"Creative Destruction" Reshaping the "Two-Line Battle" in the Automotive Industry to Take the Lead

The internal combustion engine vehicle is hailed as one of the greatest material inventions in human history. In its 100 years of existence, it has had a profound influence on the human material society. Today, the pattern dominated by the internal combustion engine is experiencing an unprecedented "creative destruction." New trends represented by electric cars and autonomous driving are subverting the world’s perception. According to Richard Foster, the world's leading management consulting firm, McKinsey, “Creative destruction has taken place in the automotive field, such as Uber’s online dating service, Google’s exploration of autonomous driving technology, and further escalation of artificial intelligence”. Chen Qingtai, chairman of the 100-person Electric Vehicles Association, also believes that replacing electric vehicles with electric vehicles must be a major creative destruction.

Chairman of the China Electric Vehicle Centenary Association Chen Qingtai

The power of creative destruction has emerged

If car companies have increasingly shown that the layout of electric vehicles is a creative destruction of first-class power, then the impact of the “forbidden sale of fuel vehicles” and “announced electrification of all models” must not be underestimated. Not long ago, Xin Guobin, deputy minister of the Ministry of Industry and Trade, publicly stated that “Some countries have set a timetable for stopping the production and sales of traditional energy vehicles. The Ministry of Industry and Information Technology has also started relevant research and will also formulate a timetable for China with related departments. These measures will surely promote China’s automobile industry. The environment and dynamics of industrial development have undergone profound changes." China, as the world's largest auto market, and at the same time as the "strategic center" of the auto giants, put the "fuel ban on sale" on the agenda, implying that for the electric car market Development must be the most important thing.

When the “fuel car banned” remarks came out, there was no doubt that a “death notice” was issued to the traditional energy vehicles. Although the industry’s formulation of the timetable was controversial, it has been seen that the fluctuations of the car companies in various countries. At the just-concluded Frankfurt Motor Show, BMW Group announced a new electric vehicle strategic plan: By 2025, BMW will provide 25 electric models; on the night of the mass media night before the auto show, Volkswagen Group CEO Mullen announced the launch of " Roadmap E” Strategy: By 2025, the Group’s brands will launch a total of more than 80 new electric models. By 2030, the entire Volkswagen Group’s entire lineup will be electrified; during the Frankfurt Auto Show, Mercedes also said that In all aspects of the electrification process, Mercedes-Benz will launch 10 new all-electric vehicles in the global market by 2022. Almost at the same time as the Chinese government proposed the “fuel sales ban” issue, Jaguar Land Rover announced that it will realize the electrification of all its models since 2020; before that, Volvo announced that by 2019, each new model of the company will be launched. The automobile models will all be equipped with electric engines. By 2024, the company will completely terminate the internal combustion engine or diesel engine business...

Chen Qingtai pointed out at the 100-person electric car conference held in Changzhou on September 24th that after the government's timetable has come out, its effectiveness has started to show: “So many auto companies are making great efforts to transform, I think this timetable is not without For these countries, for the traditional car companies in these countries, it is possible to avoid repeating the mistakes of the Kodak tragedy." Regarding the significance of the government’s timetable, Chen Qingtai believes that “the important point of the government’s decisive action is to give the community a long-term expectation, because to fully realize the potential of electric vehicles, we must plan ahead, from energy, infrastructure, electrification, and information. The preparations for the transformation of chemical industry, industrial chain, employee transfer, government supervision, and laws and regulations are well-ordered. There is a timetable that will facilitate the coordination and smooth promotion of the government and enterprises. It is an encouragement and a relentless force for traditional fuel vehicle companies. It will ultimately benefit everyone."

While electric vehicles are enjoying an unprecedented development, autonomous driving technology based on artificial intelligence also represents the future of the automotive industry. With the accumulation of capital, today's valuation of autonomous driving technology has exceeded people's imagination. According to "Forbes" previously reported, the Morgan Stanley report shows that if Google's parent company Alphabet's automatic driving company Waymo spin-off, the latter's valuation may reach 70 billion US dollars or more, more than GM and Ford and other traditional cars The market value of the company also exceeds Tesla and Uber. On March 12th this year, media reported that the world's leading chip maker Intel plans to purchase 15.3 billion U.S. dollars for Mobileye, an automotive-assisted and autopilot product development company in Israel, hoping to move the company’s cloud technology with mobile devices. Eye's advanced unmanned technology combined for the development of driverless cars. Although auto-driving cars still have many problems to solve in terms of laws and people's cognition, the trend is ultimately a major trend. Chen Qingtai said at the 100-member conference that "the 21st century unmanned electric car may change the world in a way that we couldn't imagine, just like the 21st century diesel locomotive, but the road is rugged and it is necessary to fasten the seat belt."

Opportunity current "Two-line combat"

Since 2016, the automotive industry has delivered the following information: First, by 2025 at the latest, the price/performance ratio of electric vehicles will meet or exceed the traditional fuel vehicles; Second, the trend of electrification of automobile power has no suspense; Third, electric vehicles One of the great highlights of changing the world is that it will create future travel based on shared cars and unmanned driving. All in all, both the government, the capital, and the automotive industry, the up-and-down chain has made a new understanding of the electric car market and autonomous driving technology: “The automobile industry has entered a period of creative destruction, and the defenders will face enormous challenges”. In the original intention of the economist Schumpeter's "Theories of Creative Destruction," every large-scale innovation eliminates old technologies and production systems and establishes new production systems. For the automotive industry, who is in the new system? In the lead, China will become the winner, and the key to winning the initiative lies in "two-line combat."

The electric car hundred people Changzhou station site

One battleline is based on batteries, motors, and electronic control. Chen Qingtai believes that the “three powers” ​​technology is mainly to protect the basic functions of electric vehicles, but this is only the 1.0 version of electric vehicles. The other front is informationization, network integration, and intelligence. It is mainly to satisfy the ever-increasing consumer experience requirements, and eventually to achieve unmanned driving. This is necessary for the electric car to enter the 2.0 and 3.0 editions. He believes that only two fronts will be able to stand still. "I am very concerned about the fact that while we are studying such basic issues as batteries, motors, and electronic control, we must not ignore its information and intelligent development issues because the core of subsequent competition is here."

China's competitiveness in the traditional automotive sector may still be a certain gap from the joint-venture vehicle brands. However, in the field of electric vehicles, independent car companies are facing unprecedented advantages. Chen Qingtai believes that China's economy, technology, industry, etc., have already established a considerable foundation. If we grasp it properly, China may gain greater advantage in winning the future through the development of electric vehicles. On the other hand, global companies, media, and investment agencies are paying attention to unmanned and shared cars with high attention. Companies with destructive advantages such as Google, Apple, and Foxconn are also in fierce competition, and who will stand out from the crowd? The answer may be in the near future.