On April 26th, 2018, jointly organized by the China Association of Automobile Manufacturers and CCTV Financial Channel, the 2018 China Automotive Forum supported by the World Automobile Organization (OICA) was held in Beijing in the afternoon. In the afternoon, Zhao Fuquan, from the Automotive Industry Strategy Research Institute of Tsinghua University Mr. Xu hosted the interactive exchange activities of 'Transboundary Summit Dialogue Focusing on the Revolution of the Automotive Industry'. The event invited Dong Yang, executive vice president of the China Automotive Industry Association; Xu Changming, deputy director of the National Information Center; Fan Yan, president of Jiangling Motors, and Xiaopeng. He Xiaopeng, chairman of the car, and Yang Hong, president of Shenzhen Hangsheng Electronics Co., Ltd., were all guests and participated in the interactive dialogue. Mr. Zhao Fuquan shared in the forum, 'I think the automobile industry is very interesting. If we say that we are 3.0 now. , 1.0 is a company invented the car, Ford's car went into millions of households, and later many companies made cars, Toyota Volkswagen, including today's Geely Great Wall, was born in this situation, but today into the 3.0 era, simple A single car may not be enough to build a car. It will have to use a car, that is, the automobile industry has entered a number of industries to make cars. , The era of cars, This is the car 3.0. In this case, the big direction is clear, we are electrified, we are intelligent, we have clear directions, but the paths are different. If you add the timetable, it is even more unclear. Today we talk to you about where we are. '
Zhao Fuquan: First of all, our first topic is the auto show. Please tell us how everyone feels about your participation in the auto show. Where is the point? Start with Dong Yang.
Executive Vice President of China Automotive Industry Association Dong Yang
Dong Yang: Yesterday morning, I went to give booths for three companies. It is not serious to look at the places where the chairman of the company was transferred to several places. The Beijing Auto Show I usually look at three and a half days. After four and a half days, I can't figure it out. After reading it, I feel that it’s true. Only one point, the era of China's auto industry innovation has come. Before, people always complained about what they would not be. Now they are real and dry, they will show, and they can show it. You can see where you go. You can see a lot when you look closely. Good things, this is an era of innovation and technology development.
Recently, Sino-U.S. trade frictions. ZTE has been hit by the U.S. government. No matter whether it is awkward or not, we are more vigilant and say that there will be problems with the car. I feel that after reading this year's auto show, I am more confident that there will be friction but The automobile industry, China's auto industry has no problem moving from a big car country to a car power.
Zhao Fuquan: As the first batch of undergraduates of reform and opening up, Dong Yang’s president has been doing industry management, and later operating the company. Later he was also the leader of industry management. He said that the Chinese auto industry is coming in the spring and that’s true, so we should say that we We believe that our ability to innovate has finally begun to bear fruit. Let's hear Xu Changming and Xu Zhuren.
Deputy Director of the National Information Center Xu Changming
Xu Changming: I saw a day at the auto show yesterday. I saw two o'clock in the afternoon. I had an early morning participation in the conference of Beiqi. After I went there, I had two feelings. There were three kinds of cars in the new Sihuan. It was already very obvious at the exhibition. , Intelligent Networking, these three are very obvious in the auto show, this is a very big change, the previous session has not yet, this session is particularly noticeable, this is the first experience, the second auto industry is really competing The time is coming. Because the car always has a threshold, you have to apply for a car license. I guess how can I get a few pounds of meat to apply for it? I'm still lining up. Now, this situation, I think it's really coming. Mainly manifested in new energy, new vehicle builders, and several failed to obtain a license. However, prototypes have been made. The next step is to be done. Every company has a different understanding of cars. I think these companies will have a total future. Some of them have become very large. They are similar to current companies. Such companies will come out and the competition between them will be very fierce. I think the next step is our competition. Although the competition of traditional enterprises is also fierce, But I think the competition is even fiercer. In new energy vehicles, I think it is also dangerous if the competition in traditional cars does not increase. I think the level of these new energy vehicles is rapidly increasing. So this time, the two meetings are very obvious. .
Zhao Fuquan: Thank you, Director Xu. It should be said that the age of motorization, networking, and intelligence is felt through this auto show. In turn, the clear competition for Sanhua is even fiercer, especially in terms of electrification. If we say 15 years, 20 years ago when Geely and Chery started, when more people ran with others, today's new companies already have their own gameplay. Traditional car companies are not trying to be sure of pressure. What do you think of General Fan?
President of Jiangling Motors Co., Ltd.
Fan Yi: The auto show gives us a trend to understand the trend. It is clear that the overall quality of the self-owned brands has improved substantially over previous years. We can see the progress of independent brands, but at the same time we also see international brands Intensifying the exposure of such smart cars and electric vehicles symbolizes that the future of China’s automobile battlefield will become increasingly fierce. Relatively speaking, whether as a traditional car company and a new force, it is not only a technical aspect, but also electric and Intelligence is a tool, the most important thing is to find a good scene to solve the pain points of customers, this will form a lot of business models out. We see from this year's auto show, the future competition is about to begin.
Zhao Fuquan: Thank you, Mr. Fan. If you were an electric car five years ago, you would entertain yourself. However, today foreign capital is also making efforts. Therefore, this kind of competition is not a simple one between our own brands. It is actually the Chinese market. The opportunity of 30 million electric cars in China is huge, and everyone’s strategic layout for the market has opened ahead of time. Therefore, not only new energy but also traditional cars are fierce. Our own brands have made progress and our products have made great progress. But people have already Flexing his muscles, the reality is very skinny.
Xiaopeng Automobile Chairman He Xiaopeng
He Xiaopeng: Yes, the three previous guests have already spoken wonderfully. Basically speaking, I would like to make up for two points. The first one is that the feeling of this auto show is that we will always look at some imports. Cars, more luxury cars, Lamborghini, etc., but everyone's traffic there is already very small, they will focus on private companies electric car exhibition, I look at the auto show to see a pair, is a boyfriend and girlfriend, they look at the car is generally buying tendencies More fierce, if two or three men are holding mobile phones to see beauty, this group of people will pay attention to Chinese cars.
The second feeling is that because I was through the Internet and the war of thousands and thousands of cars, I feel a little bit. Today, the new car forces spend a lot of money in this. Looking at our past time experience, the front one or two In order to use the brand itself, everyone did not enter this market in the past. Therefore, they will make some relatively big moves. The most important thing is to look at the auto show in the following year and the auto show in the old years, the new private enterprises in China and the original state-owned enterprises. The situation in the auto show will not continue. I think this is very crucial. It is just beginning. I feel a little bit to note. From my perspective, the speed of this money is still greater than I thought. A little, because the auto show is still very expensive.
Zhao Fuquan: Well, everybody gave him a round of applause. With his own name, I didn’t have a founder before he showed up. He started putting Tsinghua students in front of the curtain. He’s done behind the scenes, what I’m really focusing on, Seeing that they are hand-in-hand looking at new brands of new car companies, what are the pain points to meet their needs? This is a huge change. I just wanted to ask you, why don't you participate in the exhibition? To the boss, he didn't say how it was this time. He was worried that next year next year, not just today, the red flag fluttering. How to ensure that the flags will not fall tomorrow? This is the boss. Is my understanding correct?
