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at present, the pace of transformation and upgrading of my country's automobile industry and high-quality development has significantly accelerated. in the environment of new situations, new changes and new business forms, countless enterprises in the industrial chain have devoted themselves to innovation and development, fully played the leading role of scientific and technological innovation, joined the army of cultivating and developing new quality productive forces, and led the chinese automobile industry to become bigger and stronger.

in order to stimulate the industry's innovative potential and build a platform for mutual communication for leading enterprises, kpmg, together with the shanghai hongqiao international central business district management committee and the shanghai jiading district people's government, recently successfully held the 2024 kpmg china automotive industry summit and the 7th automotive technology 50 list release conference. the summit conducted in-depth discussions on hot topics such as market demand and brand thinking under the wave of electrification in the automotive industry, consumer experience and automotive intelligence, and deeply analyzed the pain points and difficulties in the development of the automotive industry, and jointly discussed the latest trends in automotive technology and the market during the critical period of intelligent transformation.

zhang bin, member of the party leadership group and deputy director of the shanghai hongqiao international central business district management committee, said that the hongqiao international central business district is focusing on optimizing opening-up measures, improving the level of opening-up, taking the automobile industry as the lead, accelerating the gathering of domestic and foreign headquarters companies and industry-leading companies, forming a distinctive industrial chain ecosystem, and creating a broad industrial ecology and cooperation space for enterprises to develop vigorously based in hongqiao.

lu zufang, member of the standing committee of the jiading district committee of shanghai and executive deputy district mayor, said that as the core bearing area for shanghai to build a world-class automobile industry center, jiading has been closely focusing on the "new four modernizations" of automobiles and continuously promoting high-quality construction, and actively deploying key emerging fields such as automobile "smart" manufacturing, on-board chips, internet of vehicles, and automotive software. faced with the opportunities of the transformation of the automobile industry, jiading will closely focus on the strategic requirements of building a high-level autonomous driving leading area in shanghai, and firmly anchor the goal of jiading to build a world-class intelligent networked vehicle innovation highland. carry out more in-depth exploration from the two dimensions of the implementation of vehicle-road-cloud integrated technology and the large-scale application of intelligent networked vehicles, and seek to promote new breakthroughs. it is hoped that entrepreneurs will join hands with jiading, go to jiading, take root in jiading, invest and start businesses in jiading, and jointly create the best automobile industry "ecosystem".

yang jie, vice chairman of kpmg china, said in her speech at the event that we are currently in a critical period of intelligent transformation in the automotive industry. on the one hand, the latest technologies such as artificial intelligence, big data, cloud computing, and the internet of things are being integrated into every aspect of the development of the automotive industry at an astonishing speed. on the other hand, the market is also responding quickly to the diverse needs of consumers, pushing the automotive industry towards a greener, more efficient, and more intelligent direction. this is not only a technological innovation, but also a comprehensive upgrade of the business model and industry ecology. against this backdrop, companies should embrace innovation, pay attention to changes in market demand, and build an open and cooperative ecosystem.

from the perspective of the market environment, competition in the domestic automobile industry is intensifying, and overseas expansion plans are being considered and accelerated by more companies. jiang liqin, the managing partner of kpmg china's client and business development, said that the five-in-one "demand + policy + international situation + green + product" jointly promotes the rapid development of overseas expansion. china has become the world's largest automobile exporter, and has experienced the transformation from "pure import" to "bulk export", "low quality and low price" to "comprehensive price and quantity", "fuel vehicles" to "new energy vehicles", the process of industrial chain overseas expansion and global layout, the trend of electrification and high-end has emerged, and will become an important direction for overseas expansion in the future.

penetration of key technologies: expansion of commercial scenarios for intelligent driving

at present, the chinese automobile market is in a period of rapid change. the continuous advancement of technology is driving the upgrading of the industry at an unprecedented speed. from intelligent driving technology to new energy power systems, from the internet of vehicles to the application of artificial intelligence in the automotive field, scientific and technological innovation is becoming the core driving force for the development of the automobile industry. on the day of the summit, many experts and industry insiders summarized and elaborated on the development trends of the industry, and conducted in-depth interpretation and analysis from the aspects of the development of intelligent vehicles, value creation innovation, accelerated market integration, consumption upgrades, commercialization of unmanned driving, and the in-depth changes in the supply chain structure by technology companies.

benefiting from policy support, technological progress, improved industrial chain, vigorous infrastructure development and expanding market demand, chinese-branded passenger cars have captured more than 60% of the market share from january to july 2024. chinese-branded automakers not only perform well in the domestic market, but also actively expand into the international market, enhancing their competitiveness on a global scale through technological innovation and cost control.

in addition, the development of electrification and intelligent technology, the rise of independent brands, a higher level of opening up to the outside world and the promotion of globalization have also prompted the joint venture model of china's automotive industry to enter the "joint venture 2.0 era". the initiative of both parties in the sino-foreign joint venture has gradually shifted, and the voice of chinese companies in the joint venture has significantly increased.

