The “New Normal” makes the old development style – focusing on scale and speed – difficult to sustain, and provides China’s industry, especially the automotive industry, with the opportunity to transform and upgrade. Made-in-China 2025 reinforces this initiative. At the seventh Global Automotive Forum panelists discussed how to deepen the structural reform and speed up the transformation of government’s functions, how to make a breakthrough for OEM reform, how to provide a mechanism for smoother Chinese automotive manufacturer development, and how to build an industry innovation mechanism.
At the plenary meeting on the morning on June 7, Dong Changzheng, Executive Deputy General Manager, Toyota Motor (China) Investment Co.; Shu Youxing, General Manager of BYD Auto Sales Co.; BVR Subbu, Director, Beyond Visual Range – Strategy Consulting, and former President, Hyundai Motor India; and Li Peng, Deputy Editor-in-Chief of Sichuan Daily Press Group, President of West China City Daily, CEO of Cover Media held deep discussion of the topics from various angles.
Dong Changzheng said: The purpose of Toyota is not the sales, but long term development.
“Although faced with many challenges, we will still stay committed to our ambition, that is to produce better automobiles for a better city,” said Mr. Dong. Toyota has been committed to the promotion and popularization of hybrid cars, which depend less upon the construction of infrastructure.
Earlier, Toyota released its strategy for 2050. They plan to achieve zero emissions, zero environmental damage in the future. Based upon this goal, Mr. Dong stated “Toyota must continue to adhere to its tradition of innovation. For example, in management innovation, the automated and just-in-time production methods of Toyota will continue to dominate. This model is built based on customer needs, and lets dealers, suppliers, the whole value chain collaborate.” In respect to technological innovation, Toyota has been improving for years in product fuel efficiency and emissions, and created a new platform for TNGA. Mr. Dong noted that Toyota would introduce the specific content of the global TNGA platform soon.
After years of development, the manufacturing of Toyotas in China has reached higher levels, now there are nine wholly owned companies, 15 joint ventures, and more than 1400 outlets with 9 million customers. But discussing development targets, Mr. Dong has set the target of 2016 as essentially flat with 2015, “this is according to the concept of rings of operation, Toyota has its own development rhythm and judgment, we need not talk too much about the goal, but do their own action “well”.
When it comes to electric cars, many stress increased vehicle charging may overburden the power grid. From Shu Youxing’s point of view, most electric vehicle charging time occurs at night and will not increase power grid peak load. Therefore, the idea that electric cars may aggravate pollution, Shu Youxing deemed as too one-sided.
With consecutive years of more than 50 percent growth from 2013 to 2015, the global electric car market to total vehicle sales of 549,000 in 2015. BYD electric vehicle sales have reached 61,700, ranking first in the world. BYD has identified three key directions for future development, aiming to comprehensively upgrade car power, intelligence and security.
As for power, through its use of the motor system, BYD has enhanced efficiency and performance; electric models even feature more robust power systems than traditional models. As for security, when accidents occur in about 0.6 seconds and with a mechanical response time requires 0.2 seconds, BYD’s motor response time of just 0.02 seconds gives drivers more opportunity to adjust and safely avoid traffic accidents. As for intelligence, BYD will intensify Internet integration, and launched a completely open, real-time car machine system connected to the Internet.
Shu Youxing said, BYD in the future will “strive to achieve full market coverage of new energy vehicles, pushing a deeper internationalization strategy, in-depth in 48 countries and 200 cities on five continents. What BYD should do is to integrate global resources, and really push the technology of China to the world”.
BVR Subbu said that since recent decades, the development of China’s automotive industry is already on the path of internationalization development.
“If the Chinese automobile industry wants to become a global giant, innovation is very important in its development,” BVR Subbu said, further highlighting that Chinese car companies must be alert to two points: avoiding the excessive price competition behavior of the global market, and considering the preemption market.
At the same time, before industry transition occurs, SOEs must pay attention to an industry consolidation problem in China. To attract international talent and retain local talent must be the foundation of China’s automobile global strategy of industry development.
Li Peng: With Science and Technology as Core, Driving Joins the World in the Future
At the meeting Li Peng made speech centering on the theme of “rejoining the world”, noting that young people want more intelligent vehicles with incorporating networking and sharing features in the new era.
“From the perspective of the trends of the future, we are at the starting point of the change from the mobile Internet era to the artificial intelligence era. Niche markets will eventually replace the mass market model towards the middle of the stage” Li Peng said, “future car innovation will be driven by science and technology at the core of development.”
-Published on pages#22-23, June-2016 edition of MOBILE WORLD Magazine