Affected by multiple factors such as chip shortages, rising raw materials and the spread of the epidemic in many places, the pressure on China's auto industry and China's auto market will be great in 2021.
According to the latest statistics of the China Association of Automobile Manufacturers, the production and sales of domestic automobiles will achieve positive growth of more than 3% in 2021, reversing the unfavorable situation of negative growth for three consecutive years from 2018 to 2020. However, it should also be noted that last year's sales volume was mainly brought about by the rapid growth of new energy vehicles exceeding expectations. Specific to each automobile company, it is not so optimistic.
In 2021, faw, Dongfeng and SAIC motor, the three major automobile groups are all negative growth. Of the top 10 joint ventures in terms of domestic sales, only GAC Toyota, FAW Toyota and SAIC-GM-Wuling achieved positive growth, while the other seven were all negative growth.
Among the three joint ventures that achieved positive growth, GAC Toyota increased by 11% year-on-year, FAW Toyota increased by 8% year-on-year, and SAIC-GM-Wuling increased by 3.76% year-on-year. GAC Toyota is the only mainstream joint venture to achieve double-digit high-quality growth in 2021, which can be described as thriving.
The reason why GAC Toyota has been able to thrive in a severe market environment. There are mainly the following three reasons: First, vigorously practice TNGA's new architecture to build a good car, and the product force continues to improve. The second is to vigorously promote electrification, and the proportion of dual-engine models continues to increase, becoming a new growth point for the company. The third is to adhere to reform and innovation, vigorously promote the digitization of management and services, and use digital means to accelerate marketing innovation.
For four consecutive years, it has achieved rapid development in adversity
Among the domestic joint venture vehicle companies, GAC Toyota has always been known for its stability. Since its establishment more than ten years ago, no matter how the market situation changes, GAC Toyota has always adhered to steady development. Except for one year of negative growth due to external special factors, the rest of the years maintained moderate growth.
Since 2018, relying on the strong drive of TNGA and dual engine hybrid products, based on the new value of intelligence, driving fun and safety, GAC Toyota's products have accelerated their upgrading and sharply improved their market competitiveness. From 2018 to 2020, the domestic auto market has fallen three times in a row, but GAC Toyota has bucked the trend and achieved double-digit growth for three consecutive years, stepping onto a 100,000 step every year, from more than 500,000 to more than 800,000 vehicles, walking in the forefront of domestic OEMs.
In 2018, domestic automobile production and sales showed negative growth for the first time in 28 years. In the face of the downturn in the car market, GAC Toyota worked hard to achieve high-quality, high-end and high growth, with annual terminal sales reaching more than 580,000 vehicles, an increase of 32% year-on-year, becoming the enterprise with the highest growth rate among the mainstream domestic joint venture car companies that year, and the first growth rate among the mainstream domestic vehicle enterprises. In 2019, GAC Toyota achieved terminal sales of 665,600 units, an increase of 14.7% year-on-year. 2020 was the worst year of the COVID-19 pandemic, a year in which GAC Toyota overcame many difficulties and sold 760,000 vehicles in the whole year, an increase of 14.2% year-on-year.
In 2021, under the severe domestic and international situation, GAC Toyota once again delivered a satisfactory report card without living up to expectations. Full-year auto sales reached 840,000 units, up 11% year-on-year and achieving double-digit growth for four consecutive years.
TNGA has helped GAC Toyota's product strength jump significantly
The car under the TNGA architecture, from the beginning of its birth, has an unprecedented product advantage in terms of appearance, driving fun, intelligence and safety. This new architecture comprehensively improves the basic performance of the core components of the car, makes the whole vehicle look better, better open, and safer, and allows consumers to spend the same money to buy a better car. Over the past few years, sales of TNGA architecture models in China have been rising.
From 2018 to 2020, the proportion of TNGA architecture models in GAC Toyota's sales increased from 30% to 79%, greatly improving product competitiveness.
In terms of specific model performance, Camry is GAC Toyota's flagship sedan model and an evergreen tree in the domestic mid-to-high-end car market. In 2021, Camry's sales exceeded 200,000 units for the first time, reaching 217,700 units, an increase of 17% year-on-year, and won the domestic mid-to-high-end sedan market sales champion.
Highlander is an evergreen tree in the domestic luxury big seven-seat SUV market. In 2021, Highlander sold 107,700 units, up 13% year-on-year and a record annual sales volume. Since its launch in June 2021, the new 4th-generation Highlander equipped with dual-engine hybrid systems has ordered 57,988 units. In the fourth quarter of last year, the fourth-generation Highlander sold more than 10,000 vehicles in a single month for three consecutive months, and its development was full of momentum.
In 2021, GAC Toyota has launched 10 new models, realizing the strong expansion of the TNGA family and completing full coverage in the mainstream segments of cars, SUVs and MPVs. At the same time, it has formed an all-power layout including gasoline, HEV, PHEV and EV, which has brought more diversified and higher quality product choices to the automotive market and consumers.
Among GAC Toyota's 840,000 sales in 2021, TNGA model sales exceeded 665,000 units, accounting for 79% of the total model, an increase of 8 percentage points over the previous year. There were 182,000 dual-engine hybrid models that did not require external plug-in and had excellent energy saving and emission reduction effects, an increase of 98% year-on-year and 22% of the total sales of the whole year. Equivalent to every 5 cars, there is a dual engine hybrid. In 2021, GAC Toyota's dual-engine hybrid models will rank among the best among mainstream joint venture car companies in terms of sales volume and sales ratio.