in terms of intelligent driving configuration, key technologies such as sensors such as millimeter-wave radar and lidar, as well as automatic parking technology, have entered a fast-growing track, with a significant increase in market penetration. with technological advancement and policy support, the commercial application scenarios of driverless driving are constantly expanding, from closed scenarios for commercial vehicles to open scenarios, and gradually transitioning to passenger vehicles.

norbert, kpmg china's automotive industry managing partner, believes that with the continued development of smart electric vehicles, the face and competitive landscape of china's automotive industry are being profoundly reshaped. the transformation of the automotive supply chain involves the transformation of tier 1 suppliers, the participation of technology companies, and the overseas expansion of domestic manufacturers. these changes will drive the automotive industry towards a more intelligent and green direction, while also bringing new opportunities and challenges to the industry.

supply chain transformation continues to focus on intelligence and low carbonization

as the automotive industry transforms toward electrification and intelligence, the traditional supply chain structure no longer adapts to new demands. oems are beginning to seek a closer cooperation model, which requires component suppliers to provide not only hardware but also overall solutions including software.

first, the adjustment of business structure has become the top priority for many large domestic and foreign auto parts groups, re-evaluating and re-arranging their product lines and services to adapt to the market demand for new energy vehicles and intelligent driving technologies. technology companies have become new players in the automotive industry with their technological advantages in artificial intelligence, big data, and cloud computing. especially in the field of intelligent driving, technology companies cooperate with parts and oems based on algorithm and software capabilities to provide intelligent driving solutions, and expand to operations, accelerate data accumulation and model optimization, and grow faster than traditional oems and parts companies.

against the backdrop of the "dual carbon" goal, china's automotive industry shoulders an important carbon reduction task. carbon reduction is a complex system project. in addition to the current carbon reduction at the user end through electrification, carbon reduction at the production and supply chain end is being put on the agenda. this requires automakers to not only ensure product quality and performance, but also to achieve transparency and sustainability in every link of the supply chain, ensuring that the procurement of raw materials, the production of batteries, post-use recycling and final environmental disposal are in compliance with the regulations of the target market. for the upstream supply chain, power battery manufacturers are facing new challenges and opportunities in production and supply chain management, recycling and scrap disposal. the production and supply chain management of power batteries must comply with esg standards, ensure that the procurement of raw materials does not involve conflict minerals, reduce environmental impact, and improve the transparency and sustainability of the supply chain.

the stock market continues to expand and china's independent automotive aftermarket has a promising future

in the era of intelligence, cars are no longer just a means of transportation, but also a smart terminal. at present, with the continuous advancement of technology, consumer demands in the automobile market are becoming increasingly diversified, and the demand for intelligent and personalized cars is constantly rising. intelligent driving assistance systems, intelligent interconnection functions, personalized in-car entertainment systems, etc. have become important considerations for consumers to choose cars. with the increase in the proportion of generation z and female car buyers, car purchase decisions pay more attention to the embodiment of self-worth and differentiated needs. generation z no longer simply pursues cost-effectiveness when buying a car, but is willing to pay a premium for the vehicle's appearance, intelligent configuration and new consumer experience.

in addition, with the continuous growth of car ownership and the increasing age of cars, the demand for the automotive aftermarket, especially the independent aftermarket, is increasing, especially in terms of repair and maintenance. traditional auto parts suppliers, which mainly rely on distribution channels, are gradually realizing the importance of laying out 2c channels, that is, direct-to-consumer channels, to adapt to market changes and consumer needs.

kang qiming, partner of kpmg china transaction strategy consulting, said that as the scale of china's automotive aftermarket continues to expand, it will exceed 1.3 trillion yuan in 2023, and the market potential is huge. in the face of diversified and personalized consumer demand, oems should pay more attention to enhancing the value of products and services, and attract and retain consumers through technological innovation, improving product quality, and optimizing after-sales services. at the same time, oems need to pay close attention to market changes and flexibly adjust strategies to meet the needs of different consumer groups, so as to gain advantages in the fiercely competitive market.

the summit specially set up keynote speeches and roundtable forums on that day. the summit held a grand award ceremony for the companies that were listed on the kpmg china automotive technology 50 list. xu kanling, kpmg china automotive industry audit managing partner, said when talking about the selection of the automotive technology 50 list that in the wave of technology driving industrial upgrading, the kpmg china automotive technology 50 selection event provides a strong track for innovation and breakthroughs for automotive technology companies. with the continuous surge of the electrification wave and the continuous changes in market demand, brands are also actively thinking about the future path. consumers' pursuit of automotive intelligence has injected strong impetus into industrial development.

faced with opportunities and challenges such as value chain transformation, supply chain crisis, globalization and going overseas, the chinese automotive industry will surely take more determined steps to jointly promote the development of the chinese automotive industry in a greener and smarter direction. it is reported that the full version of the "kpmg china automotive technology 50 report" is expected to be released to the public at the end of september. (promotion)