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— A Review of the Global Automotive Forum 2017

Dozens of automotive industry leaders gave speeches and participated in live discussion panels during the 2017 GAF. The overall discussion on the revolutionary changes happening in automotive industry was very illuminating.

The Eighth Global Automotive Forum (2017) was held during June 7th to 8th in Chongqing. Industry leaders from China, France, Britain, America, South Korea, German, India, Pakistan and more countries were invited to attend the grand event. There were 64 guest speakers, 228 companies and 144 media personnel. Over 800 participants attended, of which a third were from OEM, and an additional third were either suppliers, dealers or professionals from automotive fields. The final third of the participants consisted of Chinese and foreign media.

This year’s forum has designed various sessions covering topics including: Industry Landscape and Strategies in a Maturing Market, Made in China 2025, Strategies for Profitable Growth in a Maturing Industry, Green Technologies and New Energy Vehicles, “The Belt and Road”, EV New Champions, Chinese Brands: Current Progress and Outlook, Future of Auto Dealerships, Next Generation Technology’s Impact on the Auto Industry, Auto Sales and Marketing: Strategies in an Era of Slower Growth, Auto Design and Styling: Innovation & Inspiration, Vision of Auto Industry in 2025: Opportunities, Challenges Ahead and the Way Forward. These topics directly concern both China’s automotive industry and global automotive companies. Global automotive leaders comprehensively interpreted the structure of this revolution, and the historical challenges in the automotive industry worldwide with their inspiring presentations and sharp insights.


A New Era of Automotive in Revolution

2017 is a watershed year for qualitative and quantitative change. In this competitive era of continuous reform, which directions can global auto industries go? How can the Chinese auto industry optimize its role? How likely can it turn its current situation around?

“We need to rediscover the depth and breadth of the industry's transformation and recognize the coming age of new cars.” Chairman Wang Xia illustrated the unprecedented transformation undergoing from three aspects: “Car products are no longer a single means of transportation, but are the largest integrated mobile terminal in human society; The car industry's borders have disappeared, becoming more open and broad, and traditional auto companies have turned to technologies and services oriented. The new relationship between the cars and society is being formed, and the environment, safety, law and economy are all facing challenges. Cars have become social and economic products.”

Deputy Mayor Wu Cunrong held similar opinions as Chairman Wang Xia. He noted that disruptive changes are happening in the industry. In this situation, China is leading the world's fastest growing consumer market. According to his introduction, "Chongqing’s automobile industry has enjoyed rapid development. Car production was only 200,000 units 20 years ago. In 2016, whole vehicle production was 3.16 million units in the city with thousands of industrial groups, accounting for 11% of the country’s, and leading other provinces. By 2020, we should aim to have built up international first-class research and development hub for new energy vehicles and intelligent cars.

What is the attitude of the auto industry toward the international competition in this transition period? Wang Ruixiang cited the opinion of President Xi Jinping during the “the Belt and Road” Summit. President Xi stated: "Peaceful cooperation, open and inclusive mutual learning, mutual benefit, win-win cooperation." He called on China's auto industry to bear responsibility and take action effectively so as to build a new international system to help the auto industry achieve win-win cooperation.

In recent years, the global auto demand is maturing with growth slowing in key global markets. The short-term outlook for the auto industry is uncertain. As growth moderates, competition intensified, new technologies emerge and the regulatory environment changed, how are major companies responding to potential new opportunities and challenges? And how will China’s role in the global industry develop in the coming years?

Feng Yaxing, Vice Chairman, General Manager of Guangzhou Automobile Group, pointed out that, by 2023, the popularity of passenger cars in China will be coming to an end, and smart connectivity car will be the focus of development in the future. He believes: “From the perspective of scientific and technological progress, the energy and intelligent network revolution will propel the revolution of the automobile industry. This trend will cause mechanical energy to become mobile energy, we will move from producing cars, to developing smart vehicles. In addition, from the perspective of auto industry development patterns, the Chinese auto industry will continue to lead the global automotive economy, and the potential for continuous growth is still very attractive.”

However, the transition from the traditional automotive industry to electrification and intellectualization is filled with a lot of uncertainty. An Tiecheng, Dongfeng Motor Company Deputy General Manager, also said that technological progress has a profound impact on the development of the automotive industry, which in turn cannot be separated from technological progress. In the new competitive pattern, the automotive industry has been given a new path, and gradually toward the direction of intelligence, electrification, connectivity and sharing.