Accelerate electrification and intelligence across the board to embrace the digital transformation of enterprises
2021 is the beginning of the national "14th Five-Year Plan", and it is also the beginning of the construction of a new development pattern of "double circulation" and the implementation of the goal of "carbon peaking and carbon neutrality".
In the past year, GAC Toyota has taken the dual-engine hybrid as the core and accelerated the electrification strategy in all directions. Through the full popularization of dual-engine hybrid, GAC Toyota has become the car company with the largest number of hybrid models, the widest market segment coverage and the best sales volume in the mainstream market among Chinese car companies, and is a veritable leader in China's hybrid market. It is estimated that by 2025, GAC Toyota hybrid models will account for more than 50% of the total, with sales exceeding 2.3 million units; in 2021, the proportion of electrified models with significant emission reduction effects will increase exponentially. At last year's Guangzhou Auto Show, the GAC Toyota bZ4X PROTOTYPE, which debuted, was the focus on the stage. According to reports, by 2025, GAC Toyota's electrified model sales will account for nearly 60%, and it will be fully electrified in 2035.
In the past year, GAC Toyota has actively laid out the intelligent network of automobiles to create an industry-leading smart travel experience. At present, most of GAC Toyota's models on sale are equipped with Toyota's vehicle networking technology. In the future, all GAC Toyota models will support OTA functions and be 100% equipped with Toyota's latest vehicle networking technology.
In the past year, while promoting product intelligence, GAC Toyota has also vigorously promoted the digitization of management and services. With the customer as the center, it has formulated five major digital goals of marketing precision, production lean, R&D agility, intelligent management and cross-field collaboration, comprehensively empowering high-quality development, accelerating the digital construction of enterprises, and accelerating marketing innovation with digital means.
This series of measures by GAC Toyota is in line with the general trend of China's economic development, the general trend of industry and industrial development, and the trend of technological development. This is also an important factor for GAC Toyota to achieve excellent results in 2021 in the face of pressure and challenges.
Towards the Millions Club to promote three major strategies
Annual production and sales across the million mark, into the million car enterprise club, is the dream of every oem. Joining the Million Vehicles Club means that automotive enterprises have million-level R&D and design capabilities, manufacturing capabilities, product marketing capabilities and operation and management capabilities, and enter the first camp of mainstream automotive companies in the automotive industry.
2022 is the 18-year-old coming-of-age ceremony of GAC Toyota, and it is also a key year for GAC Toyota to impact annual production and sales of 1 million vehicles and move towards the head camp of joint venture car companies.
With the fourth-generation Highlander, high-end flagship MPV XENA, a new compact SUV Fenglanda, a new luxury medium-sized SUV Weisa and a number of new models on the market, GAC Toyota's product genealogy is more complete, and the market competitiveness is further improved.
In 2022, GAC Toyota fully has the strength to break through the million mark. If nothing else, stepping into the Million Club in 2022 should be fine.
In order to promote the construction of a more solid million system and achieve a qualitative change from "brand evolution" to "brand upgrading", facing 2025, GAC Toyota will start from this year to promote the three strategic actions of "comprehensive high-end", "all-round electrification" and "all-field technology", actively embrace users, consolidate system capabilities, promote brand upgrading, and go all out to mass-produce happiness for users.
First, launch a comprehensive high-end strategy. With more competitive products and higher value services, it brings users a sense of gain that exceeds expectations.
As the three flagship models of GAC Toyota, Camry and Highlander have firmly established a benchmark position in the market segment, and Xena has entered the price range of 400,000 yuan luxury brands. In the future, the sales of the three flagships will account for more than 40%, and the product structure will further break through. On the other hand, the tower base is compacted, so that the whole series of small and medium-sized cars starts at the high end and the entry is the standard, bringing users the surprise of surpassing the same level. Secondly, we will continue to deepen the high-quality reputation and continuously improve the "ingenuity and quality manufacturing". Continue to create a high-grade experience, from "quality moves the world" to "taste leads the trend", to promote the advancement of car life.
Second, accelerate the all-round electrification strategy. With an industry-leading all-path layout, it comprehensively contributes to carbon neutrality.
GAC Toyota will give full play to its advantages in scale, technology and locality to make greater contributions to reducing carbon dioxide emissions. The first is to fully popularize hybridization and greatly increase the proportion of hybridization. By 2025, the sales volume of hybrid models will account for more than 50%, effectively achieving energy conservation and emission reduction. The second is to fully meet the wave of pure electricity. In 2022, the e-TNGA architecture pure electric model launch offensive will be launched, and five pure electric models will be introduced by 2025. The third is to comprehensively deepen the layout of the full engine. Hybrid, plug-in hybrid, pure electricity go hand in hand, providing more diversified, more secure electrification products. By 2025, the sales volume of electrified models will account for nearly 60%, and by 2035, it will reach 100%, accelerating the promotion of all-round electrification.
Third, we should exert efforts to develop a strategy of science and technology in all fields. Promote innovation based on user needs, and actively embrace new technologies and new changes.
In order to cope with the rapid development of intelligent vehicles, on the basis of safety and ease of use, GAC Toyota will closely follow the changes in the needs of young users in China, rely on Toyota's proprietary development system in China, gather the best partners and suppliers in China, and continuously launch the latest products that meet customer needs and are competitive, and continue to improve the joy index of travel life. In addition to the product side, GAC Toyota will also accelerate the digital construction of enterprises, promote 57 projects in 5 major areas of marketing precision, production lean, R&D agility, intelligent management, and cross-field collaboration, and realize the comprehensive digitization of the company's operations and sustained high-quality development during the "14th Five-Year Plan" period. (End)
This article was published simultaneously on China Automotive Trends Network