Automotive industry plays an important role in improving social economy in modern business. It is one of the largest industries in the world and plays a strong driving role in the upgrading of industrial structure and the development of related industries.

Technology applied in automobile industry aims at better safe driving systems, lower emissions and pollution and other benefits. For the financial part, the price of vehicles is influenced by advanced technology. Technology innovation has permitted vehicles to last more and affects the resale capability and the worth of new products. Price reduction is helpful for middle-class people to have cars easily. Technological application and innovation are valuable for new product development, which provides better product quality for consumers.

Higher capability of organizations’ technological innovation can positively affect the process of organizational development, which continues to support social employment. Specifically, technology progress increases labor productivity and reduces the price of products and services. The decline of the price will inevitably promote the increase of people’s consumption demand, thus driving the total social demand and expanding the scale of production, finally lead to employment increase.

Moreover, technology is an important factor to improve the economic benefits of industry. It can make the total production increase continuously on the original basis without increasing the labor force, resources and capital. The technical level of production and process would be improved, while labor consumption would be reduced to obtain greater economic benefits with as little input as possible. It can also be said that technology process is a process of economic growth that effectively utilizes the transformation of productive potential.

Technology innovation has played a core role in driving the new energy vehicle industry towards marketization and helps environment with less pollution.

Technology has an impact on the Chinese future automobile industry perhaps in the following aspects.

One trend is mixing-power and electric-power vehicles are promoted. But most cars will be powered by hybrid engines, and most still powered by petroleum fuels. This requires carmakers to build more efficient internal combustion engines to meet new standards of use.

The second trend refers to autonomous vehicles. Once the stuff of science fiction, autonomous driving is no longer a distant prospect. A number of fully autonomous vehicles are already being actively tested, and the first commercially available semi-autonomous vehicles are expected to hit the market within a year or two.

The third trend is supply chain revolution. The need for fuel efficiency is bound to drive up the cost of auto parts. It is a challenge and an opportunity for auto parts makers to keep up with the technology wave while cutting costs. For large companies, reducing risk means increasing research and development budgets and experimenting more broadly with technology. On the other hand, smaller enterprises can focus on their own core technologies and combines with other suppliers in areas with weak points.

However, automobile industry requires products using technology innovation. These are the most essential factors that determine the enterprise’s ability to expand the product market. From the global view, technology innovation is essential for enterprises’ competitiveness.

（Writer：Ninin）