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"The development of BAIC Blue Valley (600733.SH) has bottomed out and is now in a stage of moving upward." Zhao Ji, secretary of the board of directors of BAIC Blue Valley, told a reporter from the Daily Economic News a few days ago.In July, the monthly sales of Polar Fox exceeded 8,000 vehicles.Xiangjie S9 also received widespread attention after its launch.

On August 6, the first luxury flagship sedan jointly developed by Huawei and BAIC, the Hongmeng Zhixing S9, was launched. According to Huawei Terminal on August 26,The cumulative sales of Xiangjie S9 exceeded 8,000 units in 20 days after its launch.

From the perspective of product matrix, BAIC Blue Valley is currently focusing on building three major brands: Arcfox, Enjoy and BEIJING. Reporters learned that in order to support the production of multiple models, BAIC New Energy has further divided the production factories of different models. According to Zhao Ji, the current Arcfox brand models are mainly produced at the BAIC Blue Valley Arcfox Magna factory in Zhenjiang, Jiangsu, while Enjoy is produced at the Miyun factory in Beijing.

It is reported that the Beijing Auto Blue Valley Arcfox Magna factory has introduced Magna's MAFACT manufacturing system, committed to building an industrial 4.0 smart factory to produce a new generation of intelligent new energy vehicles. The factory has four major processes: stamping, body, painting, and assembly, with an automation rate of 97%.

The BAIC New Energy Xiangjie Super Factory was built at an investment of 1.6 billion yuan, and its current production capacity is 120,000 vehicles.The factory adopts a mixed steel and aluminum production line, in which the automation rates of stamping, painting, spraying and riveting all reach 100%, and the welding automation rate reaches 99%.

Regarding the Xiangjie Super Factory, Zhao Ji recently told several media outlets that:"We are very confident in the Xiangjie brand. Currently, the reserved production capacity of BAIC New Energy Xiangjie Super Factory is 300,000 vehicles. Don't worry about the company's cooperation with Huawei. We (referring to Xiangjie) are now one of Huawei's 'Four Jies', and (our products) have occupied the mid-to-high-end market. The company will continue to All IN Huawei."

The competition in the new energy vehicle market is becoming increasingly fierce. According to the statistics of the China Passenger Car Association, domestic brands have an absolute dominant position in the sales of new energy vehicles.In June, the retail share of mainstream independent brands in the domestic new energy vehicle retail market reached 87.1%, the share of joint venture brands was 4.1%, and the share of Tesla was 6.9%.

When talking about market expectations for the second half of the year, Zhao Ji also told reporters frankly, "In the first half of 2024, China's new energy vehicle market is still in a period of vigorous development, but specifically, the internal differentiation and competition are also very fierce. The subsequent new energy vehicle market may enter a period of accelerated differentiation and elimination."

Judging from the performance of BAIC Blue Valley, it is also in urgent need of a shot in the arm. On the evening of August 26, BAIC Blue Valley released its 2024 semi-annual report, showing that in the first half of this year, BAIC Blue Valley achieved revenue of 3.741 billion yuan, a year-on-year decrease of 35.16%; net loss of 2.571 billion yuan, compared with a loss of 1.979 billion yuan in the same period last year.

BAIC BluePark also stated in its performance report:With the continued investment of many automakers in new energy vehicles and various brands of models coming to the market one after another, market competition in the new energy vehicle industry will be further escalated.

The reporter learned that in view of the market layout in the second half of the year, BAIC New Energy has launched the development of 22 projects including the Alpha T5 God Edition and the Koala five-seater version. BAIC BluePark also stated in its semi-annual report that in the face of fierce market competition, the company will continue to increase investment in product technology research and development, continuously launch innovative and competitive new energy vehicle products, and improve product performance and quality through technological innovation to meet consumers' diverse needs for new energy vehicles.

It is reported that,Previously, BAIC Group has announced that its R&D investment will exceed 100 billion yuan by 2030, with a focus on new energy and intelligent fields to effectively support the long-term development of Arcfox.

reporter|Miao Shiyu

edit|Wang Yuelong, Pei Jianru, and Gai Yuanyuan

Proofreading|He Xiaotao

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