In the context of insufficient internal demand and obstacles to going out to sea, we can't help but ask how China's automobile industry should write a high-quality development answer sheet next?
The answer is written in the "Decision of the Central Committee of the Communist Party of China on Further Comprehensively Deepening Reform and Promoting Chinese-Style Modernization" (hereinafter referred to as the "Decision") recently adopted by the Third Plenary Session of the 20th Central Committee of the Party.
As the pillar industry of the national economy, the automobile industry plays an important role in the troika of “export, investment and consumption”.What is the guiding significance of the "Decision" for the future development of the automobile industry?Recently, a reporter from "China Business Daily" talked with An Qingheng, director of the China Automobile Industry Advisory Committee, Fu Yuwu, Honorary Chairman of the Chinese Society of Automotive Engineering, Wang Qing, deputy Director of the Institute of Market Economy of the Development Research Center of the State Council, Xu Haidong, deputy Chief Engineer of the China Automobile Industry Association, Wang Ning, director and professor of the Automotive Industry and Technology Strategy Research Center of the School of Automobile of Tongji University, Lu Shengyun, an expert from the China Economic and Media Think Tank and founder of Qianjue Consulting, an expert from the China Economic and Media Think Tank and Zhang Qiang, chief researcher of Roland Berger Automotive Industry, 7 senior experts in the automotive Industry, from deepening reform to developing new quality productivity, from opening up to expanding domestic demand, A multi-dimensional interpretation and analysis were carried out.
Deepening reform is a “recipe” for high-quality development
"China Business Daily": My country is the world's largest automobile market. Over the years, what reforms in my country have promoted the development of the automobile industry?For the automotive industry, how should the reform be further deepened next.Wang Qing: To deepen reform in an all-round way, we must not only adhere to the “two unwavering” of the private economy, but also promote the construction of the basic system of the socialist market economy through the construction of a unified national market; it must be “open” and “manageable”, the essence of which is a high-level socialist market economy system.
The construction of a high-level socialist market economy system is not only the basis for the continuous new progress of the automobile industry, but also the need for the automobile industry to stimulate innovation and promote fair market competition.At present, our country's economy is gradually turning to a stage of high-quality development, which means that it will mainly rely on improving efficiency to promote economic growth.The same is true for the automotive industry.Xu Haidong: The development of China's automobile industry over the years is the best example of China's remarkable achievements in reform and opening up.General Secretary Xi Jinping pointed out in 2014 that “the development of new energy vehicles is the only way for our country to move from an automobile powerhouse to an automobile powerhouse,” pointing out the direction for the development of the automobile industry.At the same time, the relevant state departments have issued the "New Energy Vehicle Industry Development Plan (2021-2035)", introduced state subsidies for new energy vehicles, and introduced related policies to support charging infrastructure. These measures have promoted the rapid development of China's new energy vehicle industry.This is also an important reason why China's new energy vehicles can lead the development of the global automotive industry at this stage.
Reform and opening up have brought about a fully competitive market.In the Chinese automobile market, as far as vehicle companies are concerned, sole proprietorships include Tesla, and joint ventures include Japanese, German, American, and Korean brands. Among the independent brands, there are not only the three major central enterprises and the five local state-owned enterprises in charge of the state-owned Assets Supervision and Administration Commission SAIC, BAIC, GAC, JAC, Chery, and private enterprise camps-BYD, Geely, Great Wall Motors, and new power car companies “Wei Xiaoli”, Hezhong Automobile, Leading Automobile, Xiaomi Automobile, and Celis.Among the supply chain enterprises, there are joint ventures such as Mainland China and Bosch, as well as state-owned enterprises and many private enterprises. Private enterprises have played a very important role in the supply chain system.
It can be seen that the Chinese automobile market is a fully competitive market, and it is precisely because market laws play an important role in it that the Chinese automobile industry has achieved today's results.The achievements of these achievements have been developed in the competition of the market economy in the context of reform and opening up.
For China's automobile industry, to further deepen reform, it is necessary to focus on deepening the reform of state-owned enterprises and state-owned enterprises, and the enthusiasm of central enterprises and state-owned enterprises should be further mobilized.The "Decision" also mentioned that it is necessary to promote state-owned capital and state-owned enterprises to become bigger and stronger, to accept the baptism of market competition, and to enhance their core competitiveness.After deepening the reforms, state-owned enterprises will be able to further play a leading role and grow into internationally renowned car companies and car brands.
