Special Report

November 27, 2014

The Transformation of the Automotive Industry – Industry heavyweights brainstorm

At the opening plenary of the 5th Global Automotive Forum on Oct 16, major domestic auto group executives and other participants discussed the most relevant issues and challenges facing the automotive industry today. Key topics discussed were: guidelines for transformation; rebuilding enterprise relationships and improving supply chain efficiency among the OEM’s and auto suppliers, regulatory and policy issues facing the industry, the importance of green manufacturing, remanufacturing and energy conservation, adjustment to the China strategies of global assemblers, addressing structural issues and overcapacity.

Zhu Fushou: “Matthew Effect” will become the new normal in the development of the automotive industry.

The transformation and upgrading of the automotive industry, Zhu Fushou, the general manager of Dongfeng Motor Corporation said, is affected by the domestic environment. The automotive industry in China is showing a new normal in its development and the main features are: 1. a micro-growth state, resource allocation in the market. 2.”Matthew Effect” is more prominent. 3. facing a variety of challenges. 4. cross-field integration. 5. the extension of the value.

How should we promote the upgrade of the automotive industry? Zhu Fushou said, “We should maintain a strategic approach and keep in mind that the market plays the decisive role in the resource allocation. We should take full advantage of government regulations and reduce unnecessary administrative intervention of the enterprise. Take full advantage of the social role. To give full play to the role of the automobile industry associations and market intermediaries coordination and organization of services, the enterprise should play the main role in the market economy and promote industrial restructuring and upgrading. Enterprise is the key to realize the version of becoming a powerful automotive country.

Zhang Baolin: Emphasis on the customer, improving technology and building a mature system are key elements.

Zhang Baolin, President of China Changan Automobile said: the automotive industry has entered into a critical period where it is facing comprehensive transformation and upgrading. Emphasis should be on getting more customers, improving technology and building up a mature system which are all key factors in achieving the transformation and upgrading of local Chinese brands.

Zhang Xi Yong: Improving Product and Service, Promoting industry transformation.

Zhang Xi Yong, General Manager of BAIC Group said: “our long-term strategic goal is to realize the fundamental change from a focus on producing volume to producing quality.” He also remarked that in order to achieve strategic transformation, we must strengthen the domestic industry. By enhancing the market competitiveness of our products, it will increase the brand’s reputation and its influence in the industry.  This is the priority. In addition, we should make a breakthrough on manufacturing profits by increasing the portion of the service sector, and carve a development path by innovating the business and management models.

Chen Demei: Accelerating innovation of technology and business models is particularly important.

Chen said: The car is more and more becoming the target market of mobile internet which will have a huge impact on the traditional automotive supply chain in the future. SAIC should firmly grasp the direction of the technological developments in this area and seize the opportunity to innovate and transform. In a joint venture, independent brand building is still important. In addition, SAIC’s aim is to achieve a breakthrough in the core technology, exploration of advanced technology, business model innovation to reform the system in the near future. The transformation and upgrading of China’s auto industry encourages brand development, independent innovation leading to globalization.

-Published on page# 19 November-2014 edition of MOBILE WORLD Magazine

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