He Xiaopeng: Because I am a company and I am a slow company. I used to do business for 13 years. I think cars are harder than the Internet. We need to make the system solid and we need to do it effectively. We are moving around the world today on April 26. There was an exhibition at the Internet Conference. There was only one car in the entire plant. We were all inclusive. We started selling cars for the first time today. Now, in two hours, we paid almost 1,000 units for the non-refundable deposit. I think from the perspective of the depot. Look, this year we entered the Beijing auto show, it is difficult to form the attention of the former factory, because the whole plant is the easiest to be a luxury brand and a concept car. If we really want to deliver, we want to deliver AI cars, we are in technology. The largest exhibition is for exhibitions. I believe there are exhibitions. We can sell a few thousand units. This effect can be many times better than a car show. When we slowly build up the brand, because the brand is accumulated when you To a thickness, you do it at the Beijing Auto Show or Shanghai Auto Show. It will be many times higher. Pull out the tone first and then make the brand. This is my opinion.
Zhao Fuquan: Actually, I feel incredible too. When everyone comes, this is a free advertisement. In turn, Xiaopeng’s car does not come. He said that I would do it afterwards and say that if I didn’t cause it so high, I pay attention to the degree of selling cars first. In doing so, when I have thousands of units or even tens of thousands of units, I've got a big pavilion to do this thing. So I think if you can see it, I don’t think it’s going to follow the trend. There should be This is the uniqueness of Xiaopeng. Here, let's listen to Yang Hong. Yang always makes spare parts. Can you share the parts exhibition with everyone?
Shenzhen Hangsheng Electronics Co., Ltd. President Yang Hong
Yang Hong: Hello everyone, I'm very glad to participate in today's forum. Parts are usually located in the depot. We used to have a place for independence in the previous sessions. But basically we haven’t got any attention. So this year we are like Xiaopeng. , We are at our own hotel, we have a special session at Crowne Plaza Hotel, we put our customers on the spot, put the experts who pay attention to us on the spot, there is one of our all the latest three electricity technology and car networking technology And the technology of autopilot makes a conference, there are also physical exhibitions here. In terms of the auto show, we are very concerned about our automakers or auto parts companies, especially automotive electronics companies, but it's really difficult to get this position, or take it. The location is not suitable. This year I am concerned about two points. One is that the growth of self-owned brands in these years should be said to be better every year. Especially in smart networking, electric is better. Yesterday we went to see the Hongqi H5, Because this system of Hongqi H5 was built together with our team, I also saw the ranking of the top five self-owned brands today. The red flag was ranked first in the morning. , and accounted for 40% of the clicks, I also feel as a supplier to me, for our customers to build a red flag this independent brand, I feel very glorious.
Actually, in the intelligentization of these networks, Hangsheng has been guided by the country’s industrial policies for many years. We have carried out many simultaneous developments, including joint venture brands and independent brands, including the development of Jiangling’s nights, including Xiaopeng’s vehicles. All of them represent the direction of the next generation of smart networking, including SAIC, Chang'an, BAIC, and Beijing Hyundai, which are now all presenting a good example of the interaction between car and car connections and car-to-person connections for smart network connections. It is believed that in the next year, perhaps 80 percent of the cars will be able to be industrialized on the Internet.
Okay, thank you.
Zhao Fuquan: Yes, thank you, Mr. Yang. It should be said that we are seeing Mercedes-Benz BMW. The Great Wall of Geely Chery is bought directly by our consumers, but the companies that really support our product development are parts and components. We have 70% of zero. The parts were bought, 90% of the problems originated from parts and components, which determined the layout of the technology, so it was not easy to be Hangsheng. They would be exhibiting at Crowne Plaza tomorrow afternoon because there was no site. Tomorrow afternoon There are forums, and I'm still hosting.
From another point of view, Hangsheng supplies domestic and international companies. In fact, it also looks at the progress of the company. Hongqi does indeed feel that I have read it today. The red flag has indeed progressed greatly. We must give some time. Give them a chance to grow up. I believe that as Chairman Dong said, we will have a bigger step forward.
Here we would like to really talk about how the industry is reshaping the changes. In the end, what will happen to this kind of industry restructuring? What changes will happen to the traditional car companies and new car companies? What changes have taken place in companies and local companies? Is China's car status in the world only a scale? Why do we lead this change in future travel? So every time it's hard, the first one is Tsinghua. Dong Yang students to answer this question.
Dong Yang: One of the last questions I answered to him was the Chinese auto industry. The Chinese auto market can't lead the world auto industry. Then if you ask this question, you almost have one conclusion, at least not yet. I tell you, Now there is. Why is it now? China is now producing 29 million cars, which is close to one-third of the world. We have created at least two products and are now unique in the world. The first is a small SUV, China The SUV I predicted last year may be more than a car, not reached, but today is likely, but why is China's small SUV so powerful? In fact, China's small SUV its market its industry, its technical characteristics and international SUVs are Differently, the international SUV is relatively early (English) full-size, it is seven, 4 × 4, with a beam, this is a classic SUV, the first is not necessarily, but more fashionable Honda, and later in Europe Across the border, it is actually a variant of a sedan and a small SUV.
When China mistakenly made a mistake, the Great Wall changed a small SUV by a pickup truck. There was basically no 4×4, only 4×2. This was the earliest Harvard. Afterwards, everyone gradually learned and plagiarized and cultivated each other along this road. The market, to cultivate a small SUV for the Chinese market, this SUV is on the surface looks and the smaller SUV abroad, but this price is much cheaper than the foreign SUV. In the international market, the same platform car and SUV difference of 20% The price, China is not bad, you can buy a SUV for a car price, 4×4 is not necessarily done, at least I'm higher, see other cars clearly, put a little more stuff, it has many advantages, it's out This market in China is still the product with the fastest growth rate today. This product is not the same as the international market. Its market demand, market, and the product itself are different.
The second difference is even bigger. It is a small MPV. It is Wuling Hongguang. This car originally originated from the small face of the day. Later, after we introduced the small noodles, we used the small noodles for the rural areas. The first China has no strict light four. Wheel restrictions, this car wants to do anything, pull more and more things, the car is getting bigger and bigger, change the technical weaknesses of the original engine, form a Chinese market, and the price is particularly cheap I think China's small MPV is the first important model to go to the market to go to the world. Why? This model is the best model in terms of performance to price ratio in the country, so I think this speaks of China does not lead the market, we have 29 million, totally Leading is impossible, can lead in the future, can lead. Now, for example, in China, we now produce more than 90% of the world's electric buses. Then we are already leading. The safety standard for electric buses we have developed is the world. Standards, because we apply large, consider all, and then form our own leads. For example, there are no lateral collisions with passenger cars all over the world. Lateral collisions, we are rational in the future. By believing that we are in some aspects of electric vehicles, we will lead in some aspects of the smart network, but the Chinese people cannot take the world and any country in the automotive industry will not want to pack the world. If someone tells you all cars in the future It's all the best in China. It's not necessarily right. Maybe the professor will speak like that. Don't believe it.
Zhao Fuquan: In fact, Chairman Dong still said judging from his point of view that actually it is not a problem that we can lead in the future. In fact, there are some things that we are leading. There may be some technologies that we are not leading, but the market is ultimately What consumers want, Chinese people know best, and we Chinese people can take many Western things to meet the needs of China’s 1.3 billion people for effective travel. SUVs and small faces are also the most typical days. Small SUVs may be popular in the future. History will remember today, and you will not invest in it, just because you don’t believe Dong’s Dong Yang’s point of view. Especially if there is a standard lead behind, there will be a technical lead, but we don’t expect it. All lead, the United States did not do it, Toyota did not do it, so don't expect Chinese companies to have silver bells in every respect. What do you think about Director Xu? We don't necessarily talk about the market. What we can talk about is the time when the industry is reconstructed. Where.
