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Zhu Huarong, chairman of Changan Automobile: Chinese automobiles have begun to have the basic conditions for stopping the sale of fuel vehicles.

2024-09-17 Update From: AutoBeta autobeta NAV: AutoBeta > News >

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AutoBeta(AutoBeta.net)08/27 Report--

"China's automobile industry has initially met the basic conditions for stopping the sale of fuel vehicles, which can be put on the research agenda. It is suggested that the relevant state ministries and industries should clearly study the time limit of traditional fuel vehicles and guide enterprises and the whole society to make an orderly transition to new energy. " Zhu Huarong, chairman of Changan Automobile, said at the 2022 World New Energy Automobile Congress on August 27th.

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On April 3, BYD announced that it would stop the production of fuel vehicles from March 2022 and focus on pure electric and plug-in hybrid vehicles in the future, becoming the first traditional car company in the world to stop fuel vehicle production; on the evening of August 22nd, the Great Wall Harvard brand officially announced that it would enter a new energy transformation and launched a new brand LOGO. Mu Feng, president of Great Wall Motor, said that this is the most determined step in the transformation of Great Wall Motor into new energy vehicles, marking the full implementation of Great Wall Automobile's new energy strategy, which is expected to account for 80% of Great Wall automobile new energy sales by 2025. The Harvard brand will officially stop selling fuel vehicles by 2030.

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Changan Automobile is determined to completely stop the sale of fuel vehicles in 2025. As early as October 2017, Changan Automobile announced the "Shangri-La Plan", which is aimed at the new energy vehicle market. According to the plan, Changan Automobile will invest more than 100 billion yuan in new energy in the next eight years, and will completely stop the sale of traditional fuel vehicles by 2025.

According to statistics, the cumulative global sales of new energy vehicles exceeded 20 million, of which in the first half of this year, global sales of new energy vehicles exceeded 4.22 million, an increase of 66.38 percent over the same period last year. Of these, 2.6 million new energy vehicles were sold in China, accounting for 61.6% of the global sales, with a market penetration rate of over 21.6%. Premier Li Keqiang said that China is a large country in automobile production and consumption, and the new energy vehicle industry has developed rapidly in recent years. Its production, sales and ownership are among the highest in the world, and it has entered a period of comprehensive market-oriented development.

With the expansion of the new energy vehicle market, more and more car companies around the world have decided to stop the production of fuel vehicles. From the perspective of automobile companies concerned with statistics in the automobile industry, most of the time for domestic car companies to stop selling fuel vehicles is set in 2025, while overseas car companies are mostly after 2030. Although the major car companies have different time to stop selling fuel vehicles, new energy is bound to be the future development direction of the automobile industry.

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At the 2022 Guangdong-Hong Kong-Macao Auto Show, Yu Chengdong, Huawei's managing director, terminal BG CEO and smart car solution BU CEO, said: "the era of pure fuel cars will end quickly, and now we still buy fuel cars, just like buying function phones in the smartphone era." Earlier, Li Bin, chairman of Xilai Automobile, also said: "I don't understand at all. Why do people still buy petrol cars now?" This is how nostalgic it is to buy an oil car. apart from smelling gasoline, what else is there to do with it? " At this conference, Zhu Huarong stressed: "it is not to say that all fuel vehicles have to be stopped, PHEV and REEV are still going on, and the suspension of the sale of pure fuel vehicles can be studied." At the same time, with regard to the fuel vehicle relief policy, Zhu Huarong said: "in the short term, I think there is a problem that the state ministries and commissions should pay attention to, because we are implementing the policy of halving the purchase tax on fuel vehicles. I suggest that we should ensure a smooth transition of the policy. We should do some research to make it a smooth transition. Specifically, in the short term, if the fuel vehicle relief policy ends at the end of this year, the sales volume of the automobile industry in the first quarter of next year. I think the high probability event is a sharp decline, 30% or even 40% decline. It is disadvantageous to the stability of the economy as a whole, so I suggest that the existing purchase tax on fuel vehicles be extended to the first quarter of next year, and then halved in the second and third quarters, that is to say, the implementation of 25%. Will the purchase tax be resumed by the fourth quarter of next year? This is conducive to the steady development of our economy. "

