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China produces 27.021 million cars a year! So, what does the car mean to the people?

author:Elite circle of Chinese businessmen

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China produces 27.021 million cars a year! So, what does the car mean to the people?

For example, on June 8, the Ministry of Commerce issued a notice to organize and carry out automobile consumption promotion activities, which will run from June to December 2023. After the notice was issued, the stock market of the vehicle industry chain rose sharply.

According to the latest data released by the China Association of Automobile Manufacturers, domestic automobile production and sales in 2022 will be 27.021 million units and 26.864 million units, respectively, a year-on-year increase of 3.4% and 2.1%. Production and sales of passenger cars totaled 23.836 million units and 23.563 million units, up 11.2% y/y, and sales were 9.5% y/y, respectively.

Data show that in 2022, the production and sales of new energy vehicles will reach 7.058 million units and 6.887 million units, respectively, a year-on-year increase of 96.9% and 93.4%, and the market share will reach 25.6%. Among the main varieties of new energy vehicles, compared with the same period of the previous year, the production and sales of pure electric vehicles, plug-in hybrid vehicles and fuel cell vehicles continued to maintain rapid growth. So, why is the automotive industry chain so important to our economic development.

The importance of the automotive industry chain is mainly reflected in the following aspects:

First, huge market potential: The automotive industry is a huge market with broad development prospects. According to the China Association of Automobile Manufacturers, the size of China's auto market reached 26 million units in 2021, making it the world's largest auto market. This huge market potential provides a strong impetus for economic development.

Second, the industrial chain is long and highly interrelated: the automotive industry is a highly complex industry, which involves a large number of components and materials, such as engines, transmissions, tires, seats, interiors, etc. These components and materials need to be procured from different suppliers, so the development of the automotive industry can lead to the development of the entire industry chain. According to statistics, the contribution rate of the automobile industry to GDP is high in all countries, and in China, the United States, Japan and other countries, the GDP contribution rate of the automobile industry exceeds 10%.

Third, there are abundant employment opportunities: the automotive industry is a labor-intensive industry, which requires a large number of workers, technicians and salespeople. The development of the automobile industry can not only create direct employment opportunities, but also drive the employment growth of the entire industrial chain. According to statistics, employees in the automobile industry account for more than 10% of the country's industrial employment.

Fourth, promote infrastructure construction: the development of the automobile industry requires supporting infrastructure, such as roads, bridges, parking lots, etc. The construction of these infrastructures can promote the development of cities and economic growth.

China produces 27.021 million cars a year! So, what does the car mean to the people?

Why is the automotive industry so important?

The importance of the automotive industry is mainly reflected in market potential, long industrial chain, high relevance, abundant employment opportunities and promotion of infrastructure construction. It is an important part of the national economy and plays an important role in promoting economic growth and employment growth.

First of all, huge market potential. The automobile industry is a huge market with broad development prospects. According to the China Association of Automobile Manufacturers, the size of China's auto market reached 26 million units in 2021, making it the world's largest auto market. This huge market potential provides a strong impetus for economic development.

Secondly, the industrial chain is long and highly relevant. The automotive industry is a highly complex industry that involves a wide range of components and materials, such as engines, transmissions, tires, seats, interiors, etc. These components and materials need to be procured from different suppliers, so the development of the automotive industry can lead to the development of the entire industry chain. According to statistics, the contribution rate of the automobile industry to GDP is high in all countries, and in China, the United States, Japan and other countries, the GDP contribution rate of the automobile industry exceeds 10%.

Third, employment opportunities are abundant. The automobile industry is a labor-intensive industry, which requires a large number of workers, technicians, and salespeople. The development of the automobile industry can not only create direct employment opportunities, but also drive the employment growth of the entire industrial chain. According to statistics, employees in the automobile industry account for more than 10% of the country's industrial employment.

Fourth, promote infrastructure construction. The development of the automotive industry requires supporting infrastructure, such as roads, bridges, parking lots, etc. The construction of these infrastructures can promote the development of cities and economic growth.