Zhang Qiang: Further deepening reform of China's automobile industry should be carried out from the following dimensions: first, deepening supply-side structural reform.Continue to optimize the industrial structure and promote the transformation of the automotive industry to high-quality development.Strengthen the innovation of cutting-edge leading technologies, disruptive technologies and key technologies to enhance the core competitiveness of the automotive industry.The second is to promote industrial ecological integration and innovation.Promote the deep integration of the automotive industry with a new generation of information technology, artificial intelligence, big data and other industries, and promote the innovation and development of new technologies and models such as intelligent connected vehicles and autonomous driving.The third is to strengthen openness and international cooperation.Adhere to openness, attract high-quality global companies to communicate and cooperate with Chinese companies, and at the same time promote vehicle companies and industrial chain companies to actively go global, participate in international competition, grow in competition and seek new opportunities.
An Qingheng: The spirit of the Third Plenary Session of the 20th Central Committee of the Party and the "Decision" clearly present a blueprint for further comprehensive deepening of reform. The broad prospects for Chinese-style modernization are inspiring and it has also injected majestic power into the development of our country's automobile industry.
It is precisely thanks to the continuous deepening of reform and opening up to the outside world that the development of China's automobile industry has achieved remarkable results.In 2018, the 2018 edition of the "Special Administrative Measures for Foreign Investment Access (Negative List)" was released, which clearly liberalized the restrictions on foreign investment in special vehicles and new energy vehicles.In the same year, import tariffs on automobile vehicles and auto parts were further reduced.In 2020, the Ministry of Industry and Information Technology revised the "Regulations on Access Management for New Energy Vehicle Production Enterprises and Products" to further relax the entry threshold for new energy Vehicles.The "New Energy Vehicle Industry Development Plan (2021-2035)" released in November 2021 makes a clear plan and deployment for the reform and opening—up of the new energy vehicle industry.A series of measures to deepen reform have stimulated the vitality of the development of our country's automobile industry, strengthened the strength of the industry, and created the world's leading competitiveness of our country's new energy vehicles.
It can be said that further comprehensively deepening reform is a solid support and strong confidence for the future development of our country's automobile industry.
New quality productivity shapes the new kinetic energy of the development of the automobile industry
"China Business Daily": The "Decision" pointed out that it is necessary to improve the system and mechanism for the development of new quality productivity according to local conditions, and to improve the system for promoting the deep integration of the real economy and the digital economy.What key directions should China's automobile industry focus on to accelerate the development of new-quality productivity?
Xu Haidong: The new quality productivity is very in line with the development needs of the automotive industry.In terms of technological innovation in the automotive industry, chips, software, materials, key components, etc. all require us to continuously innovate.At the same time, we also need to continuously accumulate and apply original innovations.In terms of intellectual property protection, a lot of work also needs to be done.
At present, the focus of technological innovation in the automotive industry is on innovative breakthroughs in chips and software.As a kind of key hardware, chips are the foundation of the future automotive industry.Therefore, the underlying technology of autonomous and controllable automotive chips is the soul and life of the development of the future automotive industry. We need to continuously develop breakthroughs in research and development to achieve localized substitution.
People have brains, and cars have "brains”. The underlying basic software is the most core part of the “brain” of the car.Based on this, the basic software, related design tools, and the ecology of the software all need to be in our own hands.
In addition, to achieve breakthroughs in mass production of solid-state batteries, hydrogen fuel must solve the dilemmas of storage, transportation, filling and other links, and the localization of the core components in hydrogen-fuel automobile engines needs to be overcome through innovation.
Lu Shengyun: The automotive industry chain is long and the technology is more complex. Judging from the future technological development of new energy vehicles, intelligence, electrification, and intelligent driving will gradually become the mainstream direction of the industry's technological development.Under the leadership of these trends, automotive chip-related technologies will become a top priority.For example, Tesla has developed its own chip Dojo to solve the computing power problem of autonomous driving.Secondly, in the field of new energy vehicles, it is still in the stage of development where multiple technological routes coexist, and China must continue to pay attention to technological upgrading.
In terms of technology, the release of semi-solid-state batteries and solid-state batteries will definitely have an impact on the new energy vehicle industry at this stage.If our country is to stay ahead, it must continue to invest in these areas.At the same time, some foreign car companies have begun to increase their investment in hybrid, fuel cell and other technology directions, and we also need to continue to pay attention to this.In terms of intelligent driving, the issue of data collection cannot be ignored.Next, how to strengthen the flow of data elements, protect data rights and interests, and find a business model for data monetization is still worth exploring in the future of China's automotive industry.
Wang Ning: For China's automotive industry, technological innovation should focus on the three dimensions of power batteries, intelligence and digitization.
In terms of power batteries, we should pay attention to the development of solid-state battery technology.At present, Germany, Japan, and the United States all have relevant arrangements for solid-state batteries. Solid-state batteries may have a relatively large impact on the technological innovation of the entire industry. We should accelerate the research on solid-state batteries.At the same time, in terms of basic materials for power batteries, we must also carry out research and development and commercial promotion and application around the dimensions of low cost, long life, and high safety.
