Continental China President and CEO Enno Tang

Q1, What are your expectations for the auto show?

A1: I am very much looking forward to Auto China 2020 in September. This event demonstrates the quick recovery of the automotive market and fast containment of the coronavirus outbreak in China.  This year’s “smart vehicle for the future” theme will bring cutting-edge technologies and great dialogues during the event.

Q2, With the pandemic slowing down, China’s automotive market has started to recover in the second quarter. What do you predict for China's auto market in the near future? The current recovery trend shows a “V” shape in sales, what do you think would be in the next stage? A “√” shape, a “W” shape, an “M” shape, or a “√¯” shape?

A2: Volume development in the fourth quarter should be stable. However, the total volume in 2020 could still be about 10 percent lower than last year due to a significant drop in the first quarter. Looking forward, we expect that the rebounding of China’s automotive market could continue next year after three straight years of decline. In the middle and long term, we can expect moderate growth. But it’s still possible that development could be flat, or even drop as the market volatility is increasing.

Q3, Can you use a few keywords to describe your predictions for the Chinese and global automotive industries in the next five years?

A3: Transformation, Electrification, Intelligent, Connected vehicle

Q4, The virus has drastically affected people's lives. It has also caused people to rethink many aspects of life, including their way of traveling, and business management. From your perspective, what are the most important lessons we can take away from this pandemic? Can you also use a few keywords to summarize the impact?

A4: We are very pleased that there are no infections among our 24,000 Continental employees in China thanks to the protective measures implemented by local authorities and our 28 locations in China. We gradually resumed operations starting on Feb 10, and the process went smoothly thanks to the joint efforts of all stakeholders.  The impacts of COVID-19 are many and actually include some positive aspects: First, the Chinese authorities and people have demonstrated strength in managing the crisis based on their dedication, fast execution and support for one another. Digitalization has been widely used and well recognized to help fight the outbreak. It can accelerate further progress in digital applications to help people in their daily lives and work.

Q5, What do you think about the social responsibilities that the automotive companies have taken during the epidemic?

A5: We have witnessed many automotive companies in China exhibit strong senses of corporate social responsibility during the epidemic. Continental was one of them. We are firmly convinced that it would have been impossible to contain the virus and restart business operations quickly without the joint efforts of the authorities, companies and all individuals.

Q6, In the post-epidemic era, how will China's position and role be affected in the global automotive industry? What do you think the players should do next?

A6: China is enhancing its position as the No 1 automotive market in the world in terms of share of production and sales volume in the global market.

Beyond volume, the Chinese automotive industry is accelerating technological advancement and taking the lead position in fields like electrification and intelligent connected vehicles. Furthermore, the global supply chain will be reshaped with more balance between localization and globalization.

The companies in China’s automotive industry should further focus on innovation, quality and efficiency improvement to be prepared for market volatility and fierce competition.