Policy and industrial development

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I took part in a seminar about the next-generation mobility today. It was hosted by a local government, and a national government official and local public officers spoke about the policies and several support systems.


The auto industry is facing the transition period that conventional engine vehicles are changing to electric vehicles. The internal combustion engines are so precise that auto makers in emerging countries can’t catch up with the technologies. That means that the auto maker in advanced countries have an advantage in the technologies. However, it’s not the electric vehicles.


The number of auto parts on 8-cylinder engines is said to consist of 1,200 in contrast with only 25 of electric motors. We can easily imagine that the electric motor technologies are much easier. Thus, the auto manufacturers in China which is the biggest EV market have somewhat a lead about the technologies.


The role of the government is significant. Chinese government has strongly given the EV strategy a push, and now it enjoys the result.


At the today’s seminar, a speaker told us about the national policy to pushing the next-generation mobility by several subsidies. And the local governments also prepare supporting measures for auto parts manufacturers. They desperately work hard due part of prevention of the auto industry which is the only industry underpins Japan’s economic, and due part of the carbon emission reduction.


I thought that the industries were made up only by effort of companies. At the transition period, the government policies and subsidies are necessary to raise the new industry. I always think about the business management as a strategic staff. The seminar gave me a new idea about the industrial development.