The 21st Guangzhou International Automobile Exhibition officially opened on November 17th. The development of smart cars and new energy vehicles is not only a revolution in transportation, but also a change in lifestyle and mindset. As competition in the new energy vehicle market continues to escalate, more new products and technologies will appear before the public. This year’s Guangzhou Auto Show will be themed “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. Zhong Wei, Assistant General Manager of the Passenger Car Sales Company of Dongfeng Liuzhou Motor Co., Ltd., said that now it is not just about marketing, but more about the speed of product development and creating new usage scenarios for users, which may be a more critical direction in the future. In addition, Zhong Wei also stated that Dongfeng Fengxing will soon launch a brand new new energy brand, and will become the brand with the highest number of new product releases within one year by 2024.
The following is an interview record: Sina Auto: Dongfeng Fengxing participated in the Munich Auto Show this year and received widespread attention. What work will we do in overseas markets in the future? Zhong Wei: Let me briefly introduce some of our achievements overseas in the past few years. Dongfeng Fengxing passenger cars started exporting overseas relatively early. We started our layout in Southeast Asia, South America, and the Middle East. In the past three years, our overseas sales volume has grown at an average annual rate of over 100%. From January to October of this year, our total overseas export volume has exceeded 20,000 vehicles, which is a very fast growth rate for us. On the basis of the previous 100% growth rate in previous years, the growth rate this year is about 50%, which is due to our early layout. Secondly, we have previously exported to South America, the Middle East, Southeast Asia, the European Union, and this year we have successfully exported to Europe through the V9. So, Europe is the main area we will focus on next. Other new areas include Eastern Europe, Russia, and other Eastern European countries, which are our next focus for expansion. In terms of major actions overseas, firstly, we will continue to do well in the regions where we have an advantage in exporting complete vehicles. Secondly, since last year, we have implemented a new form of export through KD bulk parts. We were the first to build a KD factory in Vietnam last year, changing the pattern of simply exporting complete vehicles. By building our own factories overseas, we are able to achieve localized production. We are currently advancing the construction of a new KD factory in Russia and also working on the construction of a KD factory in South America. So, in the coming years, the localization of vehicle production overseas will be further strengthened. Thirdly, in terms of our marketing overseas, because domestic marketing is already very active, we have extended many of the methods and models used domestically to overseas markets. In September, when the V9 made its global debut in Munich, we entered into a strategic cooperation with Alibaba International Station and conducted online live broadcasts through Alibaba International Station, achieving full-process online releases. The global debut of V9 on that day achieved over a billion views. From this perspective, we actually have some first-mover advantages in overseas marketing and branding. With our local recommendations, we are taking the domestic marketing methodology overseas. Therefore, in the next few years, there will be new brand releases and the launch of new products, so the growth rate of overseas sales will definitely continue to rise. Expanding our presence internationally through platforms like Weibo is very effective. Sina Auto: In fact, the entire Dongfeng system definitely has a higher strategic plan and idea above business, because Dongfeng is after all a state-owned brand. The country has recently mentioned the “stabilizing fuel vehicles, increasing hybrid” strategy. In this context, what layout will Dongfeng Fengshen have in the new energy track? Zhong Wei: Overall, let me talk about the overall strategy of Dongfeng Fengshen in the new energy track. The first is that in November last year, we were the first brand within Dongfeng Group to release a brand-new new energy transformation strategy, called the “Photosynthesis Future” strategy. At that time, we set a goal to achieve 100% electrification of products within three years, and it seems that we have achieved it ahead of schedule. By early next year, all products will be fully electrified, and the pace of the entire transformation has accelerated since we launched the strategy. The second major move is that we are expected to launch a completely new new energy brand under Dongfeng Fengshen next year, on a new platform, and all new models will be operated on this new platform. This is the second step of our transformation. The third step is from a technological perspective. We are currently adhering to the pure electric and hybrid dual technology route. As we all know, hybrid is a product form that consumers in the new energy track are more likely to accept, but pure electric is definitely