On November 17th, the 21st Guangzhou International Auto Show officially opened. The development of smart cars and new energy vehicles is not only a revolution in transportation, but also a change in lifestyle and mindset. With the continuous escalation of competition in new energy vehicles, more new products and technologies will appear before the public. This year’s Guangzhou Auto Show will take the theme of “New Technology, New Life”, showcasing the latest technological achievements brought about by the development of smart cars, as well as the new changes it brings to consumers. In response to this, different executives have expressed their views. Wang Bo, Vice General Manager of Geely Auto Sales Company and General Manager of Geely Star Division, said that in the future, Geely Auto and other Chinese brands will continue to improve in products, technology, service, and quality, and he believes that the market share of Chinese auto brands will continue to increase. At the same time, we will see a continuous growth in the export share of Chinese cars this year, accelerating the penetration of overseas markets. Therefore, I believe that the rise of Chinese auto brands is an inevitable trend.
The following is an interview record Sina Auto: What new products has Geely brought to the Guangzhou Auto Show this year to introduce to everyone? Wang Bo: Hello everyone, I am Wang Bo from Geely Auto. At this year’s Guangzhou International Auto Show, Geely’s booth is located in Hall 5.1. We have brought the highly anticipated all-electric flagship sedan, the Geely Galaxy E8, as well as the L6 and L7 from the Galaxy series, the Jixing series including the Xing Yue L and Xing Rui, the Borui series including the Borui L and Borui COOL, and the Geometry series, including the Geometry E Firefly and the Panda Mini, among other models. We welcome everyone to visit Geely’s booth at the Guangzhou Auto Show in Hall 5.1. Sina Auto: Let’s talk about the Galaxy series. Since its launch in February, it has been a phenomenon. Wang Bo: Yes. Sina Auto: Whether it’s the already launched models like L6 and L7, or the highly anticipated Galaxy E8, have these products met the expectations of Geely’s internal Galaxy series so far? Wang Bo: Geely Galaxy is Geely Auto’s high-end new energy series and represents the strongest energy field of Geely’s new transformation. After its full release, it has received high attention from the entire industry and users. After the launch of the Galaxy series products in the second quarter, we have maintained the pace of launching a new car every quarter. L7 was launched in the second quarter, L6 in the third quarter, and the Galaxy E8 is expected to be launched by the end of the year. In just four months, the total sales volume of the Galaxy series has reached nearly 60,000 units. In addition, the national channel construction of the Galaxy series continues to improve. The number of stores has already exceeded 500, and we aim to exceed around 650 by the end of the year. This is the key to the rapid growth of Geely Galaxy’s sales, image, and visibility. Sina Auto: The previous two models were very successful and received high attention. What are the expectations, positioning, and core competitiveness of the latest product, the Galaxy E8? Wang Bo: Just mentioned that the listing of L7 and L6 has received a lot of attention. This shows that the entire industry, including our user base, has high expectations for Geely’s high-value new energy vehicles. The popularity of the Geely Galaxy E8 is currently very high. It is not only the first pure electric sedan in the Galaxy series, but also the “China’s new generation pure electric flagship,” which will unlock a new imagination of intelligent pure electric for users. This model is very beautiful in terms of overall design, and it can be said to be the best-looking pure electric flagship sedan. It is also the only B-class pure electric sedan with a length of over 5 meters. Its drag coefficient is only 0.199, which is lower than the drag coefficient of many luxury car models. It also has the most intelligent and luxurious executive cockpit. The biggest highlight when opening the door is the 45-inch 8K ultra-high-definition screen, and it is equipped with the Qualcomm Snapdragon 8295 chip, which is at the industry’s leading level. It is also the best-performing pure electric flagship sedan, with a 0-100 km/h acceleration of 3.49 seconds and a range of 665 kilometers. For more product information, everyone is welcome to visit the Geely booth to learn more and pay attention. Sina Auto: Just heard you mention the drag coefficient, in fact, this value is already very surprising. I want to know the impact of the drag coefficient on pure electric vehicles. Wang Bo: I think there are several key points here. First, it can bring low energy consumption. Whether it’s a fuel vehicle, hybrid, or pure electric model, etc., unavoidable air resistance is encountered during driving. The lower the drag coefficient, the lower the vehicle’s energy consumption, and the stronger the vehicle’s range. Especially during high-speed driving, wind resistance becomes the main source of vehicle driving resistance. Low drag design can improve the range performance of pure electric vehicles, ultimately bringing better products to users. Second, it is closely related to the vehicle’s exterior design. Low drag design can not only improve the performance of the vehicle, but also enhance the vehicle’s aesthetics. Therefore, Geely’s styling designers and engineering research and development team will repeatedly refine the design of this vehicle to make it perfect, providing users with a visually appealing product to meet their higher aesthetic standards. Third, a car that can achieve such a low drag coefficient is also a reflection of the company’s car-making strength, because the drag coefficient not only affects the endurance and stability, but is also closely related to noise control and exterior design. Of course, the ultimate goal of enhancing the company’s strength