The 5thAnnual Global Automotive Forum began in Wuhan, China. The topic this year was the Transformation of China’s Automotive Industry. The backdrop for the discussion was the global economic environment and the ever changing challenges in the automotive industry worldwide. The forum provided a platform for industry leaders, experts, financiers, analysts and media to exchange their opinions and share their knowledge of to better anticipate the development of China’s automotive industry.
The forum provided a highly international perspective and attracted attention of the global automotive leaders. The attendees at the opening of the forum included: Wang Ruixiang, Chairman of China Machinery Industry Federation, Chen Lin , Commercial Counselor, Department of Outward Investment and Economic Cooperation, Wang Xia, Chairman of the Automotive Committee of the China Council for the Promotion of International Trade, Ruan Chengfa, Vice Secretary of Hubei Province Party Committee and Secretary of Wuhan Municipal Party Committee, Tang Liangzhi, Mayor of Wuhan Municipal Government as well as more than one thousand guests from domestic and foreign OEMs, component suppliers and other automotive industry or industry related companies.
Each sub-forum of this forum had more exciting perspectives to the public and will be the driving force to promote the transformation and upgrading of the domestic automotive industry.
As a pillar industry in China, the current output value of the automotive industry contributes 6 trillion yuan each year to national economy, the production and sales volume ranked first among the world. China accounts for about a quarter of the world’s automotive market making it a veritable automobile manufacturing and selling power.
Wang Ruixiang, Chairman of China Machinery Industry Federation, remarked: “China’s automotive industry has entered into a critical period where it is facing comprehensive transformation and upgrading from a focus on producing volume to producing quality.”
China should avoid blind acceleration and a GDP ranking-oriented target and should consider structural adjustments which can be achieved by accelerating mergers and acquisitions and increasing innovation. We should provide more energy efficient automotive products, prioritize globalization as a strategic goal and expand aftermarket service and supply chain cooperation to build global industrial competitiveness.
“There is a huge contrast between the Chinese automotive market volume and the relatively weak position of the Chinese brand and technology, said Mr. Xia, Product positioning and pricing of Chinese brands vs. international brands overlap on a large scale and the competition grows fiercely; Internet and mobile networking technology and large data processing technology flood into the car industry.
Wang Xia, Chairman of the Automotive Committee of the China Council for the Promotion of International Trade (CCPIT) said: “our traditional auto industry and businesses have to make tough choices, and comprehensive transformation is the only way forward. At last year’s forum, we reached many constructive conclusions, a consensus built upon the many years of experience of the industry leaders and experts in attendance. It was agreed that during the strengthening of China’s economic re-structuring and upgrading, the transformation of China’s automobile had entered a critical period.”
Mr. Wang went on to say that: “I strongly believe in the next five to ten years, disruptive changes in the automotive industry will go beyond our imagination.
-Published on pages#16-17 November-2014 edition of MOBILE WORLD Magazine