Tag: brands

Brands from across world flex NEV muscle on stage

BYD’s Fang Cheng Bao showcases the Super 9 concept model at the 2024 Beijing auto show. [LI FUSHENG/CHINA DAILY]

After a four-year hiatus, the Beijing auto show returns with a flurry of new products, particularly new energy vehicles, presented by global automakers, who aim to solidify their position in the world’s most competitive and largest auto market.

Running from Thursday to May 4, the event is hosting the world premieres of 41 concept models and 117 vehicles, with 30 from international brands. A total of 278 NEVs are on display, surpassing the 160 from the last edition in 2020, according to the event organizers.

The proportion of NEVs surpassing gasoline cars appears to be happening faster than anticipated. Data from the China Passenger Car Association show that in the first two weeks of April, passenger NEV sales accounted for more than 50 percent of the market share, with 260,000 units sold out of a total of 516,000 passenger cars.

Premium brands BMW, Mercedes-Benz and Audi are showcasing their achievements in electrification.

BWM’s electric i4 hatchback and electric MINI Cooper and Aceman crossover SUV are taking center stage. The BMW Vision Neue Klasse, which heralds the next generation of BMW vehicles, is on show for the first time in China.

BMW Group CEO Oliver Zipse announced plans to invest an additional 20 billion yuan ($2.76 billion) in the Shenyang production base in Liaoning province on Friday. The investment will support the localization production of BMW’s Neue Klasse models starting in 2026.

Mercedes debuted the all-new electric G-Class 4×4 and the Concept CLA Class four-door coupe. Their stage fleet consists of one world-premiere model, seven China-premiere models and eight models that are ready to hit the market.

Audi CEO Gernot Doellner made his first public appearance in China at this year’s Beijing auto show. The automaker debuted the all-new Audi Q6L e-tron SUV, the first vehicle tailored for the Chinese market based on the PPE premium electric platform.

This car, along with other new models based on the PPE, will be produced at the new factory in Changchun in Jilin province, underscoring China’s strategic position for Audi, he said.

However, their customers are being poached by newcomers. When Xiaomi CEO Lei Jun toured the Nio booth, he said that 30 percent of Xiaomi’s car owners had previously owned vehicles from the German trio. Nio CEO William Li said 70-80 percent of Nio’s car owners were from BMW, Mercedes and Audi.

Lei announced that it had received more than 75,000 orders in the four weeks since the launch of its first car, the SU7 electric sedan. It aims to deliver more than 10,000 units in June.

At Huawei’s booth of HIMA, which stands for Harmony Intelligent Mobility Alliance, its Stelato brand, codeveloped with BAIC, debuted at the auto show, joining the Aito and Luxeed brands. The brand’s first model S9 sedan is expected to hit the market in the second half of this year.

The IT giant is also showcasing the Aito M5, M7, M9 SUVs and Luxeed S7 sedan, which are already on sale. According to Huawei data, as of April 22, the HIMA family has sold 105,000 vehicles this year.

Besides codeveloped models, Huawei’s Qiankun, which is called the most sophisticated advanced driving assistance system to date, has garnered attention. Seven Chinese brands including Changan’s Avatr, Dongfeng’s Voyah and BAIC’s Arcfox have installed Huawei’s Qiankun in their cars.

Nio unveiled the all-new ET7, continuing its push into the luxury sedan market to solidify its position as a premium brand. Starting at 428,000 yuan, the ET7 Executive Edition is available for pre-order with deliveries beginning on Tuesday.

The startup is maintaining its focus on advancements in charging and battery swap technologies too.

Xpeng said its software and artificial intelligence training upgrades will enter a “superfast cycle” from May, which will be upgraded with its X9 MPV, G9 and G6 SUVs as well as P7i sedan. The automaker hopes the platform will help it expand to other Asian countries and Europe.

He Xiaopeng, founder and CEO of the automaker now backed by Volkswagen, said the software will be refreshed every two months.

Chinese traditional automakers have launched NEV sub-brands, marking a significant transformation.

At the auto show, FAW’s Hongqi presented three sub-brands, including the Hongqi New Energy. Dongfeng Motor is showcasing models under its multiple brands such as M-Hero, Voyah and Nammi. Meanwhile, Great Wall Motors is presenting models under its brands of Wey, Tank, Poer and Ora with technological achievements in NEVs.

GAC Group is displaying models of its Trumpchi, Aion and Hyper brands. The automaker will integrate Huawei’s Qiankun system into flagship models under the Trumpchi brand, with the first model expected to launch in January 2025.

The world is young domestic firms’ oyster

A view of the booth of Huawei at the 2024 Mobile World Congress Barcelona in Spain earlier this year. GAO JING/XINHUA

In 2014, a group of experts in smart manufacturing, each of them boasting around 15 years of work experience, gathered in a three-bedroom apartment in Beijing and decided to start up with Beijing Roborock Technology Co Ltd. What was extraordinary was their clear and simple ambition: to develop the world’s best robotic vacuum cleaner.

Ten years on, their dream has come true. Roborock is a leading player in its sector and, in terms of global sales in 2023, the top-selling brand among smart vacuum cleaners worldwide, according to Euromonitor International, a market research firm.

Its products are available in more than 170 countries and regions, with nearly half of its revenue coming from overseas markets.

Quan Gang, president of Roborock, summed up the success story.”From day one, our eyes were set on the global market. From the very beginning, we have sought to meet the demands of global users. Our product design, production and marketing efforts have been tailored to meet their demands from the outset.”

That helped the startup to remain flexible and nimble while preserving its unique technology. Corporate executives and experts said Roborock is the epitome of new-age Chinese enterprises that see the world as their oyster right from day one.

Such companies are quick to recognize that growing globally competitive brands in their respective segments is critical to success these days. They rely on both China’s manufacturing prowess and their own strengths in research and development.

What distinguishes them from the previous generation of globally known Chinese enterprises is their global vision and clarity on goals. While the previous lot went global only when they had grown big enough in the domestic market, the new bunch target the global market from the very beginning, experts said.

Huang Chenhong, president of German software and cloud giant SAP Greater China, who has witnessed the transformation of Chinese companies in their global expansion over the past three decades, said, “Despite challenges such as lackluster global demand and geopolitical uncertainties, Chinese companies have not slowed down their pace of going global.”

Data from China’s Ministry of Commerce prove his point. Chinese enterprises’ outbound direct investment grew 5.7 percent year-on-year last year to exceed 1.04 trillion yuan ($143.7 billion), highlighting their continued expansion overseas.

“I think globalization is now entering a new stage. Globalization today involves more Chinese companies expanding their business overseas,” Huang said. “We can see many enterprises, whether State-owned, private or even small and medium-sized enterprises, have 30 to 50 percent of their business overseas. Some companies are even born to serve overseas markets and have never considered doing business domestically.”

Chinese companies have attained a stage of technological innovation where they are starting to embody the spirit of multinational corporations.

“In the past, when we talked about MNCs, we thought of German or American companies. Today, Chinese companies come to mind naturally,” Huang said, adding that SAP has helped many Chinese companies such as Lenovo, BYD and Mindray navigate the international waters over the past three decades.