Yuan Mingxue , Changan Automobile Vice President, put forward a substantive response strategy on the current development of the automotive industry. He believes, "Internet +" is the biggest driving force to lead the economic development. In automotive industry, auto products and services are the primary elements of competition. Customer experience and user behavior is the key of the "Internet +" automotive industry. There will exist three big uncertainties: the technological uncertainty, the consumer uncertainty and the policy uncertainty.


What Are the Forces to Reshape the Industry Structure?

In the past 15 years, China's auto industry has formed unique features and industrial structure. So, in the next decade, what will be the new features be as this industry develops?

Zhu Huarong, President of Changan Automobile Co., Ltd, said: “Chinese car enterprises should have a deep understanding of the new trends, should have the ability to create classic products and services to meet consumer needs. Additionally, they need the ability to integrate the industry chain and multi-channel profitability. With the progress of Intelligence plus, Internet plus, New Energy plus and other technologies’, automobiles will become the next smart terminal device of intelligent mobility. There might be an ecosphere based on automobiles in less than ten years. In addition, the future car companies will encounter changes. In today's economy, the consumer’s demands are upgrading, therefore, the consumer's pain points will be amplified, and the demands will be strengthened. Therefore, the car companies that cannot produce products to meet users’ needs will eliminate. At the same time, Internet companies have got involved in the field of automobile manufacturing, the car companies need to focus on integrating resources.

An Conghui, President and CEO of Geely Auto, believes that Chinese auto companies are facing great opportunities in this time of constant change, and Chinese auto brand market share will continue to rise. The position of Geely is to compete with second line joint venture brands. He said; “The sustainable development of the enterprise is a systematic and global issue. We are still in the stage of continuous exploration and constant revision. We are well aware that only if the Chinese auto companies collectively achieve the sustainable development, then the Chinese automobile Industry can truly gain a firm foothold on the global stage."

Lian Yubo, Senior VP of BYD Co., Ltd, predicted that the future of China's auto market may become the boldest and the most leading market. He said: “In the field of new energy vehicles, if companies don’t pay enough attention, they will make the same mistakes of traditional fuel vehicles. The corners provide a chance to the driver to pass on the outside lane. However, the corners also require higher performance. The new and old technology are cross-converging, so both new and old car companies need different breakthroughs. Research shows 52% consumers in China are willing to buy pure or hybrid electric vehicles. The number of new energy vehicles in demand will reach 2 million by 2020, and Chinese self-owned brands’ share will reach 60%. These are potential development opportunities for the auto market in the future."

Cai Bin, Assistant President of SAIC Motor Cooperation, held the opinion that the changes of Chinese economic development trends will determine and influence the future direction of Chinese cars. The past wave of consumption way is gradually being replaced by diversified and individual consumption, and the future of the Chinese auto industry will be differentiated. He said: “Innovation is still the topic of the development for the future of Chinese auto market. To be innovation-oriented, we need to break through the original development model, to expand the innovative room, and to seek and create new market opportunities in uncertain environment. Along with the deep integration of financial and auto service, ownership and usage for cars will also reform in the future, and car sharing will lead the new business model.”


How Will the Auto Parts Suppliers Transform?

During the forum, many leading corporations and organizations reported on significant news. For instance, two cornerstone-laying ceremonies was held this time. One of them was for the new research and development center of Continental Corporation in Chongqing, the other one was Dana’s cornerstone-laying ceremony for its assembling factory. Additionally, the CEO of BorgWarner participated with nearly half of their management team. Corporations’ delegations

from other parts suppliers showed up with senior executives from their headquarters.

The slow-down in production growth of China’s auto industry, overcapacity concerns and shrinking profits are all putting pressure on auto parts suppliers. Suppliers are also in an environment where they are required to make significant investments in new technology to meet the demand of customers, markets, and regulations. So, to the international suppliers that dominate China’s auto parts industry at the Tier 1 city level, what technical challenges currently affect them as they gain a foothold in the overall market? How will the relationship between the OEMs and suppliers change?

Bob Pyle, President of Light Vehicle Driveline Technologies Dana Incorporated, said that auto parts suppliers should re-evaluate the problem of overcapacity, because it is related to the global parts allocation. Meanwhile, overcapacity also affects the risks of inventory. Auto parts suppliers are facing huge changes and challenges under the rapid development of China's auto market.