On March 26 this year, Zhu Huarong said that with the acceleration of new energy vehicles, the competition in China's fuel vehicle market will be more fierce. There are 85 brands in the traditional fuel vehicle market in 2021, of which 34 brands sell less than 1,000 brands per month, and 9 brands die out. Zhu Huarong believes that in the next 3-5 years, 80% of Chinese fuel car brands will "close down and merge" (that is, close down, stop production, merge and transform). To put it simply, in the next 3-5 years, only a small number of car companies will be able to continue to develop in the Chinese market as fuel vehicles, while others will either close down, merge or transform. In this context, Changan Automobile has made rapid efforts in the field of new energy with a clear layout.

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On April 13, Changan Automobile officially released the Changan Deep Blue New Energy vehicle brand, focusing on the middle and high-end market. On April 23, Changan Automobile officially announced the LOGO of its new brand Changan Deep Blue, and confirmed that the new model "C385" was named after "Changan Deep Blue SL03". On July 25, the first model, Changan SL03, was launched. The new car is based on the EPA1 platform. A total of four models are launched at a price of 16.89-699900 yuan. They are available in three versions: pure electric version, extended range version and hydrogen electric version, targeting medium-sized cars.

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Prior to the layout of the Deep Blue brand, Changan Automobile has partnered with Huawei and Ningde Times to launch the high-end brand Avita. The first model, Avita 11, was launched on August 8, positioning as a medium-sized pure electric SUV, with a total of three models with a price range of 34.99-409900 yuan. Tan Benhong, chairman and CEO of Avita Technology, said that orders for the car have exceeded 20, 000, mainly focused on models priced at 369900 yuan and 409900 yuan, and delivery is scheduled to begin in December.

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Earlier, Changan Automobile launched CS55 E-Rock, Mercedes-Benz E-Star, CS75 PHEV and other new energy models after the launch of the Shangri-La plan. Changan New Energy officially announced on June 30 that the delivery cycle of the model is long due to the shortage of upstream raw materials and capacity restrictions on vehicles and spare parts, so orders for Mercedes-Benz E-Star models will be suspended at 00:00 on July 1, 2022. Mercedes-Benz E-Star as the best-selling new energy model in Changan new energy brand, the suspension of orders is bound to have a certain impact on Changan automobile sales. But in fact, the deeper reason for the suspension of orders in Changan Mercedes-Benz E-Star is to make way for other models, that is, to move closer to Changan's new LUMIN brand electric model "waxy corn". The first model of the Changan LUMIN brand was officially launched on June 10. The new car is based on the new EPA0 pure electric platform and is positioned as a pure electric minicar with a price range of 4.89-63900 yuan.

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At present, Changan Automobile gradually has a complete product matrix in the field of new energy vehicles. Changan Automobile will cover three low, middle and high-end markets and has been subdivided into its major brands, of which the Avita brand focuses on the high-end market, the Deep Blue brand focuses on the middle and high-end market, and the Changan LUMIN brand focuses on the low-end market. On the first day of the Chengdu auto show held yesterday, Changan Automobile made its debut with Changan Deep Blue SL03, Lumin, UNI-K iDD, UNI-V iDD and other new energy products, and made its debut at the PLUS family's blockbuster new car, the Ruicheng PLUS.

According to the plan, by 2025, the total sales of Changan will reach 4 million, of which Changan brand will sell 3 million vehicles, and new energy sales will reach 1.05 million, accounting for 35%. In 2030, Changan automobile sales will reach 5.5 million, of which Changan brand 4.5 million, new energy sales will reach 2.7 million, accounting for 60%, and overseas sales account for 30%.

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As for whether the goal can be achieved, it is still impossible to judge, but with the layout of more new products of Changan Automobile and the increase in the proportion of new energy vehicle sales, it is not impossible to achieve the goal.

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