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On January 8, Xu Liuping, chairman of FAW Group, announced his sales target for the next 10 years in the Great Hall of the people. Xu Liuping said at the conference that the new Red Flag brand sold more than 100000 vehicles in 2019, achieving its original target one year ahead of schedule. On the basis of the surge in sales in 2019, the New Red Flag will achieve the sales target of 200000 vehicles in 2020, 400000 vehicles in 2022, 600000 vehicles in 2025 and challenge the sales target of 1 million vehicles by 2030.

For the sales target put forward by Xu Liuping, apart from some surprise, there are more doubts about the sales target of Red Flag. At present, China's automobile market is extremely grim, coupled with the competition between joint venture brands and independent brands, FAW Red Flag's goal of doubling annual sales is still somewhat unrealistic.

Of course, the reason why the Red Flag brand sets unexpected annual sales targets comes more from brand confidence. Red Flag, which sold less than 5000 vehicles in 2017, was also questioned by the industry when it set an annual sales target of 100000 vehicles in 2020. In 2019, under the severe environment of the automobile market, FAW Red Flag achieved its annual sales target of 100000 vehicles, one year ahead of schedule.

Red Flag H5 alone has sold more than 50, 000 of FAW's 100000 Red Flag vehicles, and this year, Red Flag plans to launch a 1.5 T Red Flag H5, while Red Flag HS5, H7, HS7 and E-HS3 are also expected to achieve higher sales.

At the conference, FAW Hongqi also launched Red Flag H9, which was renamed Red Flag H7 to replace the old Red Flag H7 model and become Red Flag's new flagship model.

In terms of appearance, Red Flag H9 uses a new design language, designed by Taylor, the former Rolls-Royce design director, and the overall design of the new car reveals the atmosphere of luxury. In terms of configuration, the new car is equipped with the new Red Flag Smile 1.0 system and L2.5 autopilot system, which can realize 19 functions such as APA automatic parking and SACC advanced cruising.

In terms of performance, the Hongqi H9 carries a 3.0-liter V6 mechanically supercharged engine, which matches the DCT400 double clutch transmission. In the future, Hongqi H9 is also expected to add 2.0T engine, which is divided into high / low power, and the peak torque can reach 380 Nm. Red Flag H9 is scheduled to be officially listed in May this year, and the price has not yet been announced.

Similar to Red Flag flagship models such as Red Flag H9 and E115, the competition of peer products is fierce under high value, so the sales volume after listing will not be very high, but it plays an important role in the Red Flag camp, maintaining the sales of Red Flag H5, HS5 and other models and keeping the Red Flag brand at a higher brand height.

In addition, the red flag brand distribution network will be further expanded in 2020, which is also conducive to the growth of new red flag sales.

From a certain point of view, FAW Red Flag set such a goal is calm, although somewhat unexpected, but it is still possible to achieve.

According to the data released by FAW Group, sales reached 3.464 million vehicles in 2019, up 1.3% from the same period last year; the group achieved operating income of 620 billion yuan, up 4.4% from the same period last year; and net profit reached 44.05 billion yuan, up 2.2% from the same period last year.

Since Xu Liuping was transferred to FAW Group, he has carried out a series of reforms to FAW, paying special attention to the development of FAW Red Flag. FAW Group plans to invest 13 billion yuan in the next three years, of which Red Flag brand invests 2.4 billion yuan, and strives to achieve the goal of selling 400000 vehicles and making a profit of 6% within three years.

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