UBS has released its annual outlook for China's auto industry, which is very bullish.

Gong Min, China auto industry analyst at UBS, told Jiemian that while China accounted for only about 12 percent of the 80 million vehicles sold globally last year, it led the world in electric vehicle sales and had clear success in overtaking corners.
In 2020, he thinks, the decline will basically be eliminated and there will be a significant uptick.The first quarter, in particular, is expected to show double-digit growth, even exceeding the same period in 2019.This is something that Europe and North America cannot achieve this year.
Domestic Tesla will be the explosive point of China's electric car market this year.A number of joint ventures would also do well to launch a second generation pure electric product this year, thanks to years of Chinese consumer thinking about cars.
At the same time, more and more car manufacturers may abandon their own products and become OEM manufacturers for new car manufacturers and Internet giants.
Gong Min, who has been analyzing cars for eight years, says he has witnessed huge changes in China's auto industry.
From 2013 to 2015, he mainly studied how German, American and Japanese fuel vehicles gradually grabbed market share in China.Three or four years ago, the theme was how German and American cars were losing market share in China.
Now, thanks to the rise of driverless cars and electric vehicles, Chinese car brands have become a topic that auto analysts around the world have been unable to avoid for the past two years.
In particular, the new forces of automobile manufacturing and the rapid development of the relevant upstream and downstream industrial chains have brought unprecedented opportunities to China's automobile manufacturing industry, and the speed of its status is unprecedented in the past century.
Gong Min believes that the new energy vehicle industry can now be divided into four regions: China, the United States, Europe, Japan and South Korea.
Europe has the most aggressive policies and some components have some advantages, but battery development and autonomous driving sectors are the worst.
Japan and Korea have very excellent battery research and development technology.
The new energy industry in the United States is the most profitable of the four regions and has many advanced autonomous driving research and development teams.
China not only has excellent battery research and development technology and self-driving research and development, but also has the most complete industrial chain.It is not only the fastest in the world, but also the most cost-effective -- last year, UBS compared several popular NEVs in the Chinese and European markets.It found that the former was at least 20% cheaper than the latter before the subsidies were included.That's why Tesla's costs are down 30% and profit margins are higher when it builds a factory in China.
UBS concluded that China's new energy vehicle industry has the best prospects in the world in the past two years.