On September 22-24, the 2026 World New Energy Vehicle Conference was successfully held in Haikou, Hainan. The conference was jointly hosted by the China Science and Technology Association, the Hainan Provincial People's Government, the Ministry of Science and Technology, and the Ministry of Industry and Information Technology. With the theme of "transformation, upgrading, and resilient growth", the conference brought together global vehicle giants, core supply chain enterprises, and cutting-edge scientific and technological forces to jointly explore the development path and new paradigm of international cooperation for new energy vehicles in the context of low carbon and intelligentization. At this conference, the director of the BMW Group, responsible for customers, brands and sales, Galle believes that in the face of the rapid transformation of the automotive industry, China has become one of the most dynamic markets in the world and an important leader in the development of new energy vehicles. However, the rapid transformation has also brought structural challenges. The industry's profitability is under pressure and the business model is constantly being tested by the market. What automotive companies really need to do is to turn market uncertainty into sustainable momentum and find a balance between innovation, profitability and long-term resilience. Director of the BMW Group, responsible for customers, brands and sales. Although speed is important in an increasingly competitive environment, it cannot be at the expense of quality and safety. “The speed must match the connotation." The development of mobility in the future depends not only on the speed of innovation, but also on the quality, safety, trust and long-term value that enterprises can create. BMW never compromises on quality and safety. In the face of industrial change, only by finding a balance between rapid innovation and long-termism can we truly cross the cycle and create long-term value. The following is a shorthand (compiled): Gaole: This conference is held at a time when the global automotive industry is facing challenges, scientific and technological innovation is advancing at an unprecedented pace, and AI, embodied intelligence and robotics are opening up new frontiers for mobility. At the same time, economic cycles, climate change and the restructuring of global supply chains are also testing the resilience of the entire automotive industry. In the face of such profound changes, no company, industry or country can cope alone. At such a time, long-term development depends on the responsibility, the resilience of development and the ability to create long-term value. I would like to talk about China from this perspective. China is one of the most dynamic markets in the world and a global leader in the development of new energy vehicles. The development achievements of China's automobile industry are remarkable. It is at the forefront of the world, including in key technology fields such as autonomous driving and power batteries. The penetration rate of new energy vehicles has exceeded 60%. Product innovation is accelerating. Consumers also have unprecedented rich choices. Rapid transformation has also brought great structural challenges. In the face of fierce market competition, the profitability of the industry is under pressure, the business model is constantly being tested by the market, and the uncertainty of the global economic environment makes consumers pay more attention to the value of the product. The mission is clear for the industry as a whole: to translate this uncertainty into sustainable momentum, balancing innovation, profitability and long-term resilience. In an increasingly competitive environment, automotive companies need to address three challenges simultaneously: reconciling rapid innovation with increasingly stringent regulatory requirements; meeting the increasingly complex demands of global trade, carbon emissions, data governance, intellectual property, and supply chain resilience; and maintaining robust cash flow and sustainable profitability. These are the challenges we face together, not only in the Chinese market but also in the global market. As the transformation of the industry continues to deepen, we need to constantly adapt to adapt to the changing business environment, meet the diverse needs of customers around the world, and seize the opportunities brought by technological changes. With the further maturity and continuous improvement of the quality of China's automobile industry, these challenges are particularly prominent, and such a transformation is not unfamiliar to European companies. Looking back at the period after the oil crisis in the late 1970s and early 1980s, macroeconomic pressures and fierce competition, especially challenges from external competitors, jointly promoted the profound transformation of the European automobile industry. The development process of the European market provides a certain reference for China's automobile industry. In the process of transformation, higher levels of safety, energy efficiency and environmental protection standards have been introduced one after another, gradually becoming an important force to promote industrial progress. These requirements do initially pose challenges to the industry and test the resilience of enterprises, but in the long run, they drive material innovation, powertrain efficiency, safety technology advancements, and overall upgrading of manufacturing quality. Today, China's automotive market and policy system are entering a new phase of high-quality and sustainable development, and low-carbon transformation is the core direction of this phase. With dual-carbon as the goal, carbon peak action and circular economy development plan as the guide, China is accelerating the construction of a clear development path, which extends to green factories, zero-carbon industrial parks and a lower-carbon, more resilient automobile supply chain. The "15th Five-Year Plan" for the development of the intelligent networked new energy automobile industry released on September 11 further clarifies the strategic direction, emphasizing safety supervision and a healthy and orderly automobile market competition environment. At the same time, these measures are also promoting the high-quality development of China's and even the global automobile industry, which is increasingly reflected in specific industry standards as a strategic direction. Whether it is battery and vehicle safety requirements, energy consumption management or battery carbon footprint management, it is becoming an important pillar to promote the high-quality development of the industry. As a company that