In late September, the 2026 World New Energy Vehicle Conference opened in Haikou, Hainan. With the theme of "transformation, upgrading and resilient growth", the conference set up a main forum, 10 thematic forums, 3 closed-door meetings and 6 simultaneous conference activities, bringing together guests from more than 20 countries and regions and representatives of global new energy automobile industry chain enterprises to exchange on hot spots such as industrial transformation, intelligent networking, and automobile going to sea. At the main forum on the theme of "transformation, upgrading and low-carbon development", Deng Chenghao, vice president of Chongqing Changan Automobile Co., Ltd. and chairman of Deep Blue Automobile Technology Co., Ltd., delivered a speech. In his speech, he said that in the automotive market, the trend of replacing traditional energy with new energy is unstoppable, and behind this trend is the intelligent, ecological and globalized competition led by electrification. When it comes to electrification, we often hear the view that "the first half of the competition in the new energy vehicle market is electrification, and the second half is intelligence". However, Deng Chenghao expects that the electrification will be outstanding not only in the first half, but in the whole scene. On the one hand, there are many key user pain points of electrification that have not yet been solved, battery performance is still improving, and the revolution of battery materials is continuing to brew. In addition, electrification will continue to deliver value around the convergence of the dynamic base (powertrain and chassis system). In the future, new energy vehicles will be equipped with independent driving units with deep integration of hardware and software. In terms of intelligence, Deng Chenghao believes that advanced intelligence has become a necessary option for users to buy cars. Today, 69% of users use city Noa as a mandatory option to purchase a car, and 59% of users believe that the in-vehicle agent function is essential. However, on the other hand, the competition for automotive intelligence has shifted from the original user experience to the systematic and iterative ability, and the importance of good use and safety is constantly increasing. User attention to the smart cockpit is also beginning to shift towards active perception, decision-making and service capabilities. This means that the intelligent competition of car companies has entered the stage of systematic competition, including chips, algorithms, large models and actual user experience. In terms of ecology, Deng Chenghao said that the integration of "AI + automobiles" is accelerating, and automobiles are gradually transforming into mobile agents. The competition of enterprises is also shifting from product competition to multi-dimensional ecological competition, including soft ecology and hard ecology. In terms of globalization, Deng Chenghao pointed out that the rapid growth of new energy going to sea, but the direction of going to sea has changed from "product going to sea" to "industrial chain going to sea", and even to the deep plowing stage of systematic going to sea. Deng Chenghao reminded everyone to see that technology is converging, and technology convergence will push electric vehicles to start turning to design stereotypes and promote market competition into the knockout stage. In Changan Automobile's view, the annual sales of 3 million units in the future is only the basis for survival, and the annual sales of 5 million to 7 million units are just passable, and the annual sales of 8 million to 10 million units will live well. Under this trend, Deng Chenghao believes that China's automobile industry is facing four major challenges: domestic demand is under pressure, upstream raw material prices are skyrocketing, and downstream price competition has not stabilized, forcing enterprises to take the road of high-quality development; new energy entering the era of tens of millions of levels, triggering the iterative upgrading of market operating rules, resulting in huge challenges to overseas compliance construction; single-point breakthroughs such as functional stacking are failing, and systematization capabilities are becoming the key to enterprise victory; new energy vehicles enter the stage of popularization and deepening, which will test how enterprises can truly solve the pain points of consumers. The following is the original text of the speech (compiled by Automobile House): Today, I shared the content of "Building system capacity, condensing industrial synergy, and promoting high-quality upgrading of the new energy automobile industry". Where do we start? I thought for a moment, starting with the newly released "15th Five-Year Plan for the Development of the Intelligent Networked New Energy Vehicle Industry". The plan, which just came out this month, deploys 17 key tasks around five pillars to accelerate progress towards greener, smarter, more ecological and global. So, around these aspects. In fact, the point I would like to make is that you see this round of industrial development, new