is to benefit the users. Sina Auto: Today, Geely’s car sales target is 1.65 million units. At present, there doesn’t seem to be much pressure. Wang Bo: We just talked about the Galaxy series, which is growing rapidly and has been selling well. In fact, from January to October this year, Geely’s cumulative sales have exceeded 1.335 million units. This is also thanks to the simultaneous development of various other models. The China Star high-end series has accumulated sales of over 800,000 units, and its two models, the Xing Yue L and Xing Rui, have helped Geely rapidly increase its market share in fuel and hybrid vehicles. In addition, the classic star SUV, the Binyue L, and the Binyue COOL have also achieved impressive results this year. Our sales cornerstone, the Emgrand series, has also been highly recognized by the market. In addition, the Geometry series of pure electric vehicles has also seen continuous growth in sales, and the Panda mini has already exceeded 13,000 units in sales in October this year, so we are confident in exceeding our annual target. Sina Auto: I heard that there was a topic on Weibo a few days ago, “200,000 is the last stronghold of fuel vehicles” because the development of new energy vehicles is quite strong now, but the base of fuel vehicles is still there. While Geely is transitioning to new models, how can it continue to enhance the market competitiveness of the Jixing series? Wang Bo: Fuel vehicles have always been Geely’s strong suit. We have held the top market share for many years. Geely’s new energy penetration rate in October was around 34%, with the remaining 60% consisting of fuel vehicles and hybrid electric vehicles. For us, we must develop Geely’s new energy series while maintaining our dominant position in fuel vehicles. For example, the representative of the Geely Star series, the Chinese Star series, will focus on hybrid vehicles. The “Chinese Star Intelligence” has a low fuel consumption of 4.22L, aiming to be the most competitive and suitable hybrid product for Chinese users, allowing fuel vehicles to advance to the next generation and continue to lead the future of value. Geely will continue to deepen its presence in the fuel vehicle market, continuously updating its models to provide users with more diversified choices. Sina Auto: Will you challenge higher price ranges? Wang Bo: I think it’s more important to focus on the product’s inherent value. If the product’s design, size, handling, intelligence, safety, and other configurations can reach a very high level, then users will naturally buy it. So I think it comes down to the essence of user choice, which is whether the product and brand strength can support the price. Sina Auto: We’ve been talking more about cars and companies, now let’s talk about the environment. With the current trend towards electrification and smart technology, do you think there has been a significant change in the marketing environment compared to the past fuel era? Wang Bo: Indeed, this topic has been widely discussed in the context of China’s automotive market transitioning to electrification and smart technology. There have been several major changes. First, in terms of user choice, some users are firmly choosing new energy vehicles, enjoying the driving experience, acceleration, and high intelligence of electric cars. If they are concerned about insufficient range, they may consider PHEV or range-extender models. Geely’s L6 and L7 series have long ranges, meeting user needs. This sub-market has seen rapid growth this year. Of course, there are still some users who firmly choose fuel vehicles, enjoying the mechanical performance and engine roar. So I believe that the Chinese automotive market is now a very diverse market, with a variety of user needs. Second, there is also a change in user purchasing channels. We know that the original automobile distribution channels were mostly 4S stores or secondary distributors. Today, many new energy users prefer to connect directly with manufacturers through apps or websites, or through more direct communication methods. We can see that in the marketing process of new energy vehicles, whether it’s pricing or benefits, it’s all about direct access to the user. This represents a change in the distribution channels, and in the future, channels will become more diverse, with the proportion of online channels continuing to increase. Of course, offline channels still play a very important role, as they need to provide localized services for customers in different regions. Thirdly, in terms of user experience, now when a user buys a car, they already have a very good understanding of the vehicle, including parameters, features, and performance, all of which can be obtained through the company’s official website, app, or some professional media reviews. Therefore, I think how to improve the user experience is the key to capturing the new consumer group in the future. Sina Auto: Mr. Wang, one last question, do you think domestic independent brands will eventually dominate the domestic market? Wang Bo: This is an inevitable trend. We have seen that in the first half of this year, Chinese automobile brands have maintained a market share of around 50%, whereas three or four years ago it was only a little over 30%. This growth is mainly due to the comprehensive improvement in Chinese automobile companies’ design, research and development capabilities, product quality, and after-sales service, and has been recognized by the outside world. In the future, Geely and other Chinese brands will continue to improve in terms of product, technology, service, and quality. I believe that the market share of Chinese automobile brands will continue to increase. At the same time, we will see a continuous increase in the export share of Chinese automobiles, accelerating their penetration into overseas markets. Therefore, I believe that the rise of Chinese automobile brands is an inevitable trend. Sina Auto: Alright, thank you Mr. Wang. Our interview today is now concluded. Thank you.