How can China's new energy vehicles "sprint all the way"?, Stepping up to 20 million vehicles | New Energy | China's New Energy Vehicles
Recently, with a pure electric sedan driving off the production line, China's new energy vehicle production has reached a milestone of 20 million vehicles.
From industrialization and marketization to scale and globalization, China's new energy vehicles have made rapid progress. Standing at a new starting point, what are the problems facing industrial development? How to consolidate and strengthen new advantages? At the 2023 China Automotive Forum held in Shanghai recently, this topic sparked brainstorming among department heads, industry experts, and practitioners.
Policy and market dual support, industrial development reaching new heights
This is the "Chinese speed" of new energy vehicles - in September 2020, China's cumulative production of new energy vehicles exceeded 5 million, and in February 2022, it exceeded 10 million, achieving the second 10 million in just one year and five months.
Behind the achievements are the dual support of policies and the market. At the forum, many industry insiders coincidentally discussed that new energy vehicles can achieve high-speed growth in more than 10 years, fully reflecting the policy strength in China's industrial transformation.
According to statistics from the Ministry of Industry and Information Technology, in recent years, various departments have launched more than 70 support measures, and various regions have introduced supporting policies based on their own actual situations. From implementing industrial technology innovation projects to establishing national manufacturing innovation centers such as power batteries, a series of measures have made the direction of industrial development clearer and the pace more firm.
Transform market advantages into industrial advantages. In recent years, from the fiscal subsidy policy for purchasing new energy vehicles to the vigorous promotion of new energy vehicles going to rural areas, the support from the consumer side has fully mobilized the enthusiasm for industrial transformation. The rapid expansion of the market drives innovation in the industrial chain.
"We have released the Kirin battery structure, which can achieve a range of over 1000 kilometers. Mileage anxiety will no longer be the core issue affecting industrial development." Wu Kai, Chief Scientist of Ningde Times New Energy Technology Co., Ltd., said at the forum that the rapidly growing market is driving the power battery industry to the forefront, from material systems to battery structures.
"China has gradually established a competitive advantage in the field of 'three electric' technology, and practice has proven that the cultivation of the market has accelerated the completion of the new energy vehicle industry system." Fu Bingfeng, Executive Vice President of the China Association of Automobile Manufacturers, said at the forum that in recent times, policies have been intensively launched to stimulate consumption potential, strengthen industry supporting capacity construction, and other aspects, which will further stabilize market expectations and promote high-quality development of the industry.
Accelerate breakthroughs in key technologies and consolidate advantages in the industrial chain
"In 2021, I participated in the forum's closed door meeting for the first time, and 50% of the Chinese host manufacturers who participated were our customers. In 2022, it was 70%, and the proportion further increased at this closed door meeting." Yu Kai, the founder of Horizon, a domestic automotive grade AI chip manufacturer, sighed, saying that thanks to the support of host manufacturers and the great development of the industry, the company has continuously made breakthroughs in the forefront of technology.
Technological innovation is the core competitiveness of industrial development. After years of cultivation, China has a relatively complete industrial system and technological advantages in the field of new energy vehicles. However, when overtaking while changing lanes, it is even more important to adhere to innovation. It is urgent to strengthen the layout of key and cutting-edge technological fields.
"Further breakthroughs are needed in basic software, operating systems, and other areas, and there is still a long way to go in tackling key core technologies." Wang Jun, President of Chongqing Changan Automobile Co., Ltd., said that whether products that meet consumer expectations can be provided, and whether greater value can be created for users in a stable technological path are all issues that the industry should pay high attention to in the process of transformation and upgrading.
Strengthen collaborative innovation in the industrial chain. "In the past, competition relied more on specialized technology. Today, it relies more on 'chain'," said Xu Jun, Senior Vice President of Zero Run Automotive. In the digital age, relying on integrated innovation to consolidate and expand the advantages of the industrial chain is crucial for new energy vehicles to achieve 'leading' in the future.
"Establishing a collaborative model in multiple fields such as automotive chips, application software, and operating systems is the key to industrial transformation and upgrading." Li Shaohua, Deputy Secretary General of the China Association of Automobile Manufacturers, believes that host manufacturers, software companies, research institutes, and others should jointly build and share common technology platforms to enhance the stability and competitiveness of the supply chain.
Strengthening technological cooperation through an open ecosystem. Wang Jing, the person in charge of General Motors, stated that in the face of technological changes, the brand advantages accumulated by foreign-funded enterprises need to be combined with localized innovation. "General Motors will increase its investment in technology research and development in China, develop new business models, and serve Chinese consumers."
Firmly adhere to "brand upward" and advance upstream in the value chain
Our country's independent brands of new energy vehicles are constantly growing. With the continuous increase of market share, how to achieve sustainable development and increase awareness in a broader market has become the focus of the next step of industrial upgrading.
Strictly control the quality. On the forum, multiple car brand leaders discussed that firmly adhering to the path of reliable quality is the key to shaping brand image. We need to continuously increase technological innovation, enhance digital and intelligent manufacturing capabilities, and continuously enhance product reliability.
Improve user experience. "In the current automotive industry, hardware is the port for manufacturers to interact with users. However, in the future, it will definitely rely on software and subscription based services." Fang Yinliang, Global Managing Partner of McKinsey, believes that automotive companies need to have a deeper understanding of user needs, develop products more finely and scientifically, promote the improvement of interactive experiences, and thus achieve differentiation in brand tone.
Create value effectively. "By delving into every market and reflecting brand value," said Li Xueyong, General Manager of Jietu Automobile, this not only requires car companies to have technological and industrial chain advantages, digital marketing channels, but also to do a good job in long-term layout in the market, especially overseas markets, "taking the brand ecosystem out and competing in the entire value chain.".
In addition, relevant officials from the Ministry of Industry and Information Technology have also pointed out that currently, the industry still relies on imports of raw materials such as lithium, nickel, and cobalt. In the process of rapid development of new energy vehicles, we should also be vigilant about risks such as overcapacity and structural contradictions. We need to focus on the long term, fill the gaps, maintain a healthy industry order, and ensure stable and far-reaching industrial development.
