis of maintaining a good momentum of development.


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