The "four modernizations" were once the national strategy for the development of the mainland, and in 2012, the "new four modernizations" proposed in the report of the Eighteenth National Congress gave new goals to the new era. At the same time, the automotive industry is also undergoing the industrial transformation of the "new four modernizations". The so-called "new four modernizations" refer to electrification, networking, intelligence and sharing, representing the future development trend of the automobile industry.
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01. Revolution in the automotive industry
In 2018, China's automobile sales experienced negative growth for the first time after 28 years of growth, and the total revenue and profit of major automobile companies also declined, and the total profit of mainland automobile enterprises above designated size fell by 11.6% and 16.5% respectively from 2018 to 2019. This shows that China's auto market has officially entered the stock period from a period of rapid growth and maturity. Automobile companies are facing a series of problems such as market saturation, accelerated subsidy policies and a sharp decline in subsidy policies, and macroeconomic slowdown. At the same time, new car-making forces and Internet technology companies have entered the game, and the "new four modernizations" of the automotive industry have become a must for the comprehensive transformation of car companies at this stage.
For Chinese auto companies, the "new four modernizations" means that opportunities and challenges coexist, on the one hand, the new generation of consumers is becoming the main force of car purchase for the first time, consumption habits and preferences are changing, and the market has changed from "product-centric" to "people-centered". On the other hand, along with the "new four modernizations" is the innovation of technology and business models, and all aspects of the automotive industry chain are facing profound changes and severe challenges.
02. The booster of the "new four modernizations"
At present, the automobile industry is evolving from mechanization to electrification, networking, intelligence and sharing, from the traditional industrial era to the digital age, digitalization is the only way to the "new four modernizations", and the "new four modernizations" further promote the digitization of automotive products. Taking new energy vehicles as an example, the electrified drive mode is more conducive to digital control to achieve higher energy efficiency; networking allows cars to establish new interactive cooperative relations with people, and car companies can understand users more deeply through digital means.
In recent years, the Ministry of Industry and Information Technology, the National Development and Reform Commission and other departments have successively issued policies to accelerate the development of digital transformation, intelligent manufacturing and other related software technologies. In 2021, the Ministry of Industry and Information Technology and the Ministry of Transport issued the Guiding Opinions on Accelerating the Cultivation and Development of High-quality Enterprises in the Manufacturing Industry, mentioning "the implementation of intelligent manufacturing projects, manufacturing digital transformation actions and 5G application innovation actions" and "building a number of manufacturing digital transformation enterprise benchmarks", which has important guiding significance for the automotive industry.
03. Industrial Internet empowers car companies
The digital transformation of automotive companies requires long-term investment, and the current downturn in the automotive market and the new crown epidemic have brought huge transformation pressure to auto companies. However, in the short term, digital transformation can help reconstruct core business processes, shorten product development cycles, improve production efficiency, reduce inventory, save material costs, and achieve significant short-term economic benefits for car companies. Specifically, taking the root cloud platform of tree root interconnection as an example, the interconnection of people, machines and production big data is realized through the industrial Internet, and the automotive industry is empowered by the whole link in intelligent design, intelligent technology, equipment management, energy management, intelligent business, etc., helping car companies reduce costs and increase efficiency.
In the long run, digital transformation has promoted the innovation of business models and products, and the industrial Internet will be used as a digital infrastructure to complement the digital business of car companies, providing strong support and deep integration for the full link of the automotive industry and the full cycle of user services. The new digital infrastructure that is constantly iterating and evolving will dig deep into the value of data and empower automotive companies in multiple scenarios.
At present, what is facing China's automotive industry is a major change that occurs once in 30 years, and it is moving towards the road of "new four modernizations", which is a crisis, a challenge and an opportunity. Digitalization will be the basic ability of the automotive industry to move towards the "new four modernizations", and it is also a reliable direction for automotive companies to cope with market changes.
At present, Tree Root Interconnection has successfully served large car companies such as Great Wall Motors, FAW-Volkswagen, Jiangling Motors, Guangqi Honda, Dayun Automobile, etc., and realized the interconnection, analysis and application of people, machines and production big data through the root cloud platform, helping them reduce costs, increase efficiency and improve quality in production and operation, and has rich experience in digital all-scenario service of automobile manufacturing.
On April 27, 2022, under the guidance of the Guangzhou "Chain Chief System" Office (Guangzhou Municipal Bureau of Industry and Information Technology), As the "chain master" enterprise of the "software and xinchuang" industrial chain in Guangzhou, Shugen Interconnection jointly held a series of live broadcast activities of "Automotive Manufacturing Digital Transformation and Upgrading" jointly with ATC Automotive Technology Platform to help the digital transformation of the industrial chain. Specially invited GUANGQI Honda and FAW-Volkswagen digital experts to bring professional sharing of automotive manufacturing digitalization to the audience online. Welcome to follow and participate in this webinar!
