On April 25, the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Science and Technology jointly issued the medium- and long-term development plan for the car industry. The plan is meant to push forward the government's strategy for developing China into a manufacturing and automotive powerhouse. Below is a roundup of the development plan:
Overall goal: develop China into an automotive powerhouse in 10 years by fulfilling six objectives:
1. Make major breakthroughs in the development of key technologies.
Enable several Chinese car makers to rank among the top 10 new energy car companies in the world by 2020, while developing intelligent connected vehicles according to global standards; help major Chinese NEV companies expand their global influence and market share, and ensure that relevant companies be able to develop world-leading intelligent connected vehicles by 2025.
2. Build a safe, reliable industrial chain.
Have several auto parts makers reach a business capacity of over RMB 100 billion by 2020, and develop several key technologies that dominate the global market. Establish several top-ten auto parts conglomerates by 2025.
3. Push forward brand building.
Grow several Chinese auto brands into world-renowned brands by 2020 and improve the safety of commercial vehicles. Help several Chinese companies rank among the top ten carmakers by sales and output by 2025.
4. Restructure the industry.
Spur the development of smart technology and increase the share of automotive aftermarket and services in the industry value chain to 45% or more by 2020. Apply smart technologies in key industrial segments while growing the proportion of aftermarket and services to over 55% by 2025.
5. Strengthen global expansion.
Export vehicles to developed nations by 2020, with expanding Chinese brand influence in the coming years through 2025.
6. Bolster green development.
Average fuel consumption for new passenger cars should drop to 5.0L/100km by 2020 and 4.5L or less for energy-efficient cars. Commercial vehicles should meet the State VI emissions standards and NEVs should meet international standards for energy consumption. The car recycling rate should reach 95%. Average fuel consumption for new passenger cars should further drop to 4.0L/100km by 2025, with commercial vehicles and NEVs meeting international standards for emissions and energy consumption, along with car recycling taking the lead worldwide.
Six Major Tasks:
1. Set up systems for innovation and spur independent development.
Improve systems for innovation, focus on breakthroughs for core technologies, and enhance service capabilities.
2. Strengthen essential abilities and facilitate industrial chains.
Solidify parts supply systems and develop advanced automotive materials and manufacturing equipment in order to promote the synergistic and highly efficient development of entire industrial chains.
3. Make breakthroughs in major areas and propel the upgrading of industrial structures.
Accelerate the R&D and industrialization of NEV technologies and step up the promotion and application of NEVs. Ramp up efforts to develop core technologies for connected cars, carry out demonstrations of connected vehicles, and push forward the R&D and promotion of energy-saving, eco-friendly auto technologies.
4. Speed up cross-industry integration and establish a new industrial ecosystem.
Advance intelligent manufacturing, expedite the development of the automotive aftermarket and service industry, and drive the green development of the auto industry.
5. Improve brand quality and develop world-leading enterprises.
Efforts will be made to boost companies' quality control capabilities, foster new brands, stimulate the vitality of companies, and develop industry-leading companies.
6. Deepen openness and cooperation to improve global expansion.
Efforts will be made to push companies to go global and improve their international service systems and operating capabilities. Meanwhile, China will boost the level of international cooperation in the automobile industry by pushing joint-venture brands and Chinese brands to seek common development through effective policies. The country will also encourage joint-venture automakers to boost their R&D investments, increase their proportion of vehicles developed locally in China, and boost their technology and talent exchange with Chinese automakers.
Six Major Supporting Measures
1. Strengthen the reform of institutional mechanisms, including efforts to improve the management system for domestic and foreign investment. Lift restrictions on ownership ratios in joint-venture automakers in an orderly way.
2. Ramp up financial and tax support
3. Enhance construction of standard systems
4. Reinforce talent base
5. Improve industrial development environment
6. Encourage industrial organizations
Eight Key Projects
1. Project on Building Innovation Centers
2. Project on Making Breakthroughs in Key Parts Development
3. Project on R&D and Promotion of NEVs
4. Project on Promoting Intelligent Connected Vehicles
5. Project on Improving Automobile Technologies Meant for Energy Conservation and Environmental Protection
6. Project on Integrating Automobile Industry and Other Industries
7. Project on Building Quality Auto Brands
8. Project on Expanding Overseas
This report is by NewsTurbo, an English-language car news WeChat account run by Xinlian (Beijing) Media Watch Limited, which specializes in media monitoring and communications analysis.