Electrification has become the recognized future evolution direction of the global automotive industry

The automobile industry is undergoing a major change that has not been seen in a century, and at the same time, it is welcoming a huge opportunity of the times. At present, Chinese brands are coming in droves, and new car-making forces are coming fiercely and full of vitality. Joint venture brands are ready to go and are about to make full efforts. The electrification of automobiles has broken through the critical point and entered a period of steep growth. It is expected that there will be about 5 million vehicles in 2022, with a market penetration rate of more than 20%; about 7 million to 10 million vehicles in 2025; and about 17 million to 20 million vehicles in 2030.

Global warming, fossil energy shortage, air pollution, and national economic strategy should be the main core reasons. We have to find a way to develop new energy vehicles. The development of new energy vehicles is a consensus among countries around the world. In the past two years, automobile brands in many countries around the world have made clear statements or adjusted their corporate strategies to actively face the transformation of new energy vehicles. Electrification is a very good technical route, and it is even more suitable for my country. Europe, the United States and Japan have too much say in the traditional automobile industry, and various patent technology barriers have hindered the development of my country's automobile industry. For example, the power system (engine and gearbox) of traditional automobiles has too many patent barriers. If Chinese automobile companies want to use them, they have to pay. Now on the road of electrification, China has more opportunities to avoid the various technical barriers of traditional automobiles. The automobile industry is an important part of the national economy. We have to bypass the obstacles we encountered in traditional automobiles in the past. Automobile electrification is an opportunity to catch up.

Increase investment in basic research and development: As my country's new energy vehicle industry transforms from policy-driven to market-driven, technology has become an important driving force to achieve this process. Increase investment to seize the commanding heights in the field of new energy vehicles. Innovate production technology: Improve the level of technical capabilities, increase the power and life of batteries, continuously reduce battery costs, and optimize the quality of electronic devices. Improve safety performance: Develop safer electrode materials, electrolytes, high-strength diaphragms, etc. Develop advanced technologies such as rapid power outages, fault prevention and control, and intelligent battery health monitoring, attach great importance to vehicle safety, and do a good job in prevention. Improve supporting facilities and services. Accelerate the construction of infrastructure for new energy vehicle charging piles and charging stations. In this way, under the coordination of technology, market and government policies, new energy vehicles are expected to develop rapidly in China in the long term.

On the basis of electrification, we must be determined to achieve greening. When cars are electrified, the cleanness of the energy used determines the essence of carbon reduction. Under the guidance of the "dual carbon" strategy, the coordinated development of new power systems with new energy as the main body and new energy vehicles has become inevitable. In the future, we must be determined to achieve the use of clean electricity mainly for electric vehicles and achieve zero emissions. Although the distribution is uneven, we must acknowledge the total volume of the electric vehicle market and its contribution to reducing fuel consumption. Even if relevant policies are introduced in the late second phase, the construction of charging facilities will still be the biggest challenge to improving consumer recognition of electric vehicles. In the future, new energy vehicles are expected to develop rapidly in China in the long term.

My judgment is that fuel vehicles will not disappear, and the future market structure may be rational and objective: in terms of policy, the state will strictly limit the purchase ratio of fuel vehicles or require special approval, and in terms of new energy vehicles, the state will set different deployment ratios for pure electric, pure hybrid, plug-in hybrid, and hydrogen fuel cell vehicles to achieve a macro-level balance. Perhaps it is a guess that the "double points" policy will be more detailed and different technical routes will be defined in more detail. This is not impossible, because we must fully combine the needs of the market, because all policies that are not suitable for market rules need to be optimized and adjusted, and the fundamental reason is that our people need more affordable cars.

Driven by the dual pressures of emission regulations and energy consumption, electrification has become the recognized future evolution direction of the global automotive industry. From the material technology competition between ternary lithium batteries and lithium iron phosphate batteries, to the competition between technology providers and vehicle companies for trend control, to the competition game based on national boundaries... the entire industry is accelerating the electrification strategy in full swing. Electrification brings not only new R&D processes and manufacturing processes, but also a new car-making concept, and the most profound change in the automotive industry in a hundred years. New energy vehicles must be powered by new energy, and the people want more affordable new energy vehicles. The problems faced by pure electric vehicles will continue to be solved. The technical route of new energy vehicles is not just pure electric. We must meet the real needs of the general public. I believe that the country will keep pace with the times at the policy level.