Launched a joint venture counterattack FAW Toyota launched a 2 billion yuan "trade-in" replacement subsidy

Our reporters Yin Limei and Tong Haihua report from Beijing

The automotive industry ushered in a new round of policy "spring breeze".

Recently, the State Council issued the "Action Plan for Promoting Large-scale Equipment Renewal and Consumer Goods Trade-in" proposed to carry out the trade-in of durable consumer goods such as automobiles, home appliances and household appliances, promote the echelon consumption and renewal consumption of automobiles, organize and carry out national automobile trade-in promotional activities, and eliminate old cars that meet the mandatory scrapping standards in accordance with laws and regulations.

"Trade-in" will become a new engine to drive the demand of the automotive market. According to the forecast of the State Information Center, the trade-in demand of China's auto market will account for 44% of the total demand in 2024, and it is expected to increase to about 48% by 2025.

The reporter of "China Business Daily" noticed that in the context of the domestic auto market rolling up to a new height in 2024, in response to the call of the country and stimulating sales, there are currently car companies that have heard the "wind" and moved, including FAW Toyota, the representative of the joint venture car company.

Take the lead in the counterattack

The reporter learned from FAW Toyota that FAW Toyota launched a total of 2 billion yuan of "old for new" replacement subsidies. Specifically, from April 1 to 30, FAW Toyota's entire car series can enjoy multiple financial policies such as up to 8 years and 0 down payment, 36 periods of 0 interest rate, up to 16,000 yuan replacement subsidy, 498 yuan worth of return gift and 505 flexible financial plan. On the basis of the original car purchase discount, FAW Toyota has started a joint venture counterattack.

The world's martial arts, only fast is not broken. In the wave of electrification and intelligence, independent brands have taken away a lot of the glory that belonged to joint venture brands in the past, but in the face of fierce market competition, FAW Toyota, as a joint venture car company, is rapidly adjusting its strategy to adapt to the changes in the Chinese market and consumer demand at a faster speed. This is the logic behind FAW Toyota's choice to start the joint venture counterattack with huge subsidies.

At present, new energy vehicles have become the most powerful and attractive automotive products in China's auto market. According to data disclosed by the China Association of Automobile Manufacturers, the production and sales of new energy vehicles in China will reach 9.587 million and 9.495 million units in 2023, an increase of 35.8% and 37.9% year-on-year, respectively, and the market share will reach 31.6%.

This year, "new quality productivity" has been mentioned many times by the state, and it is an important engine to promote the transformation and upgrading of China's automotive industry to green, intelligent and high-end.

In the wave of electrification, FAW Toyota is also fully embracing the changes of the times, relying on the world's leading three hybrid technologies, building a diversified electric product matrix, and providing users with solutions to meet the needs of all-scenario travel.

"FAW Toyota's intelligent electric hybrid dual engine has 27 years of technical accumulation, relying on mature, stable and reliable technical characteristics, it has won the favor of more than 25 million users around the world. Now, the new fifth-generation intelligent electric hybrid dual-engine and three-electric system has been comprehensively upgraded, which integrates miniaturization, lightweight, and high-efficiency technologies, which can achieve faster acceleration response, quieter driving, and greatly improve fuel economy, and can provide users with a pleasant travel experience in all scenarios, all temperature ranges, and all speed ranges. FAW Toyota told reporters.

In hybrid vehicles, FAW Toyota has the absolute right to speak. It is reported that the fuel consumption of the Asian Dragon Shuangqing version equipped with the THSII. hybrid system is as low as 4.7L/100km. The Grevia model equipped with the THS II Toyota 2.5-liter dual-engine hybrid system not only has surging performance, but also brings a considerable level of fuel economy, with fuel consumption as low as 5.65L/100km. As a blockbuster model that undertakes FAW Toyota's embrace of the digital intelligence era, the new RAV4 Rongfang is equipped with three power forms: 2.0L gasoline power, 2.5L intelligent electric hybrid dual engine and 2.5L intelligent plug-in dual engine.

With the empowerment of the three hybrid technologies, FAW Toyota has not only become Toyota's only joint venture car company in China with a full layout of hybrid technology, but also has electrification products covering all categories such as sedans, SUVs, MPVs, and crossovers, making it one of the few joint venture car companies in the industry that can meet all the needs of users.

