Wang Xia spoilers the new change of the car: the winner can not eat all, integration to reconstruct the new production relationship

No one can ignore that a new era of smart cars is coming.

The cyclical law followed by the automobile market is gradually departing from the various experiences accumulated in the past history, and presenting a new form of connecting the times and taking the pulse of the future. This change has become the basis for people's saying that "a change that has not occurred in a hundred years".

The change has further catalyzed the progress of industrial subversion, and the iterative units of China's auto market have also begun to measure at "double speed". In the past two decades, the winning path of China's auto market has transitioned from "horsepower controversy" to "power controversy", and when stepping on the starting line of the third decade of the 21st century, "computing power" suddenly stepped on the stage and was identified as the final winner and loser of the competition between the left and right auto markets.

Standing at the outlet of the rapid change of the times, the new and old logic converge, and the path choice and the strategic impact of the method collide, so that the development ideas of car companies have been expanded in more dimensions. So, in this new cycle of the era of intelligent cars, how should the huge automobile industry be transformed? Where is the road to transformation?

Recently, Wang Xia, president of the Automotive Industry Committee of the China Council for the Promotion of International Trade and president of the China Chamber of International Commerce in the Automotive Industry, gave his thoughts on the rapidly changing development of the automobile industry.

At the 2021 China Automotive Chongqing Forum, he interpreted the current complex changes in the automobile industry in his speech, and closely focused on the cornerstone proposition of productivity and production relations, and solved the development path of the transformation of all parties in the automobile industry.

In his view, the automobile industry is undergoing a century-long change.

"Electric intelligence is the greatest technological revolution faced by the automobile after its birth, and any technological revolution will bring great liberation to productivity."

According to statistics, in 2020, although China's passenger car sales have declined slightly, intelligent networked passenger cars have risen, and L2 sales have exceeded 3 million units, a year-on-year increase of 107%, accounting for about 15%. Some forecasts believe that by 2025, the market share of intelligent connected vehicles at the level of partial autonomous driving (PA) and conditional autonomous driving (CA) will exceed 50%, and may exceed 70% by 2030.

This makes the automobile industry become particularly lively, such a huge market temptation, resulting in a large influx of capital, continuous gathering of talents, accelerated iteration of technology, the automobile industry has become a paradise for entrepreneurship and a paradise for gold panning.

However, as a bureaucrat in the automobile industry, we should be extra sober at this moment, and we need to penetrate the superficial fog of capital and technological iteration to find the huge changes in the core elements that really drive the development of the automobile industry.

He said in a serious tone that electric intelligent technology is a new productive force, and it is necessary to have new production relations to adapt to it, and we must have a clear understanding of this.

On the one hand, at the level of productivity, electric intelligence is the greatest technological revolution faced by the automobile after its birth, and any technological revolution will bring great liberation of productivity.

The most essential feature of intelligent networked vehicles is to bring efficiency and safety to society and better experiences to consumers through the mutual sharing of data and information, and all our reform measures must be guided by the direction of this ultimate goal.

On the other hand, any liberation of productivity will lead to the restructuring of production relations, and the relationship between OEMs, Tier1 and ICT companies needs to be re-clarified in practice.

As an observer of the automobile industry for many years, Wang Xia reminds everyone to seriously analyze the current great changes in production relations.

Electrification brings about changes in the relationship between the automobile and energy and chemical industries, intelligence brings about changes in the relationship between the automobile and technology industries, and networking brings about changes in the relationship between the automobile, communication and transportation industries. The industrial chain of the automobile has changed from the longest to the widest, from the chain to the mesh belt, and the relationship between OEMs, Tier1 and ICT companies has become complex and diverse.

He interpreted the current network ribbon production relationship situation from the three aspects of OEM, Tier1 and ICT.

He believes that the mission of the OEM has not changed, and the advantages cannot be underestimated. The biggest core competitiveness of OEMs is the ability to define and integrate products and technologies based on the ability to grasp consumer demand, as well as brand building capabilities.

Tier1 can not only accept the demand instructions of the main engine factory as before, but also pay attention to terminal demand and market trends. ICT companies must find their own role positioning, handle the relationship with OEMs and traditional Tier1, and not think of winner-take-all.

He warned ICT companies that the complexity of the car is not an order of magnitude compared to any electronic product, especially the mandatory standard in terms of safety can be said to be the biggest threshold for the car, and the reverence for the car is the prerequisite for success.

So, how to reconstruct the complex production relationship of the current mesh belt, Wang Xia gave his own thinking, that is, integration and collaboration.

He said that in addition to the collaboration between OEMs, Tier1 and ICT companies, there are also vehicle-road collaboration, collaboration between software and hardware, collaboration between fuel vehicles and electric vehicles, and so on. In addition, traditional suppliers are far away from the C-end, but many ICT companies also have a strong ability to link the C-end, and when establishing a new type of consumer relationship, they must cooperate effectively with the main engine factory to avoid conflict.