China FAW Group Corporation (FAW), a major state-owned automaker, recently released a new development strategy for its Hongqi luxury brand. FAW seeks to boost Hongqi’s annual sales to 100,000 vehicles by 2020 and 300,000 and 500,000 vehicles by 2025 and 2035, said Xu Liuping, Chairman of FAW Group.
According to the new strategy, Hongqi plans to roll out 15 battery electric vehicles and two gasoline models by 2025 under L (Hongqi Limousines), S (Hongqi Sports Cars), H (Hongqi Full-size Sedans) and Q (Hongqi Recreation Vehicles) product series.
Hongqi will launch its first battery EV this year. In 2020, Hongqi will launch sales of battery EVs developed on FME platform that will have a range of 600 kilometers (373 miles).
In terms of intelligent and autonomous vehicle development, FAW will mass produce Hongqi vehicles with L3 self-driving features in 2019, and vehicles with L4 self-driving features in 2020. By 2025, FAW will introduce vehicles with L5 self-driving functionality.
FAW has established a full R&D system to support the development of Hongqi. Hongqi’s R&D center is headquartered in Changchun, which is also the headquarters of FAW Group, including styling design, new energy vehicle and intelligent network R&D institutes.
FAW has also established four branches for these institutes: Sub-Institute of Experiential Sensing Measurement and Pioneering Technological Innovation Branch in Beijing; Sub-Institute of New Energy Vehicle Development in Shanghai; Sub-Institute of Pioneering Technological Innovation in Munich, Germany; and Sub-Institute of Artificial Intelligence Development in Silicon Valley, US.
Established in 1953, FAW is China’s oldest and largest automotive group. Annual sales exceed three million units.
In December 2017, FAW, Dongfeng Motor Corporation (DFM) and Changan Automobile —China’s three largest state-owned automotive manufacturers—signed a Strategic Cooperation Framework Agreement. According to the agreement, the three will cooperate in technology pioneering and innovation; automotive whole value chain operation; support each other in expanding overseas markets; and create new business models.
In terms of technology pioneering and innovation, the three will actively participate in the establishment of the National Innovation Center for Intelligent Connected Vehicles, and conduct joint investment and development in strategic key technologies and platforms, such as new energy vehicles, intellectualization, connected vehicles, and vehicle lightweighting.
The three will also strengthen cooperation in vehicle sharing, on-the-road services, and new types of businesses , and jointly discuss coordination in financial sectors, and participation in the building of intelligent cities and intelligent transportation systems.