Edouard de Pirey, President of Valeo China, believes that China's auto industry is facing three major revolutions: electrification, autonomous driving and new services. The future world needs Chinese innovation. The Chinese market is more willing to try new technologies than others. Owing to the focus on the Chinese market, Valeo can enjoy global growth in the depressed market. China is the world's largest market, which represents 50% of the world's economic growth. China’s auto market has plenty of room for growth.

Simon Yang, President of Delphi China, emphasized that the current changes in China's auto market in addition to the many changes facing auto-parts companies, show that the industry is seeing rapid and complex changes. If suppliers aren’t willing to take new countermeasures, some suppliers will face the danger of being eliminated. He said: “The changes in the past five years has surpassed that of past 50 years in China’s auto market, which has become the world's largest mature market. China's consumer demand for automotive electronics, electric vehicles and internet-connected auto technology, are far ahead of the demand of the rest of the world.”

New technologies play a key role in resolving challenges from lowering fuel consumption and CO2 emission to improving security and reducing traffic congestion. In some areas, such as navigation and connectivity, technology is also making great progress on the impacting the interaction between the car, driver and environment. A dream team composed by senior managers from global first-tier OES were invited to the forum and discuss the impact of new technologies in restructuring the industry. What should the OEMs and parts supply companies do to embrace this change? How can we build an intelligent car and intelligent city?

James R. Verrier, President and CEO of BorgWarner Inc., USA explained that by 2025, 30% motor vehicles will be produced and sold in the Chinese market, and 35% to 50%of pure electric and hybrid cars will be made in the Chinese market. China will undoubtedly lead the development of pure electric vehicles around the world. The current vehicle transmission system only includes traditional fuels, hybrid technology and new energy. The size of their respective impacts is not clear, and believes nobody has a good prediction. Therefore, the future of BorgWarner will not reduce its proportion of business on fuel systems, but improve their businesses in these three areas at the same time.

Corporate Technology Officer of Continental AG Kurt Lehmann said 1.3 million people die each year because of traffic accidents in world wild, and intelligent technology can help reduce that figure. China Netcom and China Unicom maintains a good cooperative partnership with Continental AG in automotive connectivity. Last week, Baidu and Continental AG signed cooperation agreement on artificial intelligence. They attached great importance to driverless transportation and hope to promote unmanned driving development.

"Electrification and internet connected vehicles is the direction of the automotive industry in recent years, and Magna is closely following this trend in order to maintain competitive advantage in the future," said Jerry Lavine, Vice President of advanced product development at Magna International who also believes that China will be the largest electric car market in the future. For every car manufacturer, autonomous driving requires extensive research and development, but for most car companies, the car network is not their field of expertise, so they need excellent suppliers to provide a more mature system. A car is not just a specific product, but it will be transformed into a travel program and become a system in the future. People will have more travel options than before and can make the balance between cost and convenience, which are challenges facing the whole industry.

Matthew Kardel, General Manager of Delphi autonomous driving and automation of network services, thinks that the ultimate realization of autonomous driving requires qualitative change in computing power. Data is a new fuel. Delphi focused on three technologies: computing, autonomous driving and data to deal with the “challenge of last mile”. He said: “We do not want to completely replace public transport, but extend and expand public transportation so as to finish the point-to-point autonomous driving.”


Unique Catching-up Industrial Strategy of China

“Made in China 2025” is a state-level development strategy for China’s future economy. It’s also the first step for China to grow from the biggest manufacturer to the best manufacturer. It aims to optimize resource allocation, improve production efficiency through advanced technologies, innovation and intelligence, improved infrastructure, upgraded structure and environmental-friendly requirements. Private companies are the major force of innovation.

So, what’s the difference between “Made in China 2025” and Germany “Industrial 4.0”? Xu Daquan, Executive VP, Bosch (China) Investment Ltd., said that, as the pioneer of Germany “Industrial 4.0”, Bosch has implemented programs to adapt to the new changes. Bosch are connecting the physical world to the virtual Internet. Digitalized management and open standards are adopted to achieve quick allocation and flexible production.

Different from German, China faces many supply-chain problems. China has overcapacity of low-quality products, while the market is demanding higher quality. The focus of structure reform should be on the supply-chain, which is an unavoidable road for China to go through to transform from low-end manufacturing to high-end manufacturing. It’s also a great driving power to help China achieve the goal of “Made in China 2025”.

Fan Wentang, VP of Nanjing King Long Bus Manufacturing Company and General Manager of Large Bus Department, expressed that it was easy to make a success in automotive industry before 2008, and the market was growing rapidly. From 2009-2012, the entire industry still looked positive because of the supporting policies. However, since 2013, the automotive industry manufacturers have been confronted with huge pressure especially from lower profit margin. Thus, in terms of product, whether it’s with good quality or new technology, determines the destiny of a company.