China produces 27.021 million cars a year! So, what does the car mean to the people?

In addition to the importance of the automotive industry you mentioned above, there are also the following aspects:

First, high scientific and technological content: the automobile industry is a high-tech industry, which involves knowledge in many fields such as machinery, electronics, and information. The development of the automotive industry can promote scientific and technological innovation and the development of high-end manufacturing.

Second, consumption has a strong driving effect: automobiles are high-value consumer goods, and the development of the automobile industry can drive the growth of consumption. Automobile consumption can not only promote the development of the automobile industry itself, but also drive the development of related consumer industries, such as oil, insurance, tourism, etc.

Third, the importance of environmental protection: With the continuous improvement of environmental awareness, environmental protection issues in the automotive industry are also receiving increasing attention. The development of the automobile industry needs to pay attention to environmental protection, energy conservation and emission reduction, and promote technologies such as new energy vehicles and intelligent networked vehicles, which can promote environmental protection and sustainable development.

In summary, the importance of the automotive industry is not only reflected in market potential, long industrial chain, high relevance, abundant employment opportunities and promotion of infrastructure construction, but also in high scientific and technological content, strong consumption driving role and emphasis on environmental protection. The development of the automobile industry plays an important role in the development of the national economy and human society.

China produces 27.021 million cars a year! So, what does the car mean to the people?

It is worth mentioning that the importance of the automobile industry is not only reflected in its contribution to economic development, but also in its positive impact on technological progress, international competitiveness, tourism and related industry development, and traffic improvement.

For the first time, technological innovation is promoted. The automotive industry is a technology-intensive industry that requires constant technological innovation to remain competitive. The development of the automobile industry can drive the technological innovation of the entire industrial chain, thereby promoting technological innovation and scientific and technological progress.

Second, improve international competitiveness. The automotive industry is a global industry, and car brands from various countries compete in the global market. The development of the automobile industry can improve a country's international competitiveness and increase its economic strength and influence.

Third, promote the development of tourism and related industries. The development of the automobile industry can drive the development of tourism and related industries, such as hotels, scenic spots, catering, etc. The development of the automobile industry can improve the quantity and quality of tourists, thereby promoting the development of tourism and related industries.

Fourth, improve traffic conditions. The development of the automotive industry can improve traffic conditions, such as improving the traffic capacity of roads, bridges and tunnels, and promoting intelligent transportation technology. These measures can alleviate traffic congestion, increase traffic efficiency, and improve people's quality of life.

China produces 27.021 million cars a year! So, what does the car mean to the people?

So, what does the car mean to the people?

The significance of cars to the people is mainly reflected in the aspects of convenient travel, improving the quality of life, increasing economic benefits and promoting family harmony. As an important means of transportation, automobiles play an important role in people's lives and economic and social development.

First of all, it is convenient to travel. The car is a convenient means of transportation that can take people from one place to another in a short time. Compared to other means of transportation, cars are more flexible and convenient, and they can freely arrange travel times and routes according to individual needs.

China produces 27.021 million cars a year! So, what does the car mean to the people?

Second, improve the quality of life. With a car, people can travel more conveniently and reach their destination in a short time, which can improve people's quality of life. For example, people can drive to travel on weekends or drive to dinner, movies, etc. in the evening.

Third, increase economic benefits. Cars can increase personal financial gain, especially for those engaged in business activities. With a car, it is easier to meet with customers, negotiate business, and improve your image and credibility.

Fourth, promote family harmony. Cars can promote family harmony. For example, family members can drive together to travel or participate in activities, which can increase communication and interaction between family members, and can also enhance feelings and cohesion between family members.

China produces 27.021 million cars a year! So, what does the car mean to the people?

Looking forward to the future, new energy vehicles will become the main theme of the development of the automotive industry. At the same time, the automotive industry will face many challenges, such as the construction of new energy vehicle infrastructure, the development of intelligent and connected vehicles, environmental protection and carbon emission pressure. The automotive industry will continue to enhance its competitiveness and sustainable development through technological upgrading, management innovation and policy support.

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