The 19th International Forum (TEDA) on Chinese Automotive Industry Development was successfully held from September 1 to September 3, 2023, in TEDA. With the annual theme of “New Future with High Quality,” the forum brought together more than 1,200 guests, including leaders from ministries and commissions, senior executives from domestic and international corporations, experienced industry experts and scholars, and authoritative media reporters. During the event, 14 conferences were conducted, delving deep into hot topics, such as the strategic trends in the automotive industry development, policy standards, corporate strategic layouts, changes in market demand, and the future direction of technological development. The forum achieved fruitful results in these discussions.
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During the conference, Vice Chairman of the 13th National Committee of the Chinese People’s Political Consultative Conference (CPPCC) and Chairman of the China Association for Science and Technology, Wan Gang, sent a congratulatory letter. In his message, he stated:
“The Chinese automotive industry should focus on the forefront of the world, national strategies, and the needs of the people. It should closely follow the trends of electrification, intelligence, and low-carbon transformation. We should firmly seize historic strategic opportunities, profoundly change the development mode, make deep adjustments to the industrial structure, and undergo a deep transformation of growth dynamics.”
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“Tianjin, as one of China’s significant automotive production hubs, has established a complete modern industrial chain that encompasses whole-vehicle development, core component manufacturing, power batteries, control systems, and testing. Currently, the new wave of technological revolution is driving the transformation of automobiles from transportation tools to intelligent terminals. Tianjin has formulated and implemented an action plan to accelerate the development of the new energy and intelligent connected vehicle industry. We are promoting the transformation and upgrading of the automotive industry towards new energy, intelligent connectivity, and high-end development. Our efforts aim to build a production base for new energy vehicles and a city for the demonstration and commercialization of intelligent connected vehicles.”
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“We should fully leverage platforms such as the UN/WP.29 and the International Organization for Standardization. We aim to strengthen communication and exchange with relevant countries and regions, accelerate the development of carbon accounting standards in areas such as complete vehicles and key components of automobiles, and promote mutual recognition of rules. Additionally, we will continue to collaborate on regulations related to autonomous driving.”
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“The continuous progress and innovation in advanced computing technology have brought higher levels of safety, intelligence, environmental friendliness, and comfort to the automotive industry. It has accelerated developments in areas such as automotive design, autonomous driving, Internet of Vehicles, data analytics, and security. High-performance computing technology is indeed pivotal for engineering applications, particularly in the field of crash simulation. It plays a crucial role in driver injury analysis, assessing the strength and rigidity of vehicle structures, and various safety analyses. Therefore, it’s essential to prioritize the development of high-capacity computing chips and industrial simulation software to enhance safety and engineering capabilities in the automotive industry.”
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“The Chinese automotive industry is facing typical issues such as inadequate support for technical research and insufficient research in cutting-edge technologies. There is an urgent need to enhance our capabilities in basic research and research in advanced technologies. We must strengthen research and development efforts in key areas like power battery systems, new chassis architectures, and smart driving systems to address critical core technologies.”
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“We will maintain the dominant role of the market in resource allocation while enhancing the government’s effectiveness. The overall planning and guidance for the development of the automotive industry and the layout of the new energy vehicle industry will be optimized. We will also curb impulsive investments and regulate the order of industrial development.”
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“We are actively working to build a comprehensive and multi-level tax policy system that supports the new energy vehicle industry, aiming to strengthen and expand the advantages of the new energy vehicle development. This includes continuous optimization of the technical standards for tax reductions related to new energy vehicle purchases, accelerating technological research and upgrades, and creating a collaborative policy framework to promote a green, low-carbon, and sustainable development in the auto industry supply chain.”
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“In public sectors such as public transportation, taxis, sanitation, and postal services, we will continue to promote new energy vehicles. Furthermore, we will enhance the coordinated control of atmospheric pollutants and greenhouse gases from motor vehicles, vigorously promote the development of net-zero emission technologies, and the application of Internet of Vehicles intelligent supervision technologies.”
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“Carbon market mechanisms, by harnessing the market’s role in resource allocation, are the primary means of carbon pricing in China. We will adhere to the work principle of seeking stability while making progress and further improve the policy and regulatory framework. We will promote the establishment of regulations and provisional rules governing carbon emission rights trading.”
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“The Ministry of Transport, in collaboration with relevant departments, will optimize the traffic conditions for new energy delivery vehicles. This ensures that in national ecological civilization pilot areas and key regions for air pollution prevention and control, the proportion of new energy vehicles in the addition or replacement of public transportation, taxis, and logistics delivery vehicles is not less than 80%.”