The “Belt and Road” Initiative Helps Chinese Automobiles Go Global

How will the “Belt and Road” initiative provide opportunities for the Chinese auto industry? How do Chinese auto companies focus on the overseas development? How far is still ahead for Chinese brands to grow into global brands?

Chen Lin, Former Secretary of Commerce for Foreign Investment and Economic Cooperation and Commercial Counsellor, pointed out that the “Belt and Road” initiative has a very important significance for the development of western China during China's economic circle, and promotes deep reform and leads the peaceful development of the Chinese strategy. Overall, the “Belt and Road” initiative provides an unprecedented historical opportunity for the automotive industry to go global.

Du Weiqiang, Vice President of Chery Automobile International Executive, “Since the “Belt and Road” strategy started, the number of Chinese brands cars exported to the countries along the “BR” area has been increased. In 2016, Chery has exported nearly 65% cars of its total number to countries along the line of the Belt and Road, making these countries the main battlefield of the Chinese brand car exports.”

Although the export number of Chinese brand cars is increasing, according to Du Weiqiang, the globalization of Chinese brand car has reflected four features. First, exporting countries are all experiencing economic downturn, industry shrinking, and exchange rate depreciation. Second, the main destination of exports is still Asia, Africa and Latin America. Third, we are still "small and NOT strong". Forth, our overseas risk resistance capacity is still low.

Yang Bo, Vice President of Lifan Group Executive, also said that now, as a branch of automobile exports - Chinese brand motorcycle encounters some problems in the overseas market: homogenization and other quality and service problems; lack of aftermarket service, lack of brand; wide market but low profit, less elaboration, simply trading rather than smart marketing.

Facing the opportunity brought by the Belt and Road, Professor of Tsinghua University School of Law Cheng Yu-Tung and former Vice Chairman President and Chief Investment Officer of The China Investment Corporation Gao Xiqing, called on that Chinese car enterprises should respect the local market, do not blindly using the money to knock on the door. “As for overseas market rules, on the one hand we are not familiar with, more importantly, we do not respect. Every country has its own approach, political system, cultural beliefs, so we must have enough attention”. Gao Xiqing pointed out that Chinese car companies like to use money to solve problems, "It is not sustainable to heavily rely on using money to knock the door. If people got the money in hand, then they will let you go.

Du Weiqiang pointed out that the Chinese brand car should possess strategy before acting. As to thought, we should be well-prepared for the international market situation and risk and should seize chances in the international market. As to tactics, reinforce the foundation, provide good products, and offer satisfied brand and service internally; strengthen research in overseas and make full use of market access, product launch, target population, channel construction, and indigenous manufacturing externally. As to action, understand the spirit of consultation, joint development and sharing advocated by “The Belt and Road”. As to consultation, it is necessary to strengthen the communication between “the Belt and Road” and the counties related to this policy, and fully understand the lessens, trends, policies and needs of local car development. Enterprises need to voluntarily integrate their own development into the local automotive industry development, to take an active part in the discussion of the car development with target counties, and build a good business environment for the Chinese car in the local place.

As for the experience of motorcycle exports, Yang Bo also gave some advice: without practice and diligence, there will be no improvement or fortune; Chinese companies should learn from Volkswagen’s strategy in China. Form business alliance as early as possible and share legal and public resources with others in oversea market. We should be self-discipline and formulate agreements and regulations, coordinate properly to avoid vicious competition. Just like intensive farming is the crucial way for durable mechanical products, car marketing follows the same logic. We should forget the traditional trading theories and prepare advancing technologies and talents as early as possible.


The Marketing Strategies in the Era of Low Growth

The global auto market outlook is not optimistic. The global demand for automobiles is less than expected, and the industry is facing problems and challenges. Therefore, when talking about auto sales, how to reform to adapt to the changes is an inevitable topic.

Marco Hecker, Automotive leader, Deloitte China, thinks that Chinese auto market is under great pressures from four aspects including the change in consumer spending habits, the increase and expansion of automotive product & service line, the growing competition and integration of the industry, the emerging of electrification, autonomous driving and sharing trends. Overall, the profitability and development potentials of traditional OEMs have been seriously challenged by these pressures. Liao Xionghui, Vice President of Hanteng Autos, General Manager of Hanteng Autos Sales Co., China, believes that in order to survive in the competitive auto market, and seek a permanent foundation, the mere pursuit of "quantity" is no longer workable.

