Industry observation: the automobile industry is making steady progress and its own brands are shifting and upgrading
Automobile is one of the pillar industries of the national economy and plays a crucial role in the development of the national economy and society.
Against the backdrop of intelligence and networking, China’s automotive industry’s technological research and development strength continues to improve, promoting the upgrading of automotive consumption quality, while also demonstrating new vitality and atmosphere.
The picture shows steady progress, and the automotive industry rebounds against the trend
In 2021, China’s automobile production and sales reached 26.082 million and 26.275 million units respectively, ranking first in the world for 12 consecutive years; The added value of the automotive manufacturing industry increased by 5.5% year-on-year from January to December. Against the backdrop of repeated outbreaks, chip shortages, and rising raw material prices, the automotive industry has reversed its three-year downward trend, contributing an important force to the sustained recovery of China’s industrial economy and stable macroeconomic growth.
With the easing of the tight supply of chips in the automotive industry, the situation in China’s automotive market is showing an improvement, and the production and operation status of enterprises is gradually improving. From January to February this year, China’s automobile production and sales reached 4.235 million and 4.268 million units respectively, with year-on-year growth of 8.8% and 7.5%, respectively. Institutional analysis shows that the continuous improvement of chip supply and replenishment demand have driven a relatively good growth in the cumulative production and sales of automobiles from January to February this year, and it is expected to achieve moderate growth in the first quarter.
Fu Bingfeng, Executive Vice President and Secretary General of the China Association of Automobile Manufacturers, believes that the potential of China’s automobile market is enormous, and demand remains strong. The long-term improvement of the macroeconomic fundamentals ensures the sustained growth of the automobile market. On the other hand, as the impact of the epidemic and chip shortage gradually alleviates, the supply capacity of automobiles will be further released. At the same time, the strong demand in the new energy vehicle market will further drive stable growth in car sales.
Image transformation and upgrading, promoting the improvement of automotive consumption quality
According to data, as of the end of 2021, the national car ownership reached 302 million vehicles, with 79 cities having car ownership exceeding one million vehicles. With the improvement of residents’ income level, people’s concept of purchasing cars is gradually changing, and the car market is showing a trend of consumption upgrading and development.
Previously, it was possible to focus more on performance and appearance, but now it is more about car safety and comfort, such as some intelligent devices on the car, “said a recent consumer who is considering changing cars. For current consumers, the concept of buying a car is becoming increasingly rational. In addition to appearance and configuration, they are paying more attention to the safety, intelligence, driving experience and other performance of the car. Behind the upgrading of consumption in the automotive market is a leap in technological level and a relentless pursuit of product quality.
Currently, China is increasing efforts to promote the development of intelligent connected vehicles, striving to improve the stability and competitiveness of the industrial and supply chains. The automotive industry has made significant progress in the transformation and upgrading of electrification, networking, and intelligence, and in promoting the improvement of automotive consumption quality.
Cars have evolved from traditional means of transportation to a mobile space and travel partner. According to Song Zhenguang, Senior Deputy Chief Engineer of Chang’an Automobile Intelligence Research Institute, proactive interaction, automatic scene recognition, intelligent planning and driving, which can bring better user experience, are becoming the direction of industry efforts.
Automobile is the largest personal mobile terminal in the future. “Yan Jianlai, Secretary General of the China Society of Automotive Engineering, believes that the development of intelligent connected vehicles in the future is actually a technological leap, and automobiles will become a carrier, platform, and traction force for big data, cloud computing, artificial intelligence, and modern communication technology.
Changing lanes and overtaking in pictures, accelerating the strength of independent brands
People often say that the engine is the heart of a car, and doing the engine well is a core competitiveness of car companies.
What we have overcome is a very big challenge – we can now proceed with complete forward engine development, “said Dr. Wang Xiangang, Chief Engineer of Blue Whale NE Power at Chang’an Automotive Power Research Institute.” Engine development involves basic knowledge in multiple disciplines such as engineering thermodynamics, combustion, heat transfer, fluid mechanics, materials science, mechanical technology, etc. It is a complex process that requires repeated iteration and accumulation of a large amount of development experience
Domestic car companies focus more on reverse development of engines, which is to draw a gourd from a gourd, first make it, and then slightly adjust and modify it. “Chai Zhanxiang, Assistant President of the Automotive Industry Branch of the China Association for the Promotion of International Trade, introduced that many important research and development work of car companies used to rely on international partners. Now they are gradually moving their research and development work to China, and national brands are also starting to carry out some positive research and development work, This means that in the field of research and development, they already have the ability to compete on the same field as overseas enterprises, which is worth praising
In recent years, independent brands that started relatively late have gradually gained technological strength in positive research and development, and their brand strength has gradually improved. At the same time, in the field of intelligent networking, independent brand products with obvious advantages have faster iteration speed and have won the favor of more consumers, leading to continuous growth in market demand. According to data from the China Association of Automobile Manufacturers, for the entire year of 2021, the total sales of Chinese brand passenger cars increased by 23.1% year-on-year, accounting for 44.4% of the total passenger car sales, and the share increased by 6% compared to the same period last year.
In the past, we mainly ‘followed’, but today it’s different. Many companies have developed to this day and suddenly realize that they need to do a lot of basic research. Many companies allocate 10% of their research and development expenses to do basic research because there are no more followers in the past and they must develop and innovate on their own. “said Zhu Huarong, Chairman of Changan Automobile,” Research and development innovation is one of the major changes in the current industry development. Chinese brands should seize the development opportunity period of the next 3 to 5 years, seize the international market, and accelerate the brand’s upward trend