Automotive R&D Urgently Needs Reserve Talents to Strengthen “Soft Power”

"Soft power" is not a new idea. It has long been used to describe the influence of countries, organizations, and even individuals in various aspects such as politics, military, society, and business. When we look at it from a corporate perspective, it becomes clear that elements like equipment, factory buildings, capital, staff, and profitability represent a company's hard power. In contrast, management systems, research and development, cultural values, and brand reputation are considered its soft power. This soft power plays a crucial role in determining a company’s competitiveness and long-term vitality. In today’s highly competitive environment, especially for domestic auto brands, the pressure to perform is intense. Companies are racing to grow quickly, but this urgency can lead to poor decision-making and short-term strategies that may harm long-term success. One major issue is the mindset that prioritizes scale over quality—focusing on market share before efficiency, and pushing for rapid expansion without considering sustainability. As a result, many companies pour huge amounts of money into "dead" assets like production lines and machinery, rather than investing in productivity or innovation. What's more concerning is that soft power development is often neglected during this process. The automotive industry has become one of China’s most dynamic sectors, with constant calls for "independent innovation." Many self-owned brands have made significant progress under this trend. However, it's important to remind everyone that while "autonomy" is an essential goal and a guiding principle, it shouldn't be confused with the actual methods of operation or the way a company moves forward. True innovation is the key to lasting success, and what needs the most attention is the enhancement of a company’s soft power. Take China’s automobile R&D as an example. In the past, there was a sense of hesitation when facing global giants. Now, independent brands are climbing up the ladder in different ways—starting with imitation, then collaborating with foreign design firms, and gradually building their own capabilities through continuous learning and experience. To truly thrive, independent brands must develop both strong hard power and equally strong soft power. One great example is SAIC Motors, which has focused heavily on soft power during its international expansion. Over the years, they have built deep partnerships with global automotive leaders, assembled a team of over 100 former MG Rover core experts, and invested 67 million yuan to acquire intellectual property rights for the Rover 25 and 75 models, along with a full range of engines. Additionally, Shanghai has invested 1.8 billion yuan to establish the SAIC Engineering Research Institute, laying a solid foundation for future growth. This year, they plan to set up a large overseas R&D center in the UK with 500 employees. This move goes beyond just domestic ambitions—it signals a real commitment to internationalization and highlights how SAIC has placed special emphasis on developing its soft power alongside brand growth.

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