the ultimate goal of new energy. From the current transitional stage, we must persist in developing both routes simultaneously. Therefore, hybrid products are being developed simultaneously with pure electric products. Next year, our newly released products will basically have pure electric versions and hybrid versions, achieving a smooth transition on the new energy track through this approach. In terms of investment in new energy research and development, over the past three years, we have invested in a full-time R&D team of over 1,000 people, with over 20 billion invested in pure new energy sectors. From 2023 to 2030, we will continue to invest 20 billion in special R&D funds to lay out the overall new energy plan. Therefore, in the next few years, we will basically release 2-3 new products every year. Next year will be the debut year for our new brand, and it will be the year with the richest product lineup in the history of Dongfeng Fengshen. We will release 4 new products next year, which is our overall effort in the entire new energy track. From the brand level, to technology reserves, to product reserves, we are also undergoing a comprehensive innovation in channels. We are currently promoting a new energy brand new network investment. So when the time comes, we will meet consumers with a new brand, new technology, new products, and a new image. We have made very careful considerations and are preparing intensively. Sina Auto: You just mentioned a completely new brand for new energy. Can you reveal its specific plan? Zhong Wei: The name of the completely new brand is currently confidential, but the release time will be set for March next year, right after the Spring Festival. We will first release the completely new brand, followed by the immediate appearance and pre-sale of our completely new flagship MPV, the V9, nationwide. After the V9 is launched nationwide in May, we will also have subsequent completely new sedans, and a completely new SUV in the third quarter. In terms of the entire brand, we will basically make it the most flexible and innovative brand in terms of company system and operation mechanism, which is determined by Dongfeng Fengshen’s status within the entire group. We should be more flexible and the brand’s tone will shift towards new forces and new energy, so the overall image of the brand will be higher than Dongfeng Fengshen is now. In addition to our dual technology route, the entire product platform is also brand new. Currently, we have jointly developed the S2-E quantum architecture with Dongfeng Group. This architecture has a major feature that can achieve comprehensive expansion of products in different sub-sectors, from MPVs to SUVs to sedans. The platform is specifically designed for new energy, and it will bring a completely new feeling to users in terms of exterior design, interior design, and overall spatial layout. We will also undergo a comprehensive renovation in terms of our sales and after-sales processes. We are confident that this new brand will definitely become the brand with the most new product releases in the Chinese car market next year. Our SUVs, MPVs, and sedans will all be fully covered within a year, leaving a very good impression on users. Sina Auto: We are looking forward to your introduction. Under the new brand strategy, whether it’s new products or new technologies, it will bring a lot of freshness. You mentioned SUVs and MPVs earlier, do you have any specific information about the direction of sedans? Zhong Wei: Let me reveal a little bit about the sedan. The release of the sedan will probably be in the second quarter of next year. The biggest feature of this sedan can be summarized in two sentences. First, it can fully attract the attention of young consumers in terms of appearance, and at the same time, can be used by mainstream Chinese families. It can achieve a perfect combination of “both and” because this car has a coupe-style exterior design, which is very dynamic and stylish in appearance. On the one hand, it satisfies the feeling of many young consumers driving a coupe. But through the changes in the trunk space, the second-row seats, and the front storage space, the flexible space can also meet the needs of this car for family travel. It is not only suitable for commuting but also suitable for long trips, and even camping. So, this product has a very strong comprehensive capability. Take a small example. The coupe-style exterior design uses a hatchback-style tailgate, but the opening of this tailgate is the largest in the same class. What benefits does this large opening bring? First, it satisfies consumers’ yearning for poetry and the distant. When you drive outside to go camping, you can stop the car, move the second-row seats forward and fold them down to form a double bed. The opening of my trunk is a natural form similar to a tent, so you don’t need to set up a tent. You can camp directly in the car and watch the stars and the moon. The second reason why it is suitable for family use is that we have created a unique sunken and very large trunk space at the third-row trunk. I moved the storage cabinet into a sedan. When you take this car out for camping, the space below can hold a lot