BAIC Zhang Xiyong: In 2025, BEIQI Foton's new energy commercial vehicle sales target will exceed 100,000 units

On March 25-27, 2022, the China Electric Vehicle 100 Forum (2022) was officially held. With the theme of "Meeting the New Stage of Market-oriented Development of New Energy Vehicles", the conference conducted in-depth discussions on many challenges and opportunities such as the development of the new energy automobile industry, double carbon targets, climate change, supply chain adjustment, in-depth application of information technology and intelligent technology, change of human travel mode, competition and cooperation among major countries, etc.

At the forum held on the morning of the 26th with the theme of "Automotive, Transportation, Energy Transformation and International Cooperation in the Process of Carbon Neutrality", Zhang Xiyong, General Manager of BEIJING Automotive Group Co., Ltd., delivered a speech, and the main views were as follows:

1. In the next five years, the new energy commercial vehicle market will grow by 2-3 times, and the conditions for the large-scale promotion of zero-carbon and low-carbon commercial vehicles are ripe;

2. In 2025, Beiqi Foton's new energy commercial vehicle sales target exceeds 100,000 units.

The following is a transcript of the speech:

Distinguished Minister Li Yizhong, Director Chen Qingtai, leaders, experts, colleagues, good morning!

It is a great pleasure to gather with you at the forum of the Electric Vehicle 100 association at this time of spring to discuss the latest progress and development space of the global automotive transportation energy transformation in the process of carbon neutrality. Just a week ago, on March 20, a number of meteorologists observed extreme heat in the Antarctic And Arctic, some of which exceeded the same period in previous years by 30 or 40 degrees Celsius, because in the past it was usually minus 40 degrees and 50 degrees, and now it is minus 10 degrees. There are contingencies to this, but it is undeniable that the global warming trend is intensifying. The mainland has made a positive contribution to climate change mitigation, proposing a clear timetable and road map for emission reductions. In 2020, the Party Central Committee and the State Council made major strategic decisions to comprehensively promote the implementation of the "double carbon" strategy, in which the three major systems of automobile, transportation and energy are interrelated and mutually constrained, which plays a vital role in the realization of our "3060" goal. Especially in the field of commercial vehicles, which currently accounts for 12% of the mainland's car ownership, but contributes 56% of the carbon emissions of road traffic, zero-carbon commercial vehicles play a vital traction role in the process of carbon-neutral automobile, transportation, and energy transformation.

First, zero-carbon commercial vehicles can effectively drive the carbon neutral transformation of the three major systems of automobiles, transportation and energy.

1. Technology is progressing day by day, and costs are decreasing year by year. The conditions for the large-scale promotion of zero-carbon low-carbon commercial vehicles are mature, from the perspective of pure electric technology, the technology has been rapidly improved, the system cycle life has risen to more than 10,000 times, and the energy density has been greatly improved. Electric commercial vehicles have been able to fully meet the urban passenger transport, logistics, terminal distribution operation scenarios. From the perspective of pure fuel cell technology, the system power is rapidly improved, the service life reaches more than 10,000 hours, and the cost is also decreasing rapidly, until the end of the "14th Five-Year Plan" Fuel cell engine cost is expected to drop to 1,500 yuan per kilowatt, which is comparable with high-horsepower diesel engines. It can be said that the key technologies and roadmaps of zero-carbon commercial vehicles at present have the technology and conditions for large-scale promotion.

2, scene-oriented, model innovation makes zero-carbon commercial vehicles become an important connection point of the three major systems, the production materials of commercial vehicles are very sensitive to the cost of the whole life cycle, which directly spawns a series of innovative models relying on scenarios, such as in the scene of ports, mines, and factories, the power exchange mode can effectively solve customer pain points, fixed lines, high-frequency use, short-distance transportation, making the cost of the whole product life cycle of the heavy truck more advantageous. It only takes about two years to be the same as that of fuel vehicles, and it can be said that in the model of power exchange and pure fuel commercial vehicle ecology, zero-carbon commercial vehicles integrate different systems such as vehicles, energy, and transportation into an organic system. Combined with renewable resources, energy storage and other applications, the low-carbon and clean energy and transportation systems are pulled by point and surface.

3. The large-scale volume of zero-carbon commercial vehicles will accelerate the carbon neutral transformation of the three major systems. From the industry data point of view, last year's new energy commercial vehicle market sales of 186,000 units, an increase of 54% year-on-year, penetration rate reached 3.9%, from the insurance figures, last year's new energy logistics vehicle market size reached 149,000 units, an increase of 120% year-on-year, and the next five years of new energy commercial vehicle market will achieve 2-3 times the scale growth, 2025 sales are expected to reach more than 500,000 vehicles, the market penetration rate will exceed 10%, the market size in 2030 is expected to exceed 1 million, Accounting for more than 25%. The large-scale volume of zero-carbon commercial vehicles will directly promote the low-carbon transportation structure, directly promote the rapid development of renewable electricity, green hydrogen and other clean energy, and related research predicts that the demand for green hydrogen in the transportation field will be close to 40 million tons in 2050.

