April 26, 2018, co-sponsored by the China Association of Automobile Manufacturers and CCTV Finance Channel, the 2018 China Automotive Forum supported by the World Organization of Automobiles (OICA) was held in Beijing. In the afternoon, many important representatives of the domestic automotive sector revolved around 'new' "The era of automotive industry development strategy and layout' for the theme of their respective views. SAIC Deputy Chief Engineer Mr. Zu like Jie shared with the SAIC Group's new strategic development strategy as a whole.
At the meeting, Zu Jiejie said that the past decade was the decade when the world economy experienced sluggish growth after experiencing the international financial crisis and it was a decade of slow recovery. It was also a ten-year shift in the structural adjustment of China's economic growth. The Party’s report on the Nineteenth Congress clearly stated. It is pointed out that China’s economy has grown from high-speed growth to high-quality growth and is in the process of transforming the economic development model and optimizing the growth structure. We must focus on the real economy, improve the quality of the supply system as the main direction, and significantly enhance our country’s economy. Advantages of economic quality. In the high-end consumption, innovation leads, green high carbon, modern human capital and other aspects to cultivate new forces, the formation of new kinetic energy.
SAIC Group has maintained positive growth for ten years in a row. Compared to ten years ago, SAIC Group's indicators have made huge leaps. Last year, SAIC entered the top 50 of the world. More importantly, after ten years of unremitting efforts. We are not only getting stronger and stronger, but also getting more and more new. SAIC Motor will continue to fully promote the transformation of innovation, upgrade the development strategy, and accelerate the development of state-owned companies in response to the report of the Nineteenth Congress. Build a world-renowned auto company with innovative spirit.
Zu Zhijie shared with the meeting that in recent years, scientific and technological progress and industrial reforms are profoundly affecting the international and domestic automotive industries. From the perspective of the market, the steady growth of the domestic auto market at a low speed has been basically established. The past two-digit growth may be possible. The future will never return. The new stage of development is a huge challenge, but it also implies new opportunities. It is estimated that by 2025, the average annual compound annual growth rate of the domestic auto market will be around 2.5%, which will enter a new stage of low-speed growth. Under such a market environment, the biggest challenge for auto companies is to rely on the traditional way of market expansion. It is no longer a major continuous development path. The survival and development of enterprises must be transformed. In this new stage Although market competition will be more intense, there are still plenty of opportunities to capture and mine.
First, as the proportion of redemption increases year by year, it will continue to promote the development of the brand to high-end, and the product will be developed in the direction of personalized upgrade. In the face of the mature automotive consumer market in the future, the trend of consumption upgrade will become more apparent.
Second, the importance of the automobile aftermarket will become more prominent. The current scale has reached the level of trillions of yuan.
Third, due to the regional economic development differences, the tier-market consumption also has its own hot spots. The automobile consumption in three-to-four-tier cities lags behind that of the first-tier and second-tier cities for about five years, providing opportunities for the steady growth of the auto industry.
Fourth, at the user level, the overseas emerging markets in ASEAN, South Asia, etc. have a large population, low vehicle ownership, and relatively high growth potential.
From a technical point of view, with the breakthrough of major new technologies such as information technology and new materials, the value chain of traditional industries is facing a reconfiguration. On the one hand, the shape of automotive products will be redefined and will change from a single vehicle to a multi-function. The mobile space. On the other hand, the automobile production methods will be deeply transformed. Through smart interconnection and data sharing, the industry's upstream and downstream collaborations will be closer, and production resources will be efficiently configured.
From an industry perspective, competitors are gradually changing the pattern and strength of industry competition. On the one hand, as the competitiveness of independent brands continues to rise, luxury brands continue to squeeze downwards, and the ratio of joint ventures gradually liberalizes. Traditional enterprises are facing A new round of shuffling. Some of the Internet created and launched real-car products, which have changed from concept to reality. At the same time, the traditional auto industry and new entrants have both competition and cooperation. The boundaries of the auto industry are increasingly blurred. Ecology is reshaping.
From the perspective of users, with the gradual rise of new generations of consumers, new demands for products and services are being spawned, and new business models are being accelerated. At present, after the 1980s, it is already the largest consumer group in China. With more than two-thirds of the total, young car consumers have unique preferences in terms of security, reliability, power, and styling. They also have a unique preference for mobile and mobile services. In the next few years, as the Internet becomes more popular, This group of Internet natives will have a new user experience orientation.
