China's auto industry is facing four major challenges in the process of business transformation and upgrading, said Zhu Hongren, former chief engineer of the Ministry of Industry and Information Technology, at an ongoing forum held in Tianjin.
He said the industry has entered a significant stage of changing from expansion by business scale to business transformation upgrading. The four challenges include lacking innovation capability in the high-end technology field, needing for optimizing the development of industrial chain, lacking a huge and strong core part manufacturing system, and needing for further improving the coordinated development mechanism for relevant industries, said Zhu.
According to Zhu, China's urbanization rate has reached 55 percent, and about 13 million rural residents move to cities every year, which create a huge potential market for China's auto industry.
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