Xu Changming: When I talk about the competitive landscape, I think this topic is also very hot. When you say too much, I'll elaborate on my views on this aspect. I think the three factors will lead to huge changes in the competitive landscape of our future industries. One is the guidance of the new four modernization plus a new retail. We are paying attention to these issues. This will lead to different companies in different areas. The original advantages are not the same. Xinshihua, new retailing will take the lead, and its relative advantage will come out. This will lead to changes in relative advantage that will lead to changes in the competitive landscape. This is the first factor. This is still very large. Various companies have recently done this. Some companies have particularly large movements. Some companies have no action yet. Consumers are very receptive to the new four modernization model. This is the first factor.
The second factor, the recent reduction of automobile tariffs proposed by the general secretary in the past few days, and the openness of investors, do not know much about the extent, and the effort will not be small anyway.
Zhao Fuquan: How much will your forecast be adjusted?
Xu Changming: I don't know. I think the adjustment is already set. This is a certainty. After a drop, for example, for some models, the entire industry does not worry about it. For example, it will import a lot of influx into China. This possibility is not. Too big, the relationship between domestic and imported proportions is not likely to be, but the competitive landscape is bound to be relatively large, and luxury brands with Lexus in the same competition will have to change. The simplest way is to lower prices. Who is like Lexus? If it is 10%, we have studied if the tariff is reduced by 10%, the price will drop by 7% to 8%. If the tariff is reduced by 5%, it is about 4%. It is not synchronous, and the price of your other domestic models will have to follow suit. It will be affected. It will then be affected and then passed on to ordinary joint venture brands. The reduction in tariffs will not change the overall domestic-to-import ratio relationship, but the impact on individual companies will be greater. This is called competition. Patterns.
There are ratios to let go, I see the document until 2022.
Zhao Fuquan: First new energy, then truck.
Xu Changming: After deregulating, there are a lot of profits for joint venture brands. It is self-evident that relatively few joint ventures are better. For example, Geely Great Wall will have an advantage in these companies. This is a policy that brings a relative Change, so this is brought about by the policy.
The third one I think is the unique industrial structure of our country. The United States is the three major companies. Japan is three big, there are several small ones, Germany’s three big ones, Mercedes-Benz BMW, Volkswagen, France two, South Korea is the one big, With this kind of industrial structure, ordinary things have come, and the same impact has changed little. Everyone is not active. For example, the new four modernizations in the United States are not active and the changes are not, but China’s largest has exceeded two million vehicles. GM and Volkswagen are already close to two million cars, and millions of cars are like eight, but there is also a long-tailed curve, N more than 200,000, as long as what factors can bring increased sales, competitiveness, He will do it, and big companies will not do it. The third brings so many companies to have enthusiasm to do it. So, in the end, what will become the future pattern I cannot dare to say now, but it will certainly change dramatically. If a company with strong advantages does not follow the market situation, it will be the new Sihua, and some small companies will emerge. I think the competitive landscape of our country in the future is based on recent actions. Comfortable days No less so comfortable, that we are more uncomfortable, uncomfortable days of the beginning of the traditional business coming before not so easy.
Zhao Fuquan: Thank you, Mr. Xu, for the actual topic that caused a lot of changes in the pattern from the new Sihuan at the beginning. However, Xu Zhun opened up from the stock ratio, the tariffs were lowered, and brought about changes in the pattern. Together with the new Sihuan, the future of China’s automobile industry is not There are no shortages of challenges, no shortage of stories, and like Xiaopeng Automobile, people have sold more than 1,000 vehicles and have not yet exhibited. There are also many such companies. The future of the Chinese automobile industry must be a bloody fight, but who wins is really It's hard to say, Fan Zong, how do you see the industry pattern, Jiang Zhan Fan Zong, How do you see this?
Fan Hao: I still remember that my first visit to Changan Ford was in 2003. At that time, there was a statistic. At that time, all kinds of brands added up to more than a thousand brands. If I remember correctly, I still have one More than 100 brands, but there are some new forces added. In the next few years, no matter whether it is the relationship of market competition or the change of regulations or policy, I believe there is another wave of integration. The final result of this integration is the final victory. The winner will win, including the traditional car companies or new forces, but there will be an integration. Although China has a large market, the competition is actually not so comfortable. Just now Mr. Xu said that not many days are good. It's not a good time at all. Especially in the passenger car part, it's bloody. Nowadays, more and more commercial vehicles are entering this field. In fact, the whole competition situation will be far more intense than in the past, plus new ones. The vehicle-making forces came in, but the new vehicle-building forces came in. It was a good thing. Just like a hundred years ago, the automobile industry was a newly-created industry at that time and it was also a very innovative spirit. We have forgotten that we have forgotten that such a new industry has come to remind everyone, especially our common friends in the automotive industry, that we should not forget that the automobile industry did it this way more than 100 years ago. It is a new industry competition. Out of it, how to get back that spirit, including the 40 years of reform and opening up in China, is also a spirit of new creation. How do we combine the newly created spirit with traditional advantages? Traditional industries or traditional enterprises can still come back with new traditions. Forces are not a zero-sum relationship, they will form a cooperative relationship. Even if it is a car company today, for example, Ford and GM, this is the two that have been killed for a hundred years, but it actually has a lot of Cooperation, even in the commercial business model, etc., maybe there will be a new business model, probably such a view.
Zhao Fuquan: Thank you, General Fan. Ford and GM have been fighting for more than 100 years, but they are both cooperative and competitive. It is a very fiercely competitive market for China, He Zeng, Chairman of Xiaopeng Automobile, why do you vote so much, you When IT earns so much money to drive into the car, you don't know how deep the water is. You still know that there are tigers in the mountains, and they are leaning toward Tiger Mountain.
He Xiaopeng: Yes, I think every entrepreneur will find something that will make him even more excited. I feel that now is a huge change in the auto industry. I think that if you want to change the auto industry, it will be a change. One is early, now there are several Obvious changes, the first policy changes are getting more and more open. This is a good thing. I think the change in the second change is known to all of us, and the change in this person is not only electric but also data and energy. I think the third China is already obvious because I set up Xiaopeng Automobile in 2014. China’s car sales for the three years from 2014 to 2017 are equivalent to more sales in the decade of 2000. Therefore, in our internet field, we call the demographic dividend. In the automotive sector, we call the auto bonus. There is a change in capital. Now that the government does not, we can all get 100 to 20 billion yuan of money because many people today say that a big number is The government’s money, that’s not equity investment. But most importantly, I think there are two changes. The first one is the change brought by science and technology. If this technology brings changes, I learned from the basics of hardware science that I definitely did not dare to do this thing because I think that in this line of China, whether it is a system based on hardware or software, it did not do well, including the recent ZTE, but China did software. The foundation of the foundation is still good, and the application integration is stronger. This is a new opportunity.
If a previous mobile phone had no smart operating system, no smart interaction, and no mobile internet was possible at all, today's cars will all say why everyone will use your car's product content service. That's because I think nobody used to Experienced to a certain extent, to a certain extent everyone is used, not to a degree of no use, so I think the change of technology is a big effect.
