China's auto industry innovation breakthrough development bottleneck domestic and foreign car companies to join hands to break the situation
China’s automotive industry is currently at a critical stage of “changing lanes to overtake.”According to data, in the first half of 2025, the country’s automobile production and sales reached 15.621 million and 15.653 million units respectively, up 12.5% and 11.4% year-on-year, demonstrating strong growth resilience. At the same time, the dilemma of “increased volume without increased profit” has become increasingly apparent. The ongoing involution-style competition continues to squeeze corporate profit margins, posing a major obstacle to the industry’s high-quality development.From July 10 to July 12, the "2025 China Automotive Forum" with the theme of "Improving Quality to the New, Winning the Future" was held in Shanghai, and the attending guests focused on the high-quality development of the automotive industry, cracking the inward spiral of predicament, and promoting global synergy, etc. The forum was held in Shanghai, with the theme of "Improving Quality to the New, Winning the Future".In-depth discussion, injecting new momentum for the development of the industry.Innovation breaks through the bottleneck of developmentWan Gang, Chairman of China Association for Science and Technology, said at the meeting that the development of China's automobile industry has entered a brand new stage, and in the face of the wave of electrification and intelligence, the automobile industry needs to deepen the co-operation between enterprises and build a new type of competitive relationship.It is difficult for automobile enterprises to adapt to the current changes, the only way is to promote complementary advantages through innovative cooperation methods, in order to jointly create new technologies, new products, new models, and cultivate new growth poles of industrial value, "China's automobile industry in the field of electrification has already achieved the 'lane-changing overtaking', and the intelligent will be the core battlefield of the next stage.the core battlefield of the next stage, and it is necessary to focus on key technology research and promote collaborative innovation in the upstream and downstream of the industry chain."Xu Niansha, president of China Machinery Industry Federation, said that in 2024 China's GDP reached 134.91 trillion yuan, accounting for 17% of the world's manufacturing value-added 33.55 trillion yuan, of which the automotive manufacturing industry accounted for one-third of the total volume of the machinery industry, is a well-deserved core engine.To promote the development of new quality productivity, the automotive industry shoulders a heavy responsibility.Xu Niansha put forward five major development directions: first, focus on core technology research, strengthen the new energy, intelligent network technology reserves in the field; second, accelerate the digital and intelligent upgrading, and firmly take the green low-carbon road; third, improve the toughness of the industrial chain, and enhance the ability to independently guarantee the key basic materials; fourth, plough into the domestic market while exploring the international map; and fifth, to create a healthy ecology, and crack the involution of the predicament through the industry's self-discipline.The fifth is to create a healthy ecosystem and crack the problem of involution through industry self-regulation.In response to the industry's widespread concern about the problem of involution, China Association of Automobile Manufacturers Executive Vice President and Secretary-General Fu Bingfeng said that the ongoing price war has pressed the industry's profitability to the tipping point, if not curbed, it may trigger the quality of the compromises and stagnation of innovation, "in the first half of this year, the automotive market continues to develop well, but 'increase does not increase profitability's situation is in urgent need of improvement.With electrification accelerating global industrial restructuring and the full rise of AI technology, the industry has entered the second half of the 'change of lane racing', and needs to achieve sustainable development by comprehensively managing involution, promoting dual-carbon mutual recognition, and strengthening global synergy."In the field of green and low carbon, the forum launched the "China Automobile Industry Green and Low Carbon Public Service Platform and Automobile Industry EPD Platform".According to the introduction of You Zheng, standing committee member of the Party committee of Dongfeng Motor, deputy general manager, and current president of China Association of Automobile Manufacturers (CAAM), the platform, adhering to the principles of "objectivity, public welfare, common governance, and mutual recognition", will unify the rules of accounting and disclosure standards of the carbon footprint and promote the mutual recognition of domestic and international standards, so as to provide the industry with "dual carbon" and "low carbon" services.The platform will unify carbon footprint accounting rules and disclosure standards, promote mutual recognition of standards at home and abroad, and provide support for the industry's "dual-carbon" goal.Domestic and foreign car companies join forces to break the mouldIn the critical period of industrial transformation, how can enterprises break through the bottleneck of development? Chery Automobile Co., Ltd. Chairman Yin Tongyue's speech hit the industry pain points.He said, China's auto has shifted from scale expansion to quality competition, but there are still blind "go to sea" and blindly follow the trend of involution and other issues, "Chery has also been involved in the price war, but deeply aware of the sales rankings are not as important as the quality rankings, profit rankings are not as important as innovation.Call on the government to strengthen the brand building, technological innovation guidance and assessment, the capital market to give enterprises more patience.Brand and technology breakthroughs take time, and Chinese auto brands should avoid international market backlash due to disorderly competition."Yin Tongyue's point of view has also been echoed by a number of guests, many of the participating enterprises related to the person in charge of the meeting after the meeting to the "Securities Daily" reporter said, I hope the relevant departments to listen to the voices, and jointly promote the sustainable development of the industry.Auto home executive director and CEO Yang Song through the data to support: 2022 to 2024, the automotive industry due to the price of involution loss of 200 billion yuan to 300 billion yuan of income, part of the model price cuts and price cuts and not the difference between the sales, but in vain loss of profit.Yang Song believes that to crack the predicament need to reduce costs and efficiency and orderly "sea" two-pronged approach.The former can be optimized through AI technology marketing decision-making; the latter need to build a global ecosystem, help China's cars in the "go out", can walk more stable, farther.Gao Xiang, President and CEO of BMW Group Greater China, said that the supply chain is fragile, regulatory differences and other challenges, the need for global car companies to work together to deal with, "Chinese car companies to go overseas, can learn from the 'global thinking + local deep ploughing' model, and jointly build a highly efficient and resilient industrial chain."Dewees, secretary-general of the European Automotive Industry Association, said that the Chinese and European automotive industries together account for more than half of global production, and their objectives in the fields of green low-carbon and intelligent network are highly compatible, "The current trade environment is complex, and there is a greater need for 'dialogue rather than compartmentalization', 'transparency rather thanprotection'.""ACEA is promoting deeper co-operation between China and Europe in areas such as harmonization of technical regulations and cross-border flow of data."Differences are not barriers, but opportunities for complementation, said Dives.Declaration: This article comes from the Securities Daily.If copyright issues are involved, please contact us to delete.