The Most Luxurious Automobiles in the History of BAIC Group on Display at Auto China
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The Most Luxurious Automobiles in the History of BAIC Group on Display at Auto China
For both auto enterprises and enthusiasts, the International Automotive Exhibition is a colorful stage and window for observing and knowing the trend of the auto market. That is the reason all automotive groups try to seize such an opportunity to show their excellent brand image to the world. At Auto China 2014, a new comer in Fortune 500 and a pillar auto enterprise in China——BAIC Group gives full play to its home advantage to show its overall strength to the world.
According to Xu Heyi, Chairman of BAIC Group, “Auto China will be a brand-new starting point for BAIC Group. BAIC Group will adhere to the direction of reform and innovation, carry out a service transformation in the manufacturing industry, and take a path of high-end development.”
Bursting with passion: 3 highlights of BAIC Group attract attention
In the morning of 20th, “Responsibility•Wisdom•Passion——BAIC Group Press Conference for Auto China 2014” was held at the booth in Hall E1 of the new China International Exhibition Centre in Beijing. BAIC Group will exhibit the most luxurious automobiles in its history at this venue. Three highlights show a “new BAIC Group” with rising brand value to the audiences.
The first highlight, BAIC Group takes over the show. The booth covering over 2,300 m2 gathers 25 complete vehicles of BAIC Group, including self-owned brand concept cars, debut cars, new products, mass production cars, new energy vehicles, etc., and chassis of new energy technology, double cut-up cars, core power system of parts, carbon fiber lightweight car body, types of negative Poisson ratio (non-inflated wheel) and other exhibits. What are on display include self-owned brands like BAIC Motor, Changhe Auto, BAIC BJEV, Foton, BAW and joint venture brands Beijing Hyundai, Beijing Benz and so on.
The second highlight, the new member of SENOVA from the North European SAAB-app. SENOVA app, known as the “stylish man of North Europe”, is the second car independently innovated and manufactured after BAIC Group acquired SAAB in 2009, BAIC Group acquired the technology platform and intellectual property of SAAB at a price of $170 million. After three years of digestion and re-innovation, BAIC Group launched the first D70 based on the SAAB platform in May 2013. As an emerging brand, SENOVA has a great number of fans for perfectly inheriting the genes of SAAB. D70 created the outstanding sales performance of achieving sales volume of over 10,000 after launch in half a year. As a “brother” of D70, app not only shares the safe cage body, pendulum B pillar and other technologies, but also has a more enjoyable driving experience and price allocation.
The third highlight, new energy vehicles “dominate”. In 2013, the market share of new energy vehicles of BAIC Group reached 25.55%, the highest in China. At this auto show, new energy technologies of BAIC Group will make their debut. E150EV will “serve” itinerant exhibition and emergency transport. New energy vehicles of BAIC Group truly “dominate”. Xu Heyi argues that China has ushered in “the era of household electric vehicles”.
Agitation of wisdom: innovation is the driving force of BAIC Group
Auto industry is a fully competitive industry and one of the most globalized industries. It cannot survive on the basis of price competition.
According to Xu Heyi: “BAIC Group will focus on transformation of growth pattern and breakthrough in growth ability, drive experience development with innovation, and develop a capacity for independent innovation. Also it will, establish an independent innovation system and create the self-owned brand of BAIC Group as strategic basis of our development.”
As far as products are concerned, BAIC Group adheres to the big idea of open innovation and collaborative innovation to gradually achieve a high-end development of Chinese automobiles. In 2013, BAIC Group launched the first intermediate car of the self-owned brand-SENOVA C70 developed on the basis of the acquired SAAB technology platform, and it only took half a year to achieve a sales volume of over 10,000. In 2014, BAIC Group will continue to deepen reform and innovation, strengthening research & development of self-owned brand products.
Meanwhile, the importance of new energy vehicles has been further strategically upgraded in BAIC Group. Xu Heyi said the market of blade electric vehicles will face huge challenges. Technological leadership is essential for a competitive edge.
Since 2009, BAIC Group has comprehensively carried out business of new energy vehicles. Through cooperation with manufacturers with leading technologies at home and abroad, BAIC BJEV grasped the production capacity for three core components of electric vehicles: battery, motor and electric control system, and the whole industry chain. BAIC BJEV has become a new energy vehicle enterprise characterized by the widest application range, the fastest growth, the largest industrial scale, the most complete industry chain and the largest demonstration of operation through system and mechanism innovation in just a few years.
On March 18, 2014, BAIC BJEV Co., Ltd. was officially established in Beijing as an important part of industry transformation and an upgrading of BAIC Group, marking fast development of BAIC Group in new energy vehicles and revealing the resolution and bold breakthrough of Beijing in leading the development of new energy vehicle industry.
According to Xu Heyi, China will be the largest market of new energy vehicles in the world. China’s self-owned new energy vehicles should aim at No.1 in the world or higher level. BAIC Group will integrate excellent research & development resources worldwide, enhance research & development capability to a higher level, and develop powerful innovation abilities in key core technologies and system integration through open innovation, integration innovation and collaborative innovation to create a self-owned brand of international quality.
Responsibility-driven: transformation service, users first
After rapid development over the past few years, BAIC Group has developed significantly. Self-owned brand and joint venture brand have been in place. Products of joint venture brands become increasingly rich. Products of self-owned brand start to produce effect. Growth indicators take the lead in the Chinese automobile industry. BAIC Group is the fastest growing enterprise group in recent years.
However, this is not enough to further enhance brand value and core competitiveness of enterprises in the global market. Another standard for measuring future development ability of enterprises is service. “Whether or not we are able to meet needs of market and consumers, providing all-around and high-level services will be an important standard for measuring enterprises’ strength,” pointed out by Xu Heyi. Service transformation in the manufacturing industry is an important means for achieving restructuring, transforming and upgrading of the auto industry.
On average, service takes up 37% in transnational auto enterprises and over 50% in several top auto enterprises. Market competition of products gets fiercer. There is high individualized demand of consumers, and demand for car networking, finance and other businesses.
It is learned that BAIC Group has planned to conduct bold system and mechanism reform with mixed ownership economy and research & development system reform as breakthrough point, and with service trade and business of new energy vehicles as test field and special area of reform.
Meanwhile, Xu Heyi argues that transformation of auto industry should draw experience from the Internet industry to deeply integrate industrialization and information, “BAIC Group will shift from traditional automobile manufacturing enterprise to innovative and service-oriented manufacturer.”
Driven by a “transformational service”, BAIC Group follows the way of Internet transformation. In March 2014, BAIC BJEV reached a strategic cooperation agreement with JD to provide customized product service for the latter and strive to put 5,000 ending logistics cars into JD logistics system. This is a new pattern for transformation and upgrading and innovation in sales and service through the Internet of BAIC Group.
“Auto industry must learn more from the IT industry, and strengthen deep cooperation with it”, emphasized by Xu Heyi. “We must have sense of crisis and urgency, and keep learning and innovating to make a breakthrough.”
“The Chinese auto industry must realize four modernizations, i.e. large scale, high end, low carbon and service transformation to comprehensively enhance innovative abilities and core competitiveness of auto enterprises. Which is ultimately the path for sustainable development of the Chinese auto industry.” At the new historical starting point of joining Fortune 500 and achieving output and sales volume of 2 million vehicles, Xu Heyi expects to make transformation of BAIC Group a success story of restructuring and upgrading of the Chinese auto industry.