FAW: NEV Sales to Reach 1.45 Million Units in 2025
Selling 500,000 Hongqi brand NEVs and accelerating the launch of EVs through VW and Toyota JVs
2023/09/13
- Summary
- Hongqi: Launching three major sub-brands and three major platforms; promoting electrification of all models
- Bestune: New product logo announced, sales target of 200,000 units in 2023
- FAW Jiefang: Investing CNY 30 billion to shift to NEV models and enhance connected commercial vehicles
- Foreign-capital joint ventures: FAW-VW and FAW-Toyota to renovate plants and accelerate introduction of NEVs
- Business overview: Foreign brands account for 80% of sales volume, Hongqi brand and NEVs are growing rapidly
- FAW Group's sales volume in China (factory shipments)
- GlobalData Sales Forecast: FAW Group’s light vehicle sales in 2026 will be 484k units
Summary
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| Hongqi media launch at Auto Shanghai 2023 (Source: FAW) |
According to MarkLines’s data, the sales volume of China FAW Group Co., Ltd. (FAW Group) in 2022 was down 8.0% year-over-year (y/y) to 3,215,000 units, making it the second largest auto group in China. Of this volume, 566,000 units were own-brand vehicles and 2,649,000 were foreign joint venture (JV) brands. Commercial vehicles numbered 182,000 units, while the number of passenger cars was 3,033,000 units and New Energy passenger cars 69,000 units. In 2023, the company aims to sell 4 million vehicles including 384,000 New Energy Vehicles (NEVs: BEVs (battery EVs), PHEVs (plug-in hybrids), and FCEVs (fuel cell vehicles)). In 2025, FAW Group is aiming for sales of 1.45 million NEVs and a proportion of own-brand vehicle sales of more than 50%.
Regarding its own-brands, Hongqi launched three sub-brands at the Auto Shanghai 2023 motor show: "Hongqi Golden Sunflower”, "Hongqi New Energy," and "Hongqi Energy-saving Vehicles," while promoting the electrification of all its vehicles. The company aims to sell over 500,000 units by 2025. Bestune will renew its brand logo and fully promote the shift to NEVs in 2023, with a sales target of 200,000 units. Its first mini BEV model premiered at the Auto Shanghai 2023 motor show. The Jiefang brand will develop three technology routes: BEVs/battery swappable BEVs, PHVs, and FCVs. It will invest over CNY 30 billion in the 14th Five-Year Plan Period (2021-2025) and build NEV and core component bases. It will also deepen the intelligent connectivity of commercial vehicles.
As for FAW Group’s joint ventures with overseas-based automakers, FAW-VW has released NEV models such as the ID.4 CROZZ, ID.6 CROZZ, and Audi e-tron based on the MEB electric platform. The Tianjin and Foshan plants are currently being upgraded to produce NEV models and their successors. Production is scheduled to begin at the Audi FAW Changchun plant at the end of 2024. FAW-Toyota has released its first BEV SUV, the bZ4X, and its first BEV sedan, the bZ3. The Tianjin NEV plant with an annual production capacity of 200,000 units has started production. There are plans to launch an SUV equipped with FAW-Toyota's latest hybrid system at the Chengdu plant, which is being upgraded.
Related Reports:
China Market H1 2023: New Vehicle Sales at 13.24 Million, NEV Sales Up 44.1% to 3.747 Million (Aug. 2023)
2023 China Auto Forum: NEV Development Activities and Strategies (Aug. 2023)
Chinese Market Q2 2023: Major State-owned and Non-Chinese OEMs Announce NEV Strategies (Aug. 2023)
Shanghai International Carbon Neutrality Expo 2023: Low Carbon Transportation Forum (Jul. 2023)
Auto Shanghai 2023: FAW, Dongfeng, BAIC (Jun. 2023)
Chinese Market Q1 2023: GAC, Chery and Geely Announce 2023 Product Plans (Apr. 2023)
2022 Chinese Market: New Vehicle Sales Up 2.2% to 26,864,000 units, Major Increases by BYD and Tesla (Feb. 2023)
FAW: Aiming for 6.5 Million Units Sales and 20% NEV Ratio By 2025 March (Mar. 2022)
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