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Chongqing - Software defines the rise of the car. With the improvement of automobile intelligence and the establishing of a new business model, intelligent connected vehicles (ICVs) can provide customers with on-demand services, significantly reducing transaction and marginal service costs.
Forum of China Committee of 100 of Digital Economy during the Smart China Expo 2023, was held in Chongqing Science and Technology Museum on September 4 under the theme of Value Innovation Driven By Digital Technology. Industry experts discussed the high-quality development of China's digital economy.
"Quit being a stargazer and keep your feet on the ground," said Yuan Chengyin, Director and General Manager of the National New Energy Vehicle Technology Innovation Center, in an exclusive interview with Bridging News. "How to solve users' sore point in reality and create value is a huge challenge for autonomous driving and ICVs in the future."
Yuan Chengyin, Director and General Manager of the National New Energy Vehicle Technology Innovation Center. (Graphics/Chen Yingzhu)
Yuan said China currently has the largest market and application scenarios for NEVs and ICVs. This allows the opportunity to try many new things, forming China's industrial structure and possibly transmitting that experience overseas.
"For example, in the new force of Chinese ICV manufacturing, we clearly define products based on users' needs, forming a Chinese way of technological breakthrough," said Yuan.
Yuan Chengyin, Director and General Manager of the National New Energy Vehicle Technology Innovation Center, delivered a speech at the China Digital Economy Committee Of 100 on September 4, a Smart China Expo 2023 sub-forum. (Photo/China Digital Economy Committee Of 100)
According to the 2023 Review and Prospects of New Car-making Forces in the Auto Industry from Pacific Securities, from 2023 to 2025, NIO, XPENG, and Li Auto will continue to launch new ICVs, utilizing their enhancing product matrix. Among them, NIO's recently launched new ES6, ET5 Touring, and other blockbuster models continue to rise.
ET5 Touring is NIO's world's first electric station wagon. Its launch conference was filmed in six countries, and the original team of Top Gear, a world-recognized top automotive studio, was invited to participate. This form of car release fits its market positioning, including the Chinese and European markets, and sets to rival BMW, Porsche, and other premium automakers in their home territory.
Bearing the label of "the world's largest automobile consumer" for many years, China may become the world's largest automobile exporter soon.
With increasing exporting countries and the average export price, vehicle export serves as a short-term choice and is likely to face different levels of taxation risks from other countries. Yuan said that exporting overseas using overseas investment and building factories seems to be a wiser plan for Chinese auto companies.
"Taking a step further, we should allow Chinese auto parts companies and software companies to enter the mainstream overseas supply chain system and to form our core technology and product exports," said Yuan.
Yuan added, "If we can introduce our standards overseas, I think this will be a huge opportunity to influence the development of the NEV and ICV industry, and will be a trillion-level or even ten-trillion-level new track. "
Yuan believes that Chongqing needs to have its own auto parts layout. He regards Chongqing as an industrial center with a relatively traditional manufacturing base.
Complete vehicles, key components, charging infrastructure, demonstration operations of ICVs, etc., only creating a whole industry chain ecosystem can make it feasible to develop the NEV and ICV industry, Yuan said.
Located in the Bishan District of Chongqing, the FinDreams Battery Factory, the first production base for the Blade Battery, holds advantages in its high safety, long-range, and enduring longevity. In the first half of 2023, FinDreams achieved an output value of 11 billion yuan, a year-on-year increase of 10%.
Allowing the traditional fuel vehicle industry to transfer to the "new track," the Chongqing Municipal People's Government has strengthened overall planning and promoted the transformation and upgrading of 100 large-scale automotive parts companies and 400 district and county characteristic automotive parts companies.
They also formulated a strategy of agglomerating and developing the NEV and ICV auto parts industry in western Chongqing, with the industrial scale exceeding 400 billion yuan in 2027.
