From September 4th to 6th, the 16th China Automotive Industry Development (TEDA) International Forum co-sponsored by China Automotive Technology Research Center Co., Ltd., China Automotive Engineering Society, China Automotive Industry Association and China Automotive News Agency was grandly held. Among them, Lei Ping, deputy general manager of China FAW Group Co., Ltd., delivered a wonderful speech at the "Opening Conference · Business Restructuring Driven by Both Policies and Markets" forum held on September 5.

Lei Ping, Deputy General Manager of China FAW Group Co., Ltd.

The following is a record of the live speech:

    Dear leaders, colleagues in the auto industry and friends from the media, good afternoon,

    I am very pleased to represent China FAW to participate in the industry event of TEDA International Forum. The title of my report today is "Education of New Machines, Innovation Bureau, Development of National Brands."

    Faced with the huge market space, multinational giants have invested in China one after another, and Chinese car companies have also continued to expand their boundaries and gain a lot. At present, some multinational car companies have withdrawn from China, and some new entrants of independent brand car companies have died before they leave. With the further opening of China's auto industry in 2022, the Chinese auto industry will face more intense competition. Despite the increasingly cruel competition, for Chinese independent brands, the new four modernizations have brought new opportunities for the transformation and upgrading of China's automobile industry. At the same time, new network infrastructure such as big data, artificial intelligence, 5G, and charging and replacement facilities have also created new opportunities for network upgrades. basis. Currently, leading multinational companies are undergoing transformation, but the process of transformation is also full of difficulties. For the Chinese auto industry, the transformation of the industry should be regarded as both a crisis and an opportunity, because multinational companies and independent brands face the same The challenge is to accelerate the transformation. Only by seizing the opportunity and accelerating the transformation and development, we will have the opportunity to catch up. The key is to look at our strategy and actions.

    In the past ten years, self-owned brands have experienced two periods of rapid improvement. The first time was around 2010. Under the guidance of policies, self-owned brands used low-cost small cars to break their path and create cars that Chinese people can afford. The second is to seize the opportunity of entry-level SUVs and MPVs. The current window period for SUVs has gradually passed, and the market share of independent brands has dropped significantly. With the new round of technological revolution and industrial transformation, we believe that the new opportunities brought about by electric, intelligent, connected, and sharing in the future will become the next high-growth driving force for independent brands.

    Under the background of new economy, new consumption, new technology, and new opening up, in order to better plan the development direction of China FAW in the new era of the automotive industry, we have combined the reality of China FAW’s reform and development, and after many rounds of polishing and improvement and strategic topics During the discussion, the China FAW 2025 strategic vision plan was released at the end of 2018. The goal is to double the economic scale, value creation, and per capita income by 2025 through 8 years of struggle. Faced with the challenge of further opening up the market in 2022, combined with the development and reform achievements that China FAW has achieved in recent years, we have formulated a three-year reform and development goal for the implementation of the "831" strategy for 2022, which we call " Action 3341", we will use three years of time to achieve three major actions in the three main business areas, including autonomous vehicles, joint venture vehicles, and new service industries, including Dragon Action, Tiger Leap Action, and Pegasus Action. development of.

    In the past three years, despite the continuous decline in the automotive industry, China FAW's operating quality has continued to improve, and sales, revenue, and profits have achieved historical growth. Especially in the face of the impact of this year’s epidemic, in the context of a sharp decline in automotive market demand, FAW Hongqi reached 33,000 vehicles in 2018 and exceeded 100,000 vehicles in 2019. This year it will double again to complete the sales scale of 200,000 vehicles. The 2021 target continues to challenge the double and achieve the goal of 400,000 vehicles. Strive to move towards the first echelon of luxury brands.

    On July 23, when General Secretary Xi Jinping inspected FAW, he fully affirmed the development of China FAW by using the scenery here. At the same time, he also emphasized that we must work hard to master key core technologies, promote national automobile brands, and promote my country. High-quality development of manufacturing. The instructions of the General Secretary pointed out the direction for the future development of China's FAW and China's auto industry. The Hongqi brand needs to explore a model to complete the high-end brand and solve the common problems faced by local brands. We have found a brand-building model. This model is defined as the "11114" construction system. These four " 1" represents a center, a main line, a drive, and a foundation, and 4 is the four directions of brand building.

    One of the centers is customer-centric. China FAW insists on customer experience as the center.

    One main line is to focus on product innovation. Create a series of forward-looking technologies in six aspects of quality, performance, safety, experience, intelligence, and green, and focus on leading the development of the industry in forward-looking R&D, new energy, artificial intelligence, 5G application, new materials, and new processes.

    One driver. Driven by the digital transformation of the entire value chain, it focuses on all aspects, all businesses, and all employees. Facing the whole process of enterprise operation, with middle office as the core and data as the guidance, business empowerment and product intelligence are realized through digital transformation.

    A foundation. It is based on talents. In the final analysis, the competition in the industry is the competition of talents. The key period for the transformation and upgrading of the old kinetic energy of the automobile industry and the gathering and development of new kinetic energy is an urgent need for a talent team with abundant, reasonable structure, excellent business and excellent numbers.

    Four directions for brand building. Nobleness is the threshold for high-end self-owned brands; Sinicization is the foundation and confidence for the promotion of Chinese national brands; youthfulness is the basic strategic guarantee for the sustainable development of Chinese auto brands. We need to use the thinking of young people to create younger products. Communicate in the way of young people, make the brand more interested, build a communication platform for young people, and open up a big platform for mobile life; internationalization is an important symbol of the success of Chinese national brands, and we hope that Chinese auto brands will enjoy an international reputation like Huawei.

    China FAW thoroughly implements its innovation-driven development strategy, provides users with a better travel service experience, and strives to build an ecosystem belonging to Hongqi, empowering the Hongqi brand and Hongqi products. The intelligent network technology strategy gathers 12 key core technology researches including intelligent systems, wire-controlled chassis, basic software, basic hardware, functional safety, intelligent chassis, human-computer interaction, data mining, and user safety.

    The new four modernizations and new infrastructure will be catalysts for the development of smart travel. China FAW focuses on the four elements of product, service, ecology and data. FAW Travel has become China's best car operator, realizing a better life, wonderful travel, and smart travel ecosystem.

    Now, China FAW is earnestly studying and implementing the spirit of the important instructions given by the general secretary during the inspection of FAW. We must set up this ambition to promote the national brand, and control the key technologies and core technologies in our own hands, achieve self-reliance and serve the country with products. , The mission is to become a powerful automobile nation, centered on strategic vision and goals, user-centered, and product-oriented, to create a business card for a major country, and to meet the huge challenges and opportunities of the automotive industry.