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Xu Heyi in the Davos Forum Proposed Again that: Low-carbon is the Only Way for the Sustainable Development of Automotive Enterprises

Created at:2014-09-10

On September 10, 2014 Summer Davos Forum was held in Tianjin, China, and honored guests, including various countries’ political leaders, chief economists and enterprise strategic experts, young global leaders, scientists, etc., got together and discussed the theme of cooperation and development. The automotive industry, as one of the important fields in high-end manufacturing, influences environmental protection, transportation, energy and other aspects in its development. Fail in one place and the whole system will be affected. Therefore, how does the automotive industry renew itself and achieve sustainable development under the current situation of rapidly increasing demand of the market, gradual energy shortage and environment worsening is an important topic that auto enterprises and consumers think and focus on.

Xu Heyi, Chairman of BAIC Group mentioned that the task of auto enterprises is not only to manufacture good cars, but also to make cars more environmental friendly and low-carbon, and to be for consumers more appropriate and comfortable, and to achieve a higher quality of life while using them.

Seen from the data, as China's economy enters into a new normal state of growth at intermediate speed, there is still a vast room for the growth of China's car market. Some experts predict that by 2020, the annual sales volume of the Chinese car market can reach 32 or 35 million vehicles. Therefore there is some concern that the rapid growth of global car ownership will aggravate urban traffic, environment pollution and energy problems to a certain extent. Auto enterprises, governments and consumers are all aware that the industry reform has to be imminent.

As for consumers, their consumption idea begins to change and tend to green travel. Some people choose to take the bus while others rent cars or resort to car sharing. On January 1, 2014, Beijing introduced the Opinion of Beijing Municipal Commission of Transport on Passenger Car Sharing in Beijing, and since then, carpooling has become a legal form, and the number of travels by carpooling of young people has increased. This is an important measure for the government to support the public to change the consumption idea and the way of travel, and to alleviate the pressure on traffic and environment.

The change in the consumers’ concept also becomes a driving force for the auto enterprises to carry out industry reform. Some consumers who plan to purchase cars start to pay attention to new energy vehicles. Green environmental protection and clean energy have become the new fashion in automobile consumption. Improving the safety of the car and reducing emissions through scientific and technological innovation and technological progress are new challenges posed by the market for enterprises. This is also an important means for energy conservation and emissions reduction on the traffic field, as well as an important way to promote the sustainable development of the automotive industry of our country.

Countermeasure: Low carbon is the only way 

As a large auto group with domestic influence and one of the Fortune 500 enterprises, BAIC Group has all along focused on and set out to study the feasible way to solve potential problems, and workout the future direction of the automotive industry.

"One of our countermeasures is to vigorously develop new energy vehicles, and BAIC Group should become a leader in China's new energy automotive industry." Xu Heyi said, "The second strategy is to accelerate the strategic transformation to a service-oriented manufacturing industry, use the Internet thought to reconstruct the industry value chain and the overall business chain, and follow a large-scale, high-end oriented, internationalized, service-oriented and low-carbon development path."

Xu Heyi stated that realizing sustainable development in the automotive industry must take the path of green and low-carbon development. Energy saving and new energy vehicles are becoming the focus of the global automotive industry competition, and the world automotive industry has already started a new round of restructuring efforts. China's car market is great in demand, and the structure adjustment of auto enterprises is facing a rare development opportunity.

Wang Fuchang, Deputy Director of the Equipment Manufacturing Industry Department of the Ministry of Industry and Information Technology previously declared that speeding up the cultivation and development of energy saving and new energy vehicle strategic emerging industries, was not only an urgent task for China to effectively cope with the challenges of energy and environment and to realize the sustainable development of automotive industry, but also a strategic measure for China to grasp a strategic opportunity, shorten the gap with advanced countries, and achieve an important development in the automotive industry.

At present, the gap between the state of the overall development of China's new energy vehicles and that of foreign ones is relatively small. Therefore, speeding up the development of new energy vehicles is very beneficial for Chinese auto enterprises to solve the development problems in energy, environmental protection, low carbon, etc., to promote the transformation and upgrading of the industry, to realize the self-owned brand response, and to rank among the top international automotive industries.

In early 2014, BAIC Group, together with Beijing Industrial Development Investment Management Co., Ltd. and Beijing State-owned Capital Operation and Management Center, jointly invested 2 billion and established the first domestic new energy auto joint-stock enterprise - BAIC BJEV, which has become an important platform of auto development of new energy vehicles. The Senova EV manufactured by BAIC BJEV has also become an officially designated model for APEC meeting in 2014.

Not long before, BAIC BJEV launched a marketing activity "providing one thousand vehicles in ten cities for test drive for only one yuan". Xu Heyi said that using the Internet way of thinking "free experience" to make consumers reach the new energy vehicles at zero distance will promote the new energy vehicles walk into thousands of households and make the green travel become a common idea and common choice.