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In 2023, China's automotive industry made significant progress. Could you please introduce the relevant situation? What measures will be taken this year to promote the high-quality development of the industry? Thank you.

Xin Guobin:

The automobile industry is a crucial pillar industry in China, and its development in recent years has attracted attention both domestically and internationally. Last year witnessed numerous innovative products, especially some innovative products in new energy, which became trending topics on social media. With the collective attention of society, the automotive industry achieved remarkable highlights last year, presenting an excellent report card.

First, the production and sales volume of automobiles exceeded 30 million units for the first time. Last year's annual production and sales reached 30.161 million and 30.094 million units, with year-on-year growth of 11.6% and 12%, respectively, setting a historical record. While production reached 29 million units in 2017 and experienced a continuous decline in the following years, last year we surpassed the 30 million mark, maintaining the global leading position for 15 consecutive years. After breaking through 10 million units in 2009, it took us three to four years to exceed 20 million units. After more than a decade of development, breaking through to 30 million units indicates a significant achievement. The retail sales of automobiles reached 4.86 trillion yuan, accounting for 10.3% of the total retail sales of consumer goods. The added value of the automobile manufacturing industry above a designated scale increased by 13% year on year, making a significant contribution to the stable growth of China's economy.

Second, new energy vehicles continued to lead globally. In 2023, the production and sales of new energy vehicles reached 9.587 million and 9.495 million units, respectively, with year-on-year growth of 35.8% and 37.9%. The sales volume of new energy vehicles reached 31.6% of the total new vehicle sales, demonstrating a high penetration rate. Semi-solid-state batteries with an energy density of 360 watt-hours per kilogram were applied to vehicles last year, and this new product was exhibited to the public at the International Automobile and Manufacturing Technology Exhibition in April. Vehicle-grade large-scale computing chips significantly improved their performance, integrating various advanced technologies and becoming highly popular products at major auto shows such as the International Automobile and Manufacturing Technology Exhibition held in April last year in Shanghai, and the World New Energy Vehicle Conference held in Munich, Germany in September. They have received a positive response in Europe and in Germany. Many consumers, as well as many car companies and research institutions, paid close attention. At the exhibition, some professional technicians even spent a long time studying underneath the vehicles and relayed that China's innovative products are indeed advancing rapidly, with a high level of intelligence and good quality. Overall, they gave very positive evaluations. 

Third, China's exports have made further advancements. In the whole of last year, total exports of complete vehicles reached 4.91 million units, a year-on-year increase of 57.9%, with the prospect of leaping to the top spot globally for the first time. Among these, the export of new energy vehicles (NEVs) amounted to 1.203 million units, marking a year-on-year growth of 77.6%, thus offering global consumers a diverse range of consumption choices. The export of batteries reached 127.4 gigawatt-hours, a year-on-year increase of 87.1%. The "new three items" have added a new touch to China's manufacturing industry, boosting our confidence and burnishing China's image.

Apart from these accomplishments, it is essential to acknowledge various unfavorable factors stemming from the external environment. These include sluggish consumption demands and the misuse of trade remedy measures as protectionist actions in some countries and regions. In terms of the industry, this pattern has become a global consensus, although there are areas that still require coordination in the process. Many NEV companies, especially those primarily focused on the domestic market, have yet to achieve profitability. In terms of product sales, there are also some shortcomings in areas such as automotive chips. In addition, in the development of intelligent connected vehicles, the collaboration between vehicles and the road is not yet comprehensive. In the past, there were some traditional approaches that aimed to make the vehicle side an all-encompassing solution to every issue. China has proposed the implementation of a strategy for collaborative development between vehicles, roads, and the cloud: Issues that can be addressed by the vehicle are handled by the vehicle; those that can be resolved by the road infrastructure are addressed at the road level; and problems suitable for cloud solutions are tackled in the cloud. At the same time, there are instances of disorderly competitive practices, where certain regions and companies are initiating projects for NEVs without proper planning, leading to redundant constructions. These issues demand our highest attention, and decisive measures must be implemented to address them.

Xin Guobin:

It's fair to say that the development of NEVs last year was satisfactory. The sustainability of this momentum is a matter of great concern for everyone and holds significant importance for us. In the beginning of the year, we collaborated with industry institutions, research agencies, and industry associations to conduct thorough research, delving into the current development environment, constraints, and favorable factors for further development. Currently, the research findings from industry associations are optimistic. They anticipate that by 2024, there will be stable growth in production and sales within China's automotive industry, with NEVs maintaining a positive development trend. The current estimate for the overall scale suggests that it is expected to reach 31 million units in 2024, with a modest year-on-year increase of around 3%. The production and sales of NEVs are projected to reach approximately 11.5 million units, experiencing a growth of roughly 20%. Certainly, these data are projections made by relevant enterprises and research institutions, and we will conduct further validation of the findings. In general, I consider this assessment to be trustworthy.

For the next step, we will earnestly implement the arrangements made by the Central Economic Work Conference and the National Conference on Promoting the New Type of Industrialization. We will collaborate with relevant departments to further enhance macroeconomic guidance, strengthen industry management, and promote the high-quality development of the automotive industry.

First, we will implement favorable policies like reducing vehicle purchase taxes, thoroughly conduct pilot projects of electrification in public transport vehicles, and launch NEV campaigns in rural areas. These efforts aim to actively spur the consumption of NEVs and ensure the stable operation of the industry. Last year, we conducted six rounds of NEV campaigns in rural areas, tapping the market potential in these areas and promoting the development of charging and swapping infrastructure, further enhancing the consumption experience of rural consumers.

Second, we will support enterprises in collaborative innovation and intensify efforts in key technologies such as automotive chips, solid-state batteries, and advanced autonomous driving, further enhancing the market competitiveness of products.

Third, we will advance the implementation of pilot projects for the access and "vehicle-road-cloud integration" of intelligent connected vehicles. We will accelerate the construction of infrastructure, such as roadside perception and cloud control for connected vehicles; further improve the standard systems for on-vehicle, roadside, and network aspects; and continue to promote the commercial application of intelligent connected vehicles. Here's an invitation to all media friends: I recommend visiting Yizhuang in Beijing. As of now, the results of the vehicle-road-cloud collaboration experiments in Yizhuang are highly promising. The country has been actively advancing the comprehensive development of vehicle-road-cloud collaboration through the establishment of over 30 such pilot demonstration zones nationwide.

Fourth, we will further strengthen the coordinated layout of industrial development, guard against and resolve the risk of overcapacity, and maintain a fair and competitive market order. The automotive industry is a globalized sector, and in the development process this year, we will continue to promote internationalization and advocate for collaborative innovation and global development. We will work towards eliminating various forms of trade protectionist policies, creating a favorable international and domestic environment for industry development.

That's all from me. Thank you!