The second is a consumer behavior. Before jumping in, I went to observe what cars were parked in the underground parking lot of the auto industry. I found an interesting car that had already been drove between 150,000 and 200,000 joint venture brand cars. All the people told me before. , as a car is not the most important, is the brand, but today a new brand is more likely, but not all, with a little more height. The second change in consumer behavior becomes a change in travel, I think It will definitely happen in the ten years, and the world must be the fastest in China. This series of changes will lead to further integration of China's OEMs in the future. A few will become very strong, and Chinese manufacturers may acquire mergers and acquisitions. Get out of the country, for example, go through India first.
The third point is that Chinese manufacturers will certainly change from manufacturing to manufacturing + trips. These changes make the entire market with enough room. So I think it is a long-term multi-step process. We want to find our own inside. The road, to take its own path solid, everyone has the opportunity to see who is the endurance is good, who is willing to do more solid research and development, I think there are some companies to do this.
Zhao Fuquan: Thank you, Mr. He shared with you why you made so much money in IT, and then came up with a circle and tilted more capital into the car. Now you don’t go home and live in the company. It was so difficult to build a car. He shared that entrepreneurs are not the same as us. Therefore, I am not the same as Dong Zeng. There are incentives for people to pursue entrepreneurship, but more importantly, the car has a dividend, a large amount of dividends, and more capital. Dividends, which are the dividends of capital that we traditionally do not recognize, but it is more aware that the technology of automobiles is not a simple scientific point of view to solve, but more integrated innovation. This is what He always understands. One, he feels that in fact the future should be said to be a new era of automobiles. This new era must be different from what we were used to. This is not the same as he thinks is an opportunity, but he thinks that the final competition must be integrated, many people It's going to go out, but he also talked about the possibility that some places are a new market. This is also He Zong. This is my first time. You have some remarks and I'm serious about learning it. You see, you see, this is you. How do you see your family to change your sneaky largest capital investment in start-ups or traditional businesses here what the total scope of the overall competitive landscape here?
Yang Hong: Both have, I am still full of confidence in the new era from my parts and components companies. A truly new four-phase electrification, intelligence, network, and sharing are in line with China's characteristics, including China’s national conditions and In our current situation, there are many bottlenecks for traditional automobiles to break through. However, new energy vehicles are electric, and China is now changing lanes to change lanes. Changing lanes is more scientific. This opportunity has great opportunities for Chinese companies. , Including Xiaopeng Weilai’s participation in the car, I didn’t understand it before, I felt that the company’s investment was so much, and the competition was very fierce here, but also came in. The topics we discussed in previous years were the Internet subverting the auto, the auto plant The Internet has been eliminated, but a consensus has gradually emerged that is mutual and mutual. The thinking of the Internet is that we understand customer thinking, and from the user's point of view, experience and think about issues, so that we can turn the future of manufacturing thinking into a customer's thinking. .
So, it's not possible for the Internet companies to truly replace or change traditional enterprises. However, I don’t agree with subversion. Because it’s true that if you subvert an industry, you’re huge and the auto industry is indeed a national economy. To dominate the industry, to subvert this industry is tantamount to being irresponsible to human beings. It is irresponsible to resources. It should be gradual and gradual. Therefore, it is necessary to change the traditional enterprise so that traditional enterprise innovation can apply Internet technologies, including Internet thinking. I feel very much in this regard. An example that took place last year was when Dongfeng Nissan contracted some new technologies. Dongfeng Nissan did not have the right to speak. In the car networking, China is the most advantageous. China’s BAT includes Xiaopeng’s BAT came out, including Huawei, Communications, this industry has come to the front more than the international, this is China's resources, Chinese consumers have been buying from our previous 60s, 70s, now 80s, 90s and even after 00s. Cars, they use the highest proportion of smartphones in the world, precisely because consumers have this demand, the basis of our industry The networking and communications companies have all risen. This is within a category of industries. I think that including Hangsheng, we are very confident in auto parts companies including the electronics industry. Joint venture brands of OEMs are not like Chinese companies. Open, even if you can do it, it will give you three or five years to slowly come, but last year these nine models of Dongfeng Nissan started in this year are all connected with the car network. They are all exclusive to Hangsheng. In this regard, These foreign top 100 companies are not well prepared. If they want to use its products, at least 2019 or even 2020, this will give Chinese companies a great opportunity, but they must have the technical pole. They must have system integration. Ability.
The second one is for Xiaopeng Automobile. We have a lot of communication with it. It has entered the automotive field. It is no longer the original four major technologies of the OEM. It is investing heavily in assets, but it is from innovation, and they are investing heavily in software. The power of understanding the consumer, how to really care about the customer, to study the demand from this perspective, and then to use our suppliers, because our understanding of the car culture, the reliability of the quality, in fact, the car culture In the end it is a quality problem, you only have high reliability, high quality you can really have a sense of security, can be responsible to consumers, I think the future of the company, whether it is a traditional car or an Internet car, these are opportunities, I It belongs to the optimist, thank you!
Zhao Fuquan: Thank you, Yang Hong. After two rounds of training, we have restructured the industry. From a different point of view, the market is changing. Products are changing. Business models are changing, and every one has opportunities. The key is who can persist. In the end, too many people have the opportunity, but few people can stick to the end. I sit in this position and many people discuss with me. The future is definitely a big integration of intelligent network, but on the one hand, it starts from the perspective of hardware. There are also software to start with. Below we have different questions for different leaders. First of all, I ask the Chairman of the Board of Directors. In fact, he tells Xiaopeng's general manager that traditionally he must win and he does not vote for so much money. Let Mr. Fan talk about it. He cannot be reconciled to the traditional car companies. From your perspective, what kind of car companies will win in the future? According to Xu’s words, the future is a sea of blood. All the leaders also agree that the competition will be fierce. China will not be three, but it cannot be three hundred. For example, the remaining ten are in the end. What kind of company it is? You count the fortune tellers and count them.
Dong Yang: Yesterday afternoon and this morning, Li Shufu all talked about the same issue. He said that enterprises are divided into three categories. One is a traditional enterprise that does not change. It is dead, and the second is a company that will change and change. He himself won the championship. The third category is the new car manufacturer. He did not comment much on this. He said that apart from the ingredients he has blown for himself, there is a reasonable ingredient. I think that traditional enterprises that are willing to change themselves are more likely to win. This is the first question of the two issues. The automobile industry is only now defined as a traditional backward industry. However, the automobile industry has always been an occupant of new technologies and a promoter of reform. This is a very dynamic industry. The industry. The president of the late Zhang Xiaoyu said: When the mobile phone is on the bus, it is Big Brother. It's the phone. Many video recorders are on the car and it is a car video. Many things are like this, so the car has so far, Automotive is the industry with the largest number of application chips. The automotive industry is the industry with the largest number of robots. And I believe that the application of artificial intelligence in the future will also be the leading industry in the automotive industry.
So the first car is a changing industry.
Second, the change in this industry is not that big. I think the industry is classified, and some are called basic industries. This is a company that I am creating. I believe that the four major industries of clothing, food, housing, and transportation are basic industries. You say, for example, no matter how you change your clothes, In the future you say wearable, your clothes are battery and the display is what, but you can't light you don't wear, your house is no matter what, but the house can be a wall display, become transparent, see the outside Or what is the power generation, but you can't not cover the rain, the car can't not move, the car is the ultimate tool for the individual to move, unless the person can become an electric current spread to other places, if this does not happen, people To move the entity, the basic properties of the car will not change. So for the basic industry, it should not be regarded as an ordinary industry.
