Automechanika Shanghai reports: A snapshot into China’s new developmental plan for the auto industry
Automechanika Shanghai breaks down China’s 14th
Five Year Plan 2021 – 2025 (14th FYP) and what it means to players in the
automotive ecosystem. The country’s latest economic and developmental strategy
sees the auto industry become a key driver of growth and industrial upgrade. It
presents the critical long-term prospects of implementing new business models,
sustainable solutions and technological advancements. It also approaches Dual
Circulation as a means to tap into domestic demand and export activities. In
the year leading up to 24 to 27 November 2021, the internationally-acclaimed
fair will explore these new dimensions indicated by the 14th FYP.
The 17th edition
will amplify how policies in the macro environment are filtering into the
automotive ecosystem. Approximately 3,900 exhibitors in seven sectors and three specialised zones will spread across 280,000 sqm at the National
Exhibition and Convention Center, Shanghai.
influential overseas and domestic exhibitors that have confirmed their
participation include Amsoil, Autel, Bilstein, Bosch, BOTNY, Brembo, CAMEL,
Carzone, COPTON, Doublestar, EAE, Eagle-FLY, FAWER, Hofmann, Homotor, HUITIAN,
JINCOOL, MOTUL, Petro-Canada Lubricants, PMC, SAIC MOTOR, STRONA, Total, VIE,
WEGMANN, Würth, ZF and Zynp Group, to name a few.
The automotive industry in the 14th FYP
Earlier in the
year, China set out its 14th FYP centred on optimising the country’s overall
economic system. In accordance with initiatives outlined, the nation’s economy
expects to grow an average of four percent during this period.
automotive industry, therefore, holds significant value in the country’s 14th
FYP as its established ecosystem provides a solid foundation for transformation
and upgrade. Production in China is already strong with 25.225 million vehicles
manufactured last year, however, the plan draws attention to transformational
initiatives like the Four New Modernisations (electrification, intelligence,
connectivity and sharing).
In fact, Automechanika Shanghai actively incorporates this concept
in the Tomorrow’s Service & Mobility
sector, a critical innovation and incubation hub for new and established
companies. It aims to fuel industrial modernisation across the industry. This
includes weaving green transformation, connected mobility, new infrastructure,
autonomous driving and other emerging technologies into business operations.
14th FYP aims to stimulate new energy vehicle market shares across China to
account for 20 percent of sales by 2025. This figure currently stands at 5
percent (as of 2020)3. Accordingly, the country will continue to invest in
infrastructure like public charging facilities to increase the accessibility
and incentivise purchasing.
Elsewhere, as a supporting strategy within the 14th FYP, the Dual
Circulation policy opens up wider opportunities in China’s hyper-sized consumer
market. It refers to inner circulation (domestic) as the mainstay, with both
inner and outer (international) circulations reinforcing one another.
China sold approximately 25.311 million vehicles last year4. Moving to the
first quarter of 2021, the country imported USD 22.74 billion worth of
auto-related products, while exporting a value of USD 24.10 billion at the same
time, a year-on-year increase of 35 and 53.1 percent, respectively. This
movement of goods is also filtering into wider market segments for logistics, a
point that the show heavily covers with over 50 percent of exhibitors offering
solutions for commercial vehicles, new energy commercial vehicles, fleet
management and associated repair and maintenance.
Thus, Dual Circulation is championing the digitalisation and
integration of supporting industries in the automotive supply chain, which is
also a key premise of the Services & Supply Chain zone. This
includes adapting business models to include heightened collaboration with the
likes of research and development, data management, tech, finance and
e-commerce to increase operational efficiency and effectiveness.
The fair will
reveal more key automotive changes brought forward by the 14th FYP through
product showcases and an extensive array of events through its fringe
programme. Events expected to return and cover the industry’s future direction
include the likes of the Tomorrow’s Service & Mobility Summit and Automotive
Aftermarket Summit. Many of these will be livestreamed on the show’s hybrid
platform, AMS Live. Other features of this online service include virtual
booths, one-to-one meetings and business matchmaking that aim to connect remote
overseas players with those at the fairground.
The show is organised by Messe Frankfurt
(Shanghai) Co Ltd and the China National Machinery Industry International Co
Ltd (Sinomachint). Please contact Messe Frankfurt (HK) Ltd on + 852 2802 7728,
visit www.automechanika-shanghai.com or email firstname.lastname@example.org
for further enquiries.