On January 16, 2024, the Changan Automobile Global Partners Conference opened grandly in Chongqing. At this meeting, Changan Automobile Chairman Zhu Huarong and Changan Automobile President Wang Jun summarized the operating conditions, development process, problems, and challenges faced by Changan Automobile in 2023. They also deployed the sales plan, vehicle layout, market distribution, and strategic planning for 2024, showing us a brand-new Changan Automobile that will integrate diversification, intelligence, and independence to create more brilliance and open up a different future.
Changan Automobile Chairman Zhu Huarong spoke at the conference, stating that Changan Automobile maintained a high growth rate throughout 2023, with sales figures achieving double-digit growth. Changan Automobile Group’s sales volume surpassed 2.553 million vehicles in 2023, with rapid expansion in new energy and overseas markets. New energy sales doubled for three consecutive years, with a year-on-year growth of 69.2%. Meanwhile, overseas sales growth reached 43.9%, with sales of 358,000 vehicles. These data show that Changan Automobile is maintaining a high-quality development trend towards new heights.
Now is the era of new energy vehicles. Changan Automobile’s “Shangri-La” plan, which includes Avita, Deep Blue Auto, and Changan Qiyuan, is a great example of how to layout the entire new energy market, bringing more and better new energy vehicles to consumers in China and around the world.
The development of the three brands, Avita, Deep Blue, and Changan Qiyuan, cannot be separated from the support of consumers. At the same time, these three brands also embody our Changan’s car-making purpose, which is to make our own cars and our own brands, without imitating or plagiarizing, holding technology in our own hands, and never shifting blame when problems arise. These words actually express our attitude, demonstrate our determination to win, and also ensure the maximum guarantee of resources. We want people to give people, money to give money, and technology to give technology. This is the healthy competition among car companies. The focus should be on technology, and price wars are already history.
In the current view, the entire automotive industry has actually experienced chaotic competition and serious overwork phenomenon. I personally believe that the current market has come to the most turbulent, overworked, intense, exciting, anticipated, challenging, and opportunistic era. Market changes not only test the adaptability of car companies, but also test the collaboration of the entire team. From design to production to sales, this is a complete cycle, and every link is crucial. So, if we want to move forward steadily, we must be down-to-earth, not rash, not retreat, not compromise, not give up. The changing times have also brought a new direction to the entire marketing model. The traditional sales methods are no longer suitable for this networked era, so we must seize the opportunity and thoroughly reform. In the new energy era, manufacturers and dealers must work together for development, as every part of the ecosystem cannot afford to go wrong. As for illegal behaviors such as cost increases, taking red envelopes, and receiving gifts, Changan Automobile also firmly opposes and deals with them when discovered, without any tolerance.
In the next five years, Chinese cars will have a volume of 25-30 million units in overseas markets. Our chances of going abroad are very realistic. In the current overseas market, Southeast Asia and Europe are still very good windows of opportunity for new energy. Changan Automobile will firmly seize this market opportunity and use more good products to open the door to overseas markets. To go abroad and occupy overseas markets, we must “be strong in forging iron.” Changan Automobile is also steadily moving forward, step by step, never aiming too high. At the same time, we have conducted in-depth research in differentiation and diversification, not only launching pure electric models, but also hybrid models, achieving simultaneous efforts in multiple tracks, and bringing diversified choices to more users worldwide.
In the overseas war without gunpowder at the exit, Changan Automobile not only did enough homework, but also had clear goals and directions. Changan Automobile firmly believes that Chinese brands must achieve top performance in the overseas market, and must learn to adjust and change according to market demand, focusing on users, increasing the promotion of the entire brand, and launching various challenges and impacts to traditional car companies, so that users can better understand the technological charm of Changan Automobile, and win the recognition and choice of consumers.
When it comes to customers, we have to mention Changan Automobile’s “Project No. 1”, which is the customer project. Consumers are an important part of every car company, and success can only be achieved with their approval. Therefore, Changan Automobile will steadily move forward, not overhyping itself, taking responsibility for users and society, adhering to its bottom line and values, and doing only what it is capable of. We will not benchmark against “the best within millions or thousands”, but allow users to better understand, use, and promote Changan.