For example, if you say this phone, accidentally the camera will kill the phone, and the phone will kill it. When my button heel can speak, but the car industry itself is relatively stable, so whoever wants to subvert the car Industry, you have to weigh and look at it.
Another Xiaopeng car I went to see, He Xiaopeng told me about his logic, I asked him why you want to do a car? You do not tell me that you want to make money or you want to contribute to humanity, he said the four aspects of the car In terms of manufacturing, traditional cars still maintain their advantages. However, in designing customer service and product form, the four aspects are different from the original. Design can use the Internet to think quickly and then quickly achieve results. In terms of product services, The indirect service that the car is now mainly commissioned can be turned into a direct service. The third one he believes that the car does not have to be a complete thing. It is not necessary to consider watching the whole world all the time. I can use different versions of the car.
I think the concept of this is actually a process of transformation and integration in the future. If you don’t want to change, you will certainly die. The traditional automobile industry I sit on this stage today. Teacher Zhao invited me to represent the traditional enterprise, but your tradition Enterprises do not think about changing or not.
Zhao Fuquan: Actually, I didn't let you play a negative role. You think so. Actually, Chairman Dong quoted Chairman Shifu as saying that you have to embrace change. If you don't embrace change, you will be dead, and at the same time The car is not the same as the mobile phone. It has its basic attributes. It is a mobile, transportation tool. As long as mankind exists, unless it is the 72 change of the Sun Wukong, that era is not coming. There are some basic functions. He also quotes some of Ho's ideas, but I personally still don't like it very much. I want to know yes, I know that if this world is the same, it is a change, but in the end, how can I win?
Dong Yang: I have to say ten, here to talk about it. I think so, China’s first look at the world’s cars, most of the world’s traditional car companies that are half or more than a half will stay because they’re The existence of the world, they want to stay. Because we are fully open, he is in our own traditional Chinese company. If there are two or three SOEs remaining in the future, then the number of private enterprises will rise, and the future of the Internet will rise. It is highly probable that an independent new-build enterprise has its own name in the Chinese market or that it will absorb one or two other people. There are very few possibilities for more than three. I think or add another sentence, I told Xiao Peng here, I told Several other people have said, I said that you may have a road to turn yourself into a company that you see in the electric vehicle department of the company. This is not a shame. We all look at Buick now. Buick was not originally a universal one. Then the next step is to combine the results.
Zhao Fuquan: Yes, thank you Dong Zong. Ten words are three points, one is a state-owned enterprise, one is a traditional private enterprise in the third, and the other is the future car led by He Xiaopeng. Two or three homes, but you haven't answered why they can win. It's that I'm smart, I'm software, I'm working on it, or I'm working on new energy, that is to say, what's the basis for this win? ?
Dong Yang: This is to cheat everyone. All the winners are divided into three categories according to Teacher Zhao. Everyone tells you a story. He says how strong he is. He said that I am strong. They are better than they are. After the home, I practiced all things. I don’t think that in the future, no one company can say that if you do something alone, you can win. You can't win the traditional manufacturing. No one can win, but you don’t embrace the Internet. To win, now I’m propagating my own opinions here. Now everyone looks at the changes in product form, sees more, and sees more changes in the use of form, but I think that the traditional car companies pay special attention to changes in service patterns. We are now The traffic and communications were formed under the traffic and communications conditions of a hundred years ago. With the current traffic and communications conditions, we can immediately use the mobile phone to communicate. Why do I have to entrust others to do it? Therefore, I think the change in service is the most difficult. Change, the most needed change, and many people shouted for so many years. Someone just mentioned Ford. Ford said in 1990 that I wanted to become a service company. Neither is this, so I reminded the industry that the industry is paying attention.
Zhao Fuquan: Let's give Mr. Dong a round of applause. Mr. Dong is not talking about anything. It's bragging. The most important thing is to make a bad car. It can't solve the problem of 1, but only 1 is 1, and then you can add it. A few 0, this 0 is to take advantage of the user service to seize the pain points, this is easier said than done. Just now Chairman Dong was such a big leader to watch the world auto industry, I also often accompany Chairman Dong to Japan to Germany When I went to see some companies, especially after I left the company, I had a lot of independence. He mentioned that the chairman of the Board of Directors, He Xiaopeng, said that you have four reasons. He said that if there is a chance for a new car building company, I will ask you why. There is such a high realm. We think we have been doing so for so many years.
He Xiaopeng: I just voted for this company and I didn’t understand it. After three years of investment, Xiaopeng Automobile understood a little bit. After coming in, there was a lot of comprehension. For example, manufacturing, manufacturing first studied for 10 years, and you could not exceed others. , Subversion is impossible, changes are difficult, but I think there are few words in my previous venture this logic we can implement, for example, we say that startup companies do not have any advantages, but why start-up companies can provide, may be As we just mentioned, the first industry started or the drastic changes in this industry, the drastic changes have created some opportunities for time and space. In this we can seize this direction and we can do three things well. The first big fish Eat fish, The second fast fish eats slow fish, Chinese fish eats foreign fish, Big fish eats small fish What logic? Other companies are bigger than you, You are definitely smaller than it, But you are at one point to spend effort It's possible because it doesn't take this seriously. It's your chance. Fast fish eats slow fish, it's bigger company, and my former company also has 10,000 people. He's already changed. Slow because You have to control, you have to be reliable, you have to be steady, you have to control it, then it slows down, the small company is quick, the way you play from the guerrillas to the field commando is different. We want to be a Marine. We are a guerrilla. We fight fast. If we can't, we hang up. If we can do it, we will be very powerful. Chinese fish eat foreign fish. This depends on China. Environment, he said why your buddy in China can succeed and we can't do it. They are Chinese. I think one important point is the market and culture, the Chinese market and the policy, the Chinese market and the policy is so good. A chance, I will do a good job in one of China's provinces, because I used to do many countries, a province in Guangdong, and a country stronger than India. Why did I do that country first? I should do China well.
So I think the opportunity to deepen these points will make the startup companies do a better job. I think that in the middle of this process, I have such logical methods. I will analyze the whole vehicle again, so I will analyze the entire vehicle. To President, just as Chairman Dong said, there is one final operation that I particularly agree with. Today, actually vehicle companies and new vehicle companies are able to operate PK. The original vehicle operation is after-sales maintenance. Now The whole vehicle operation also has charging piles and the management of the user's use cycle. This is not done by anyone. The second is that business operations products and content operations and service operations are all things that we have done in the past. We have all worked together before. No, who's something is cheap because it's free. The third user's needs change, the user's operations, I just bought a manufacturing tool to open, and I became a travel service platform to use this kind of operation. So I've been We think that operation is our biggest advantage. Of course, we need to do a good job of design now. We must do a good job of marketing and retailing in the future. The complement of our operational capability is internally called a genetic indication. In the past, I was bitter. I didn't know that the goal was when I was starting a business. When you were alive while living, you did a lot of tactical things. There was no strategic thing. I made four strategic transformations in my 13 years of entrepreneurship. It's very difficult, so a gene, a big cockroach is very easy to change, and the neck is also very easy to change, but the gene is very difficult to change. It is composed of muscles and nerves, so this is a big company with us, with a large overseas Particularly good company opportunities.
But the problem is that we can't slow down, we can't be too rushed, how to balance well, this is what I can't say now, but entering this industry is learning and summing up, and doing my company well with innovation and doing well today I am also a student. I also came to study.
