What new opportunities will the 19th Congress report bring to the development of China's auto industry?

The biggest thing in the political life of the Chinese people in the past week was the victory of the party’s 19th National Congress. At the opening ceremony, Comrade Xi Jinping made a report to the General Assembly on behalf of the 18th Central Committee for nearly three and a half hours. In this report, he described to us the blueprint for China’s grand development by the middle of this century and the next 30 years, which has inspired all Chinese people.

As an automaker born in China, living in China, and will also be working and living in China in the future, I think the most important task at the moment should be to seriously study the report and find it in China in this report. The new opportunities brought by the automotive industry, and find their new position and new role in this new opportunity.

What new opportunities will the 19th Congress report bring to the Chinese auto industry? In recent days, the author has repeatedly read the report. He has some experiences and experiences and shares with you here:

First, there is a new opportunity for stable growth in the automotive market and the upgrading of consumption. We know that the increase in car demand is closely related to the increase in the income level of the general public. The 19th National Congress of the Communist Party of China proposed the goal of fighting to the middle of this century: From now to 2020, we must build a well-off society in an all-round way; from 2020 to 2035, basically realize socialist modernization, one of the important manifestations is that “people’s lives are more The proportion of the middle-income group has been significantly improved.” From 2035 to the middle of this century, to build a strong, prosperous, democratic, civilized, harmonious and beautiful modern socialist modern country, one of the important symbols is that “the common prosperity of all the people is basically realized, and our people will enjoy more happiness.” An Kang's life."

From this goal we can see that in the future, with the steady growth and high quality growth of the Chinese economy, the income level of the entire people will become higher and higher. As a result, the popularity and replacement rate of automobiles will increase substantially. By then, cars will become as popular as color TVs and refrigerators. Every family will own a car, and most families will open a good car.

It is worth mentioning that the fifth part of the report has a separate section, proposing "implementing the strategy for the promotion of rural development", improving the "three-rights" separation system for contracted land, and extending the second round of land contracting beyond the 30-year extension period. The realization of the organic convergence of small farmers and modern agricultural development, the promotion of the integration of secondary and tertiary industries in rural areas, and the encouragement of employment and entrepreneurship by farmers will undoubtedly promote the rapid growth of farmers' income. At present, China's auto market is further extending downward. Third, fourth and fifth-tier cities have become the main driving force for growth. It is believed that the vast rural market in the future will continue to exert force to promote the steady growth of the Chinese auto market.

The authoritative experts in the automotive industry predict the average level of automobile penetration in developed countries. The peak sales of Chinese automobiles will be at the level of 50 million vehicles (of which 10 million will be exported). This will be seen from the consumption power of Chinese families in the future and the Chinese consumer culture. It is entirely possible to reach or exceed this value.

Of course, car sales may be constrained by factors such as the environment, roads, parking, and shared cars, but overall, the huge growth potential is worth looking forward to.

The second is to vigorously develop the real economy and accelerate the new opportunities for building a strong manufacturing country. In the first part of the fifth part of the report, “Strengthening structural reforms on the supply side”, Kaiming Zongyi proposed that “the focus of economic development must be on the real economy”, stressing that “accelerating the building of manufacturing powers and accelerating the development of advanced manufacturing Promote the deep integration of the Internet, big data, artificial intelligence, and the real economy to foster new growth points and new momentum in areas such as high-end consumption, innovation and leadership, green and low carbon, shared economy, modern supply chain, and human capital services.”

The automotive industry is a standard real economy, but also an advanced manufacturing industry. It is an important part of building a manufacturing powerhouse. There is no doubt that it is the key industry supporting the development of the country in the future; in the automotive industry, the current direction of the economy, the current automotive industry The "four modernization" consensus of electric, intelligent, e-commercialization and sharing is also highly consistent with the direction pointed out in the report. From this we can believe that in the future, China will realize the pace of development from a big automobile country to a powerful automobile country through the development of new energy vehicles. It will be faster and faster.

The third is to open up new opportunities brought about by the new pattern. The report puts forward that “the door to China's opening will not be closed, it will only grow bigger and bigger”, “We insist on introducing and going abroad”, and “Strengthening openness and cooperation in innovation capabilities”, etc., which let us not only see that the joint venture is let go The challenges brought by the equity ratio of China’s multinational auto companies must also see the opportunities for China’s independent brands to move toward the international arena and deploy global automotive innovation resources. We can see that the Chinese auto industry, especially the new forces of new energy automakers, have taken steps to allocate resources globally for my own use.

What is more noteworthy is that the report proposes to “open the door of the country to engage in construction and actively promote the 'Belt and Road' international cooperation, and strive to achieve policy communication, facilities connectivity, trade flow, financial financing, public sentiment, build a new platform for international cooperation, add common development new momentum". At present, the biggest shortcoming in the development of China's auto industry is that China's auto exports are extremely disproportionate to the status of major automakers. Last year, domestic auto sales exceeded 28 million, but the export volume was only 810,000, a ratio of less than 3%. The reasons for the analysis are mainly due to lack of brand strength, lack of core competitiveness, and lack of talents and experience in exploring the international market. But it is this gap that allows us to see great potential.

Now, the country is vigorously advancing the construction of the “Belt and Road Initiative”, which will increase interconnection and interoperability with countries along the route from multiple levels. This has created a golden opportunity for China's auto industry to go global. Now it depends on whether automakers in China have the ability to do so. Go to the international market and go vertical and horizontal in this market!

I have always believed that Chinese automakers are happy. In the past 30 years, we have encountered a good era in which automobiles have entered homes and markets have experienced explosive growth through reform and opening up. In the next 30 years, we will usher in the rejuvenation of the Chinese nation. In the new era, not only will the market continue to grow steadily, but it will also have the opportunity to show its talent in the international market. In such a good time, can we adapt to the new demands of the market and produce products that are safer, more energy-efficient, more environmentally friendly, and smarter, and can we not achieve the development of the automotive industry from the "followers" of multinational car companies? Transcendence of "leadership", whether we can create a new car life for the Chinese people and global consumers, depends on whether we have this ability!

In this regard, I am full of confidence.