has undergone several economic cycles and industrial changes, the BMW Group deeply respects the vitality and development potential of the Chinese automotive market. In an increasingly competitive environment, long-term success requires continuous accumulation. The core is to maintain steady financial resilience, always adhere to the safety bottom line of speed and efficiency, and firmly promote green transformation with a global vision. These capabilities form an important foundation for businesses to move through the business cycle and continue to create value, which is also an important cornerstone of BMW's future development strategy. Despite many challenges, we remain firmly optimistic about the development prospects of the Chinese market, including a competitive product lineup, a world-leading Shenyang production base, and long-term trusted partnerships with Chinese partners. To date, we have built resilient supply chains with over 480 Tier 1 suppliers and approximately 7,000 partners. These both add to our competitive advantage and set the stage for future growth. The new generation is not only a new generation of models, but also represents the most significant innovation in BMW's history, with a new vehicle architecture, powertrain, electronic and electrical architecture and a new software platform. As the first model of the new generation, the BMW iX3 will be delivered to Chinese customers in October this year, and the local team and Chinese partners are deeply involved in all the work of this product, from design and development, verification testing to final landing, this is a truly excellent product tailored to the Chinese market. Today, I want to focus on two areas: batteries and digital technology. In the field of power batteries, BMW has always maintained the core ability to cover the entire battery life cycle, from research and development to mass production to recycling. At the same time, we are closely cooperating with outstanding Chinese companies such as Ningde Times and Yiwei Lithium Energy to jointly integrate BMW's technical, safety and quality standards into the unified system. These achievements have been fully reflected in the new 800V high-voltage battery technology on the BMW iX3, which has a range of more than 900km under CLTC conditions. In the field of digitalization, the BMW iX3 is also a deep integration of BMW's technology and China's innovative wisdom. This is reflected in the intelligent personal assistant based on AI to highly customized high-tech navigation, and the full-scene interconnection of human and car based on Huawei's ecology. We have developed a new generation of intelligent driving assistance systems for the Chinese market with Momenta. It is also based on BMW's driving assistance technology research and development and mass production data, including data from real road tests in China. BMW's video panoramic display represents another technological leap, not only a display technology, but also an important part of the new generation of digital interaction systems. BMW and Fuyao have carried out a five-year joint development of glass optical properties, nano-surface coating process and quality verification system. Even wearing sunglasses, driving navigation and other key information can be clearly displayed. Even driving in direct strong light, backlighting or tunnels for long distances is not easy to be visually tired. These innovations show once again that cooperation based on trust can achieve mutual benefit and create better products and experiences for customers. BMW has always implemented a life-cycle carbon reduction strategy, of which pure electric vehicles are an important pillar. Our goal is to achieve net zero greenhouse gas emissions in the entire value chain by 2050, which is also BMW's firm commitment to the Paris Climate Change Agreement. Using 2019 as the base year, we aim to reduce at least 40 million tons of carbon dioxide equivalent by 2030, and by 2035, we will emit at least an additional 20 million tons of carbon dioxide equivalent on top of 2030. In order to achieve this goal, we adhere to the principle of open technology, from the supply chain, vehicle production, vehicle use to recycling to promote emission reduction, which is the embodiment of BMW's 360-degree sustainable development concept. This strategy can not only promote innovation, but also enhance the supply resilience of key resources and create value for the long-term development of the company. At the same time, this strategy is also in line with China's 2030 carbon peak and 2060 carbon neutrality goals, as well as the direction of carbon reduction, green expansion and growth synergy. In the current industrial transformation, we believe that there are three key factors for future competitiveness: First, the speed must match the connotation. The future of mobility depends not only on the speed of innovation, but also on the quality, safety, trust and long-term value we can create. BMW never compromises on quality and safety. Second, long-term competitiveness requires a resilient, collaborative value chain. Long-term competitiveness requires resilient supply chains, strong partners, an open and cooperative industrial environment, and a shared commitment to high-quality, rules-based growth. This means not only cooperating in and for China, but also working with global partners to jointly promote industrial development. The third is to take technology development and life-cycle carbon footprint management as the link to jointly promote high-quality development. Our goal is to achieve fully measurable emissions reductions, rather than relying on a single technology pathway. BMW always adheres to the open route of technology, providing customers with a variety of power options. Many practices in China, including green power certificates, recycled materials applications, and green charging, have contributed to the reduction of carbon emissions throughout the life cycle. To this end, it is necessary to establish a unified system accounting framework to manage the carbon footprint of the entire life cycle of automobiles, including design, raw materials, manufacturing, use and recycling. By firmly implementing these principles, the structural challenges facing the current transformation of the automotive industry may be translated into new momentum for sustainable development. We firmly believe that the future of travel should be based on openness, cooperation and mutual trust. BMW will continue to cultivate the Chinese market, fulfill long-term commitments with responsibility and responsibility, seize development opportunities with continuous innovation, and create long-term value with firm confidence.