Dong Yang: I think He Xiaopeng is quite peaceful. I saw him there. I think he can use this kind of mentality. He has created four trades in front of him. He is now working for the fifth time. The likelihood of his success is still quite large. of.
Zhao Fuquan: When listening to the general situation, when the industry has undergone drastic changes, the proletariat has the most complete opportunity, and the other one does not want to conquer the world. At the beginning, Chairman Dong said that he must seize a point, and any point in China is sufficient. Big, you take it all together on the line. Don't do a car-take-all, and don’t try to get 500 new 4S stores all over China to seize new opportunities. But it’s easier said than done. After all, consumers In the face of it, you say that consumers, he is new, he is also old, so where is the pain point of the consumer? It’s not what he tells you. It’s what you excavated. It’s actually difficult for a new startup. But I personally think that the newly created people have a heart of reverence, and the old companies must also have a heart of awe. We have to listen to Fan Zong. After you hear it, you have a history of precipitation, and traditional cars have to sell well. But you have to meet a new revolution. You used to work in a joint venture. Your old club is much more. You have done less. You are now the president of Gangneung. How do you balance and sell well now? To look to the future.
Fan Wei: Thank you, Gangneung. Our new vision for the car is to be the best partner for mobile travel and smart logistics solutions. I'm telling you that our new company vision is actually a big strategy. Some explanations will be given. We hope to be able to move the best partner for travel and smart logistics solutions. Why do we say so? Because we want to provide customers with whatever type of customer, a solution to the problem, to resolve its pain points However, we also know that competition in the future is different from what He always mentions. It is more likely to be a competition in the ecological circle. Now that China's logistics industry is good or it is a travel industry, the change is very fast. In fact, it is already a lot of ecology. The circle is emerging, and the ecosystem is still evolving. There will be more ecosystems. We compete as a medium-sized enterprise in such an environment. We must cooperate with many people. We definitely need to find many partners. Regardless of whether it is cross-border in the industry, it may be more of a cross-border cooperation partner. What kind of products, what kind of services, a full life cycle way to provide our customers, this is a thing we are doing now, there is a long way to go, this is the entire company to make changes and Conversion, this year is a very important transition year for Jiangling. Sometimes it doesn’t matter if we say 100%. What we hope to do this year is to lay the groundwork in line with the goals established by our good partners.
I would like to add my own empathy. In terms of the application of new energy vehicles and technology, including how to control the use of these technologies, I am not afraid of slowness. I am afraid I can't postpone it first. In fact, Jiangling’s brand advantage is there. This is not just a product quality issue. In fact, one of Jiangling’s strengths is our service. This is also a special place in our commercial vehicle. It has such an advantage. How does this advantage grow and grow with more partners? To manage this ecosystem, we also see that, for example, in terms of the logistics industry, it has become increasingly centralized and intensified. In the past, individual merchants have become less and less busy when they buy a car. More often than not, they look for different types of goods. The big teams have to apply, and even everyone wants light assets. For example, we recently visited Jingdong. Jingdong must be light assets. There are always people who want to re-equip assets, how to provide vehicles, how to provide fleet services, and how to provide packaged services to them. , Even how the capacity service is provided to customers like JD.com. It is not our family that can do it. It must be a lot of partners coming together downstream. We combine A set of methods, we have to customize to different customers. Part of the passenger car, mobile travel, especially in the city must be a big trend, whether it is a car or a car, how to solve the problem of the effectiveness of transport Actually, it is also a problem of environmental pollution, but at the same time we must pay attention to it. From the perspective of business development, we also want to play steadily. After all, it is not a large company. There are not so many resources that can be wasted. What is our priority? Point, priority order, what we can do, how we can do it, we can combine the company's partners which points to go first, step by step, like we always do not dare to go too fast. I want to talk with some large In places where SOEs are not the same, on the one hand, Gangneung is a listed company. We have to be responsible to investors. Although this is a difficult operation in recent years, I still feel very proud of Gangneung. This company used to For several years, we have been constantly giving back encouragement and continuous feedback to encourage.
In the earliest year of 1993, 350 million yuan was listed for fund-raising. The encouragement to be issued in the past 20 years will be nearly 100 billion. How to maintain such a situation and continue, it is not possible to be a small, but rather a cooperation between big and small, how to keep up with the new Create industrial cooperation and form a new ecological circle. We believe that we will be able to occupy a place in China's big cake. What Jiangling Motors has to do is to achieve our special point. We can lead the competition in the market. Thank you!
Zhao Fuquan: It's very good. Jiangling’s big direction is clear. This is not something that you can do yourself. If you want to do something more, you have to do something wrong. But the whole industry chain needs to be connected. This also has the ability of the enterprise. Problems, scales, and issues that they should and should not do should be listed companies should be accountable to shareholders and they should also be accountable to all consumers. Therefore, knowing the future is a great challenge and a great opportunity. Be cautious before you win.
Actually we have said so much, whether it is the service or the experience of consumers, or the solution. Actually, we really have to predict, what is the product that our consumers want in ten years and today? The service, and where this experience is reflected, actually there is a prediction. After 80, it is already an old man. After 90 or even 00 they have already gone to university. They have already been able to drive an adult, and Director Xu has been with you for so many years. If you look at the market all the time, you have to tell many companies what the market is like. It is not 38 million vehicles in 2030, it is already 43 million vehicles. You think that they are all solving the future plan. What kind of products do they really want? What kind of experience is required in the end? Besides, all of the services that Mr. Dong has mentioned must be done well. What kind of service? Talk about it.
Xu Changming: Indeed, we are all concerned that we are also researching. One of our research findings is that if the current consumers are properly divided, the current consumers will account for about 40% after 90, 100 buyers, and 2027. In the year 10 years after we were 00, we accounted for 7.2%. The other part added up to 49%. It should be 41 points. After 80, it would still account for 35%. This will add up to 85 people who will buy it after 10 years. About 70% of the people in the car accounted for about 70% of these people. Their demand for consumer demand is not the same as the current main force. Everyone is looking forward to the high level of the Internet. Everyone is looking forward to the changes in consumer demand. These people are unmanned. very interested.
Zhao Fuquan: He hopes to stay in the car and play mobile phones.
Xu Changming: One hundred in the 90's, 44 of them are very interested in driverlessness. The changes in the consumer and the combination of these two technologies will lead to a change in the concept of the future consumers. What kind of company may win in the future? I think these multinational corporations are big, and a dozen big ones can survive. But some companies may withdraw from China, but they will still be in the world, but there will be foreign capital in China. The market can't stand still. Domestic companies can be divided into two types of companies. The future that can be won is that we first talk about new companies, that is, companies that have new genes for Internet companies, and they are patient and respected. The laws of the automobile manufacturing industry can be successful. He has patience. The manufacturing industry has the laws of manufacturing industry. He always said, I think it is a law that pays great attention to the manufacturing industry. We have the patience to do this kind of Internet company in the future. To win some things, like to do other industries, to be a consumer field, and to think of the Internet as a car, I think it is not possible. The laws are not the same. The manufacturing industry has the laws of the manufacturing industry and it is very complicated. I'm also observing the companies that are investigating which type of Internet gene companies are really doing great work on cars. For example, I want to assemble people. I don't build factories myself. If he finds a good path, I think Yes, if you can't find the path it will be more difficult. I think this type of company has.
