This week, the domestic automotive industry has witnessed several landmark events, including the reshaping of joint venture patterns, the improvement of autonomous driving regulations, personnel changes in car companies, the simultaneous promotion of overseas layout and major component projects, and the concentrated release of signals for industrial transformation.

On August 5th, SAIC Group and General Motors officially signed a strategic renewal agreement, extending the joint venture period of SAIC General Motors by 20 years to 2047. SAIC-GM was officially established in 1997, and the original joint venture contract will expire in 2027. After the renewal, both parties will fully leverage the advantages of the Chinese market in user insights, independent research and development, intelligent manufacturing, and supply chain systems, accelerate the implementation of the "China Definition, China Research and Development, China Manufacturing, and Global Service" strategy, and promote China's transformation from a global automotive technology carrier to a global innovation source and important product supply hub.

Industry Review: This renewal is not only an extension of the cooperation period, but also an important attempt to redefine the global value division of labor in the traditional joint venture model, as the strength of the domestic automotive industry chain continues to rise.

At the policy level, the field of autonomous driving has reached a milestone. The mandatory national standard of Safety Requirements for Intelligent Connected Vehicle auto drive system (GB 44721-2026) was officially released and will be implemented on July 1, 2027. This is the first mandatory national standard for L3 level conditional autonomous driving and L4 level highly autonomous driving in China, applicable to various types of passenger and freight vehicles equipped with related systems, and automatic parking systems are not within the scope of the standard.

This standard has been upgraded from the recommended national standard, and its binding force has been fully upgraded. The document sets clear safety bottom lines for different levels of autonomous driving, improves user notification and operation training requirements, builds a unified and standardized testing scenario, and is in line with the global regulations on autonomous driving of the United Nations and the domestic road traffic environment.

Industry Review: Autonomous driving competition has entered the era of "rule competition". The implementation of mandatory safety standards means that the competition among car companies continues to expand. In addition to product experience, safety mechanisms and division of responsibilities will become core assessment indicators.

On the market side, channel pressure continues to emerge. According to data from the China Association of Automobile Dealers, the inventory warning index for automobile dealers reached 61.1% in July 2026, with both year-on-year and month on month increases, and remained above the boom bust line. The industry expects that the car market will still be affected by high temperatures in August, with weak offline passenger flow and a strong atmosphere of consumers holding money and watching; However, the demand for car purchases during the school and graduation seasons is gradually releasing, and sales are expected to slightly rebound compared to July.

Industry Review: High inventory levels indicate that market price competition has not subsided. Against the backdrop of car companies rushing to boost sales, the profitability of dealers and the health of channels remain hidden dangers that cannot be ignored in the industry.

SAIC has undergone significant personnel changes. On August 3rd, SAIC Volkswagen announced personnel adjustments, with Wu Yun appointed as the company's general manager and Tao Hailong, the former general manager, transferred to the position of general manager of Huayu Automobile, opening up talent flow channels for SAIC's vehicle and parts sectors.

During Tao Hailong's tenure, he established the development path of "oil and electricity advancing together, oil and electricity becoming intelligent together" and made every effort to promote the transformation of new energy. The newly appointed General Manager Wu Yun has over 20 years of experience in SAIC Volkswagen, covering the entire chain of research and development, production, marketing, and strategy. He has been deeply involved in SAIC Audi's localization layout and new energy product planning, and has experience in vehicle operation and upstream component management. His core tasks in the future are to tackle electrification transformation and optimize internal organizational structure.

Industry Review: SAIC's intensive personnel adjustments have conveyed a clear direction, and the group's development focus has shifted from scale expansion to improving organizational efficiency and building core new energy capabilities.

In terms of overseas cooperation, Chery has taken new actions in its global layout. According to foreign media reports, Chery plans to invest $75 million in South Korean KG Mobility in the form of convertible bonds, holding approximately 10% of the shares after the debt to equity conversion is completed. Both parties plan to share global production capacity, deepen cooperation in production and manufacturing, sales channels, and brand levels, and explore cross disciplinary cooperation in semiconductors, raw materials, and other fields.

KG Mobility will launch a new mid size SUV based on the Chery T2X platform in early 2027, covering both fuel and plug-in hybrid power. As a leading domestic exporter, Chery's vehicle exports exceeded 200000 units in July, setting a new monthly export record for domestic car companies for five consecutive months. Chery is also continuously evaluating feasible solutions for entering the US market.

Industry Review: Investing in KG Mobility is not simply an asset acquisition. Chery aims to leverage mature overseas car companies to activate idle production capacity and accelerate the transition from single product exports to global industrial synergy.

Major component projects are synchronously implemented. On August 7th, the Yanfeng Anting new project base officially entered the pile foundation construction phase. The total investment of the project is 1.45 billion yuan, aiming to build a modern base integrating intelligent cockpit research and development and manufacturing. After completion, it will be equipped with many mainstream car companies such as SAIC Volkswagen, BYD, Ideal, Volvo, etc. The project adheres to the green and low-carbon construction concept, relies on global research and development resources, and provides one-stop intelligent cockpit solutions for car companies. The project is expected to be completed and put into operation in the first quarter of 2028, continuously strengthening the supporting capabilities of the world-class automotive industry cluster in Jiading, Shanghai.