AutoBeta(AutoBeta.net)08/19 Report--

From January to July this year, cumulative sales in the domestic passenger car market totaled 11.079 million units, down 3.5 per cent from a year earlier, according to the Federation of passengers. Among them, the cumulative sales of new energy vehicles in the domestic market was 2.733 million, an increase of 21.5% over the same period last year, making it the only market with positive growth among several major market segments. In other words, new energy vehicles are in a state of strong growth. In this context, more and more car companies begin to lay out this field.

On August 18, according to FAW Jiefang official news, FAW Jiefang and Ningde Times jointly set up a joint venture company, Liberation Times New Energy Technology Co., Ltd. (referred to as "Liberation Times"), which is located in Zhengding, Hebei Province. According to the agreement between the two sides, the two sides will spend 500 million yuan to distribute the post-market operation of new energy, including the separation of cars and electricity, the provision of vehicle leasing and capacity acceptance, and the provision of used cars and battery recycling services.

In this regard, Zhou Jia, vice chairman of Ningde Times, revealed that the cooperation between the two sides will focus on resource transportation, municipal engineering, urban sanitation, logistics and distribution and other scenarios to carry out car-electricity separation services, vehicle leasing and capacity acceptance services, second-hand cars and battery recycling services. Hu Hanjie, chairman of FAW Jiefang, revealed that the liberation era will focus on the post-market operation of new energy.

In fact, as early as 2018, FAW Jiefang and Ningde era had cooperation in the development of heavy truck models, including supply cooperation in urban construction, slag, dump, public transportation and other fields; in January this year, Ningde era and FAW Jiefang signed a "five-year supply and demand linkage agreement" to strengthen close cooperation between the two sides in the supply side of power battery products. Hu Hanjie, chairman and party secretary of FAW Jiefang, said that the two sides jointly formed a joint venture this time. Hu Hanjie, chairman and party secretary of FAW Jiefang, said that it is expected to achieve a cumulative revenue of 1.5 billion yuan by 2025 and build a network of more than five city-level exchange power stations.

According to public data, FAW Liberation Automobile Co., Ltd. was established on January 18, 2003. it is a wholly owned subsidiary of FAW Liberation Group Co., Ltd., a subsidiary of China first Automobile Co., Ltd. the main layout is medium, heavy and light truck and bus manufacturing enterprises, with an annual production capacity of 343000 vehicles. On September 29 last year, FAW Jiefang announced the establishment of a new energy division and issued a strategy for liberating new energy, namely "Blue Road Action". FAW Jiefang Dong Secretary has said that FAW Jiefang has laid out five major vehicle product platforms for new energy products, namely, heavy, medium, light, micro and passenger, and three technical routes of pure electric, hybrid and fuel cells. at the same time, the layout will also be strengthened in the fields of research and development, production capacity and ecology.

Public data show that FAW Jiefang sold a total of about 440000 vehicles in 2021, of which 373400 medium and heavy trucks were sold, accounting for 23.7% of the total, ranking first in the industry. From January to July this year, FAW Jiefang's cumulative sales were only 111300 vehicles, down 69.02 per cent from the same period last year, making it the largest decline among domestic commercial vehicle companies, with sales of 11100 vehicles in July, down 44.65 per cent from the same period last year. As for the reasons for the decline, FAW Jiefang explanation is mainly affected by multiple factors, such as poor logistics caused by the epidemic, shrinking market demand in the industry, soaring oil prices and so on. Or affected by this, FAW Jiefang's net profit in the first half of this year is expected to be only 165 million yuan to 185 million yuan, down 94.34% and 94.95% from the same period last year.

As for Ningde era, as the world's leading new energy innovation and technology company, it mainly focuses on the research, development, production and sales of new energy vehicle power battery system and energy storage system. According to the July domestic power battery loading data released by the China Automotive Power Battery Industry Innovation Alliance, Ningde era firmly ranked first with 47.19%. As the leader of the global power battery industry, Ningde Times has fully entered the field of power exchange before this cooperation, and has also established joint ventures with FAW, SAIC, GAC GROUP and other car companies.

In May this year, Ningde Times confirmed that it would stop the global sale of fuel vehicles in 2035. Ni Jun, chief manufacturing officer of Ningde Times, said: "judging from the plans for new energy vehicles issued by major countries and governments in the world, by 2030, no more fuel vehicles will be sold on the market. Ni Jun said, "this trend has already taken place, and the penetration rate of new energy vehicles in the Chinese market reached 20% in the first quarter of this year."

After entering 2022, the market performance of FAW Jiefang is not ideal, and this is also the challenge that the entire commercial vehicle market is facing. The cooperation between FAW Liberation and Ningde era may mean that commercial vehicle enterprises are seeking to transform to new energy. Of course, it is not clear whether FAW can restore sales and profit growth in the shortest possible time by holding hands in the Ningde era, and it still needs to be tested by the market.

According to the previous plan, FAW Jiefang will achieve sales of 120000 new energy vehicles in 2025, accounting for 20% of the total sales, with revenue of 50 billion yuan; in 2030, sales of 320000 new energy vehicles account for 50% of the total sales, with income reaching 150 billion yuan; and total vehicle sales of 500000 vehicles in 2035, accounting for more than 70% of the total sales and income of more than 250 billion yuan. Hu Hanjie, assistant to the general manager of China FAW, secretary of the FAW Liberation Party Committee and chairman of the FAW Liberation Party Committee, said that in the future, the market share of new energy will be higher than that of traditional cars, and the proportion of new energy sales will be higher than that of the whole industry. we will make new energy the main growth pole for the development of FAW's liberation cause.

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