Automotive Experts: China's Auto Industry Urgently Needs to Improve Independent Innovation Capabilities

On October 29, 2006, the “China Automotive Industry Independent Innovation High-level Forum” co-organized by the Ministry of Industry Economics of the State Council Development Research Center, China Economic Times, and Changan Automobile (Group) Co., Ltd. was held in Chongqing Changdu. The hotel was grandly held.

The “China Auto Industry Independent Innovation High-Level Forum” was hosted by Bao Yueyang, editor-in-chief of the China Economic Times. The relevant leaders of the Chongqing Municipal Government delivered a welcome speech. Liu Shijin, deputy director of the Development Research Center of the State Council, delivered a speech and came from the State Council’s research room and national development. Leaders and experts from relevant departments such as the Reform Commission, the Ministry of Science and Technology, the Ministry of Finance, the State-Owned Assets Supervision and Administration Commission, and the China Automobile Industry Association participated in the seminar.

During his keynote speech, Feng Fei, Minister of Industry and Economic Research of the Development Research Center of the State Council pointed out that the current development of China's auto industry has entered a new stage, market competition has become increasingly fierce, and the rate of new product launches has accelerated noticeably. The price strategy has become an important means for enterprises to compete for market share, but The price-cutting promotion function is getting weaker and weaker, and companies are facing tremendous pressure to reduce costs in all directions. The auto industry has begun to eliminate the inferior. He believes that the new stage urgently requires the Chinese auto industry to improve its ability of independent innovation. Under the background of domestic competition and internationalization, improving the capability of independent innovation is the premise and basis for the sustainable development of China's auto industry. Although China has become a world leader in automobile production and consumption, China's auto industry has a serious lack of independent innovation capabilities. Most companies do not possess core technologies. Joint ventures occupy a relatively large market share in the automotive industry in China, which makes the improvement of independent innovation capabilities a rather complex and sensitive issue. Especially in the automotive industry where the characteristics of economic globalization are very prominent, the issues, such as the connotation, methods, mechanisms, and role of the government, are even more complicated.

He said that at present, some auto companies in China have placed R&D on an important position, and have made independent development in a down-to-earth manner. They have also cooperated with foreign-funded enterprises and domestic research institutes to improve their technological level and nurture independent innovation systems. In the practice of independent innovation, a self-innovation model such as an internally driven R&D model, a local R&D model based on a global technology platform, autonomous driving, and a large number of external research and development models has been formed. For example, FAW, SAIC, Dongfeng, JAC and Chery, Geely, Hafei and other domestic-funded auto companies. In terms of carrying out independent innovation, after long-term exploration, Changan Automobile Group has also formed an effective mode of “mainly based on me and self-developed” to enhance the company’s core competitiveness.

Xu Liuping, president of Changan Automobile Group, reported to the leaders and experts present at the conference on the achievements, experiences and "leadership plan" of Changan Auto's independent innovation. According to him, after many years of persistent exploration, Changan Automobile established the prototype of a design prototype in China, the first one to establish a car development center in Europe, and the first one to achieve 24 hours in the world. Simultaneous development has enabled the simultaneous development and transformation of multiple platforms from a single platform to minibuses, mini-cars, general-class cars, mid-size cars, economy utility vehicles, and small and medium-displacement engines. The transformation of members' output products to exporting technologies to foreign countries has also yielded significant benefits in terms of independent brands, overall capabilities, human resources, development processes, and intellectual property rights.

In July this year, the research group of the Research Department of Industrial Economics of the Development Research Center of the State Council undertook a field study of the Changan Automobile Group's independent innovation model to conduct in-depth investigations at the Chongqing Chang’an headquarters and completed the project report a few days ago, to carry out the connotation, characteristics and practical significance of the Chang’an model. Inductive analysis and conclusion, and made some suggestions for further development. The research group summarized the “Chang'an model” as: relying on national industrial policy support, taking the enterprise as the main body of innovation, and considering foreign joint ventures and partners as resources, through technical innovation in the tripartite linkage of government, foreign joint venture partners and enterprises. Progressive upgrade builds a self-innovation system based on me and realizes the cultivation and promotion of the company's core competitiveness. The report pointed out that the "Changan model" shows that technology introduction, technology digestion and secondary innovation, and joint development based on me are the necessary stages for realizing independent development based on me. Realize the precipitation, the exploration of experience, and the accumulation of resources that cannot be separated from time.

Experts at the meeting exchanged opinions on the theme of “independent innovation and automotive power” and discussed the independent innovation model of Chang’an Automobile. Feng Fei said that how to cultivate and enhance the company’s core competitiveness through independent innovation is a major issue for China’s auto companies. The “Changan model” has explored a reference for the independent innovation of Chinese auto companies. The approach will help promote the sustainable development of China's auto industry and realize the transition from a "car big country" to a "car powerhouse." In addition, the "Chang'an model" meets the requirements of building an innovative country, and has certain implications for the development of other industries. He suggested that the Changan Automobile Group still needs to further improve its strategic system in the future, and pay attention to avoiding the risks that may be encountered in the process of technological innovation; at the same time, it also needs the government to provide as much support as possible in terms of systems, mechanisms, taxes, etc., as independent innovative enterprises. The development creates a good external environment.

Xu Liuping also stated that strengthening independent innovation is the need to establish an innovative country, ensure national economic security, and establish the status of China's auto industry in the global automotive industry. However, independent innovation is still existing in terms of policy, mechanism, and technology. Incompatibility issues. In this regard, Changan suggested that the state should establish an independent innovation evaluation mechanism, cooperation mechanism, application mechanism, and talent growth mechanism as soon as possible to accelerate the transformation of China from a large automobile industry to a strong automobile industry.