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The necessity and urgency of the transformation and upgrading of the automobile industry

The new crown pneumonia epidemic has swept the world. As one of the world's important core industries, the automobile industry has struggled to transform under the impact of the epidemic. As the so-called crisis is organic, with the spread of the new crown pneumonia epidemic, increasing downward pressure on the world economy, and sharply shrinking market demand, the global automotive industry has also felt the necessity and urgency of industrial transformation and upgrading.

"Green" and "Electric" have become the core keywords for the transformation of the auto industry in 2020. As a "heavy player" leading the development of the world's automobile industry, Europe has gathered many top automakers. In recent years, the EU has increased its emission reduction policies at the upper levels, which has brought considerable pressure to the European auto industry. The EU did not start early in the field of new energy vehicles, did not start the layout of the new energy vehicle industry very early, and the relevant EU support policies were not in place quickly, resulting in the EU's new energy vehicle market in recent years has been tepid.

It is worth noting that starting from the second half of 2019, the European Union has begun to "suddenly exert its strength" in the field of new energy vehicles: first, it has accelerated the establishment of its own battery production capacity. To this end, the European Union has joined a number of member states to establish the EU Electric Vehicle Battery Alliance, hoping to quickly get rid of its dependence on suppliers from China and other Asian countries in terms of battery supply. At the same time, EU governments have also begun to support new energy vehicles in policies, encouraging consumers to purchase new energy vehicles through vehicle purchase subsidies and other forms. Take Germany as an example. At present, the government subsidies up to 6,000 euros for electric vehicles priced below 40,000 euros. Not long ago, the German government also decided to allocate 3 billion euros to support the automotive industry, of which 1 billion euros will be used to extend subsidies for electric vehicle purchases to 2025, and 1 billion euros will be used to promote transformation and innovation in the automotive industry. In addition, Germany will devote a portion of funds to the development of electric vehicle charging infrastructure. 

At the moment when the global automobile market is facing huge uncertainty, the market generally believes that the revival of the Chinese market will strongly support the recovery of the global automobile industry. The three major German auto companies have expressed that they will continue to increase investment in the Chinese market, especially in areas such as new energy vehicles and intelligent driving to strengthen their development in the Chinese market. Experts said that Germany, as a world-class automobile industry powerhouse, is full of confidence in the Chinese market. 

2020 is an extraordinary year for the global automotive industry. Relevant analysis pointed out that the next 5 to 10 years will be a critical period for the transformation and upgrading of the global automotive industry, and fields such as green travel and smart interconnection will usher in the peak of technological development. Whether the automotive industry can grasp the opportunities brought by new technologies and new situations and effectively respond to challenges will profoundly affect the development of the industry. 


Article information source-China Association of Automobile Manufacturers


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