Second, the progress and planning of the development of zero-carbon commercial vehicles of BAIC Group.

Beiqi Foton, as the core vehicle sector of BAIC Group, is also one of the earliest car companies in China to promote new energy commercial vehicles, taking pure fuel cell commercial vehicles as an example, Foton first proposed to replace high-horsepower diesel engines with pure fuel cells, which can achieve significant emission reductions. In 2003, we launched the research and development of pure fuel cell buses, in 2006 we won the announcement of the first pure fuel cell vehicle in China, and in 2008, we appeared at the Beijing Olympic Games, and as the only commercial vehicle brand serving in the 2022 Beijing Winter Olympic Games. With the advantage of zero emission of pure fuel cells, it has become a clear footnote to the Winter Olympics of science and technology and the Winter Olympics of zero carbon.

Facing the new requirements and new opportunities for the development of "double carbon", Beiqi Foton will focus on the following three aspects.

1. Scenario-oriented, focusing on product innovation. Up to now, Beiqi Foton has been in urban logistics, terminal distribution, ports, urban construction, mines, in-plant transportation and other heavy transportation, involving sanitation, airports and other professional areas to promote zero-carbon commercial vehicles, and by scene to achieve pure electric, hybrid, pure fuel cell full coverage, last year Foton new energy commercial vehicle sales of 7,000 vehicles, an increase of 145% year-on-year, the target market ranked second, the market share reached 12%. At the same time, Foton's next generation of new platform products characterized by platformization, modularization, integration and intelligence have also entered the key research and development and product launch stages, and will provide better product solutions for more transportation scenarios in the future. In 2025, Beiqi Foton's new energy commercial vehicle sales target exceed 100,000 units.

2. Take win-win as the principle and focus on ecological synergy. The large-scale and accelerated development of zero-carbon commercial vehicles is inseparable from the highly coordinated industrial chain and ecology, such as Futian's pure fuel commercial vehicles, in the field of "production, storage, transportation and transportation", through strategic coordination and capital cooperation, the first hydrogen refueling station in Beijing has been built in conjunction with PetroChina to ensure hydrogen supply and reduce the cost of hydrogen use. In the engine and parts link, the head enterprises of the industrial chain such as Yihuatong, Toyota, Kotec, qianhai Industry and so on are jointly developed and produced in key components and materials, and joint ventures are established with sinopec and other energy enterprises in the terminal application link to carry out large-scale demonstration operation and leasing of vehicles, solve the concerns of end customers with vehicles, and promote the rapid development of the market.

3. Take the scale as the goal and focus on demonstration applications. Based on the Beijing-Tianjin-Hebei region, Beiqi Foton has accelerated the promotion and application of the Winter Olympics as an opportunity, carried out large-scale demonstration operations of zero-carbon commercial vehicles such as pure fuel cell buses, electric logistics vehicles, and heavy-duty trucks for power exchange, and actively expanded potential markets and key areas such as the Yangtze River Delta, the Pearl River Delta, and Chengdu-Chongqing. Since last year, we have successively reached in-depth strategic cooperation with Tianjin, Tangshan, Shijiazhuang and other provinces and cities such as micro-pure fuel heavy trucks and heavy trucks for power exchange. At the same time, on the basis of zero-carbon commercial vehicles, we have accelerated intelligent upgrading and actively participated in the construction and operation of the Yizhuang high-level autonomous driving demonstration zone.

Leaders, experts, colleagues, zero-carbon low-carbon commercial vehicles have entered the fast lane of development, will play a key role in the carbon neutral transformation of automobiles, transportation, energy systems, here I also implore government departments to be able to top-level overall planning, high-level promotion of relevant enterprises and institutions in the industrial chain, take the lead in promoting the comprehensive new energy of 3.45 million commercial vehicles in Beijing-Tianjin-Hebei, then achieve carbon reduction of more than 100 million tons, for the national promotion of zero-carbon commercial vehicles tree model, set a benchmark. Of the 3.45 million commercial vehicles, Beijing-Tianjin-Hebei is mainly close to two million, Beijing is close to 700,000, and Tianjin is 400,000.

BAIC Group will actively participate in open cooperation in all aspects, and contribute more to the realization of China's "double carbon" goal and the transformation of global energy and transportation with the rapid development of its own new energy commercial vehicles.

Finally, I wish this forum a complete success, thank you.