In terms of intelligence, although we have now formed certain advantages in terms of intelligent driving, intelligent cockpit, intelligent chassis, etc., and have also formed an industrial foundation and supporting system, we still need further breakthroughs in automotive chips, on-board operating systems, etc. Breakthroughs.
The digitization of the automotive industry also needs to be paid attention to.The automotive consumer market is huge. It is also an industry with a very long industrial chain. In this field, we have a lot of data accumulation and precipitation. How to use the industrial chain to form a closed loop of data and drive industrial innovation is a very important aspect for the maintenance and further development of the advantages of China's automotive industry.
Wang Qing: At present, automobile consumption has gone through the stage of popularization from scratch, and it is gradually entering the stage of stock structure adjustment. It is characterized by replacement and upgrading, technological progress, and green development to drive the stock market to make structural adjustments.In this process, it is more necessary to rely on institutional innovation to solve the problems in development.
Fu Yuwu: The development of new-quality productivity is an important driving force to promote the acceleration of China's automotive industry.In recent years, the intelligent and autonomous driving of automobiles has become a hot topic of competition in the automotive industry. It is not only a new quality productivity in development, but also a concrete manifestation of the deep integration of the real economy and the digital economy.
“Going global” can spread regional market risks
"China Business Daily“: Foreign trade is a ”barometer" for observing opening up to the outside world.In your opinion, in the long run, what is the significance of going global and opening up to the outside world for Chinese automobile companies and the Chinese automobile industry?At the current stage, how should Chinese car companies further enhance their competitiveness in overseas markets?
Fu Yuwu: Achieving a high level of opening up to the outside world will add advantages and stamina to the development of the automobile industry.In 2019, Tesla built a factory in Shanghai, creating a precedent for wholly foreign-owned factories in China's automotive industry.In April 2024, Tesla and a group of Chinese automobile companies simultaneously obtained the first batch of data security compliance qualifications. At the same time, Tesla entered the local government procurement directory, etc., which reflect China's equal treatment of Chinese and foreign enterprises, which is also an important manifestation of our country's continued expansion of openness.Accelerating the transformation and upgrading of China's automobile industry, becoming bigger and stronger, and embarking on the road of internationalization all require the support of a new system of a higher-level open economy.
Lu Shengyun: As the ”jewel in the crown of modern industry", the automobile industry going global is a symbol of China's enhanced comprehensive strength and is of great significance.For Chinese car companies, although the Chinese market is huge, the traditional car markets such as Europe, America, Japan and South Korea still have a volume that cannot be ignored.
At the same time, consumers in foreign markets have the habit of paying for value. For Chinese car companies, exploring overseas markets can appropriately enhance their profitability and achieve sustainable and healthy operations.
Xu Haidong: Chinese products used to be mainly focused on processing trade. Now China's automobiles, mobile phones, high-end home appliances and other products are already extending to the high-end, extending to the high-profit ends of the smile curve, and entering the stage of development towards high value-added products.At this time, in addition to the internal cycle, we need to go to the markets of developed countries and compete in these markets in order to obtain more profits.
As our products go out, we must establish brand awareness and build Chinese brands in the international market. We still have a lot of work to do in this regard.
In addition to speeding up the pace of going global, on the other hand, we must also create a better market environment and welcome foreign companies to enter the Chinese market.The "Decision" proposes to steadily expand institutional openness and take the initiative to match international high-standard economic and trade rules.We have seen that our country has not fully opened up to the outside world in some commodity markets, service markets, capital markets, including labor markets. The "Decision" clearly states that these markets will be further opened up in the future, which will facilitate foreign-funded enterprises to invest in the Chinese market.
Zhang Qiang: When Chinese car companies go global, on the one hand, they can expand the market, increase sales and revenue sources, thereby increasing the scale and profitability of the company; on the other hand, they can also disperse regional market risks and improve their risk resistance.
At the same time, going overseas can help Chinese car companies optimize resource allocation and build a global supply chain. They can obtain production resources such as raw materials and parts more efficiently, improve production efficiency, improve market response speed, and adjust product structure and production strategies.
In addition, opening up to the outside world provides Chinese auto companies with the opportunity to cooperate with international auto companies and accelerate technological upgrading and product iteration through technical cooperation.
To improve their competitiveness in overseas markets, Chinese car companies must first strengthen their insight and understanding of the target market, promote targeted research and development and product adaptability transformation, optimize the product matrix according to local conditions, and achieve effective brand communication and user reach through targeted marketing strategies.Secondly, we should pay attention to cooperation with overseas business partners, expand the resource ecology, strengthen in-depth cooperation with the local industrial chain and ecological chain, and promote the implementation of a series of measures including localized production, localized finance, and localized supply.In addition, it is necessary to enhance the global operation capabilities and talent team building capabilities of car companies, pay attention to overseas market risks and establish corresponding response systems to achieve compliance and stable operation in overseas markets.
