1. development environment: policy plus code to promote the high-quality development of the automotive testing industry

Car inspection is an inspection to determine the technical condition or working ability of the car. Originally derived from automobile maintenance technology, with the extension of automobile use time (or the increase of mileage), its parts gradually wear, corrosion, deformation, aging, and deterioration of lubricating oil, resulting in the increase of the clearance of the matching pair, causing movement looseness, vibration, noise, air leakage, water leakage, oil leakage, etc., resulting in the decline of automobile technical performance, so automobile inspection is a very important part of the automobile use process. In the detection of the whole motor vehicle category, it is mainly divided into in-use vehicle detection and new vehicle offline detection, in which in-use vehicle detection can be divided into mandatory detection and non-mandatory detection, corresponding to different detection modes.

In recent years, with the continuous development of the automobile industry, the number of cars is also increasing, resulting in frequent traffic accidents caused by automobile problems. In order to better avoid the occurrence of traffic accidents and ensure people's travel safety, the state and governments at all levels have issued a series of policies to support and encourage the development of automobile testing industry. In October 2022, the Ministry of Transport issued the regulations on the Technical Management of Road Transport vehicles, which made relevant provisions on road transport vehicles, pointing out that road transport operators should regularly go to motor vehicle comprehensive performance testing institutions to carry out comprehensive performance testing of road transport vehicles. In September 2022, the Ministry of Public Security, the General Administration of Market Supervision and other four departments jointly issued the Opinions on Deepening the Reform of the Motor Vehicle Inspection System and Optimizing Vehicle Inspection Services, proposing to improve and optimize inspection methods, and supervise inspection agencies to accurately implement emission inspection standards and technologies. Specifications, standardize the conduct of motor vehicle inspections, improve inspection quality, and avoid vehicle damage caused by improper operation during inspections. In March 2023, the Ministry of Transportation and the Ministry of Science and Technology also jointly issued a document stating that it is necessary to carry out infrastructure intelligent testing, digital diagnosis, standardized evaluation, rapid disposal technology and equipment research and development, and promote the application of intelligent transportation equipment certification, testing and operation and maintenance technology.

In order to further standardize and optimize automobile inspection technology, various provinces and cities have also issued various policies to promote the high-quality development of the industry. Sichuan Province and other provinces and cities have issued policies on automobile inspection technology, and put forward corresponding requirements and development plans for technical inspection. In November 2022, Sichuan Province issued the notice on 15 measures to invigorate automobile circulation and expand automobile consumption, proposing to strengthen the technical inspection of road transport vehicles, guide old operating vehicles to withdraw from the road transport market in an orderly manner, and improve the inspection equipment of parallel imported vehicles, reasonable planning to meet the "six" emission standards of new environmental testing projects. Shandong Province, Shaanxi Province, Guizhou Province and other provinces and cities have issued policies on automobile testing institutions to further control and restrict them. In August 2022, Shandong Province issued the "Motor Vehicle Inspection Institution Construction, Operation and Management Service Specification", proposing that motor vehicle inspection institutions should be registered in accordance with the law, and the registered business scope includes motor vehicle inspection and testing, and shall not include motor vehicle quality appraisal, consultation, and maintenance., Maintenance, sales, etc. In April 2022, Guizhou Province issued the ''Special Rectification Action Plan for Motor Vehicle Inspection and Testing Institutions in Guizhou Province'', pointing out that double random supervision and inspection is the main means to conduct full coverage supervision and inspection of motor vehicle inspection and testing institutions in the province; promote the province Motor vehicle inspection and testing institutions implement thematic responsibilities and carry out inspection and testing activities in accordance with laws and regulations.

2. development status: market demand continues to grow, industry competition is becoming increasingly fierce

With the sustained and rapid development of China's economy, the number of motor vehicles continues to maintain a rapid growth trend. The market demand of the automobile inspection industry is related to the number of cars and the age of cars, which determine the market volume of business. The continuous growth of motor vehicles, especially car ownership in China, requires the continuous enhancement of motor vehicle detection capabilities to match it. Laws and regulations such as the regulations on the implementation of the the People's Republic of China Road Traffic Safety Law, the notification of the Ministry of Public Security to serve the "six stability" and "six protection", deepening the reform of public security traffic management, and introducing 12 measures to optimize the business environment, clearly stipulate the testing frequency requirements of different types of motor vehicles. Only vehicles that have passed the inspection can obtain the inspection mark, and vehicles that have not obtained the inspection mark shall not be driven on the road. The average age of vehicles in China has entered the mandatory testing period and continues to grow as vehicles enter the stock market. For different types of motor vehicles, the increasing age of in-use vehicles, the frequency of safety, environmental protection and comprehensive testing of the corresponding models of in-use vehicles has increased, and the downstream demand for testing has increased.

