Speech by Mr. Huarong ZHU, Chairman of the Board, Changan Automobile (Source: 2022 China Auto Forum)

  The 2022 China Auto Forum (Forum) was held November 8-10 in the Jiading District, Shanghai. This report introduces presentations on the development trends of New Energy Vehicles (NEVs) and connected cars selected from the 16 thematic sessions of the Forum. Speakers from Jidu, Chery, Changan, and SHPT, which is part of the SAIC Group, took the stage.

  Shanghai Jidu Automobile Co., Ltd. (Jidu Auto) believes that the Smart Car 3.0 era has arrived, that the trend for the next five years will be smart cars, and the trend for the next 10 years will be unmanned cars. Chery Automobile Co., Ltd. (Chery) presented details of its "Yaoguang 2025" strategy, which covers four areas: architecture, power, smart, and ecosystem. Chongqing Changan Automobile Co., Ltd. (Changan Auto) hopes to sustain its growth in the range extender market through 2025 and gradually increase its share in the compact and mid-size vehicle market segments in the future. Shanghai Hydrogen Propulsion Technology Co., Ltd. (SHPT) presented the development trends of the fuel cell industry and the company’s strategies in the fuel cell sector.

  In recent years, the number of NEVs sold in China has increased rapidly. According to data from the China Association of Automobile Manufacturers (CAAM), in the period January to November 2022, NEV sales grew 100.6% year-over-year (y/y) to 6,067,000 units, reaching a market share of 25%. Of this total, EVs (electric vehicles) grew 89.3% y/y to 4,734,000 units, PHVs (plug-in hybrids) increased 154.6% y/y to 1,330,000 units, and FCVs (fuel cell vehicles) grew 150.9% y/y to 3,000 units.

  China's smart NEV industry faces many challenges. Huarong ZHU, Chairman of Changan Auto, said at the Forum that China's auto industry is facing the  challenges of "chip shortages" and "soaring battery prices”. The shortage of chips has driven up their prices, increasing procurement costs for automakers and preventing them from launching new products as planned. He said the price of batteries continues to rise, exceeding 40% of vehicle costs, causing major fluctuations in business operations.

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SAIC: Investing CNY 300 billion in smart EVs, transforming into a user-oriented high-tech company (Jan. 2022)
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Chery: Strategic alliances with high-tech companies, exporting 500,000 units by 2025 (Aug. 2021)