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How about the transformation of the auto industry, including small vans for sale?

The automotive industry has undergone a difficult transformation

The new crown pneumonia epidemic has swept the world.  As one of the world’s important core industries, the automotive industry, including small vans for sale, has undergone a difficult transformation under the impact of the epidemic.

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As the so-called crisis is organic, with the spread of the new crown pneumonia epidemic, increasing downward pressure on the world economy.  And sharply shrinking market demand of the global automotive industry, including small vans for sale has also felt the necessity and urgency of industrial transformation and upgrading.

“Green” and “Electric” have become the core keywords

“Green” and “Electric” have become the core keywords for the transformation of the automotive industry in 2020. As a “heavy player” leading the development of the world’s auto industry, Europe has gathered many top automakers. In recent years, the EU has increased its emission reduction policies at the upper levels. It has brought considerable pressure to the European auto industry. The EU’s start in the field of new energy vehicles is not too early. And the new energy vehicle industry layout has not been started very early. Moreover, the relevant EU support policies have not been put in place quickly. And resulting in the EU’s new energy vehicle market in recent years has been tepid.

EU has begun to “suddenly exert its strength”

It is worth noting that starting from the second half of 2019, the EU has begun to “suddenly exert its strength” in the field of new energy vehicles. It has accelerated the establishment of the EU’s own battery production capacity. To this end, the European Union has joined several member states to establish the EU Electric Vehicle Battery Alliance. Hoping to quickly get rid of its dependence on suppliers from China and other Asian countries in terms of battery supply. At the same time, EU governments have also begun to support new energy vehicles in policies. And encouraging consumers to purchase new energy vehicles through vehicle purchase subsidies and other forms.

Take Germany as an example. At present, the government subsidies up to 6,000 euros for electric vehicles priced below 40,000 euros. Not long ago, the German government also decided to allocate 3 billion euros to support the automotive industry. Also, including small vans for sale, of which 1 billion euros will be used to extend subsidies for electric vehicle purchases to 2025. And 1 billion euros will be used to promote the automotive industry, including small vans for sale transformation and innovation. In addition, Germany will also devote a portion of funds to the development of electric vehicle charging infrastructure.

Important direction of transformation

With the continuous popularization of 5G network technology and the rapid development of digital technology, the automotive industry, including small vans for sale, intelligence and networking has become an important direction of transformation and a core area of future competition.  China, the European Union, the United States, and other major automobile production and sales markets in the world have reached a consensus on the development direction of future industries such as intelligent networking.

European automotive manufacturers want to catch up with the tide of industrial transformation

As a leader in the traditional automotive industry, European automotive manufacturers have been absent in the field of R&D and applications. It is in the field of intelligent interconnection for quite a long time in the past. In order to catch up with the tide of industrial transformation, in recent years, the European Union has increased policy support for intelligent and connected driving. Also, major auto companies have also increased their R&D investment. According to the calculation of the German Automobile Industry Association. The total investment in the field of intelligence in the German automobile industry will reach 25 billion euros by 2024. Various car companies have also begun to strengthen cooperation with Internet companies. Moreover, trying to seize the initiative in the development of intelligent interconnection.

Epidemic has brought a huge impact

While the epidemic has brought a huge impact on the world economy. It has also added huge uncertainty to the development of the global automotive industry, including small vans for sale. According to relevant forecast data, this year’s global car sales are about 70 million units, down 23% from last year. Major car companies are struggling to survive. In Germany, persistently sluggish domestic demand has further jeopardized employment in the automotive sector. According to forecasts, by the end of 2021, the number of direct jobs in the German automotive industry will be reduced from 820,000 at the end of 2019 to approximately 750,000.

At the moment when the global automobile market, including small vans for sale, is facing huge uncertainty. The market generally believes that the revitalization of the Chinese market will strongly support the recovery of the global automobile industry. The three major German auto companies have expressed that they will continue to increase investment in the Chinese market. Especially in areas such as new energy vehicles and smart driving to strengthen their layout and development in the Chinese market. Experts said that Germany, as a world-class automobile industry powerhouse, is full of confidence in the Chinese market.

2020 is an extraordinary year for the global automotive industry, including small vans for sale. Relevant analysis pointed out that the next 5 to 10 years will be a critical period for the transformation and upgrading of the global automotive industry. And fields such as green travel and smart interconnection will usher in the peak of technological development. Whether the automobile industry, including small vans for sale, can seize the opportunities brought by new technologies. And new situations and effective responses to challenges will profoundly affect the development of the industry.

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