Changan Auto's Zhao Fei Warns: Vehicle Sales Alone No Longer Sustain Profits

Deep News04-11 10:30

At the Intelligent Electric Vehicle Development High-Level Forum (2026), held from April 11 to 12 at the Beijing National Convention Center Phase II, the focus was on advancing the intelligent, green, integrated, and international development of new energy vehicles. Zhao Fei, General Manager of Chongqing Changan Automobile Co.,Ltd., stated that in the current wave of energy transformation, automobiles are no longer merely energy consumers but have become key participants and regulators in the new energy system.

He emphasized that meeting the diverse needs of users is the most practical contribution to the national dual-carbon strategy. From a market demand perspective, global projections for 2026 indicate that 70 million users are expected to choose fuel vehicles, while 30 million will opt for new energy vehicles—a 7:3 ratio. This demonstrates that global demand exists for pure electric, hybrid, and traditional fuel vehicles alike.

Zhao also highlighted the leap in international influence of Chinese brands during the globalization process. However, challenges remain. To address these, he proposed three key recommendations.

First, he advocated for creating a multi-win business model through cross-industrial ecological collaboration. Zhao pointed out that the automotive industry has shifted from competing solely on products to competing on ecological value. To drive high-quality industrial development, companies must move beyond traditional vehicle manufacturing mindsets.

"Simply put, if a company relies only on products—meaning just selling cars—it can no longer be profitable," he stated.

He urged an open and inclusive approach to building a large, cross-integrated industrial ecosystem that fosters synergy and coexistence. By sharing resources and complementing strengths, he suggested accelerating the development of a win-win business model centered on value co-creation. This would deliver smarter, more convenient, and emotionally resonant experiences and products to users, ultimately establishing a sustainable and evolving industrial ecosystem.

Second, Zhao recommended sharing underlying common technology platforms for hardware, product categories, and brands to leverage economies of scale and enhance global competitiveness. He proposed that automakers and ecosystem partners jointly develop industry-wide foundational technology platforms. Standardizing models, data sharing, unified data interfaces, and security certifications would help implement collaborative standards. Concentrating innovation resources on core areas and scaling up operations would boost corporate competitiveness.

Third, he called for establishing a unified application system for new technologies and relationships, particularly to accelerate the deployment of L2-level intelligent assisted driving. While user travel safety and convenience have improved significantly, inconsistent regulations, unclear liability boundaries between humans and vehicles, mismatched insurance mechanisms, and lagging driver training and testing systems hinder large-scale technology adoption and increase corporate costs.

Zhao suggested accelerating the establishment of a nationwide unified safety data collection standard system for intelligent assisted driving. He also recommended that automakers and insurance institutions innovate together to create a closed-loop model encompassing data-based liability determination, insurance coverage, and adaptable regulation. Simultaneously, upgrading driver training and testing content would enhance drivers' operational proficiency and emergency response capabilities when using assisted intelligent systems, supporting the safe, healthy, and orderly development of the industry through systematic construction.

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