The second type of company is that nowadays traditional auto companies must quickly embrace the new Sihuan Internet. This is faster. It means that if an Internet company wants to make a car successfully, it must be patient. It must respect the laws of manufacturing, but you want to succeed in the traditional automotive industry. You have to embrace the new quadruped quickly. It's faster and slower. You want this field to be faster. I now find that there are already several companies that have changed. Like the new generation of Mercedes-Benz cars, it must have been studied several years ago. Things, but in the new generation of cars, like the Mercedes-Benz E that big screen that technology sense is clearly ahead of the luxury brand, which is definitely the relationship between the changes in the market for the past two years. I saw the car inside the car Roewe inside the Internet The background is relatively strong. Simply speaking, there are two types of companies. There is a law. Internet companies have patience. To truly respect manufacturing industry from the heart, you say that cars are just a thing. I will subvert you. It's more difficult. You have to With patience, that kind of thing is to quickly integrate deeply into the Internet and modernize these things. He can only succeed in the traditional manufacturing industry. This is a revisit to Dong Zong.
Zhao Fuquan: First of all, Xu Zhuren said that after the mainstream buyers 80 in the future, a little bit to 90 or even 70% will be after 00. In this case, this group of people is not the same as the 60 after 50s. We are earning some money for them to spend, and this group of people is the first aborigine of the Internet. In addition, he has an infinite love for new technology, and the level of acceptance is that we can not understand, but the car we make is not If you open it, if they open it, they buy it, this is actually not whether you are an Internet person or not, who is the group who grew up in this environment, we can't underestimate it, the other, if the company is not satisfied Their needs, this is the market which is the pain point you have to meet, what kind of people are satisfied, the car +, not the car can not, so the new car body of the Internet body has to build artificial vehicles, but only make good cars, lack of +, + +Internet. One is a question of 1, one is a question of 0, both of which are indispensable.
In fact, these things in the future, 1 also need, 0 also need, both hardware and software, the importance of the future of automotive electronics is unprecedented, we still think today, organizers, please go to the boss of automotive electronics now hardware Yang Sheng of the Hangsheng Group, how do you face the future? Both hard and soft. You were formerly hard-edged, supplemented by soft, facing the future where your soft come from, how to meet after 00 Pain point?
Yang Hong: Thank you, Dean Zhao. Just listening to the leadership of the industry, I fully agree with the changes I have made just now. These two are depots. From my point of view, you just asked where my main energy is. I put those As a strategic customer, this is always thinking in the process of transformation. This year marks the 25th anniversary of Hangsheng. During the transition process, Hangsheng was really smooth during the first two decades. It can be said that everything is a matter of fact, anyway. The five-year and five-year goals can all be achieved. After the third decade, especially after 2013, we were not able to fully realize what we were thinking about. The two years were a bit slower, but from last year to this year, we discovered that Gratifying changes: In the first quarter of this year, our sales volume increased by 20% over the same period of last year, sales revenue increased by 35%, and then the main business grew by 45%. This amount of sales rose, and this change is actually a result of our transformation and upgrading. A few years of research and development expenses we also accounted for sales revenue from 10% to 15%, last year accounted for 15% of the input, so the short-term performance is certainly not as before, but we are full of confidence in the future, just like the new Sihua said earlier, in particular Car Link It was immediately experienced, and then the smart network L3, L2 and even the future L4, the whole vehicle pattern in the future. I totally agree with Mr. Dong that one third to one third, the joint venture brand has its own market, China The privately-owned enterprise was actually represented by Geely recently. This innovation of its institutional mechanism, which fully adapts to changes in the market, is virtually always in a joint venture. He is in all aspects of decision-making from private enterprises or is affected to a certain extent, including society. Responsibilities are not the same in all aspects. In fact, the private enterprises have grasped the market in the innovation of the institutional mechanism in recent years. In fact, he read the automobile culture, and he really has a fear for the automaker's car technology. As Xiao Peng said in a closed-door meeting yesterday, he thought that the original thinking of manufacturing companies was also simple. However, after entering this industry, he discovered that there is a fear for traditional depots. To respect the laws of the industry, you only need to recognize manufacturing. Industry, especially automotive manufacturing, tens of thousands of components, put it together, and on time, this can not be achieved in a few days, even with a decade of accumulation.
Xiaopeng Automobile has already seen this point. In this respect, we must make good use of these talented people in traditional automobiles. We must respect his laws and cannot be like the Internet. I invest today, tomorrow will be effective, and the day after tomorrow will be able to make money. This is not too Probably, because of this, the Internet carmaker has just said that Xiaopeng must be able to succeed. The future is also a better job in this area. There is another company, Beiteng, who can start from the heart and feel the voice of consumers. What kind of vehicles do consumers need? In this way, we will follow these three patterns. Our Hangsheng is also focusing on this year. Breakthroughs in innovation. Focus is on customers. There are forty major customers. Everyone wants to serve us. It is not good. We focus on the top 20 customers. The top 20 in the top 20 customers must study its laws, such as platformization, future technologies. What is the direction, and only if the platform has a scale, I can really create value for the customer. The quantity of Jiangling in my company is not in the top ten, but the culture of Jiangling in Gangneung is Jiangling’s automobile culture. The customer understands your solidity, especially your respect for the supplier, the soundness of the entire industrial system, and is very honest. It is included in our customer's focus on customers. For such customers we are strategic customers because He has grown steadily. He also speaks of credibility. Even if sales are not that big, but we treat it as a good customer. Xiaopeng Motor is also a new customer. I am optimistic about its future. We cooperate with it in these areas, even Let us communicate with its R&D staff from the proofreading of the parts and components professional, and put forward our suggestions. If we can absorb them, this is our common progress.
Therefore, there will be no more than 10 depots in the future competition, and the number will reach around 2030. Whoever wins this trend must be a true consumer law. These people in the automotive culture can truly understand, understand, and become With their own down-to-earth actions to implement, such enterprises can win, and I believe that Hang Sheng will have another decade of time. Our goal is to have a Ph.D. in China, a Huawei in the automotive electronics industry, and a Ph.D. in China to lead the technology in the automotive industry. Driven by innovation, we continue to lead this industry. In this regard, we are the target of our struggle. Today, the National Technology Center will review it every two years. It is to look at your ability to innovate, and to look at your technical direction. In this regard, we are every two years. The review scores are getting higher and higher, which is innovation. Especially software developers, we are different now to adapt to future car trips and the software that OEMs want to do with my parts, vehicle systems or car networking products. , it considers the entire framework, I consider, for example, I like Tesla this set of control and digital large screen, both screens are a master Machine control, which requires a large amount of software for such technologies, we can now say with any honour to say that currently on the next generation of products, it is to control a 12.3-inch screen like Mercedes-Benz. In this field we are moving to the front. Because we are developing in tandem with the chip leader NXP, we feel that the future is ahead of the rest in this field. We believe that the new Sihua to China’s parts and components companies will bring changeovers to China’s automotive electronics companies. Opportunity, the next five years, in the process of transformation and upgrading, I think we are full of great opportunities, of course, there are challenges, but the challenge is that you have to grasp it and see what its problems are, then To solve the problem and overcome difficulties, I believe it will get better and better.
