When China's economy entered a critical period of structural transformation, the Chinese auto industry, which has undergone the "Golden Decade," has also stood at a turning point in its development. This new starting point is to change the mode of development and lay a foundation for sustainable development for the next decade, 20 or even 30 years.

Looking back at the last ten years, the sales volume of domestic cars increased from 2.07 million vehicles in 2000 to 18.26 million vehicles in 2010. The output of domestic cars has increased nearly 8 times in ten years, with an average annual growth rate of 24.3%. The rapid growth supported by mass consumption has also made China the world’s largest automotive consumer market. The automobile industry has become a pillar industry of China's national economy.

However, running too fast may not have the ability to run farther. The world’s largest auto market has not produced the best global auto brand in the world. Simple replication from product to channel cannot establish a world-class management system in our company. The more deadly thing is that while becoming a large market for multinational auto giants, the Chinese auto industry has a serious dependence on foreign capital, the company’s ability for independent innovation is extremely weak, and core technologies are still controlled by multinational auto groups, which also leads to The development of the automobile industry is seriously underpowered. It is time for Chinese cars to say goodbye to this simple brutal growth model.

In the next decade or even longer, the Chinese auto industry still faces many contradictions, problems and challenges. But the most crucial thing is to find the driving force for a new round of development. This power is no longer brought from the outside, but from the Chinese auto companies themselves. In other words, what we need to do is to discover the endogenous power of Chinese cars.

Endogenous growth theory stems from the branch of a Western macroeconomic theory in the mid-1980s. The core idea is that the economy can rely on external forces to promote sustained growth, and endogenous technological progress is the deciding factor in ensuring sustained economic growth. If you make this theory a non-technical statement: first, acquire new “knowledge”, which includes innovation, technological progress, human capital accumulation, etc.; second, stimulate new knowledge to be used in production; and thirdly, provide new knowledge. Resources (manpower, capital, imports, etc.).

Endogenous growth theory tells us that China's auto industry needs sustainable competitiveness and endogenous technological progress is the real driving force for development. Since modern automobiles have established "technological independence" as the highest goal of the company, they have created today's splendor by relying on endogenous technological progress. Endogenous technological progress means that enterprises must not only place independent innovations at the core strategic position, but also must focus on innovation, and form enterprise's system competitiveness in all aspects of the value chain such as R&D, manufacturing, procurement, marketing, and service.

Endogenous growth theory emphasizes the connotative development based on scientific and technological innovation and the improvement of the quality of the workforce. The intrinsic development path refers to the optimization and combination of resources and economic growth that rely mainly on the advancement of science and technology and the improvement of the quality of the workforce. This requires that the automobile industry must bid farewell to the extensive and long-term development path of high input, high consumption, high pollution, low efficiency, and low quality, adjust the industrial structure, and reverse the situation in which many independent brands are always at the bottom of the interest chain. The overall leap in the strength of the automotive industry has accelerated the advancement of "a powerful automobile country."

The most crucial role of endogenous force is also that, through endogenous stimulation, local auto companies will become the main driving force for a new round of growth. They will also be the starting point for boosting the momentum. This will allow the Chinese auto industry to gradually rid itself of its dependence on external forces. Reduce the constraints caused by uncontrolled external force changes. This kind of power output is uninterrupted and sustainable.

The automotive industry is regarded as a strategic pillar industry in any country. It is a concentrated expression of the country’s industrial level. The automobile industry will drive industries such as steel, petrochemicals, rubber, light industry, textiles, and machinery. Along with the pace of national industrial restructuring, the role of the auto industry in the next round of development will be crucial. We will wait and see how the auto industry will write its own chapter in the magnificent book on China's economic transition in the future.