Shanghai (ZXZC)- On Sept. 20, China Auto Parts Annual Conference was held in Guangzhou. On the conference, participants seemed to agree that China auto industry has begun its own innovative development rather than following others’ development patterns. With the development in environmental protection, energy saving technology and new energy vehicle, China local auto brands have entered innovative development phase.

Shi Jianhua, Deputy Secretary General of China Association of Automobile Manufacturers (CAAM) also pointed out on the conference that China auto brands will face new challenges. Besides, in his opinion, SUV will become the most popular segment by the end of this year.

During the first eight months, the volume of China vehicle output and sales are respectively 17.68 million and 17.51 million, increasing 4.7 percent and 4.3 percent year on year. The output and sales of passenger vehicles are 15.03 million and 14.81 million, up 3.1% and 2.2% year on year. SUV managed to maintain high growth rates of its output and sales while those of the car segment fell 1.2 percent and 2.2% percent. Shi said SUV has become one of main drivers in our auto industry. According to him, SUV is likely to become the most popular segment by the end of this year.

Shi also emphasized local brands’ performance. In the same period, local brands’ sales volume reached 6.39 million units, increasing 4.8 percent year on year. That figure accounts for 43 percent of the total passenger vehicle volume while local brands’ sales only account for 38 percent in 2014. The growth rate is also 1.1 percent higher than that of the same period of last year. SUV is also a main driver for China brands. The sales of China local branded SUV during the same period is 3.56 million, increasing 24.6 percent compared with the same period of last year and accounting for nearly 60 percent of SUV’s total volume. During the same period, the sales of local branded car is 1.38 million, with just a year-on-year increase of 1.6 percent.