Zhao Fuquan: Thank you, Mr. Yang, if the vehicle is integrated and innovative, but it lacks the strong support behind the components. The real core technology is a single piece or inside the component. The components can't be done well. The Chinese auto industry is hard to do. Strong, Hang Sheng as the original hardware provider, but also for the future transformation of the industry's new four-dimensional from the software point of view also made full reserves, the so-called multi-screen linkage, intelligent driving positions should be said that troops and horses did not move, feed first, and then spend In two minutes, look at the people underneath. Who are you asking questions?
Question from the audience: I just read Article 4 of the Risk Disclosure in the Tesla Annual Report. We rely on a single supplier. We talked about chips for the semiconductor industry a few days ago. One of the seniors who came back from Silicon Valley told me to sell. The chip price for Tesla is probably a price, and the manufacturer selling to China is another price. I would like to ask Mr. He, if your car is positioned mid-range or high-end, the cost of a single component is very different from that of Tesla. Big, if you add other core components of automotive electronics overseas, your cost is much higher than that of Bitsila. If the tariff goes down, how do you compete with it?
He Xiaopeng: First of all, Xiao Peng’s mid-range popular car, Nvidia’s chip is really expensive. I think first Xiaopeng’s car is not a chip. We are very positioning. We do software on chip and do it on chip. Algorithm, From the current point of view, chips have different companies overseas in China, Nvidia is doing well, Tesla is doing its own chip, Google designed a set of standards for its proposed chip, but really put It still takes a long and hard time to make this thing. There are some manufacturers in China that are already doing it. We are doing some communication, but I feel that the difference in ability is still a little bit, so we will look at all the partners in the cost performance I found this inside. Since Xiaopeng Motors own view is like this, in the short term we want the minimum configuration to be intelligent, because I am not smart about non-intelligence, so if there is no more cost-effective in this, I will still With better, this is my affirmation.
But I personally think that whether China's chips are in civilian or on-board vehicles, I think the future is a great opportunity because the market is there. You see that both Huawei and Xiaomi have been forced to make their own chips because of its size. Big, today there are some Chinese cars. They are already large enough. I think that they will come to the car-level chips. I think it's still quite feasible. I think this is a trend, but it must be reached in several steps.
Zhao Fuquan: Yes, the last question is left to the chairman, and he will make a concluding statement. Actually speaking a lot today, there should be great opportunities for industrial development, but now the challenges facing the Chinese auto industry are not small. The release of tariffs, the reduction of tariffs, and the impact of similar Sino-US trade wars such as ZTE, the so-called “four modernizations” have brought about several changes. Do you think that when China moves from quantity to quality in the next step, how will China’s auto industry go up? , How do you think about how to do it? Another example of how the entire industry can truly occupy the future of the commanding heights. Please give a one-minute summary.
Dong Yang: Just now, we have fully demonstrated some of these aspects, such as embracing new technologies such as the Internet in the future, focusing on user experience, and focusing on services. These are the future directions of the Chinese auto industry, and there are two issues. These two issues Actually it is a problem. We did not fully discuss it today. The first question is what should be opened up for further liberalization. Now we see that the government promised us to have a stock ratio, we have a tariff, and I wrote about it before. Ours The opening began with the introduction of complete vehicles, CKD, and then the introduction of suppliers, or basic materials for key components of high-end equipment, including chips, so we should not stay in China when we started the reform and opening up. There is a brand in China that is over. We should build our own industrial system. This is not a very American fight. Because China accounts for one-third of the world's markets, one-third of the market should have a complete system, because cars all over the world are highly globalized. Industry, but part of the core stuff is the United States, Japan, Germany, so I think we have conditions I said this real, this is one aspect.
On the other hand, ZTE's matter, whether or not it complains about it, is that he still complains about the U.S. government. Regardless of it, I want to say that this matter reminds us that you are doing such a big industry and you have this responsibility. There may be a responsibility. You have to develop basic technologies. You have to develop chips. The problem is that everyone has discussed in the past. This time, everyone will do it. It will be very troublesome in the future. There will be a large number of people who say that I will continue to make it. It is to do the Chinese chip, then he will make money, he will be listed, really can do very little. Second, the chip can come out with a platform to run, there must be law, but also have application scenarios, so I said To do this, the auto plant must be open, we are from this year, we are all big auto companies. In addition to paying attention to what we want to buy cheap things, we want to be cheap, we have to be stable, we have to take some risks and open up our own market. , To nurture China's basic parts and components enterprises, the core components of the industry's high-end equipment industry, including our experimental equipment, these aspects are our concern in the future.
What the media is concerned about is more of what they look like. From the perspective of industry, we need to grasp more of our own laws.
Last but not least, I would like to remind everyone that yesterday I mentioned at the closed-door summit that what we are facing right now is that since the development of the industry, policy dependence has increased, policy instability has increased, and policy dependence has increased. Technology needs electric power whether it is electric or intelligent. It is different from the original mechanical technology. The policy instability increases. It is our government officials who do not, not the original government officials, the current government officials have become stupid, no, it is all now New, so this is another major issue in the future.
I hope that everyone in the public media will definitely want to find a topic. But besides finding the topic, we must also solve the problem and find a solution. You simply advise the government that your subsidy has dropped too fast. You have to tell How slow he drops, how good it is for the industry, where can the tax be made up, and that way you can make our policy a better environment for the industry to continue to develop.
I speak so much.
Zhao Fuquan: Thank you, President Dong. One hour and forty minutes. Actually, the time flies quickly. There are many topics. Chairman Dong also said, for example, that the opening has not been thoroughly discussed, including the reduction of tariffs. The automobile industry that is now sticking out is because now that the automobile industry has entered the 3.0 era, it is not enough to build a car. Because just now Chairman Dong said, now only products are made only by technology, only by doing only hard but not enough by soft, but also by A large platform, such as the smart network platform, can't play without data interaction. In the past two days, we talked with big entrepreneurs of foreign companies. If we don't solve even a lot of ethical issues, the smart network-linked cars can't go far. It was finally released recently in several cities. You can go on the road. Suddenly you won't play. I can go. I communicate with all my infrastructure. My road sign, My signal, This is our new In the automobile industry of the era, I called 1+1+1, 1 to build a good car, and to have all IT new technology companies. Third, we must have social resources controlled by the government, such as infrastructure, for example, Roads such as charging Shi, the future of new energy vehicles can go far, companies must have mandatory percentage, I have not solved the problem of charging, charging will not be able to solve the enterprise got, some companies seek for power.
The automotive industry has entered a new era. The Chinese automotive industry is actually the largest carrier of manufacturing. It is the carrier of products, the carrier of technology and the carrier of innovation. What we are really worried about is that if the chip is controlled, our intelligent network can How far is this is an indisputable fact. Just now this person has already asked, your chip is more expensive than others, and even you can't buy it. You dare to be an electric car or even a smart network car. It's There may be problems in the middle of the chip. And we just need to do these things well. The automobile industry must be stronger. When the original quantity is going to the quality development of the future, the auto industry wants to be reckless. Just now the chairman Dong has said, we The whole industry chain must be connected, as if we had parts, but we only solved the so-called first-tier suppliers, and some even solved the second-tier suppliers, but from the perspective of raw materials, we decided to open up the entire industry chain. China's market must have more safe products. There are many opportunities for change in the Chinese auto industry, but the challenges are also unimaginable. The awesome scenery, our efforts, chances are big challenges is a lot, but you have to believe what this man has put his total net worth of life are up, and he saw manufacturing in addition to outside, there are business opportunities in manufacturing and services.
Thank you for your participation. We also thank the experts for their insight. We will see you again next year. Thank you!