Beijing, March 29th – China’s State-owned Assets Supervision and Administration Commission (SASAC) announced today a strategic restructuring of its centrally-administered automotive enterprises (央企), with the ambition of creating world-class automotive groups capable of competing on the global stage. The announcement was made by a SASAC official at the China EV100 Forum, as reported by CCTV News.
The restructuring aims to consolidate the research and development, manufacturing, and market resources of these state-owned enterprises (SOEs) to foster entities with enhanced global competitiveness, independent core technologies, and the ability to lead the transformation towards intelligent and connected vehicles.
The goal is to create automotive giants that not only possess cutting-edge technology but also have the scale and efficiency to thrive in the international market, the SASAC official stated.
Beyond the strategic restructuring, SASAC is encouraging broader collaborations among SOEs and other enterprises. Gou Ping, Deputy Director of SASAC, emphasized the importance of deepening cooperation in various forms to accelerate the improvement of core competitiveness and market share. This includes integrating automotive SOEs into the global innovation network, accurately understanding overseas market demands, and strategically expanding their international presence.
SASAC’s commitment to the automotive sector is underscored by significant investments in new energy vehicles (NEVs). In 2024, direct investment in NEVs by the three major automotive SOEs increased by 35% year-on-year, accounting for over 70% of their total investment. This investment has enabled these companies to achieve independent control over key resources related to three-electric systems (battery, motor, and electronic control), with a focus on localized production. Sales of their own-brand vehicles reached 1.75 million units, representing a year-on-year increase of over 80%.
Furthermore, SASAC is implementing tailored performance evaluation schemes for each automotive SOE, specifically addressing the unique challenges and opportunities within the NEV sector. These one policy for one industry, one policy for one enterprise schemes will separately assess NEV businesses, taking into account the operational losses typically associated with the strategic investment phase. The focus will be on evaluating technological breakthroughs, product development, and market share gains, empowering companies to pursue aggressive growth strategies.
This initiative builds upon SASAC’s previously announced Central Enterprise Industrial Revitalization and New Energy Vehicle Layout Development Action Plan, which aims to accelerate the development and deployment of NEVs within the state-owned enterprise system.
The strategic restructuring of China’s automotive SOEs represents a significant step towards consolidating the country’s position as a global leader in the automotive industry, particularly in the rapidly evolving NEV sector. By fostering innovation, promoting collaboration, and focusing on global competitiveness, China aims to create world-class automotive groups that can drive the future of mobility.
References:
- IT之家. (2024, March 29). 国务院国资委：将对整车央企进行战略性重组，目标打造世界一流汽车集团 [SASAC: Strategic restructuring of complete vehicle central enterprises will be carried out, aiming to create world-class automotive groups]. Retrieved from [Insert IT之家 article URL here – since I don’t have access to the live internet, I can’t provide the exact URL]
- CCTV News Report, March 29, 2024.
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