Product quality is the real appeal in China's auto market

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03:26

With a downtrend in the auto market, product quality is the real market appeal, and inefficient production capacity and homogenized products being phased out, according to BYD Auto Sales general manager Zhao Changjiang.

"In the automobile transformation period, BYD uses new technology to support product quality, which is the real market appeal," Zhao said.

He also said that BYD is ready for "facing the transition period." To maintain profits during the transition period, he emphasized the importance of innovation.

"We possess the capability of vertical innovation to support the integrated, standardized and modular innovation. Our E platform has already reduced energy consumption by 25 percent as well as the weight, following with competitive output power," Zhao said.

Some argue that the competition in the electric vehicle sector is intensifying due to subsidies. Zhao stated that policies are set up to pick up "industrial winners" to optimize industrial structure.

CGTN Photo

"Policies are set to pick industrial winners, in order to drive those companies with technology, products, markets and brand leadership to move forward better," he commented.

And he explained that a constant law is that "the backward production capacity will be eliminated and industrial structure will be optimized. So those inefficient production capacities and homogenized products are set to be abandoned."

Meanwhile, Zhao expected that BYD's export would account for 10 percent in 2019, and would gradually strengthen in the future.

"In consideration of our comprehensive global layout, 30 percent is very predictable data before 2025," he revealed, adding that "we expect to have an IPO by 2022."