Exclusive interview with Jiangqi Xiang Xingchu: Overseas new energy sales of domestic brands will account for more than 50% in 2030
2024-08-26
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Recently, Richard Yu, Huawei's executive director, chairman of the Device BG, and chairman of the Intelligent Automotive Solutions BU, publicly stated that the fourth generation of Hongmeng Intelligent Driving (cooperation between Huawei and JAC) will be named MAEXTRO. Xiang Xingchu, secretary of the Party Committee, chairman, and general manager of JAC Group, once revealed that the first product of MAEXTRO has entered the vehicle verification stage and is scheduled to roll off the assembly line at the end of the year and be launched in the first half of next year.
Regarding the cooperation with Huawei, Xiang Xingchu said in an exclusive interview with Beijing News Shell Financial reporter a few days ago that the cooperation between the two parties will give JAC a new thinking and perspective, and promote the company's products to move towards the mid-to-high-end.
Collaboration with Huawei helps achieve strategic transformation
Shell Finance:Why did they choose to cooperate with Huawei? What impact will the cooperation between the two parties have on JAC? Will it dilute the brand of JAC?
Xiang Xingchu:The need for the transformation and development of the automobile industry. At present, the automobile industry is in a period of great change. Electrification, intelligence, networking, and ecology have become the direction of the transformation and development of the automobile industry. Multi-technological innovation and transformation are in full swing, and multi-industry integration and development have become a trend. The automobile industry is accelerating its development towards smart new energy vehicles, and the industry margin is accelerating its outward expansion, covering software, hardware, communications, system integration and other fields. Open cooperation and cross-border integration are the only way for the development of the automobile industry.
In this cooperation between JAC and Huawei, both parties will be deeply involved in product research and development and jointly participate in supply chain development, which will further bring stronger support to JAC's development in technology, products, quality, brand, management and other aspects.
It can be said that this cooperation is very important for the overall layout of JAC New Energy's transformation. Huawei has strong R&D capabilities. In terms of development process and product definition, the cooperation between the two parties will give JAC a new way of thinking and perspective, and develop upper-level application software based on this platform product, bringing new concepts and cooperation results to more business segments, fully activating and enriching the company's R&D resources, promoting the company's own products to move towards the mid-to-high-end, optimizing and upgrading the company's intelligent new energy vehicle supply chain system, and enhancing the company's ability to benefit in the automotive ecosystem. It will inject new impetus into the company's long-term sustainable development and help JAC Motors achieve strategic transformation.
Shell Finance:How does JAC Motors further develop its overseas markets?
Xiang Xingchu:Next, JAC Motors will actively seize the current opportunities for the global development of Chinese brands, adhere to the development strategy of "commercial and passenger vehicles, oil and electricity"; persist in shaping a user-oriented corporate image and promote regional integration; upgrade the export model and promote deep localization in strategic markets; promote the self-operated model, develop the general distribution model in some strategic markets, directly face end users through self-built channels, and control the entire chain marketing process; explore industrial collaboration overseas and actively develop overseas with parts, finance and other companies.
Shell Finance:How do you view the current obstacles faced by Chinese automobile companies in expanding overseas? How can Chinese automobile companies develop sustainable overseas operations?
Xiang Xingchu:Automobile exports have become an important engine driving the growth of automobile production and sales. Under the dual catalysis of global climate issues and the world energy crisis, the overseas market's demand for new energy vehicles continues to expand, and China's new energy vehicle exports will continue to grow in the future. It is predicted that by 2030, new energy vehicles will account for more than 50% of China's overseas passenger car sales. However, China's automobile exports will also face many risks, including the macro environment, trade protection, product compliance, market competition, etc. In order to protect their own automobile industry, some countries have implemented exclusionary policies or trade barriers on Chinese automobiles and implemented strict supervision.
Product competition has been upgraded from competition among individual enterprises to competition among industrial chains
Shell Finance:How do you view the current development and transformation of intelligent connected vehicles? How does JAC promote the transformation to intelligent new energy vehicles?
Xiang Xingchu:In recent years, China's intelligent networked new energy vehicles have been developing strongly. Now, with the rapid popularization of new energy vehicles in China, automakers are accelerating towards a new height of intelligence. As the competition in new energy vehicles enters the "second half", intelligence will become the "winner" of the game.
The automotive industry is in a transitional period of multi-technological innovation and multi-industry integration. Driven by the new concept of personalized market consumption, product competition has been upgraded from competition between individual companies to competition between industrial chains. In this technological and consumer environment, any automobile manufacturer will be unable to move forward without open cooperation.
JAC Motors expects its annual R&D input and investment expenditure to exceed 7 billion yuan, with R&D input accounting for about 9% of its operating income. In the next five years, JAC Motors' R&D input will exceed 20 billion yuan, and its fixed asset investment will exceed 15 billion yuan. It plans to launch more than 30 products to accelerate the development of smart new energy vehicles.
Shell Finance:How do you think JAC should deal with the current competition and changes in the domestic new energy vehicle market? How should it cultivate market awareness?
Xiang Xingchu:The current round of transformation in the automotive industry presents three obvious characteristics: the first is that it is in a period of multi-technological innovation and transformation. This innovation and transformation is not a simple iterative upgrade of the original technology, but a breakthrough from 0 to 1. The second is that the industry is in a multi-industry integration development (stage), and the boundaries of the automotive industry are gradually being broken. The third is that as an organization, enterprises cannot be borderless. The more the industry boundaries expand, the more they need to converge and focus.
In view of the current new round of fierce competition, JAC Motors will insist on strengthening and expanding commercial vehicles, developing passenger vehicles through open cooperation, and vigorously developing international business, striving to become a mainstream automobile group with millions of sales and hundreds of billions of revenue in the early stage of the 15th Five-Year Plan.
In the future of ecological cars, JAC Motors is an important participant and contributor, and also an enterprise with unique differentiated competitiveness, forming its own unique competitive advantage in the new division of labor. To this end, JAC Motors will also actively adapt to the changes and participate in the future changes.
Wang Linlin, financial reporter of Beijing News Shell
Editor: Wang Jinyu
Proofread by Lucy
