“Intelligent Internet connected vehicle safety”, “relaxation of share ratio”, “electronic vehicle certificate” and “mental health in the workplace” are four key words in the recommendations of Zhu Huarong, deputy to the National People’s Congress, Chongqing Changan Automobile Company Limited(000625) party secretary and chairman of the board of directors at the 2022 National two sessions. Each of them is a practical problem that the automotive industry urgently needs to solve.
“Smart connected vehicles have become the mainstream of industrial reform, and the liberalization of stock ratio has become a reality. The new development and safety problems behind them need to be paid attention to. In addition, mental health problems in the workplace have been more common, but they have not attracted everyone’s high attention, and there will be serious consequences in the long run.” Turning to the main reasons for paying attention to the above four aspects, Zhu Huarong admitted to the reporter of the daily economic news.
While always paying attention to the changes of the automobile industry, Zhu Huarong also has a clear plan for the development of Chongqing Changan Automobile Company Limited(000625) itself, that is, “in 2022, the Chongqing Changan Automobile Company Limited(000625) independent sector is expected to achieve the sales target of 2 million vehicles, of which new energy accounts for 10% and international scale accounts for 10%”.
it is suggested to strengthen the control of investment access policies in the automotive industry
In Zhu Huarong’s proposal for the 2022 two sessions of the National People’s Congress, the relevant proposal on the introduction of foreign auto enterprises by local governments after the relaxation of share ratio has attracted extensive attention from the outside world. He suggested updating and improving relevant national policies such as the regulations on the administration of investment in the automotive industry, strengthening the control of investment access policies in the automotive industry, strengthening the safety review of foreign-related investment projects (production capacity), and preventing blind distribution and repeated construction investment.
Since January 1 this year, the Special Administrative Measures for foreign investment access (negative list) (2021 version) (hereinafter referred to as the list) issued by the national development and Reform Commission and the Ministry of Commerce has been implemented. In the field of automobile manufacturing, the list has abolished the restrictions on the proportion of foreign shares in passenger car manufacturing and the restrictions on the same foreign investor to establish two or less joint ventures producing similar vehicle products in China. This means that, in theory, there are no obstacles for foreign-funded automobile enterprises to establish wholly-owned enterprises, acquire other existing enterprises, improve the share ratio of existing joint ventures and find new partners to establish joint ventures.
In this context, a number of joint ventures began to prepare the stock ratio change plan, entered the practical operation stage, and the delivery has been completed if they are fully prepared. However, in Zhu Huarong’s view, the time window of the stock ratio liberalization policy coincides with the rapid transformation of China’s automobile industry to electrification and intelligence. If the business layout (including new investment) of foreign-funded automobile enterprises in China cannot be reasonably guided after the stock ratio liberalization, it may lead to the emptying of existing cooperative assets and the waste of vehicle manufacturing resources.
“Taking the promotion of local development as the cut-off point, foreign-funded vehicle enterprises obtain local policy support from multiple provinces and cities, and resource occupation and overlap are easy to cause unfair competition between domestic and foreign development.” Zhu Huarong suggested that local governments should strengthen the supervision of preferential conditions such as finance and taxation of foreign-funded automobile enterprises, so as to avoid repeated preferential policies for foreign investment in the game between local governments; Guide local government policies and foreign parties to support the electric transformation of existing joint ventures.
will promote the listing of avita 11 and other models as scheduled
“In 2022, Chongqing Changan Automobile Company Limited(000625) will continue to promote transformation and upgrading and high-quality development, implement strategic planning and innovation and entrepreneurship plan 5.0, improve corporate governance system and governance ability, realize the three abilities of ‘growth, profitability and innovation’, and transform into an intelligent low-carbon travel technology company.” Zhu Huarong told reporters.