of camping equipment or outdoor cooking and barbecue equipment, including food, and so on. It is very practical, but the entire car gives users a very streamlined coupe feeling. Later, we will also launch some similar sports versions and modified versions. This car can be played by users, so it is a relatively perfect combination of a sports sedan and practical family space. So, we are looking forward to this sedan. We hope that it can become a new disruptor in the market in the price range of about 150,000. As the entire car market is still very large, more and more young consumers are joining. We use this coupe-style appearance to attract them, combined with a flexible layout in terms of space. Driving a sedan can also achieve a similar experience to an MPV, which is the very youthful mindset of our entire car-making theory, but it can also be used in many ways, a perfect combination of beauty and space usage. Sina Auto: A while ago, many people were paying attention to the New Energy Evaluation Council. Can you give us a preview of the new technological direction that Fengxing will have in the future? Zhong Wei: I mentioned a dual technology route earlier. The first is hybrid, the DH-i hybrid developed jointly by Dongfeng Group. This DH-i hybrid has two major technological features. The first is the highest thermal efficiency in the world, reaching 45.18%. This thermal efficiency is at least the highest in the country, and it ensures that the entire car’s power performance is very strong. The second is low fuel consumption. After the thermal efficiency is improved, it directly leads to much lower fuel consumption. So currently our DH-i hybrid can bring a comprehensive fuel consumption of 5.9L per 100 kilometers. This 5.9L fuel consumption will be matched in the V9, which is a heavyweight product with a length of over 5.2 meters. A fuel consumption of 5.9L will definitely be far ahead in the same class, and the thermal efficiency will also be far ahead. Our comprehensive range can reach 1280 kilometers, which is currently a leading advantage in the industry in the same class. So thanks to the Mach hybrid system, we are doing well in the technology and hybrid areas. The other part of the dual route is pure electric. Last year we already released the “Armor” battery, and next year it will be upgraded to the third generation. The third generation product will make some new upgrades in terms of waterproof, fireproof, collision resistance, and scratch resistance. This is in the area of the power system. Another route is in the platform architecture. Currently, from the original EMA architecture, our next step in the new energy field is to upgrade to the S2-E quantum architecture. The S2-E quantum architecture is also a brand new new energy brand jointly developed by Dongfeng Group. As I mentioned earlier, it has very strong scalability. Secondly, it is specifically designed for new energy. At that time, it will be reflected in the space and will be very flexible to use. In terms of technological reserves in exterior design, as I mentioned earlier, after Fengxing’s brand renewal last time, we used the latest aerodynamic design concept to develop subsequent products. By next year, our new brand’s products will come out, and the aerodynamic concept has also iterated to the third generation. Users will be able to see that our appearance is very attractive, whether it’s a coupe, our V9, or a new SUV coming in the second half of next year, all of which are based on the Fengxing 3.0 concept, so the overall exterior design is also very beautiful. We say from design to brand technology, to power technology, these routes have relatively complete technological reserves. We are confident that the new brand will provide users with a better sense of use and a more perfect product sensory experience. Sina Auto: The speed of technological iteration is now very fast, very comprehensive, and the second and third generations may only take one year or even shorter. Zhong Wei: Now it’s not just about marketing, but more about the speed of product development, especially the speed of new product iteration after development, including continuous improvement and creating new usage scenarios for users. I think this may be a more critical direction in the future. Now cars are like the transition from feature phones to smartphones a few years ago. The head effect has slowly emerged, and users have fully accepted smart cars. In the past two years, people may still have some doubts about new energy, whether it’s range or battery safety. Through the popularization and market education in recent years, users have fully accepted that cars now are like the era of phones before. Next, cars will become more and more like smartphones, becoming smarter and smarter. The second user experience, more and more scenes The third is the product update iteration, the speed of upgrade will be faster and faster, and the speed of technology iteration may continue to roll in the future, rolling everyone’s insight into user scenarios, and whether your product can provide more usage scenarios to users at any time. This is a new direction that our new brand will focus on in the future. Sina Auto: Thank you for sharing.