Shu Youxing, General Manager of BYD Sales Company, believes that in the gloomy period, companies need to scrutinize their own work, strengthen their marketing theories and practices, and reflect on what shortcomings can be improved. He put special emphasis on the homogeneity and differentiation of products across the market. He also announced that “in the fierce competition, we need to keep doing research on the customers’ needs, and to constantly make the products more differentiated.”

Chen Hao, VP of Sales Department, Dongfeng Nissan Passenger Vehicle Company China, emphasized: “Like war and water, everything is in a dynamic changing environment. The key to win in a changing world is to use the strategy of “simultaneous attack and defence”. Marketing should be considered at the end of the whole enterprise value chain; the ultimate goal should be to maximize the company's long-term interests. Focus on long term development, making marketing more stable, and focusing on the growth of the system to increase sales naturally and healthily. Channel is the root of enterprise, achieve mutualism, and become more resilient and dynamic. Then the company will be more competitive. Service, which is the foundation of the enterprise, meeting the expectation of consumers is the root of enterprise development.”

At present, China's auto market is in a low-growth state, it is worth noting that as the market is segmenting, only the excellent car brands will remain. Geely, Trumpchi and QOROS are the representatives of the Chinese brands, they are also representatives of the, “Moving up Brands”. Although these three brands have both similarities and differences, their aims are the same: To realize the development of Chinese automotive brands, they need to do a better job of creating solid products and carefully segment their consumers, to convince more consumers to accept Chinese brands.

Yang Xueliang, Deputy General Manager of Geely Automobile Sales Company, expressed, it is high time to develop China’s brands to develop. With the support of government policies, brand power and consumers, the gap between China's brands and the foreign brands is getting smaller.

Xiao Yong, Guangzhou Automobile Group Passenger Car Co., Ltd. Deputy General Manager, said: “We should put more efforts in the development of areas such as, new energy, smart technology, and internet connectivity, to establish its self as a Chinese brand with a global reputation of making better products.”

Ning Shuyong, QOROS executive vice president of marketing and communications, mentioned that after experiencing some difficulties, QOROS has a more profound understanding about the Chinese and international market. Due to this new understanding of its consumers, QOROS, which regards itself as a Chinese brand, claims the R&D of Chinese manufacturing is its character. Additionally, they are trying to enhance the influence of their brand on the basis of satisfying the needs of consumers.

April of this year, the country announced new management methods of auto dealerships, which has deeply affected the market’s future. Without a doubt, this will also call for innovation and bring challenges for the OEMs. Looking into the future, this might in fact drive the improvement and upgrading of auto services and auto dealerships. Weng Yunzhong, Executive Vice President of Dongfeng Renault Automotive Corporation, China, holds positive expectations for the auto dealers and the auto aftermarket built through the franchise of exclusive brands. He believes that in the near future, 4s shops will still continue to dominate the auto sales market, because customers’ demands for automobiles and aftermarket services have not changed.


Manifesto of the “Wolf”

This year’s GAF has invited the senior managers from almost all the well-known emerging electric car manufacturing companies, including NIO, ChangjiangEV, FMC, Qiantu, Yudoauto, WM-motor, Aiyiweichi, SINGULATO MOTORS etc. Recent years, multiple of Internet companies have started to design and make new concept cars which brings great challenges to the traditional automotive competition structure. Someone call the new comers as “the wolf is coming”.

The automotive industry is rapidly becoming more digitized as traditional firms partner with IT giants. China appears to be the most vibrant auto market in this new era with all kinds of car start-ups popping up. These start-ups not only have diverse backgrounds and experiences, but they also have different understandings and perspectives towards the auto industry.

Qin Lihong, the Co-Founder and President of NIO, held that the Chinese automotive industry has experienced three stages: First, in the early days of reform and opening up, the automobile industry made many innovations; Second, a dozen years ago, some main brands such as Chery, Changan, Geely and Brilliance Auto showed up and since then Chinese domestic auto companies were written into history; The third stage is happening now. The Chinese market enjoys new strength and also experiences the consistent failure of new companies. Qin Lihong explained that the appearance of new manufacturing in China turns out to be a satisfactory outcome. Everybody has to start somewhere. As for traditional and newly-emerging auto companies, the origin is not important. What is more important for them is to go through difficulties and survive.

