China's auto industry will undergo disruptive changes in the next five years


The 2015 is the last year of the Twelfth Five-Year Plan for China's National Economic and Social Development. Based on this, the 13th Five-Year Plan will also be ready to appear. Then, as the increasingly important automotive industry, what changes will take place in the next five years? What other phenomena need special attention?

 


The proportion of new energy vehicles has greatly increased

In 2009, China began promoting new energy vehicle pilots, first commercial vehicles, and later expanded into the private passenger car market. However, it was not until 2014 that the new energy automobile market showed substantial growth under the intensive policy stimulus.

According to the data, in 2014, China sold a total of 76,763 new energy vehicles including pure electric vehicles and plug-in hybrids. Among them, 29,715 vehicles were delivered with plug-in hybrid vehicles, almost nine times the sales volume of the previous year. China has become the world's second largest new energy vehicle market after the United States.

Ministry of Industry and Information Technology Minister Miao Wei said in an interview recently that China produced a total of 84,000 new energy vehicles last year, which is equivalent to four times the total output of the past five years.

It can be said that new energy vehicles are already on the eve of an explosion in the Chinese market. A good example of a market is that Beijing has already begun to promote the operation of pure electric taxis in central urban areas. The continuous market expansion of Beijing's new energy vehicles in the taxi market will have a huge market effect, which also indicates that the new energy automobile manufacturers have already achieved conditions for large-scale market promotion in product quality and technical safety and performance.

Looking into the next five years, the prospects for China's new energy automotive market will certainly be good. The annual production and sales scale will exceed at least one million vehicles, even up to several million vehicles. This is because some obstacles in the development of new energy vehicles will be fundamentally resolved in the next five years. Because the initial construction of the charging facility network will enable consumers to purchase new energy vehicles with high enthusiasm.

New energy vehicles are currently at a level where technology, quality, and performance basically meet consumer driving demand. In the next five years, the difficulties of cruising range (assignment, pictures, and inquiry) will be even greater. Theoretically, the cruising range of 500 kilometers and the actual cruising range of 300 kilometers will become the largest standard configuration for new energy vehicles. The voyage mileage of 300 kilometers will fully meet the needs of a consumer short-range travel.

Based on this, China will have an industry-leading world-class new energy vehicle company, and the chairman of the country (assignment, pictures, and inquiry) Xi Jinping's proposed new energy cyclist is the only way for China's automobile powers to become a reality.

The fundamental change in the distribution system of manufacturers

At present, the dealership system of the Chinese auto industry is still a state in which the production companies are completely monopolized and controlled. However, this monopoly system will be broken in the next five years. The three-dimensional multi-distribution forms will become the norm in the 13th Five-Year Plan.

First of all, dealers will no longer be the only 4S store form as the only distribution method. Dealers will implement new car sales through auto supermarkets, auto e-commerce platforms, and offline sales stores. At the same time, the dealers will no longer be completely dependent on the after-sales service companies of the production companies, and dealers will enrich their operating income chain through the provision of various after-sales services.

Second, the e-commerce platform will become the mainstream distribution and after-sales platform. Although in the 13th Five-Year Plan may not fully realize the online closed transaction from information flow to capital flow to logistics, there will be more and more automotive e-commerce operating entities involved in substantial new car sales and some after-sales Service and maintenance.

Third, production companies will have a large number of direct sales forms due to the existence of e-commerce platforms. At the same time, due to the complete liberalization of the after-sales service system, a large number of simple after-sales service companies will become one of the mainstream forms of the market. As a result, there will be some large-scale automotive after-sales service chain companies in the entire automotive market.

Fourth, there will be fundamental changes in the auto parts supply system. The market goal of auto parts supply companies is not just a single vehicle production company, but a large number of aftermarkets will also be the market targets of auto parts manufacturers.

The independent brand will rise

Although the current autonomous car brand enterprises are still in decline. According to the data from the China Association of Automobile Manufacturers, the market share of self-owned brand auto companies has been declining for many years in succession. Some people even pessimistically believe that the self-owned brand will face a difficult period of survival. However, today's dilemma of self-owned brands is precisely brewing the signs of future rise.

The polarization of self-owned brands will appear. In fact, this sign has now begun. Most of the autonomous car brands will experience a slow growth or even operating difficulties with the overall slowdown in the growth rate of the entire automotive market. While a small number of self-owned brand auto companies will continue to grow in the next five years, they will have a relatively long strength in the Chinese auto market and joint venture companies. The reason for such a judgment is that the quality of auto products of independent brands is constantly improving, the degree of international cooperation of independent brands is deepening, and the sustainability of independent brands is continuously improving. The self-owned brands have begun to get rid of the constant turbulence, swing, and adjustment phases of the past, and independent brands have entered a correct development fast track.

Auto-branded automotive products will enter developed markets such as Europe and the United States, and the brand strength of independent brands in the world will be greatly improved.

However, it is still difficult to improve the number of self-owned brands in the next five years. This will continue to be one of the key issues that hinder the further improvement of China's own brand strength.

New automobile industry policy will be introduced

The automobile industry development policy promulgated in 2004 has been implemented for ten years. The new automobile industry development policy will be issued in due course in the next five years.

The new automobile industry development policy will focus more on the development of self-owned brands. The development of self-owned brands will focus on the development of new energy vehicles and overseas markets. At the same time, the new automobile industry development policy will also carry out a higher level of scrutiny of the current automobile market relations as a guide for various specific automobile industry policies.

The new automobile industry development policy will put more emphasis on the consumer-oriented auto industry development route. The protection of consumer rights will become the core of the new automobile industry development policy.

The ratio policy of joint stocks will no longer be the focus of the new automobile industry development policy, and the joint stock ratio policy will be liberalized accordingly. The existence of the joint venture company will depend entirely on the willingness of the Sino-foreign joint ventures and cooperation parties, and will no longer be subject to policy constraints.

Car networking will have fundamental progress

The trend of Internet-based and intelligent automotive products will become a focus of the development of the automobile industry in the next five years. More IT companies will enter the automotive industry in various forms, or that auto companies will become more IT-oriented.

Driverless cars will start to be used in certain special fields. Cars will also take up more service functions for work and life. The car will transform from a purely transportation vehicle to a working mobile terminal or platform for working life.

The trend of automotive modularization and platformization will become increasingly fierce. Under the premise of new energy and intelligence, automotive products will become increasingly standardized.

Therefore, the automobile industry will be transformed from a sunset industry into a sunrise industry, and automotive products will become a carrier that continuously integrates the latest technology.

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