On April 26, 2024, on the second day of the opening of the 18th Beijing International Auto Show, the "Automotive Industry Supporting Procurement Summit Forum" with the theme of "Gathering Power and Empowering, Reshaping Efficient Zero Zero Relationship" was grandly held at the China International Exhibition Center (Chaoyang Hall) in Beijing. The forum was hosted by the Beijing Auto Show Organizing Committee and jointly organized by China Machinery International Cooperation Co., Ltd. and China Automotive Supplier Network. More than 500 guests from the domestic and foreign automotive industry, including experts and scholars, vehicle procurement and technical leaders, key OEM automotive parts suppliers, and industry media reporters, participated in the morning peak forum and the afternoon zero depth docking and "car core linkage" activity, becoming one of the most influential forums in the automotive industry chain in the first half of the year.

Industry chain fission: Traditional automobiles are developing towards intelligent connected new energy vehicles, and the relationship between vehicle manufacturers and suppliers is undergoing profound changes

Vice President of China Electronics Chamber of Commerce and China Automotive Suppliers Network
Honorary Chairman Chen Weinong presides over the forum
The theme of this year's Beijing Auto Show is "New Era, New Cars", which deeply reflects the epoch-making transformation of the automotive industry towards new energy, intelligence, and networking. At the same time, the subversion of traditional automobiles by new energy vehicles and intelligent connected vehicles will inevitably bring about the fission of upstream and downstream industrial chains and new market opportunities. The "Automotive Industry Supporting Procurement Summit Forum" focuses on four highlights: including the development trend of the global automotive supporting industry chain; The procurement strategies of various vehicle supporting procurement departments under the new situation; Challenges and opportunities in supporting procurement under the trends of electrification, intelligence, and low carbonization; As well as the new changes and trends in cooperation between the whole and the zero, domestic and foreign experts and heads of procurement departments of key automobile companies were invited to give keynote speeches on industrial chain innovation, new energy vehicle procurement strategies, and other topics. Representatives from the whole enterprise communicated and exchanged views on hot topics such as the development of automotive grade chips, existing problems and challenges, and the establishment of new types of whole enterprise relationships.

Equipment Industry Development Center of the Ministry of Industry and Information Technology
Speech by Director Li Guojun
Li Guojun, Director of the Equipment Industry Development Center of the Ministry of Industry and Information Technology, stated that the current automotive industry has entered an era dominated by innovation, with traditional cars developing towards intelligent connected new energy vehicles, driving significant changes in the entire automotive industry chain: traditional chain relationships are changing towards network structures, forming various forms of supply relationships. He stated that it is necessary to strengthen the coordination of upstream and downstream industrial chains, cultivate key technologies, promote the construction of data platforms, and ensure that the industrial chain and supply chain are at a safe and controllable level.

Wang Ning, President of China Electronics Chamber of Commerce, delivered a speech
Wang Ning, President of the China Electronics Chamber of Commerce, pointed out in his speech that in the past, there was a clear distinction between automobiles and electronic technology, but now electronic technology and components are widely used in the automotive field, and a large number of electronic industry enterprises have become suppliers of new energy vehicles. He predicted that with the increasing number of intelligent connected vehicles, the automotive electronic components market will also undergo significant changes: unlike the complex supporting system of traditional fuel vehicles, the supporting components of new energy vehicles will decrease, and the chips widely used in the entire vehicle will replace some traditional automotive electronic components. The traditional automotive electronics industry chain will undergo important changes.

Speech by Li Rengui, President of China Automotive Refitting Products
Li Rengui, President of the China Association of Automobile Refitting Products, stated in his speech that as an important strategic and pillar industry of the national economy, the automobile industry has always been highly concerned. In this year's "Two Sessions" government work report, the automobile industry was mentioned five times. At the same time, strengthening intelligent connected new energy vehicles in the new situation has become a breakthrough for the automobile industry to form new quality productivity. With the acceleration of electrification, intelligence, and decarbonization in the automotive industry, the entire automotive industry chain has undergone significant changes, and the relationship between vehicle manufacturers and suppliers has also undergone profound changes. Key products have evolved from simple supply relationships to a new model of joint cooperation, joint development, and risk sharing. To promote the healthy development of the automotive industry chain, the China Association of Automotive Modification Products will continue to deepen its strategic cooperation with the China Automotive Supplier Network and create a new ecosystem for the future automotive industry chain.

