In 2018, China launched the "Four Modernizations" (electrification, intelligentization, connectivity, and sharing) of the automotive industry.
For example, on September 12, 2018, the new Changan CS55, equipped with an integrated adaptive cruise control (IACC) system, was launched. This marked Changan as one of the earliest companies in China to mass-produce Level 2 autonomous vehicles. The IACC technology in the new Changan CS55 is among the leading in terms of performance and user experience in China's autonomous driving industry.
Changan also fully recognizes the importance of collaborating with internet companies. In 2018, Changan entered into several strategic partnerships with Huawei, Baidu, and Tencent. The collaboration with Tencent, in particular, extends to the joint venture level. This joint venture focuses on building an open platform in areas such as connected vehicles, big data, and cloud computing, providing the automotive industry with mature and comprehensive connected vehicle solutions.
The development of automobiles towards electrification, intelligence, connectivity, and sharing has triggered technological changes in the auto parts industry, while also creating huge market opportunities for auto parts suppliers.
Intelligent vehicles are supported by intelligent components.
The application of intelligent technologies is driving a new round of technological revolution and industrial transformation.
The intelligentization of the automotive parts industry includes two aspects: intelligent products and intelligent manufacturing.
Autonomous vehicles are a type of intelligent vehicle. They integrate technologies such as the Internet of Things (IoT) for sensors, mobile internet, and big data analytics to proactively meet people's travel needs. Clearly, intelligent vehicles require intelligent components to support them.
At the 2018 China Automotive Intelligent Computing Platform Conference, Yang Hong, President of Shenzhen Hangsheng Electronics Co., Ltd., delivered a speech entitled "The Era's Responsibility of Automotive Electronics and Hangsheng's Industrial Role." He emphasized the importance of the integration of automotive electrification and intelligentization, the integration of component hardware and software, the integration of connected vehicles and 5G communications, and the integration of intelligent connected vehicles and smart transportation. He believes that automotive electronics companies must adhere to the overall strategic thinking of "strengthening technology, emphasizing quality, enhancing value, and building brands" to ensure the vigorous development of the automotive electronics industry.
With its strong automotive electronics technology, Hangsheng has developed a smart cockpit, giving people a sense of the future development trend of intelligent driving.
Intelligent manufacturing remains the future direction for automation in automotive parts manufacturing. Artificial intelligence technology can be widely applied to almost every stage of the automotive parts manufacturing process. Expert system technology can be used for engineering design, process design, production scheduling, and fault diagnosis. Advanced computer intelligence methods can be used for product formulation and production scheduling, achieving intelligent manufacturing processes.
While it's difficult to fully realize intelligent manufacturing processes in the automotive parts industry in the short term, this trend should still be embraced. Companies like Xichai Power are committed to intelligent manufacturing and have achieved remarkable results.
The Xichai Heavy-Duty Truck Engine Production Base boasts advantages in design, equipment, and management, and has acquired multiple world-class pieces of equipment. This equipment integrates flexibility, automation, and other features, ensuring that product reliability and production consistency reach international advanced levels.
Xichai was recognized as an advanced unit in intelligent manufacturing in Jiangsu Province.
Some companies are actively expanding into the new energy vehicle parts market.
In recent years, driven by the continuous upgrading of regulations on energy conservation and emission reduction in the automotive industry and the subsidy policy for new energy vehicles, the domestic new energy vehicle market has developed rapidly.
With the rapid growth in the production and sales of new energy vehicles, the domestic new energy vehicle parts industry has entered a period of rapid development.
Electric vehicles are the mainstream new energy vehicle product in China. Electric vehicle components mainly fall into three categories: electric drive systems, power systems, and auxiliary systems.
Electric motors, batteries, and electronic control systems are key components of electric vehicles. Among them, the electric motor is the power source of an electric vehicle, equivalent to the engine and transmission in a gasoline-powered car; the most crucial part of the motor controller is largely imported; and the battery directly determines the driving range of an electric vehicle.
The demand for electric vehicles continues to rise, and the market prospects for electric vehicle components are broad. Statistics from relevant organizations show that the size of China's electric vehicle components market will exceed 100 billion yuan in 2020.
Electrification is an irreversible trend in the automotive industry.
Lured by the huge market potential, some domestic auto parts companies are actively expanding into the electric vehicle parts market, and a significant amount of capital is also accelerating its entry into the electric vehicle parts industry.
In 2018, Dongfeng Electric Vehicle Co., Ltd. and CATL (Contemporary Amperex Technology Co., Limited) jointly established Dongfeng CATL (Wuhan) Battery System Co., Ltd. This joint venture focuses on the development, production, and sales of power battery systems for new energy vehicles. It is projected that by 2020, Dongfeng CATL will achieve an output value of over 11 billion yuan.
Suzhou Green Control Transmission Technology Co., Ltd. is actively engaged in the development, production and sales of automotive electronic control mechanical automatic transmissions, new energy vehicle drive motors, and powertrains for pure electric and hybrid vehicles.
Nanjing Yuebo Power System Co., Ltd. focuses on the development and industrialization of powertrain products for new energy vehicles. Adhering to technology innovation, it has built leading technologies and a sound quality system, continuously enhancing its competitiveness. It has already cooperated with domestic new energy vehicle manufacturers such as Dongfeng, Changan, FAW, and SAIC.
These component companies that actively participate in innovation in the new energy vehicle industry can certainly improve the supporting capabilities of new energy components.
Deeply cultivating traditional automotive parts technology
The launch of the "four modernizations" of automobiles has triggered the transformation and upgrading of the automotive industry. During this transformation and upgrading process, because the functions of automobiles still exist, some components will be retained.
The "four modernizations" of automobiles have placed higher demands on auto parts companies, requiring them to play a leading role in innovation. In the traditional auto parts market, some companies are cultivating their expertise to adapt to these requirements.
Lingyun Industrial Group adheres to a high-quality development strategy of seeking progress while maintaining stability and striving for excellence. It keeps up with the development trend of the automotive industry, makes scientific plans, and continuously increases investment in development and resource integration. It comprehensively promotes the construction of Lingyun Research Institute, major customer management, and regional integration of resources. It has seized the initiative in the development and production of high-strength lightweight and environmentally friendly automotive pipeline systems, which has been recognized by high-end automotive companies at home and abroad. It has established strategic partnerships with multinational automotive companies such as BMW, Mercedes-Benz, Audi, Porsche, and General Motors.
Datong Gear Company implements a "Quality Product Project," continuously improving and innovating to create high-quality products and value for users, striving to become a leader in the domestic industry. In the future, Datong Gear will continue to accelerate product development, providing customers with more cost-effective products and "family-like" service, making new contributions to the upgrading and replacement of automotive transmission systems.
Shaanxi Fast Gear Automotive Transmission Group Co., Ltd. focuses on the automotive transmission system market, guided by technological innovation, and continues to specialize and strengthen its business. Its products are sold both domestically and internationally.
Deepening the development of traditional auto parts technology is also an effective strategy for enterprises to cope with the "four modernizations" transformation and innovation in the automotive industry.
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