According to data from the Shangpu Consulting Group, as of the end of 2022, the total number of motor vehicles in my country reached 0.459 billion, an increase of 42 million over 2021, an increase of 10.06 percent year-on-year. Among them, the number of cars was 0.351 billion, accounting for 76.47 percent of the total number of motor vehicles, an increase of 32 million over the previous year, an increase of 10.05 percent over the same period last year. The market size of China's automotive testing industry is expected to reach 64.8 billion billion yuan in 2023, up 9.5 percent year-on-year. Among them, the market size of mandatory testing for in-use vehicles is expected to be 42 billion yuan, an increase of 8.6 percent over the same period last year; the market size of non-mandatory testing is expected to be 16.8 billion yuan, an increase of 9.8 percent over the same period last year; and the market size of new car offline testing is expected to be 6 billion yuan, an increase of 14.3 percent over the same period last year.

The market competition pattern of the automobile testing industry is mainly determined by two factors: one is the number and scale of automobile testing institutions, and the other is the service quality and technical level of automobile testing institutions. According to data from Shangpu Consulting Group, in 2022, the total number of motor vehicle inspection institutions in the country will be about 14000, of which institutions directly under the public security department account for about 1/3 of the country, and socialized institutions account for about 2/3 of the country. Among the social institutions, 5.6 per cent have internationally renowned brands, 12.4 per cent have domestic brands and 81.9 per cent have other small and medium-sized institutions. From the perspective of market share, the market share of social institutions has surpassed that of institutions directly under the public security department. Among them, domestic well-known brand institutions such as Sinopec, PetroChina, China Communications, and China Railway have strong influence and competitiveness in various regions. However, from the perspective of service quality and technical level, the institutions directly under the public security department still have a high degree of authority and credibility, and the differences between social institutions are also large. Some small and medium-sized institutions have non-standard services, poor technology, and equipment. Imperfect and other issues have led to low consumer satisfaction.

With the development of automobile inspection industry, the competition in the industry is becoming increasingly fierce. On the one hand, policies and regulations put forward higher requirements and standards for the automotive testing industry, strictly regulate and supervise the qualifications, equipment, personnel, and processes of automotive testing institutions, and raise the industry entry threshold and exit costs. Promote the industry to develop in the direction of standardization, standardization and specialization. On the other hand, consumers' demand for automobile inspection services is becoming more and more diversified and personalized, and they have higher expectations and requirements for the quality, efficiency, price and convenience of automobile inspection services. it has promoted the development of the industry in the direction of diversification, differentiation and segmentation.

3. development trend: new energy vehicles, intelligent network vehicles and other new opportunities to generate new demand.

As an important part of the automotive industry chain, the development trend of the automotive inspection industry is closely related to the development trend of the automotive industry. At present, my country's automobile industry is in a critical period of transformation and upgrading. New technologies, new products, and new models such as new energy vehicles and intelligent networked vehicles continue to emerge, bringing new challenges and opportunities to the automobile inspection industry.

Energy vehicles refer to vehicles that use new power systems as the main source of power, and realize drive control and vehicle optimization through advanced technology, and have the characteristics of advanced technology, low or zero emissions, energy saving and high efficiency or renewable energy utilization. According to data from Shangpu Consulting Group, in 2022, my country's new energy vehicle market showed explosive growth, with production and sales exceeding 7 million vehicles, a year-on-year increase of nearly 100 percent, accounting for 1/4 of the passenger car market. This is the eighth consecutive year that China's new energy vehicles have maintained the world's leading performance. It is estimated that the production and sales of new energy vehicles in China will reach about 3.5 million in 2023. With the implementation of China's policy of restricting the purchase and traffic of traditional fuel vehicles and the support of subsidies and preferential policies for new energy vehicles, the market demand for new energy vehicles will continue to grow. It is estimated that the number of new energy vehicles in China will reach about 80 million by 2025.