Zhang Pijie, President of Changchun Automobile Industry Association, delivered a speech
Zhang Pijie, the president of Changchun Automobile Industry Association, is a veteran in the automotive industry. In his speech, he put forward several suggestions regarding the current issues of concern in the automotive parts industry: firstly, suppliers should follow high-quality customers, who should be willing to establish long-term cooperative relationships with suppliers, willing to pay reasonable prices for high value-added products, and have good payment capabilities as OEMs; Secondly, lean production is never outdated, and suppliers should optimize processes and continuously improve; The third is to develop synchronously with the host factory to reduce research and development risks; Fourthly, as the iteration of vehicle products accelerates, the host factory should determine suppliers during the development phase to reduce development costs.

Mr. Georg Mrusek, Global Automotive Industry Chain Expert and President of Horv á th China in Germany, delivered a speech
How to recognize the significant turning point of the current automotive industry chain? Mr. Georg Mrusek, a renowned expert in the global automotive industry chain from Germany and the President of Horv á th China, shared the trends in global automotive industry chain support at the forum. He analyzed that the relationship between vehicle manufacturers and primary suppliers in the era of electric vehicles is constantly changing: in the past era of fuel vehicles, a mature vertical supply chain was established, which could form precise global cooperation and division of labor; And now it is a period of growth for electric vehicles, and the turbulent whole zero relationship mainly focuses on the resilience of the supply chain, accelerating research and development and production cycles; In the mature stage of electric vehicles in the future, a stable supply system will be improved, products will be re standardized, and local supply chains can cover global engineering and services. Mr. Georg Mrusek confidently stated that the European market has attractive profit margins for Chinese supply chain companies, and the best time to enter Europe is now.

Automotive industry expert, National Information Center
Mr. Xu Changming delivered a speech
As a well-known expert in the automotive industry chain in China, Mr. Xu Changming from the National Information Center put forward his own suggestions on the industry chain trend under the new situation changes in his speech entitled "New Trends in the Automotive Market and Automotive Industry Chain": there are challenges and structural opportunities in the industry, and traditional enterprises need to transform quickly and vigorously; The new changes in the whole zero relationship are highlighted in the direction of intelligence; The best path to reduce costs and improve the quality of the industrial chain is technological progress.
At the summit forum on the morning of the 26th, procurement leaders from mainstream vehicle manufacturers introduced the planning and procurement strategies of new energy products, and had in-depth communication with relevant chip suppliers during the roundtable dialogue. The consensus among all parties is that the relationship between vehicle manufacturers and suppliers is undergoing profound changes, and key products should shift from simple supply relationships to joint cooperation, joint development, and risk sharing.

Vice General Manager of Chang'an Procurement Center
Zhu Xiangwen introduces new car procurement strategies
In his keynote speech titled "New Cars, New Procurement", Zhu Xiangwen, Deputy General Manager of Changan Procurement Center, introduced Changan Automobile's third innovation and entrepreneurship plan - promoting the transformation of enterprises into intelligent low-carbon transportation technology companies. Changan Automobile has created a new industrial structure for building a "new automobile new ecology" and achieving the goal of "a cloud in the sky, a network in the sky, a platform in the middle, and a full scene on the ground". Based on the development concept of "software defined automobiles", it has created a 6-layer new automobile architecture that is different from several traditional automobile systems. As a result, Changan Automobile has redefined new car categories and formed a multidimensional procurement management model. Zhu Xiangwen said that the new automobile has brought new ecology, and the division of labor in the industry has been restructured: the traditional automobile manufacturing supply chain system was vertically stable in the past, but now it has entered an unstable state composed of the main engine factory and chips, batteries, the Internet, intelligent systems, and parts. The main engine factory has become a network center, and the future supplier system will be integrated from a chain structure to a network structure. For the procurement strategy of new automobiles, Changan Automobile adheres to the principle of "doing high-value in-depth work and low value simple work".

