After hosting its first 2020 webinar session, Automechanika Shanghai is increasing its online resources to reconnect players in the automotive ecosystem. The trade fair is hoping to facilitate communication between exhibitors and visitors prior to the 16th edition of the show, as well as allow players to capture the latest global industry developments in response to a rapidly evolving business environment.
“As the industry starts to spring back from the effects of COVID-19, we believe that highly influential platforms like Automechanika Shanghai play a crucial role [in] rejuvenating the market,” said Fiona Chiew, Deputy General Manager, Messe Frankfurt (HK) Ltd. “It is our mission to help players unlock their potential. Therefore, we are continuing to realign our resources by utilising new digital tools, spurred on from the pandemic, to support global automotive industry recovery before, during and after the show.”
Automechanika Shanghai recently launched a webinar series in advance of the 2020 show to offer guidance on trends and post-pandemic industry recovery. The first session, hosted on 9 July, examined the impact of COVID-19 in the regional market and was chaired by Ricky Wang, Executive Committee Vice Chairman Vice President at the China Aftermarket Forum (CAF). He spoke with representatives from the China Automobile Dealers Association, Deloitte China and Launch.
Hailing from different backgrounds, speakers were very optimistic about the post-pandemic recovery period in the automotive industry, saying that Asian countries and regions like China and South Korea are already showing signs of early market recovery. Forecasts discussed in the webinar predict that automotive industries in these nations could even start thriving as early as October 2020. For instance, Dr Marco Hecker, Chief Strategy Officer at Deloitte China, deemed that this could be a result of strong consumer demand for car sales globally following deferred spending at the beginning of 2020.
Lang Xuehong, Deputy Secretary General of the China Automobile Dealers Association and Director of Industry Coordination, built on this premise with findings that suggest China’s automotive market will grow in 2021, towards a long-term calculation of 30 million units sold in 2025.
Representatives also shared that China implemented several local measures in the first half of the year to stabilise, expand and stimulate the automotive market. For example, the country has extended its sales incentive for the new energy vehicle industry until 2022. It is also further promoting the emerging used car market – introduced at the beginning of May until the end of 2023, value-added tax (VAT) will be lowered to 0.5 per cent of sales for used car dealers. Elsewhere, the domestic government will postpone implementing the ‘China 6 Emission Standards’ fully, allowing additional time for car manufacturers to sell their ‘China 5 emissions vehicles’ inventory following slower sales at the beginning of the year.
On a wider scale, countries and regions across the world are leveraging various government initiatives to stimulate growth. Recent global research identified by Deloitte China during the webinar has projected an 11.3 per cent upturn in global car sales as early as 2021. The research suggests that China, along with Japan, Australia and South-East Asia, will continue to bounce back at positive upward rates, in various stages, across the next three years.
“Despite current challenges brought forward by COVID-19, players are seizing new opportunities as well as accelerating the implementation of key trends that were already influencing the global industry,” said Cheng Yongshun, Vice President of China National Machinery Industry International. “As a crucial market worldwide, we can see that China and Asia are bouncing back from the pandemic quickly. In particular, the automotive market should benefit greatly from the used car market, strong demand for new energy vehicles, cross collaboration and digitalisation throughout the supply chain, which are being amplified at the show.”
Value-added services to help players connect
In extra efforts to re-establish networks across the market, Automechanika Shanghai says it is pioneering other digital tools to encourage information exchange, marketing, trade and education. These resources focus on supporting players overcoming some of the challenges arising from the pandemic.
As part of this, a number of online matchmaking events will take place in the months leading up to the show’s opening. The first session, to be held on 28 August 2020, is intended to unite a collection of South American buyers looking to engage with Chinese and international companies registered as exhibitors. This will follow with another event on 20 October 2020 for buyers from Asian and European countries and regions. The online platforms aim to create a pathway for matched pairs to understand more about potential suppliers ahead of the fair, along with more matchmaking and digital hybrid events to provide exclusive sourcing opportunities at the show itself.
At the same time, Automechanika Shanghai says it will continue to convene key market leaders, specialists and consultancies in its webinar series discussing future prospects in the automotive industry in 2020 and beyond. To find out more, click here.
Automechanika Shanghai will take place from 2 to 5 December 2020 at the National Exhibition and Convention Center (NECC) in China. During the four-day exhibition, over 50 fringe events will target current and future trends.
Organisers say 5300 exhibitors are expected to join the fair. Key brands confirmed to be attending include Anchi, APG, Bangbang, Bilstein, Brembo, Carzone, CSIC, DeVilbiss, EAE, Eni, Fawer, Fuchs, HASCO Powertrain Components, Homotor, K-MAN, Launch, Liqui Moly, MA-FRA, Maxima, Michelin Lifestyle, MP Concepts, SAIC Motor, SATA, Sinopec Lubricant, Sonax, TEIN, Unionevo, VIE, Wanli, Weifu, Yunyi, Zero Mileage Lubricant, ZF and Zynp Group.
These exhibitors will be spread across the Parts & Components, Electronics & Connectivity, Diagnostics & Repair / Body & Paint, Accessories, Customising, Tomorrow’s Service & Mobility and REIFEN (Tyres & Wheels) sectors in the 300,000-square metre exhibition space.
The fair is organised by Messe Frankfurt (Shanghai) Co Ltd and China National Machinery Industry International Co Ltd (Sinomachint). In light of the COVID-19 outbreak, organisers say they are working with local authorities to ensure appropriate safety parameters are upheld.