Hu Kaihong:

The last question, please.

Guangming Daily:

It has been reported that China's automotive industry has seen declining production and sales this year. How will you, on behalf of the Ministry, look at the future landscape of the industry? Thank you.

Miao Wei:

Thank you for your question. Automobile is a pillar industry of the national economy. From the rollout of the country's first domestically-made vehicle of the "Jiefang" series in 1956 to a production capacity of more than 27.8 million in 2018, China's auto sector has continued to stay on top of global rankings by production and sales for 10 consecutive years. In addition, China owns more than half of the global production, sales and inventory of new energy automobiles, which is evidence that China is a major auto country in the world. However, since July 2018, affected by multitudes of factors including macroeconomic conditions, automobile production and sales dropped for the first time in 28 consecutive years. Although the rate of the reduction shrunk over the last two months, the industry still remains under considerable pressure.

Given the industrial rules, China's automotive sector has entered a period of adjustments in terms of both the auto market and the industrial structure. The domestic auto industry is expected to be empowered by a combination of factors, like economic growth, urbanization, upgrade in energy conservation and environmental protection standards and scrapping of old cars. Especially, under the new round of technological revolution and industrial transformation, the sector will be increasingly driven by electrification, intelligence, internet connection and shared mobility. Now the auto industry is undergoing a reshaping in a comprehensive way from the motor system, production to operation and consumption and I believe that it will remain headed on an unchanging trajectory of sound momentum in the long run.

So far, the auto industry in China is at a critical point of transforming from high-speed growth to high-quality growth. We should be confident in its development, seize strategic opportunities, and make endeavors in the four respects of structural adjustment, quality improvement, brand-building and expansion into international markets.

In view of structural adjustment, we should adhere to the national strategy to develop new energy vehicles. We should accelerate the industrial integration of automobile, energy, transport and information and communication and boost the development of intelligent and internet-connected vehicles. At the same time, we need to upgrade conventional fossil-fueled vehicles, pursue coordinated industrial development and ensure a smooth transition from old to new growth drivers.

In view of upgrading quality, production and sales will no longer be the only yardstick for judging the performance of the auto industry. More importance should be placed on quality development. Despite the drop in production and sales, the added values fell at a much smaller rate, which indicated an improvement in added values and quality. Auto manufacturers should keep abreast of market demand, develop new products and improve their performance, quality, reliability and after-sales service continuously. Those are the essential things for manufacturers to raise competitiveness and meet the demands of consumers.

Regarding brand-building, manufacturers should establish a strong sense of brand image. We will guide them to adopt a brand strategy with an aim to build centennial brands. They should keep enhancing the popularity and reputation of their brands to increase their brand value and rise toward the middle and the high end of the auto industry chain.

In view of the "go-out" strategy, the auto industry should embrace cooperation based on openness, connectivity, mutual benefits and win-win outcomes.It will take full advantage of the opportunities created by the Belt and Road Initiative. While continuing to expand opening-up and bring in, we also encourage domestic auto makers to step into foreign markets with better products, and achieve high-quality integration into the global industry system and international auto market. I'll stop here.

Hu Kaihong:

Now, let's conclude the press conference here. Please allow me to extend my thanks to Mr. Miao, to the two spokespersons and to everybody here.

Translated and edited by Chen Xia, Zhang Jiaqi, Zhang Liying, Gong Yingchun, Zhang Rui, Li Huiru, Wu Jin, Zhu Bochen, Cui Can, Liu Sitong, Huang Shan, Yuan Fang, Fan Junmei, Yang Xi, Kenneth Teh Chiu Soong, Degen Hill