Looking at the situation in the Chinese automotive industry in the next few years, the challenges are real and the sense of crisis is very pressing. The biggest challenge we face is that the market environment has undergone fundamental changes. In the future, China’s auto market will be quite For a long period of time, it is in a stage of low growth. The biggest crisis is cross-border competition and disruptive innovation. It is profoundly affecting the pattern of the automotive industry. Disruptive technology is not entirely within the automotive industry. The biggest change is with With the evolution of future consumer spending habits, the desire for smart travel services will become increasingly urgent. The future automobile companies must meet the needs of users for smart travel.
Based on the above judgments on the development trend, SAIC Motor Group further clarified the overall strategy for development. SAIC Group proposed electrification, network integration, intelligence, and sharing. At the time of SAIC Group's two sessions this year, SAIC Chairman adopted the two sessions At the same time, we re-examined the SAIC's new four-nation strategy and further clarified SAIC's approach to electrification, intelligent networking, sharing, and internationalization. We have added internationalization. Such adjustments emphasize on one hand To stay at the commanding heights of technology and industry, focus on improving the quality of supply of our products and services, nurturing new growth points, and creating new momentum. In the future, SAIC must be globally competitive, and we must accelerate the promotion of the latest achievements to overseas markets. Integrate world resources for my own use. Accelerate innovation and development in an open environment. Focus on the global market and focus on innovation.
SAIC's innovation strategy is a systematic project. It is necessary to take all aspects into consideration, focus on key issues, break through the key points, and achieve breakthroughs in key technologies. Break new technologies such as new energy, the Internet, and intelligence, and constantly strive for technological advantages. Accelerate digitization, customize production methods, and actively move forward High-end manufacturing, smart manufacturing, breakthrough travel platform, smart logistics and other business models.
By 2020, SAIC Motor will become an automotive group with comprehensive domestic technology and market leadership in the new Sihua area. By 2025, it will become an integrated supplier. SAIC's innovation strategy is first to adhere to independent innovation and master core competencies. Always keep His own destiny is in his own hands. SAIC's own brands have basically covered the traditional car and electric vehicle markets, and completed the development of the core powertrain. Taking the development of new energy vehicles as an example, SAIC is one of the few in China Hybrid, pure electric, fuel cell Sanqing-driven automotive companies, mastered the technical core of battery, electric drive, electronically-controlled three-electricity, is at the leading domestic and international advanced level. This year's January 8th promotion at the China Automobile Association Next, the key technologies of low-energy plug-in hybrid passenger cars have been promoted. In the future, we will aim at the pain points of users and further promote the large-scale customization business of SAIC Motor, and develop a smart manufacturing route with SAIC's characteristics.
On the other hand, SAIC's innovation strategy must adhere to open cooperation and common innovation. The challenges facing our automotive industry, including artificial intelligence, driverlessness, etc., are all global problems. To solve these global problems, we Must work together with world-class and domestic first-class research institutes to solve these problems. As an automotive company, we have the responsibility to guide the development of the entire industry.
In 2016, SAIC launched a zebra system for cooperation between SAIC and Alibaba. It has cooperated with Infineon and Magna to study the manufacture of electric axes. On March 1 of this year, we got the first driving license tested on the road. By the end of the year, SAIC Motor’s first smart brain smart car was launched and mass production was put into the market. SAIC and its partners accelerated the occupation of new energy and smarts. SAIC’s joint venture is also laying out its future innovation business. Group of like-minded friends circle, SAIC can develop better. SAIC will not forget the fundamental, face the future, create differentiated competitive advantages, continue to inject new connotation of development, and build a new SAIC with innovative energy and technological charm. There is no doubt that we are in the golden age of the Chinese automobile industry. It is an unprecedented opportunity before us. It gives us the opportunity to keep pace with the international auto giants. At the same time, we are also facing challenges. The full opening to the outside world will also face more intense competition. The global expansion of technology. The cross-border integration of technology and the fuzzy intertwining of industrial boundaries are changing the look of the automotive industry that we are familiar with. The automotive industry needs to work together to create a new glory in the Chinese automotive industry.