Hongqi looks to keep sales momentum with smart vehicles
Billion yuan
Hongqi, the premium brand of FAW Group, broke ground on a new energy vehicle factory on Wednesday in Changchun, capital of Northeast China’s Jilin province.
With a total investment of 7.6 billion yuan ($1.07 billion), the new plant is expected to finish construction in 2022 and produce 200,000 vehicles annually, including new energy vehicles and intelligent connected vehicles.
Xu Liuping, chairman of FAW Group, said that the move shows FAW’s ambition of independent innovation, strong ability and confidence to invest amid a depressed auto industry worldwide.
Last month, FAW completed an expansion of its Hongqi plant in Changchun, raising annual production capacity to 150,000 from 100,000.
In the first quarter of 2020, Hongqi produced 21,300 vehicles, a 74 percent increase year-on-year.
Its sales reached 25,000 units, an 88 percent increase compared with same period in 2019.
The expanded product lineup will enable Hongqi to maintain its sales growth.
In 2019, Hongqi’s sales hit 100,000, double its target number for that year. This led to ambitious goals being set.
Hongqi will strive to reach annual sales of 200,000 units in 2020; 400,000 units by 2022; and exceed 600,000 units by 2025.
At the brand’s conference held in January, Hongqi said it plans to launch 21 models in next five years.
This includes 18 new energy models and the mass production of vehicles equipped with autonomous driving technology.
The company will further enhance global R&D for Hongqi, focusing on forward-looking
investment for Hongqi's new plant in Changchun, Jilin province
are expected to be produced annually at the new plant
will be launched by Hongqi in the next five years
design, new energy, new materials and processes, smart manufacturing, as well as artificial intelligence and 5G application, Xu said at the conference.
The brand will mass-produce vehicles with Level 3, or hands-off technology, and achieve Level 4, or eyes-off-road autonomous driving technology by 2021, according to Hongqi.
Its new Hongqi H9 model, which made its world debut in Beijing in January, is equipped with self-developed intelligent connectivity technology and Level 2.5 autonomous driving technology.
The brand also has the Hongqi HS5 and Hongqi HS7 SUV; the Hongqi E-HS3 electric compact utility vehicle; the Hongqi H7 and Hongqi H5 sedans; as well as the Hongqi L5 limousine on the market.
Hongqi, established in 1958, once made limousines for top Chinese leaders.
The group started a campaign in early 2018 to revitalize the brand, vowing to make it the No 1 automotive company in the country and renowned globally.