Specific to Chongqing Changan Automobile Company Limited(000625) independent sector, product upward becomes the main line. At the end of February, uni-v, the first car in the high-end series uni, has been put on pre-sale. Then, the second-generation cs75plus, its main selling model, came into the market and launched six models with two power versions, with the price range of 124900 ~ 154900 yuan. According to Zhu Huarong, “in order to continuously improve the differentiated competitiveness of products, Chongqing Changan Automobile Company Limited(000625) will promote the listing of avita 11, c385, C158 and other products as scheduled.”
The reporter learned that avita 11 was unveiled in November last year and is planned to be listed this year. The first batch of mass production and delivery will be realized in the third quarter; C385, the first product built based on epa1’s new special platform for electric vehicles, was off the assembly line in December last year.
While the products are improving, Chongqing Changan Automobile Company Limited(000625) is also seeking to improve customer service. Zhu Huarong said: ” Chongqing Changan Automobile Company Limited(000625) will vigorously promote customer service ‘project 1’, meet customer needs and promote uni service innovation services.” It is reported that “uni service” creates three new service formats: vehicle machine end, client end, consultant end and factory end online, and offline experience space, workshop and self-made space. At present, uni service has been opened in Chongqing, Nanjing, Qingdao, Changsha, Beijing and other places.
“Chinese brands should seize the development opportunity in the next 3-5 years, seize the international market and accelerate the brand upward.” Zhu Huarong once said publicly. According to official data, in 2021, the sales volume of Chongqing Changan Automobile Company Limited(000625) overseas market exceeded 110000, ranking fourth in the export sales volume of independent brands.
In 2022, Chongqing Changan Automobile Company Limited(000625) will further accelerate the development of overseas markets. ” Chongqing Changan Automobile Company Limited(000625) will adhere to the development idea of ‘profit in the trade market and focus on the base market’, complete the multi-dimensional analysis of overseas policies and regulations, tariffs and overseas market conditions, and build five 10000 vehicle cluster markets to achieve the sales target of 140000 vehicles, and raise the overseas ranking to the third place.” Zhu Huarong told reporters.
this year will promote the implementation of chip technology substitution
It is undeniable that unfavorable factors such as the shortage of chips and the rise of raw materials for power batteries still envelop the whole automobile market, Chongqing Changan Automobile Company Limited(000625) nor can it stay out of it.
“On the supply side, we insist on ‘grabbing, forcing and pulling’ to scramble for resources.” Zhu Huarong said that specifically, Chongqing Changan Automobile Company Limited(000625) in the short term, identify the production capacity risk of parts and components in advance, sign a supply guarantee agreement with suppliers, and spare no effort to scramble for materials through the way of “production capacity construction and improvement + spare warehouse” based on the three main business lines of business, manufacturing and technology; In the medium and long term, establish a strategic procurement supplier system, further improve the medium and long-term supply guarantee strategy, and avoid supply risks from the source of design and procurement.
At the same time, Chongqing Changan Automobile Company Limited(000625) will accelerate the research and development breakthrough of “neck” technology, promote the substitution of chip technology this year, and realize the implementation of 127 chip technology substitution of 35 parts.
In Zhu Huarong’s view, the situation of “lack of core and power” in the short term this year is still severe. China’s automobile industry needs to be strengthened in terms of supply chain synergy, core technology and key capabilities, and independent supply of resources and energy.
Even so, Zhu Huarong remains optimistic about China’s auto market in 2022. “The car capacity potential of low-income families needs to be released urgently. The car purchase demand of the post-90s, post-00s and new urban immigrants is growing steadily, and the proportion of new urban immigrants buying cars is on the rise. Car consumption will be an important force to stimulate domestic demand, and will be strongly supported by national policies, and the scale of demand will continue to expand.” Zhu Huarong said.
For the trend of Shanxi Guoxin Energy Corporation Limited(600617) vehicle market, Zhu Huarong said: “the willingness of users to buy new energy vehicles has risen to 63%, and the proportion of private consumption has reached 80%. The market has also changed from policy driven to market driven. It has gradually entered the high-speed growth period from the cultivation period and growth period. From demonstration to commercialization, it has officially entered the upward range and entered the rapid development stage of marketization.”
