| | OCTOBER 202319positive atmosphere for all the stakeholders of the EV ecosystem. How are automakers in China aligning their business strategies with the nation's sustainability objectives?China strongly believes that digitization and sustainable business practices are the paramount towards the country becoming an economic superpower in the coming days. As a result, each of the new EV companies that are being incorporated in recent time in China are fully compliant with various sustainability regulations that are laid-down by the government. Thus, being ecofriendly and reducing carbon emission to the maximum extent possible are among the core vision & mission statements of these organizations. However, majority of automobile companies that have been in business for a long time now are state-owned entities that are currently reinventing their business models and slowly shifting towards the EV technology. Also, these companies are investing a lot of money in revamping their manufacturing units to support EV manufacturing and introducing new features in terms of entertainment, infotainment and connectivity to make their vehicle more digital-friendly.How has the local auto market maintained its resilience amidst economic shifts, and how does it plan to navigate uncertainties ahead?It is very easy for Chinese OEMs to achieve resilience during times of uncertainty because they have maintained a close connection with the government. This has enabled them to have access to a lot of insightful information and react accordingly whenever any such need arises. Since these OEMs have prior knowledge of what regulatory changes might occur, they are able to make investments accordingly with minimum risk and maximum outcomes. Another key advantage for companies in China is that the country alone is big enough for a business to thrive without even having to access the global markets, thus making them immune to any global crises. How do you expect the automotive industry in China evolve in the days to come?With EVs gaining widespread acceptance across the world, China is putting-in a lot of efforts to become a market leader in EV technology and is encouraging EV companies to leverage local technologies to the maximum extent. Currently, 40 percent of the total vehicles in China are EVs, making it the largest EV market in the world. These two factors are, according to me, the biggest growth drivers for the automobile demand in China today. Despite the ongoing global recession and geopolitical crisis, there has been a 12 percent increase in the automobile consumption compared to last year in China. However, the sale of internal combustion engine vehicles is seeing a significant dip in recent years with the customers becoming more inclined towards EVs, and this is expected to go even further down in the days to come. CHINA IS PUTTING-IN A LOT OF EFFORTS TO BECOME A MARKET LEADER IN EV TECHNOLOGY & IS ENCOURAGING EV COMPANIES TO LEVERAGE LOCAL TECHNOLOGIES TO THE MAXIMUM EXTENT
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