"This year is a crucial year to achieve the goals of the 14th Five-Year Plan, and under the guidance of the country's policy of advocating 'trade-in' of bulk consumer goods, China's automotive industry, which takes new productivity as the core of development, will unleash more potential. FAW Toyota said that the launch of the 2 billion yuan subsidy to "rejuvenate" the old new activities, while empowering users to enjoy a high-value travel life, but also took the lead in opening the "joint venture counterattack", which not only played a leading and exemplary role in the industry, but also will promote the FAW Toyota brand and the Chinese automotive industry to achieve high-quality development.

The R&D of high-end intelligent driving assistance technologies has been accelerated

With the rapid development of intelligence, "artificial intelligence +" has become the key action content of this year's "Government Work Report". In the automotive industry, intelligence has become a hard indicator for evaluating new energy vehicles. Focusing on intelligence, the competition between car companies is very fierce, and intelligent innovation has become a key element for car companies to compete in the market.

Joint venture car companies are also deeply aware of the importance of intelligence. In the field of intelligent cockpit, different from "stacking", FAW Toyota pays more attention to user experience, and its Toyota Space intelligent cockpit follows the design concept of "people-oriented", and is committed to fully considering the actual use scenarios and solving the pain points for users.

The reporter learned that Toyota Space intelligent cockpit does not need cumbersome operation processes, nor does it have redundant software, retains the functions commonly used by users, and supports custom settings, saving a lot of memory space, which can ensure that the car machine system is clear, smooth and not stuck. At the same time, the Toyota Connect intelligent interconnection function supports 365 days × 24-hour Internet of Vehicles service, users can not only grasp the vehicle status and make maintenance appointments through the mobile app, but also enjoy FAW Toyota's timely, professional and efficient services when needed.

In the field of intelligent driving, Toyota has always adhered to the ultimate goal of "zero casualties in traffic accidents", and has promoted the research and development of high-end intelligent driving assistance technologies by implementing comprehensive safety measures that integrate people, vehicles, and traffic environment.

This also makes FAW Toyota's T-Pilot intelligent driving assistance system have a more anthropomorphic driving experience. It is reported that thanks to Toyota's 20 billion kilometers of intelligent driving "zero accident" data experience, the recognition accuracy of the T-Pilot intelligent driving assistance system is higher, and it can drive on the road at an appropriate speed during daily commuting, and can also "keep an eye on" the dynamics of surrounding vehicles and pedestrians at all times, so that users can travel more safely and securely.

The reporter learned from FAW Toyota that at the upcoming 2024 Beijing Auto Show, FAW Toyota's new Prado, new Crown and Grevia and other high-end flagship products will be unveiled, and the new Toyota Space intelligent cockpit and T-Pilot intelligent driving assistance system will also be applied one after another.

With the support of the world's leading electrification and intelligent technology, FAW Toyota not only has stronger product competitiveness, but also continues to increase the proportion of electrified and high-end model sales. According to official data, in 2023, FAW Toyota's sales of electrified models will exceed 284,000 units, a year-on-year increase of 36.7%, and sales of high-end models will exceed 398,000 units, a year-on-year increase of 12.9%.

As the mainstay of China's auto market, FAW Toyota has successively launched many classic models in the Chinese market, such as Prado, Corolla, Crown, Prius, Corolla, etc. In 2023, FAW Toyota's Corolla, Corolla Ruifang, RAV4 Rongfang, Crown Lufang, and Grevia will all win the crown in their respective market segments.

Value retention is the strength of joint ventures. The reporter noted that the "2023 China Automobile Retention Rate Report" released by the China Automobile Dealers Association on January 18 showed that in the ranking of joint venture manufacturers, FAW Toyota ranked first with a three-year retention rate of 69.34%, Beijing Benz ranked second with 68.22%, and Guangqi Honda ranked third with 68.09%.

As one of the most important players in China's auto market, FAW Toyota will become the eighth domestic passenger car company to achieve 10 million sales by continuously introducing Toyota's global advanced technology and building the world's highest standard production base.

In 2023, China's auto industry has a strong smell of gunpowder, and in the fierce market competition environment, FAW Toyota's annual sales will reach 802,700 units, of which hybrid models will increase by 27% year-on-year, and new energy vehicles will increase by 187% year-on-year.

Interviewed industry insiders said that the current automotive industry is in a period of chaos, fierce market competition makes those in a weak position of car companies more marginalized or even forced out, only those with a diversified product structure and master the core technology and other advantages, can continue to stay at the table.

(Editor: Zhang Shuo Proofreader: Yan Jingning)