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“We will continue to implement the requirements of stabilizing the scale and optimizing the structure of foreign trade. We will further deepen our openness to the world and actively promote market-oriented reforms and the use of economic means to enhance the internal driver of enterprises. This will create a better environment for enhancing the international competitiveness of the automotive industry.”
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“Internet of Vehicles is indeed reshaping the entire automotive industry and changing the revenue models for car manufacturers. Software has become a crucial avenue for creating and delivering added value, allowing automotive companies to generate revenue throughout the entire lifecycle of a vehicle, not just from selling the vehicle itself. Intelligent connected vehicles are more than just cars; they represent the convergence of transportation, energy, and information. Achieving fully autonomous driving depends heavily on secure and reliable communication infrastructure. Furthermore, the operational conditions for commercial vehicles differ significantly from passenger vehicles, requiring a diverse range of technological approaches and solutions.”
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“With numerous new players in the automotive industry, the race for new energy vehicles has become a fierce battle among many contenders. Long-standing champions are no longer guaranteed to remain at the top, while newcomers are catching up quickly. The advantages of frontrunners are becoming more evident, and the industrial concentration level is rapidly increasing. This is leading to greater polarization, and the market performance of automotive companies is entering a period of turbulence. The elimination game in the automotive industry draws near.”
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“The automotive market has entered a highly competitive phase where only the strongest will survive. The clustering effect of top players in the new energy vehicle sector is becoming increasingly prominent. Domestic brands are continuously enhancing their international competitiveness, and overseas markets are emerging as new frontiers for growth.”
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“China extensive upstream new energy industry chain is poised to become a formidable core advantage and competitive strength as Chinese automotive companies aim to lead globally. The convergence of multimedia technologies in China is also beginning to make its mark on the world stage, contributing intellectual resources to the development of the automotive industry.”
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“The automotive industry is going through a major transformation, with various technological pathways emerging. The future of automotive products is poised for profound changes, and open collaboration and cross-disciplinary integration are essential for the development of the automotive industry. While competition in the automotive sector is intensifying, there is significant potential for growth and innovation in the future.”
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“The automotive industry is transitioning from the first half, characterized by rapid growth, to the second half, focused on high-quality development. Achieving high-quality development in the Chinese automotive industry requires concerted efforts from various stakeholders, including the government and businesses, in three key areas: technological innovation, industry ecosystem, and brand value.”
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“The new development pattern of dual circulation not only promotes the growth and strength of the domestic market but also contributes to building a smooth and complementary domestic and international circulation system. This, in turn, helps create new systemic advantages for us in international competition and cooperation.”
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“We need to take a path of hydrogen energy development in China that is characterized by inclusiveness and can serve as a reference for other countries. This path can solve the country’s energy security issues, promote economic, social, and environmental sustainability, and also help us better address the global climate change impacts.”
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“No matter how technology advances, traffic safety fundamentally revolves around the concept of humanity. To prevent accidents, it’s crucial to enhance related human capabilities. This encompasses driving skills, cognitive abilities, decision-making abilities, awareness of the surrounding environment, as well as the psychological aspect.”
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“The fundamental transformation of batteries in the automotive industry is driven by several key factors. One is fast charging, another is cost reduction, and the third is the adoption of 800V high-voltage systems. These directions will be prominently visible in the automotive industry in the coming years.”
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“Vehicles in the future will become mobile intelligent terminals on four wheels, integrating into the ‘human-vehicle-home’ convergence as the third space. Previously, our workspaces were either at home or in the office, and cars were merely a means of transportation. Now, new energy vehicles are emphasizing their role as a third space beyond our home and workplace.”
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“The development of the automotive industry involves not only technological transformation but also organizational transformation. The revolution brought about by new technologies has given rise to a three-dimensional marketing matrix, which supports automotive marketing and the expansion of businesses into international markets.”
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“Data has become a new factor of production, and computing power has become the engine driving high-quality development in the digital economy. Computing infrastructure is evolving from a focus on general computing power towards integrated computing, intelligent computing, and supercomputing.”
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“The automotive industry is a pillar industry with the greatest development potential and market space. After achieving a certain scale, it’s essential to become stronger and take a leading position in green development. When it comes to new technologies, we should foster innovation with an inclusive approach and consider adopting sandbox management principles.”