Zhang Zhenya, Director of Yutong Bus Procurement Department
Introduce Yutong's procurement strategy for supporting the industrial chain of new energy commercial vehicles
Zhang Zhenya, Director of the Procurement Department of Yutong Bus, introduced Yutong's industrial chain procurement strategy for new energy commercial vehicles at the forum. In order to achieve the vision of building a "world-class new energy commercial vehicle group", Yutong has jointly developed with three electric enterprises in improving the performance of core components such as the "three electric" system and creating an intelligent connected platform.

If the host factory still relies on me to build the new energy vehicle industry chain, how should suppliers take orders? In the roundtable dialogue session of the morning forum, Zhu Xiangwen, Deputy General Manager of Changan Automobile Procurement Center, and Zhi Cheng, Director of the Technical Planning Department of Geely Research Institute, had a frank and effective communication with representatives of chip companies - Wu Dawei, CEO of Deyi Microelectronics Co., Ltd., and Zhang Jianhua, General Manager of Zhongke Saifei Semiconductor Co., Ltd., on the theme of "Is there a chip shortage in the automotive industry chain.
Representatives from both vehicle manufacturers have expressed a demand for cost-effectiveness from chip suppliers, and given that the main core technology for new car development relies on chips, there will be a huge demand for automotive grade chips in the future. Representatives of chip companies hope that vehicle manufacturers can further open up demand, and their requirements for products cannot be reduced in cost or increased in computing power. The representative of Changan Automobile suggested that the country introduce policies to encourage enterprises to use more domestically produced chips.
The deep integration of whole parts and the "car core linkage" activity has become one of the biggest hotspots in the parts exhibition area
On the afternoon of April 26th, China Automotive Suppliers Network, China Machinery International Cooperation Co., Ltd., and other organizations jointly held a zero depth docking and "chip linkage" event with the China Automotive Chip Industry Innovation Strategic Alliance, bringing the "peak forum for automotive industry supporting procurement" to another climax. At the event site, 18 vehicle companies and nearly 200 excellent component suppliers from FAW Volkswagen, FAW Jiefang, Dongfeng Motor, Changan Automobile, Geely Automobile, Jianghuai Automobile, BAIC Motor, Guangqi Honda, Jiangling Motors, Dongfeng Commercial Vehicle, Yutong Bus, Leapmotor, Zhidou Automobile, Weichai Co., Ltd., Qingling Motors, Yunfeng Automobile, Jinlong Automobile, Sany Automobile, Hino Automobile and others had in-depth exchanges. The scene was very lively. The organizing committee temporarily adjusted the original in-depth exchange activity to two sessions, and the whole zero deep docking and "vehicle core linkage" activity attracted high attention from all walks of life, becoming one of the biggest hotspots in the component exhibition area.

The "Automotive Industry Supporting Procurement Summit Forum" is hosted by the Organizing Committee of the 2024 Beijing International Automotive Exhibition and organized by China Machinery International Cooperation Co., Ltd. and China Automotive Suppliers Network.
The grand convening of the forum has received strong support from the Equipment Industry Development Center of the Ministry of Industry and Information Technology, the China Electronic Chamber of Commerce, the China Automotive Refitting Products Association, the China Automotive Chip Industry Innovation Strategic Alliance, the Changchun Automotive Industry Association, the Zhejiang Automotive Industry Association, the People's Government of Wendeng District, Weihai City, the Yuhuan City Bureau of Commerce, the Intelligent Electric Vehicle Committee of the China Electronic Chamber of Commerce, the China Automotive Service Industry Committee, the China Automotive Sifang Company, and the Connected Intelligent Industry Alliance.
Media outlets including China Automotive News, China Industry News, Commercial Vehicle Magazine, Sohu Motors, China Industry and Information Technology News Network, Tire World Network, and CarNet China provided in-depth coverage of the forum.