This year, the automotive market unexpectedly shifted to a phase of slow growth, prompting manufacturers who had been optimistic about this year’s market last year to lower their sales targets for this year. Under the new market conditions, automakers have reached a broad consensus: that moderate-to-low growth is not temporary—it will persist in the medium and long term, becoming the “new normal.” This shift will also directly encourage automakers to adopt a more rational approach when planning for the 13th Five-Year Plan. According to sales projections released by experts at the China Automotive Industry Association’s Data Resource Center, the overall market size by 2020 is forecast to reach 28.77 million vehicles—slightly below the previously projected 30 million vehicles. This revised target has gained considerable industry acceptance. But...

According to a report by AutoNews on October 30, Beijing time, Matthias Mueller recently delivered a public address in his capacity as the new CEO of the Volkswagen Group. In his speech, he unveiled specific plans to turn around Volkswagen’s fortunes. Particularly noteworthy is that, going forward, the Volkswagen Group will focus on improving its profitability rather than pursuing growth in sales volume.

To implement the “Guiding Opinions on Promoting the Transformation and Upgrading of the Automotive Repair Industry and Enhancing Service Quality,” the “Administrative Measures for the Implementation of Public Disclosure of Automotive Repair Technical Information,” and the “Decision of the Ministry of Transport on Amending the ‘Regulations on the Administration of Motor Vehicle Repair,’” we aim to foster consensus among automotive parts manufacturers regarding the use of homogeneous parts, create a healthy and orderly development environment for the automotive repair market, and advance the implementation of the Ministry of Industry and Information Technology’s “Program for Cultivating Urgently Needed and Scarce Talents in the Industrial and Information Technology Fields.” By cultivating a group of high-level talent, we seek to achieve a comprehensive breakthrough in the production of core automotive parts using homogeneous parts, thereby helping China’s automotive repair market break free from industry monopolies.

The stock price has surged by 300% over the past year, as Geely races toward a market capitalization of HK$100 billion—currently standing at HK$99.9 billion. Yesterday, Geely Auto reached an intraday high of HK$11.24, bringing its market cap close to the HK$100-billion mark. This share price has already soared by more than 300% compared to its “starting price” in mid-February last year. Behind this dramatic stock rally is the accelerating rise of domestically branded passenger vehicles, with Geely serving as a prime example. In January of this year, despite a slight year-on-year decline in overall domestic passenger-car sales, Geely Auto’s sales grew by over 70% year-on-year. Similarly, the sales growth rates of independent brands under SAIC and GAC also hovered around 60%. Commenting on this phenomenon, an executive from a domestic-brand automaker pointed out:

The 2017 “Blue Book on New Energy Vehicles,” released on August 3, outlined six major policy directions. Among them are: the National Development and Reform Commission (NDRC) and the Ministry of Industry and Information Technology (MIIT) will raise the investment threshold for newly established pure electric vehicle enterprises; it remains highly likely that the exemption of purchase tax for new energy vehicles will continue in 2018; overly stringent policies such as the 30,000-kilometer requirement will be adjusted and refined; and the dual-credit management measures will be introduced in the second half of this year. Regarding the 30,000-kilometer policy, the Blue Book on New Energy Vehicle Policies points out that the development momentum of the new energy vehicle industry has become irreversible. On the basis of ensuring steady growth in the new energy vehicle market, policies may be adjusted to reflect the characteristics of the industry’s new stage. Government departments will continue to study and refine relevant policies, and it is expected that significant adjustments in areas such as investment, taxation, subsidies, and industry regulation will be gradually introduced over the coming year. The investment threshold will be gradually raised. Currently, the key factors considered in investment approvals include companies’ R&D experience, R&D capabilities, financial strength, and sustainable development capacity. It is anticipated that the NDRC and MIIT will further raise the investment threshold for newly established pure electric vehicle enterprises in the next step. Along with continued increases in requirements related to R&D, local governments will also strengthen their efforts to regulate industrial development. It is expected that it will become more difficult for newly applying enterprises to obtain approval; however, enterprises with strong technological capabilities and sustainable development potential will still be able to enter the market. Research is underway to extend tax incentives. The exemption of purchase tax for new energy vehicles expires at the end of 2017. Against the backdrop of the state’s strategic support for the new energy vehicle industry, there remains a high probability that preferential policies for new energy vehicles will continue in 2018, ensuring that state support does not falter. To achieve the government’s goal of supporting leading and stronger enterprises, new energy vehicles enjoying the purchase tax incentive will also face higher technical requirements. Given that both the purchase tax incentive catalog and the new energy vehicle subsidy catalog are led by the MIIT, these two catalogs may eventually be unified, thereby reducing the workload for enterprises when submitting applications. The subsidy policy will continue to be refined. Before 2020, the new energy vehicle subsidy policy will not be easily withdrawn, but the policy needs to be adjusted and improved gradually to keep pace with changing circumstances. On the one hand, as the industry’s technological level improves, research will continue to raise the entry barriers for enterprises and products, and online supervision of the sale and use of new energy vehicles will be strengthened. On the other hand, to relieve the financial pressure on enterprises and avoid unintended negative impacts on industry development caused by一刀切 policies, overly stringent policies such as the 30,000-kilometer requirement will be adjusted and refined, and the frequency of clearance may also increase. The credit system regulations will be issued as soon as possible. After more than half a year of revision and refinement, the “Management Measures for Fuel Consumption and New Energy Vehicle Credits for Passenger Vehicle Manufacturers” are expected to be released in the second half of this year, with an aim to implement them in 2018. However, since managing the credit system will be far more challenging than administering subsidies, during the subsidy era before 2020, China’s new energy vehicle industry will still primarily rely on subsidies and tax incentives; thus, the new energy vehicle credit management system will serve as a supportive tool. After 2020, the credit system will take over from the subsidy policy and play an effective role in supporting the industry’s long-term development from the supply side. Strengthening ex-ante, in-process, and post-event supervision. The occurrence of subsidy fraud cases has prompted regulatory authorities to place great emphasis on managing product production consistency, vehicle registration, and usage. Industry regulation will shift from focusing mainly on ex-ante management to placing greater importance on in-process and post-event oversight. Guiding and standardizing intelligent connected vehicles. Existing laws and regulations are mainly designed for traditional vehicles, and legal provisions governing intelligent connected vehicles are still under exploration and formulation. It is recommended that the next steps focus on promoting the development of intelligent connected vehicles through four aspects: revising regulations, tackling key technologies, conducting demonstration and promotion, and strengthening coordination. At the same time, coordination and interaction among sectors such as the automotive industry, transportation sector, and information industry must be enhanced.

Bao Teng Auto, a high-quality manufacturer of automotive electric fans in Jiangsu, shares with you the features and applications of double-sided foam adhesive tape for automobiles. Features: Waterproof, solvent-resistant, high-temperature resistant, exhibits excellent adhesion to curved surfaces, and can effectively fill gaps on uneven surfaces.