On April 13, Changan Automobile held the 2022 Global Partner Conference. At the global partner conference, Zhu Huarong, chairman of Changan Automobile, said that the company will accelerate its transformation into an intelligent and low-carbon travel technology company and move towards a world-class brand.
In terms of scale, Changan Automobile plans to achieve total sales of 4 million vehicles by 2025, of which 3 million are independent brands and 1.05 million new energy vehicles are sold, accounting for 35%; in 2030, Changan Automobile's sales will reach 5.5 million, of which 4.5 million will be sold by independent brands, 2.7 million new energy vehicles will be sold, accounting for 60%, and overseas sales will account for 30%.
(Changan Automobile 2025 production and sales target / Source: Changan Automobile official)
In addition, Changan Automobile also plans to achieve carbon peaking in 2027 and carbon neutrality in 2045. It will also seek to reduce carbon emissions from the whole industry such as design, manufacturing, supply chain, renewable energy and material packaging, and strive to reduce carbon emissions by 30% from the supply chain compared with 2020 by 2030.
From seven dimensions to 2025
In order to achieve the above goals, Changan Automobile will carry out the next stage of work from seven aspects, including brand renewal, global product acceleration, core technology mastery, new ecological construction, digital transformation, international market development, and resource guarantee.
At the level of brand renewal, Changan Automobile will create a new digital pure electric brand "Changan Deep Blue" and strive to create a high-end intelligent electric vehicle brand "Avita". In addition, Changan Automobile will further optimize the brand strategy and positioning of Changan UNI, Changan Passenger Vehicle, Auchan and Kaicheng, and make a comprehensive transformation to electrification and electrification.
In terms of global product acceleration, Changan Automobile will launch a total of more than 30 products by the end of 2025: in the high-end intelligent electric vehicle market, Avita currently plans to have 4 complete vehicle products; in the mainstream passenger car market, it will launch 21 new products, including 5 Changan Navy brand; in the small car market, it will launch 4 new products including LUMIN; and in the commercial vehicle market, 6 new products, including 2 new platform pickups.
(Changan Automobile's new new energy products / Source: Changan Automobile official)
In terms of mastering the core technology, Changan Automobile will build a new generation of deeply integrated electric drive, complete the construction of a 450V/800V all-in-one electric drive platform, which can meet the needs of 400-1000km ultra-wide mileage and achieve a 5-minute battery life of 150 to 200 kilometers. Continuously strengthen the integrated design of energy consumption. Reduce the energy consumption of the whole vehicle and achieve a longer driving range; break through the integrated technology of the battery chassis, accelerate the research and development and industrialization of (semi-semi-) solid-state batteries; and accelerate the research and industrialization of hydrogen fuel technology.
In terms of building a new ecosystem, Changan Automobile will work with its partners to build a green ecosystem, including a green energy ecology from upstream raw materials to downstream battery cascade utilization, a green energy replenishment service ecology that integrates fast charging, power exchange, and light storage and charging, and a green supply chain ecology that reduces carbon emissions from bicycle manufacturing by 30% by 2025. In addition, Changan Automobile will also promote the scientific and technological ecology with the "core core map cloud net sky" as the core to promote the landing of the Beidou Tianshu.
In terms of digital transformation, Changan Automobile will launch more digital products and continue to provide intelligent experiences and digital services throughout the vehicle lifecycle. At the same time, the company will also enhance its digital marketing capabilities, build a unified marketing digital middle office, and create an asset-light, multi-format, widely reachable, and shared channel ecology. In addition, Changan Automobile will also build an intelligent manufacturing system from three main lines: agile delivery, collaborative manufacturing of supply chain, and intelligent operation of factories.
In terms of international market development, Changan Automobile will build 2-3 overseas manufacturing bases by the end of 2025 to complete the production capacity layout of the first phase of the global automobile market. At the same time, when the international business environment improves, the European headquarters and the North American headquarters will be established in the European and North American markets in due course.
In terms of resource guarantee, Changan Automobile plans to invest more than 80 billion yuan in key areas such as new energy, intelligence, scientific and technological innovation, and digital transformation by 2025 to accelerate the construction of core capabilities in the field of transformation. By 2025, the total number of R&D personnel in Changan will reach about 20,000 people, including more than 6,000 intelligent and software R&D personnel, more than 5,000 new energy R&D personnel, and about 1/4 of R&D personnel.
36 new cars hit the 2022 target
In FY2022, Changan Automobile aims to produce and sell 2.45 million vehicles, an increase of 6.5% year-on-year. Among them, the target production and sales of independent brands were 1.857 million units, an increase of 5.9% year-on-year, and the market share reached 11%.
In order to achieve the above goals, Changan Automobile will launch 36 new products in 2022. Among them, 19 self-owned brand models include 9 new products, 10 new products and 8 new energy products.
(Changan Automobile 2022 production and sales target / Source: Changan Automobile official)
In the first episode of 2022, Changan Automobile has launched new products such as UNI-V and the second-generation CS75PLUS, while UNI-K, UNI-T, and the second-generation CS55PLUS will also usher in a comprehensive restructuring and upgrade within the year. In addition, the multi-power combination of Auchan Z6, the e-scooter LUMIN based on the EPA0 platform, and the first electric coupe C385 based on the EPA1 platform will be launched in the second half of the year. The first product jointly created by Changan, Huawei and Ningde, Avita 11, will also be launched within the year.
On the supply side, Changan Automobile plans to continue to scramble resources to meet customer needs, and further enhance the cost competitiveness of the supply chain, aiming to achieve a 5% cost reduction target, and to comprehensively build a new customer-facing strategic partnership.
Focusing on the demand side, Changan Automobile hopes to completely reconstruct the service system, standards and capabilities, promote service creation and efficiency, and rely on existing channel resources to collaborate with digital pure electric brands and Avita to achieve the integration and overall sharing of the group's channel resources. In terms of promotion, Changan Automobile will give priority to the direct procurement of platform clues in the UNI sequence, saving more than 350,000 yuan per year in the operating costs of a single store; in terms of underwriters, it will pay compensation for overdue and delayed delivery vehicles on a daily basis.
In terms of dealer system, Changan Automobile plans to build a strategic dealer system to accelerate the landing of new marketing models. In the future, Changan Automobile will adopt a new business model of "unified middle office of the whole group, unified transformation of all channels, and unified direct management of all scenarios", and connect the data of the client, the main engine factory, the consultant end, and the car machine side, forming a collaborative ability of middle office, sharing and service.
Through the direct management of consultants, incentive direct communication, data direct drive, etc., Changan Automobile hopes to achieve service quality control and grasp of the whole journey of customers. LUMIN will be the first product of Changan Automobile to land a new marketing model. In the future, all products of Changan Automobile will be promoted in accordance with the new model.