energy alternatives to traditional energy is unstoppable, and behind it is the competition of intelligence, ecology and globalization under the guidance of electrification. First, let's talk about electrification. In terms of electrification, everyone said that electrification is the first half and intelligence is the second half. But I also always talk about the idea that electrification is brilliant, not just in the first half, but in the whole scene. On the one hand, because the penetration rate of new energy continues to climb, in fact, there are many key user pain points of electrification that have not yet been solved, including the performance of power batteries that continue to improve, such as continuous iteration around the core direction of longer battery life and faster energy replenishment. At the same time, the revolution of the next generation of battery materials is continuing to brew. Of course, we will see a lot of solid-state batteries being mass-produced. We have also been talking about a point of view, that is, we hope that everyone will view the development of solid-state batteries objectively and rationally, and give the development of solid-state batteries a more quiet research environment. In addition, in fact, in terms of electrification, the integration around the dynamic bottom will also become a new trend. Now, the suspension, steering, drive and other aspects are still independent of each other. The next step of dynamic bottom fusion is mainly around the fusion of the three directions of XYZ, and finally it will move towards independent driving units with deep integration of software and hardware. Second, the aspect of intelligence. We have seen that advanced intelligence has become a must for users to buy cars. Urban Noa is now a necessity for 69% of users and 59% believe in-vehicle agent functionality is essential. But on the other hand, the competition in intelligence has shifted from the original user experience to the ability to iterate systematically. The concern is no longer whether there is intelligent assisted driving, but whether it is good to use, safe or not. Looking at the cockpit is not only about basic interaction, but also active perception, decision-making and service capabilities. This requires systematic competitiveness, including chips, algorithms, large models, and actual user experience. The third ecology. AI + Automotive Fusion is turning the car into a mobile intelligence that can do things. Our competition has also shifted from a single product to a multi-dimensional ecological competition. Traditional industrial ecology focuses on batteries, electric drives, chassis, etc., while AI + automobiles will focus on soft ecology and hard ecology, which is a new dimension. The fourth globalization. Everyone is talking about the rapid growth of new energy going to sea, but the entire market has gone from the traditional "product going to sea" to "industrial chain going to sea", and even the deep cultivation of systematic going to sea. We're going to see some of these changes, but we're also going to see that technology is doing some convergence. Technology convergence will drive EVs to start turning to design stereotypes. Behind the design stereotype is the period of competition to enter the knockout stage. The entire competitive landscape of the brand will gradually converge. We believe that the future annual sales of 3 million units is only the basis for survival, annual sales of 5 million to 7 million units to survive, annual sales of 8 million to 10 million units to live well. For the Automotive Industry Group, what we are looking for is an increase in quality and scale. Share some of our impressions and challenges: The first challenge is that demand is very problematic. Domestic demand is under pressure, upstream raw material prices are skyrocketing, downstream price competition has not stabilized, and policies have challenges. In my opinion, the industry is facing enormous operational risks as a result of several shocks. As you can see, because of exports, it seems that Chinese car production is OK. However, exports can only provide a short-term buffer for the industry. Weak domestic demand is superimposed on the upstream and downstream shocks, and the operating pressure facing vehicle companies is still prominent. Therefore, the next step of high-quality development is the general trend. The second is the entry of new energy into the era of tens of millions of levels, the iterative upgrading of market operating rules, overseas compliance construction is also facing great challenges. The third challenge is that single-point breakthroughs are failing. You see, it turns out that the upstream innovations are single-point innovations. However, from feature configuration to actual experience, a lot of data is still very exciting to us. For example, the refrigerator, color TV, large sofa on our car, the actual usage rate of users of the refrigerator is only 5%, and the annual frequency of users of entertainment screens and car KTV is not more than 10 times. Behind this, we see product success, no longer relying on simple hardware