IAA China Day was held at the Hannover Exhibition Center on September 18, local time, in Germany. Wang Xia, Chairman of the China Council for the Promotion of International Trade (CCPIT) Automotive Sub-Council and the China Chamber of International Commerce Automotive Chamber, delivered a keynote speech at the 2024 IAA China Day.
Below is the full text of the speech:
It has been six years since the last “IAA China Day.” Over these years, the world has faced numerous challenges, and the global commercial vehicle industry has undergone significant changes. During this period, the Chinese commercial vehicle market has experienced fluctuations, but the overarching direction of development has remained consistent. The focus has been on accelerating the development of new productive forces, moving towards high-end, intelligent, and green growth to achieve high-quality development and contribute to the construction of a Chinese-style modernization. Let’s take a look at a video showcasing the profound changes in China’s commercial vehicle industry in recent years. You’ll see how advanced intelligent technologies are being applied to new energy commercial vehicles in various scenarios.
It is evident that despite the fluctuations in the overall production and sales of commercial vehicles, China’s new energy commercial vehicles have continued to grow rapidly. The market, rather than policies, is now the driving force, and the concepts of green and low-carbon development have been fully integrated into China’s commercial vehicle industry. Data shows that in 2023, the overall penetration rate of new energy commercial vehicles was 11.3%, with new energy light commercial vehicles exceeding 12% and new energy heavy commercial vehicles at 8.6%. It is expected that this year, the penetration rate of new energy commercial vehicles in China will exceed 15%, with new energy light commercial vehicles reaching about 20%, and new energy heavy commercial vehicles surpassing 10%. Some experts predict that by 2030, the penetration rate of new energy commercial vehicles in China will exceed 30%.
This year, more than 400 Chinese companies, including vehicle and component manufacturers, are participating in the exhibition, marking a record high. China continues to be the country with the second-largest number of exhibitors after Germany. Among the complete vehicle exhibits brought by Chinese companies, electric and hydrogen-powered commercial vehicles dominate. Today, the speeches by Chinese corporate guests also focus on green, low-carbon, and intelligent themes, exploring innovations in technology, products, manufacturing, and the industrial, ecological, and innovation chains. Over the past two to three years, China’s commercial vehicle industry ecosystem has undergone deep innovation, and competitive dynamics have accelerated, presenting both Chinese and foreign companies with more significant challenges.
How should we view the Chinese market, and how can we seize new development opportunities in China’s commercial vehicle industry? I believe the following key points are essential:
First, the green and low-carbon transformation is driving structural adjustments in China’s commercial vehicle industry. The exploration and market application of various technical routes, such as electric, hydrogen fuel cells, and hydrogen internal combustion engines, along with the rapid iteration of intelligent technologies and the establishment of a new commercial vehicle ecosystem based on green, low-carbon, and intelligent principles, offer broader development and collaboration opportunities for Chinese and foreign commercial vehicle companies.
Second, although the demand for mid-to-high-end commercial vehicles, especially mid-to-high-end heavy trucks, has slowed since 2020, I believe this is temporary. China’s logistics and transportation structure is becoming increasingly rational, transportation efficiency is steadily improving, and users’ vehicle usage concepts are more rational and mature. With government support through standards, regulations, and consumption policies, the upgrading of transportation equipment and the improvement of environmental sustainability will continue. As China’s economy gradually recovers, the push towards high-end development will not change.
Third, in the face of significant changes in China’s commercial vehicle industry and market, foreign companies need to reposition the function and goals of their investments in China, fully assess and leverage China’s comprehensive advantages in the industrial chain, technological strength, manufacturing levels, talent, and market, to play a more significant role in their global strategies and achieve greater success in the Chinese market.
Yesterday, while visiting the exhibition, my most profound impression was: low-carbon, intelligent, and high-end. European commercial vehicle companies, represented by German enterprises, showcased comprehensive applications of electric, hydrogen, and intelligent technologies in the commercial vehicle field. Their advanced technologies, products, and concepts are worth learning from and emulating by Chinese companies.
Openness is a hallmark of Chinese-style modernization. China’s reform and opening-up have spanned 46 years, and the Chinese automotive industry has grown continuously through this process. Global leading automotive companies, including those from Germany, have deeply participated in the development of China’s automotive industry and the expansion of the Chinese market. Today, China is striving to develop new productive forces, and industries across the board are actively exploring how to leverage advanced technologies to achieve more intelligent and greener productivity, driving high-quality growth in China’s economy.
With China’s vast market scale, comprehensive industrial system, and leading advantages formed in some key areas and critical sectors in recent years, China offers the world greater potential and opportunities. As China’s automotive industry continues to open up, international cooperation will accelerate. Cooperation and win-win outcomes are the eternal themes, and I believe the Chinese commercial vehicle companies participating in today’s event, the more than 400 Chinese exhibitors, and those here to exchange and explore are all committed to openness, cooperation, and mutual benefits. I hope that Chinese and German commercial vehicle companies will further expand their cooperation space, better leverage their respective advantages, and gather more consensus on openness to jointly overcome the challenges faced by global economic development and create a bright future for global progress.
You are cordially invited to visit the CCPIT Automotive Pavilion
Halle 13, A35