The development of new energy vehicles has brought new demands and opportunities to the automotive testing industry. On the one hand, the technical characteristics and use characteristics of new energy vehicles determine that they are different from traditional fuel vehicles in terms of safety, environmental protection, and comprehensive performance. For example, the batteries, motors, electronic controls and other components of new energy vehicles need to be tested for electrical safety, electromagnetic compatibility, battery performance, etc.; the emission testing of new energy vehicles needs to consider their vehicle energy consumption, carbon dioxide emissions and other indicators. On the other hand, the growth of the market size and ownership of new energy vehicles has also brought huge market space for the automotive testing industry. According to data from Shangpu Consulting Group, the scale of my country's new energy vehicle testing market is expected to reach 5 billion billion yuan in 2023, accounting for 7.7 of the entire vehicle testing market; it is expected that my country's new energy vehicle testing market will reach 15 billion billion yuan by 2025, accounting for 15.8 of the entire vehicle testing market.

Intelligent connected vehicles refer to the perception, analysis, interaction and control of the vehicle itself, drivers, road conditions, environment and other information through advanced sensors, controllers, actuators and other devices, and through the Internet, mobile communication networks and other means. Other vehicles, road infrastructure, cloud platforms, etc. exchange information and share resources to realize intelligent driving and intelligent travel. According to the data of Shangpu Consulting Group, in 2022, China's intelligent network car production and sales were completed 5 million and 4.8 million vehicles, an increase of 60% and 58%, respectively, accounting for 25% of the total passenger car market share. It is expected that China's intelligent network car production and sales will reach about 7 million vehicles in 2023. With China's policy support and promotion of technical standards, safety supervision and application demonstration of intelligent connected vehicles, the market demand for intelligent connected vehicles will continue to grow. It is estimated that the number of intelligent connected vehicles in China will reach about 30 million by 2025.

The development of intelligent networked vehicles has brought new challenges and opportunities to the automotive inspection industry. On the one hand, the technical complexity and system integration of intelligent connected vehicles are high, involving a variety of technical fields and a variety of functional modules, which have higher detection requirements in terms of safety, reliability, and interoperability. For example, intelligent networked vehicles need to detect sensor performance, communication protocols, data security, human-computer interaction, etc. Intelligent networked vehicles need to detect automatic driving functions, remote control functions, information service functions, etc. On the other hand, the growth of the market size and ownership of intelligent networked vehicles has also brought huge market potential to the automotive inspection industry. According to the data of Shangpu Consulting Group, the scale of China's intelligent network automobile inspection market is expected to reach 8 billion yuan in 2023, accounting for 12.4 of the whole automobile inspection market. It is estimated that by 2025, the scale of China's intelligent network connection automobile inspection market will reach 20 billion yuan, accounting for 21.1 of the total automobile inspection market.

4. conclusions and recommendations: increase investment in research and development, improve service quality, seize new opportunities, and achieve high-quality development.

The automobile inspection industry is an important part of the automobile industry chain, and its development level directly affects the safety, environmental protection and efficiency of the automobile industry. At present, the automobile inspection industry is facing the influence of policy, society, technology and other aspects. The market demand continues to grow, the industry competition is becoming increasingly fierce, and new opportunities such as new energy vehicles and intelligent connected vehicles have given rise to new demands. In order to meet these challenges and opportunities, Shangpu Consulting Group believes that the automotive testing industry needs to do the following work:

Increase investment in research and development, improve the level of technology. The automobile inspection industry needs to constantly follow up the technological development of the automobile industry, and carry out relevant technical research and standard formulation according to the characteristics and needs of new technologies, new products and new models such as new energy vehicles and intelligent connected vehicles. improve and update testing equipment and methods to improve the accuracy, reliability and effectiveness of testing.

Improve service quality and enhance consumer trust. The automobile testing industry needs to strictly abide by the relevant national and local laws, regulations and policy requirements, standardize and optimize the testing process and management system, strengthen the training and assessment of testing personnel, improve the professional quality and service awareness of testing personnel, ensure the fairness and transparency of testing results, and enhance consumers' trust and satisfaction with testing institutions.

Seize new opportunities and expand new markets. The automotive testing industry needs to actively grasp the new demands and new markets brought about by new opportunities such as new energy vehicles and intelligent connected vehicles, and provide differentiated and personalized testing services according to the needs of different types and stages of automotive testing. to meet the diversified and high-end needs of consumers and increase their market share and competitiveness.

Achieve high-quality development and promote industry synergy. The automobile inspection industry needs to aim at high-quality development, continuously improve its core competitiveness and innovation ability, and at the same time strengthen cooperation and coordination with the upstream and downstream of the automobile industry chain to form a good industry ecology and development environment. to make positive contributions to promoting the transformation and upgrading and high-quality development of China's automobile industry.