Wang Ning: From the current stage, Chinese car companies should change from a simple trade model to an investment-based export form.In the future, we should consider more about how to integrate into the local industrial chain for production, adapt to local regulations and standards, understand the preferences of consumers in the local market, establish sales channels, and explore how to manage production standards, and how to promote the production and manufacture of power batteries and scrap recycling management.
From the point of view of “introduction”, on the one hand, the entry of foreign-funded enterprises into the Chinese market can enable us to cooperate more closely with them and realize technology sharing.Some foreign cars have leading advantages in intelligent chassis, intelligent driving, domain control chips, etc., and they can drive technological innovation and market development in the domestic market in some innovative aspects.On the other hand, after foreign-funded enterprises invest in the domestic market, they can work with domestic enterprises to “go to sea” and accelerate the pace of exploring foreign markets.
The domestic market still needs to be tapped
"China Business Daily": "Decision" pointed out that it is necessary to fully tap the potential of domestic demand, make full use of the advantages of the domestic ultra-large-scale market, and give full play to the basic role of consumption.At present, the domestic automobile market is still facing challenges such as insufficient effective demand and weak social expectations.In your opinion, from the perspective of the new car market, the second-hand car market, the third- and fourth-tier and the rural market, what are the current obstacles to consumption?How should automobile consumption be further promoted?
Xu Haidong: The core of increasing domestic demand lies in economic development. Only with economic development can the income of ordinary people increase and can they have consumer confidence.The country has also seen this. The Third Plenary Session of the 20th Central Committee of the Party proposed to “accelerate the cultivation of a complete domestic demand system” and “improve the long-term mechanism for expanding consumption.”The "Decision" also mentioned that it is necessary to establish a long-term mechanism for government investment to support the construction of basic, public welfare, and long-term major projects, improve the system and mechanism for government investment to effectively drive social investment, stimulate the vitality of social capital investment, and promote the landing of related investments.Stimulating the confidence of private entrepreneurs through investment can help increase employment, increase the income of ordinary people, and promote economic development.Economic development is the fundamental support for expanding domestic demand.At present, the number of thousand-person warranty for Chinese automobiles is still relatively low, about 230, compared with about 600 in developed countries, and there is still a big gap.
The circulation of used cars is an important part of the automobile market system.Regarding the consumption of second-hand cars, the country has not yet disclosed relevant information such as second-hand car maintenance and insurance. Automobiles are consumer goods, but in fact, these data can be disclosed.After the information is disclosed, the problem of opacity of used car information can be solved, which is more conducive to the development of the used car market.
To promote automobile consumption, a unified national market should be established as soon as possible.At present, there are still many obstacles to automobile consumption in some places, such as purchase restrictions, travel restrictions, and public procurement are more inclined to choose local companies. It is hoped that the relevant restrictions can be further broken.
In terms of use, such as parking, there are still problems such as no place to park and expensive parking. The state should take relevant measures to solve the above problems.For example, like developed automobile countries such as Germany and the United States, they plan to build parking buildings in the city center to provide more parking spaces, accelerate the construction of urban parking facilities, and solve the serious shortage of parking berths in our country. The problem.
At the same time, it should also be noted that with the continuous development of China's economy, automobiles have changed from luxury goods to household necessities and ordinary consumer goods. The consumption tax on automobiles previously established is relatively high. Now it may be possible to consider reducing car and boat taxes, value-added tax and other taxes, as well as reducing tolls, parking fees and other expenses, which will help promote automobile consumption.
Lu Shengyun: China's new energy vehicle market is large, and it is currently mainly concentrated in super first-tier, first-tier and second-tier cities.Next, we must first actively encourage new energy vehicles to go to the countryside, but we must launch products that meet the needs of the local market. It is particularly important to do a good job of local consumer research.Secondly, we must continue to increase the construction of infrastructure in low-tier cities.At the same time, attention should also be paid to the whole life cycle management of new energy vehicles. It is necessary to build a new energy used car valuation system as soon as possible and launch relevant policies for the recycling of new energy vehicles.
Wang Ning: Promoting automobile consumption can be considered from the perspective of product definition and product strategy.At present, although people's consumption is downgraded, this is not to say that there is no consumer demand, it is just that they hope to buy more cost-effective goods.Car companies can consider adapting to such consumer needs from product development and product market positioning.
At the same time, while ensuring product quality, car companies should look for better cost-reduction and efficiency-enhancing solutions from the perspective of management and technological innovation.
In addition, for new energy vehicles, more attention should be paid to financial insurance. At present, most insurance companies are under greater pressure to lose money in their new energy vehicle insurance business. Many insurance companies are not very motivated to do new energy vehicle insurance business. We should look for better solutions in these areas to promote the consumption of new energy vehicles.