Apart from Zhu Huarong’s speech, Changan Automobile President Wang Jun also summarized the sales volume of 2023 and brought the corporate plan for 2024. Throughout 2023, Changan Automobile’s membership reached 41 million people and customer base reached 25 million people, fully owning its own ecosystem, and its influence in the society continues to expand. The brand recognition has reached 81.6%, firmly ranking first among independent brands.
In the first quarter, the car market was dominated by a price war, and Changan faced the challenge without fear. The sales reached 12 billion yuan, marking a great start to 2023, thanks to the joint efforts of our dealers. In the second quarter, Changan achieved a breakthrough in technology and innovation, with our Shangri-La battery producing one per second, leading the world. The one-click boarding technology is also impressive and will be applied to our vehicles in 2024.
The focus of the third quarter is the debut of Changan’s three major brands: the high-end market flagship Avita, the fashion-savvy Changan Shenlan, and the representative of intelligent cars, Changan Qiyuan. These three brands have achieved a more refined market segmentation, with each car targeting a more precise user group, giving users more choices and showcasing the uniqueness of intelligent cars.
In the fourth quarter, the continuous expansion of overseas markets and the construction of the Thai factory reflect Changan’s goal of global development. The launch of new cars in Thailand attracted many customers, demonstrating Changan’s strength and gaining recognition from both Chinese and foreign customers. In 2024, the new energy vehicle market will not only be competitive but also focus on technology. This healthy competition indicates the potential for growth in the new energy vehicle market, from domestic to foreign markets.
When it comes to the expectations for the new year, I have made 10 predictions. First, the Chinese car market is expected to maintain its growth momentum, with sales reaching 31 million units in 2024, a 3% increase compared to the previous year. Our products need to keep up with consumer preferences. Second, the traditional fuel vehicle market still has a scale of about 15 million units, while the penetration rate of new energy vehicles is continuously increasing, possibly exceeding 50% for the first time. Third, the total overseas market is expected to reach 55 million units, with a 2% year-on-year increase, and China’s export volume is estimated to exceed 6 million units, with a growth rate of over 12%. Fourth, the window for the overall market restructuring has closed, and we are entering a period of stable competition. Sixty-two new forces have released new energy strategies, but only 17 still have sales, indicating a stable and long-term competition ahead. Fifth, the Matthew effect is becoming more prominent, and industry concentration is increasing.
The sixth point is that 202 new products will be launched in the Chinese car market in 2024, including new energy products and XEV products, achieving product diversification. The seventh point is that the prices of bulk raw materials continue to decline, which means there is still room for price reduction for new energy vehicles. The eighth point is the widespread application of digital technology and the promotion of new technology, which will greatly improve industry efficiency in marketing.
Point nine is the comprehensive internal competition of enterprises, including costs, materials, technology, prices, and it will spread from domestic to foreign markets. The last point is that there will be more and more cross-border cooperation, including cooperation between car companies, cross-border cooperation, etc., all of which will help the continuous progress and development of the new energy vehicle industry.
Finally, let’s talk about the 2024 sales target of Changan Automobile. Our goal is to reach 2.8 million units, including 1.25 million units for Changan Yinli, 250,000 units for Changan Qiyuan, 280,000 units for Shenlan Motors, 90,000 units for Avita, 230,000 units for Changan Kaicheng, 480,000 units for overseas markets. We will also strive to achieve a 5% cost reduction target, providing more benefits to consumers, allowing everyone to spend less money and get better cars.
The 2024 Changan Automobile Global Partners Conference was held with the theme of “partners”. Dealers, car owners, and fans were invited to share their stories and recommend Changan Automobile to their friends. The first foreign executive also made an important speech, affirming Changan Automobile’s achievements and efforts, and expressing confidence in a better future. In summary, the conference not only summarized the year 2023 but also planned for the development of 2024, including the analysis of the company’s dynamics, market and sales, sales expectations, market positioning, and overall layout. Changan Automobile has been steady and practical, aiming for a better experience for its partners and users. The hope is for Changan Automobile to “forge ahead with the vast number of fans and users”.