FMC President and Co-Founder Mr. Kirchert said explained that global vehicle population is now over 1 billion. Cars in the future will not be limited to the transportation as we define it today, it will become more intelligent and more fun. The biggest challenge that traditional car companies face is not lack of resources, it’s the mechanical research and development of DNA, not Internet DNA, it’s a problem with the way of thinking. There will be two to three Chinese Internet car companies enjoying prosperous development and a world-renowned reputation like Tesla.

Why do most automakers pioneer new energy smart cars? Lin Mi, Deputy General Manager of YUDO New-Energy Automobile Co., LTD (Fujian Motor Group), explained that , if consumers are willing to accept a new energy-driven car, they will be able to accept any brand. This opens a window for the new forces to build a new period, so the emerging new energy automotive industry is easier to develop.

Freeman Shen, Chairman and CEO of WM Motor, also thinks that, whether in terms of environmental protection or resources, electrification must be the future direction of cars. Electro mobiles have its own advantages. To some extent, the accumulation of traditional cars turns to be a burden.

Co-founder and CEO of SAIC, Gary Gu agrees with the above opinions: “Compared to the 130-year history of the entire automotive industry, new energy smart cars can be said to have just begun. Thus, the increasing potential is very large. The traditional car companies are also in the market, but their action may not be so fast under the premise of the traditional power models of the huge market, which is an opportunity for new car companies.

Co-founder and CEO of Zhiche Auto (CEO of Singulato), Tiger Shen claims himself to be "a barbarian of the car industry that came from the Internet industry”. “I am an internet deserter. Internet industry competition is very intense, only the first can survive. But in the automotive industry, the market is not like the winner-take-all”. Tiger Shen thought that old auto brands and state-owned enterprises have less chances of mutation, while newly-emerged companies and private enterprises much easily adapt to the time and achieve self-change. During this period with rapid changes, there will be more challenges if we refuse to use a new way to deal with traditional things.

“We have noticed the ability of traditional auto manufacturers when we researched and developed new cars, such as new energy cars and internet concept cars. If traditional auto manufacturers were determined to compete in this new market, then the competition for us would be great.” From the perspective of Cao Zhong, chairman of Hangzhou Changjiang Auto Holdings Co., Ltd., China, the service life of traditional models depends on the speed of the R&D of new energy vehicle technology. Although the market is prosperous, newly-emerged companies ought to seize this valuable chance and always spur themselves, continue to be innovative, and keep tense.

Many insiders describe the entry of newly-emerged enterprises, for the traditional companies, as a catfish effect which utilize their own stirring to activate the vitality of traditional enterprises. Lu Qun, Chairman of Qiantu Motor, China, objected and thought that: “ the newly-emerged companies is not a catfish which stirs the pond, but a shark which poses challenges to traditional automotive companies.” Lu Qun said at the same time that traditional automotive companies are not out of date, new energy vehicles will be the competitive domain for those traditional automotive companies to fight for in the future. What the newly-emerged companies should consider is how to seize the transient opportunity to reform, and keep careful when looking ahead into future trends.

Over the past decade, we have witnessed the rise and growth of new energy vehicles. New energy vehicles continue to form a key element of government policy, effectively supporting the surge in NEV demand. Changan Automobile New Energy Automobile Research Institute Vice President and Chongqing Changan New Energy Automobile Co., Ltd. Chief Engineer Su Ling said that the auto industry is under a transition period. He summed up three major trends in the current domestic new energy automotive industry. First, new energy vehicles are expected to improve with government policies, regulations and technical support. Second, new energy vehicles are mainly sold in cities with car restrictions and vehicle purchase limitation and there are more private car owners. Third, multi-technology integration promotes consumption throughout the entire industry as the traditional consumption is changing into experiential consumption. Su Ling thinks that the first thing the car companies should do is to make better products to create the ultimate product experience; The second action is to reduce costs from the whole industry chain; the third action is to innovate business models to look for profit growth; the forth action is to create an energy ecosystem for the entire value chain and industrial chain layout.

Meanwhile, in face of many kinds of influences, such as the changes in the social economy, population, environment and technology, how can designers balance these factors and come up with the best designs? Andreas Deufel, Vice President of Design & Chief Creative Officer, Dongfeng, also said that if you take the feeling people have when they first like a thing, or a person, and integrate that into the design, it will have unexpectedly good results. In addition, the use of the inspiration from nature and the preferences of consumers, makes the design products lively and interesting. Dull designs will not attract consumers.

Documentary of GAF2016