Editor's note: The third China International Import Expo Enterprise Alliance consists of 156 exhibitors, all of which are Fortune 500 companies or industry leading enterprises. They have established seven special committees at the CIIE across different sectors -- public health and epidemic prevention, dairy, industrial digital transformation, auto innovative development, smart supply chain, daily consumer products, and sports.

Nine sessions of activities, such as policy exchange conferences, roundtable talks, and subforums were held by the special committees at the CIIE, during which relevant industrial reports were published and the CIIE will share here to better serve our professional exhibitors and visitors.

The following story is about a report released by the Automotive Innovation Special Committee of the CIIE Enterprise Alliance.

Global automakers are stepping up efforts in innovation, not just in technology but also in localization and talent training, with the aim of maintaining long-term development in China, according to a report released by the Automotive Innovation Special Committee of the CIIE Enterprise Alliance in November.

The innovation-centered report, based on dozens of case studies of heavyweight automotive companies including BMW and Volkswagen, has five sub-reports dedicated to product innovation, localization strategies, human resource management, corporate social responsibility programs and industrial policy analysis.

According to the report, the trend toward new energy vehicles is inevitable, and has posed new requirements for automotive companies, the society and policy makers. Leading companies such as Ford, BMW, Hyundai, Jaguar, Bosch and Michelin have made advances in this area by introducing a slew of NEV and components.

Apart from NEV, smart vehicles development will be another growth point and companies have to pay greater attention to the development of telecommunication, transportation network and the internet technology, the report stated.

Over the past 30 years or so, global automakers have been adjusting their localization strategies in China to better adapt to the rapidly changing economy and evolving consumer demands, according to the report. Ford announced the "Ford China 2.0" strategy in 2019 which involves setting up four centers focused on design, innovation, products and new energy vehicles. Volkswagen announced that it would invest about 15 billion euros to boost electric vehicle development in China. Jaguar, which established a joint venture with Chinese automaker Chery in 2012, is keen to increase sourcing volume in China and develop a trade division to better manage components export. Auto component makers Bosch, Webasto and Michelin will strengthen research and development capacity in China to better serve local market, the report stated.

Companies have been developing professional training programs in design, production, quality management, sales and corporate management as part of their efforts in promoting innovation. Ford formed an independent unit dubbed Team Edison in 2017 to support its electric vehicle development. Hyundai launched an online learning system and established a talent training center to strengthen professional cultivation. Michelin developed a leadership system named ICARE to provide support for its employees. Webasto has always regarded its research and development team as the most important asset of the company and has made efforts to optimize its structure.

The impact of policy changes on the auto industry are also discussed in the report. With the aim of supporting the new round of upgrade and transformation of the auto industry, industrial players have been calling for more policies to promote the further opening-up of the auto industry, support NEVs and smart vehicles development, create a better business environment and ease restrictions on pickup trucks.

Automakers have been developing various programs to fulfill their corporate social responsibilities in China, according to the report. For example, many companies such as Volkswagen, Ford, Webasto, Michelin, Hyundai and Jaguar have unveiled a slew of CSR programs to support initiatives such as environmental protection, poverty alleviation, caring for left-behind children and the fight against COVID-19.

The Automotive Innovation Special Committee of the CIIE Enterprise Alliance, comprising 14 exhibitors of the third China International Import Expo, was established in August to support the professional development of the automobiles sector at the annual CIIE.

By Tang Zhihao