stacking. Systematization capabilities are becoming the key to enterprise success. The fourth challenge is that new energy has entered the stage of deepening popularity of the masses, and the penetration rate of new energy in China's automobile market has exceeded 60%. In fact, the process from 60% to 100% is still the test of the system. It's a test of how to really address consumer pain points. The entire user structure tends to be stable, how can we further promote the conversion of oil and electricity? Here, I would like to briefly introduce you to the dark blue car that I am in charge of. Deep Blue Automobile is a mid-to-high-end new energy vehicle brand owned by China Changan Group to young users around the world. In April this year, Changan Automobile announced the promotion of the integration and development of Deep Blue Automobile and Avita's mid- and back-office system, but the front desk is independent. Behind this is also the pursuit of high-quality development of the industry. Since the birth of Deep Blue in 2022, we have wanted it to be a technology-affirming brand. We do more "technical fish ponds" on the upper end, and then we delegate the "technical fish ponds" to more consumers to experience. These include promoting the popularization of the whole world and scenarios in terms of electrification, and promoting the popularization of higher-order intelligent assisted driving in terms of intelligence. In terms of electrification, Deep Blue Automobile has made technologies such as the Force Super Integrated Drive, the Force Intelligent Range Extension, and the Admiralty Cover Battery around creating a more economical, cooler, and safer electrification experience. Electric vehicles are growing very fast in China today, thanks to our charging network environment. Therefore, in the early days of dark blue cars, 80% of sales came from extended-range models; now, 80% of sales are from pure electric models. However, facing the global market, it is somewhat different. Due to the large difference between the refueling facilities in overseas markets and China, the main sales force of dark blue vehicles in overseas markets is still PHEV models, including extended range. In terms of intelligence, we launched the first end-to-end driver assistance system developed by a central enterprise - Tianzhu Pilot. We just talked about technology equality, and the upcoming Qiyuan Q06 will be equipped with this Tianxu pilot system. This system is equipped with Changan's completely self-developed algorithms. This algorithm also empowers deep blue cars. In the industry, there are many end-to-end driver assistance systems, but not many are mass-produced. From the experience point of view, the end-to-end experience of Qiyuan Q06 is very good, and everyone is welcome to experience it. Although Deep Blue Automobile is a start-up brand, thanks to Changan Automobile's huge "technical fish pool" and deep cultivation that has been intelligent and electric, Deep Blue Automobile's technology accumulation has also been widely recognized by the industry. Last year, we got China's first license plate for L3 autonomous driving. This year, we did a large-scale demonstration operation in Chongqing. From the large-scale demonstration operation of L3, we have received a lot of meaningful data that can help us build regulations, standards, and systems in the field of autonomous driving. Dark Blue's six major product lines have achieved healthy and profitable performance, including sedans, SUVs and hard-line products. As a next step, we are also looking at how products for the global market can be scientifically laid out, and how product synergies can be done well within Changan Automobile and Avita. Also share with you, I just talked about a lot of experiences, in fact, is also in the process of landing. Next week, the dark blue new S07 is also available, which is a long-lasting AI laser smart SUV, reflecting a lot of industrial progress: on the one hand, the progress of electrification. It has a 6C supercharge and it only takes a few minutes to charge 50%. At the same time, it has a range of more than 700 kilometers. When I first entered this industry, many cars only had a pure electric range of tens of kilometers and more than 100 kilometers. Nowadays, it is not difficult for cars to run to 700, 800, or 900 kilometers. On the other hand is the advancement of intelligence. We have empowered smart driving and achieved an urban takeover mileage of 150 kilometers, and our goal is to increase it 10 times a year, so that it can achieve an urban takeover mileage of 15,000 kilometers in two years, which means that we are very close to Robotaxi. Take over the mileage at high speed, we can now do 1500 km. At the same time, AI-enabled cockpits, large models like bean bags, are being mounted on more new products. I would also like to announce to you that next week, four years after the birth of Deep Blue, the 1 millionth vehicle will be rolled off the production line. This hasn't been easy. Looking to the future, we want the next million to be faster and of higher quality. That's all I'm sharing with you today, thanks for listening!.