——Actively Pushing forward Internet of Vehicles to Promote the Sustainable Development of Automotive Industry

Deputy Secretary General of CAAM Mr. Ye Shengji

Distinguished Leaders, Dear Guests
        Ladies and Gentlemen, Good morning!
        It is my great pleasure to join you at “The 3rd Symposium on Industrial Chain of Internet of Vehicles”. First of all, on behalf of China Association of Automobile Manufacturers (CAAM), I would like to extend my warmest congratulations to the opening of the symposium. I also wish to take this opportunity to convey my sincere thanks to people from auto industry for your continuous support for the development of Chinese automotive industry.
        CAAM always gives full support to various high-level symposiums and forums characterized by having themes, connotations, depth and range. Because we think it can play an important role in promoting technical progress and communications as well as sharing innovations and suggestions. No doubt, this symposium is such an important and influential communication platform. 
        It is well-known that the continuous development of automotive industry has not only brought human beings convenience, civilization and great fortunes, but also changed their life styles. Meanwhile, we must notice that lots of resources and energy have been consumed since a large number of vehicles are in use, and subsequently a relatively serious environmental pollution has occurred.
        Currently, the traffic problem has become a social problem in China especially the vast energy dissipation caused by traffic congestions which really attracts people’s thoughts. According to the relevant resources, the annual fuel consumption of each vehicle in China can reach to 2.3 tones. However, such figure in America is only 1.8 tones, in European Union only 1.5 tones and in Japan only 1.1 tones. With the increasing tension in oil supply, the winds of revolution have quietly blown into the automotive industry. On the one hand, the automobile itself is seeking for change. Since it is an inevitable choice to develop energy saving and new energy vehicles in the current development of automotive industry. On the other hand, the change derives from the networking system of intelligent information configured inside and outside the vehicles.
        With the development of automotive information, the automotive industries in the countries of the world are shifting their focus from traditional auto manufacturing to auto information services. As a part and parcel of information services industry, Internet of Vehicles has gotten tons of attention in developed countries and their auto manufacturers. 
        Internet of Vehicles is a typical application of Internet of Things with strong basis and wide coverage. It benefits for automobiles in many aspects. Vehicle-use sensor and radar can perceive and prevent traffic accidents. GPS and Beidou Navigating System can realize transit tracking and routing optimization. The sensors combined with road monitoring can discover and optimize traffic flow. Besides, the information interaction between vehicles and the remote control center can realize starting or locking a car remotely so as to prevent the car from theft and robbery.
        According to some experts, intelligent transport system (ITS) can reduce nearly 60% of traffic congestions and increase 70% of efficiencies on short-distance transport. In this way, the existing road network will double and even triple its traffic capacity. If a car runs in this system, its stop frequency and travel time will decrease by 30% and 13% to 45% respectively, thus the vehicle operation efficiency can increase more than 50%. At the same time, the oil consumption and emission will be reduced due to the increase of average speed. For oil consumption only, a 15% of decrease can be achieved. Statistics has showed that there are over 500 thousand casualties and 100 thousand death caused by traffic accidents per year in China. However, if ITS can be applied, the traffic management standard will be dramatically improved, thus reducing the occurrence of traffic accidents. Such figure can decrease by 20% and subsequently the death toll will enjoy a decrease of 30% to 70%. Therefore, it is very important for Chinese automotive industry to develop Internet of Vehicles.
        China has the world largest auto market. In accordance with the current popularization and development speed, it is estimated that there will be over 200 million vehicles in use in China by 2020. Undoubtedly, such a giant auto market will provide a substantial boost to the growth of Chinese Internet of Vehicles. Since the technology has become more and more matured and the application conditions are well in ready, Internet of Vehicles will become the key area to break through in Internet of Things. 
        According to evaluation and analysis, the market of Internet of Vehicles is increasing with a speed of 20% to 60% per year since 2010. With the continuous growth of sales and production of vehicles in China, the next few years will witness a rapid development of automotive service market. Chinese automobiles will fully enter into an era of Internet of Vehicles.
        In a word, Internet of Vehicles in China enjoys a tremendous development space and a bright future.
        We can say that the automotive industry is now in a critical moment to change due to a series of practical requests, including energy saving, pollution controlling, safety insurance and congestion management. In such a moment, who can catch the opportunity and be the top will have the chance to lead the development of automotive industry and even seize the future. China is now in such a crucial time to develop Internet of Vehicles. Therefore, the agencies and enterprises related, especially some relevant organizations, should grasp this rare opportunity. Don’t let it slip. 
        Comparing with those developed countries, Internet of Vehicles in China is still in an initial phase following a relatively slow development. Admittedly though, with the maturity of hardware and software system and relevant technologies, the deeper integration between 3G, 4G, LTE, Cloud Platform, voice-recognition technology and Internet of Vehicles, especially the popularization and application of Beidou system, Internet of Vehicles has become national major special project as well as the main program during the 12th Five-Year Plan. Meanwhile, Chinese government is gradually normalizing the industry of Internet of Vehicles. Taking the support of related departments on policies, plans and standards into consideration, it certainly will vigorously push forward the rapid expansion and an overall improvement of the industry. We can predict that the guiding policies, the driving market, the mature technologies and the standard specifications will further promote the rapid development of such equipments, and then the whole industry.
        Dear Guests, the industry of Chinese automotive information services system is an emerging industry currently. Internet of Vehicles, as a key part of this industry, is still in the cultivation and development phase with no prospect of weakening. To develop it, the strong support of government and related agencies along with cooperation among relevant industries is required. In other words, we need efforts on all sides, automotive industry and other industries as well as auto manufacturers and information suppliers. As an automotive organization, CAAM is willing to work together with all of you. Let us join hands to jointly promote the rapid and healthy development of Chinese automotive information services system and Internet of Vehicles.
        In conclusion, I wish this Symposium a full success!
        I also wish you all enjoy good health, happiness and a prosperous career!
        Thank you!