Founded in 1987, Dayun Group has a history of more than 30 years of car-making, and has long been engaged in the R&D, production and sales of motorcycles, heavy trucks, new energy commercial vehicles and new energy passenger cars. Recently, the 2023 National First Enterprise School Collaborative Innovation Competition Yuncheng Special Competition in the Field of New Energy Vehicles and Yuncheng Forum on Intelligent and Green Development of New Energy Vehicles was held, China Automotive News’s reporter conducted an exclusive interview with Yuan Qinshan, Chairman of Dayun Group.
New energy vehicles expected to account for more than 50 percent by 2025
Statistics from the China Association of Automobile Manufacturers (CAAM) show that China's auto sales reached 23.967 million units from January to October this year, up 9.1 per cent year-on-year, with sales of new-energy vehicles reaching 7.28 million, up 37.8 per cent year-on-year, with a market share of 30.4 percent. Cui Dongshu, secretary-general of the National Passenger Vehicle Market Information Coalition, said that China's annual car sales are expected to reach 29.5 million this year, a new record high. Among them, the sales of new energy vehicles are expected to reach about 9 million this year based on the 30.4 percent market share in the first 10 months of the year.
In Yuan Qinshan's view, the current achievements of China's new energy automobile industry are inseparable from the country's strong support in terms of policy and finance. It is precisely that these policies and development environment creates a thriving domestic new energy vehicle industry.
Energy-saving and new energy vehicle technology roadmap 2.0 proposed that it is expected that by 2035, the annual sales volume of energy-saving vehicles and new energy vehicles will account for 50%. Yuan Qinshan believes that the current development momentum of new energy vehicles in China will continue, but due to the increased base, it is not possible to achieve double growth as before. Instead, it will grow at an annualized growth rate of 30%. By 2025, China will achieve the goal of new energy vehicle sales accounting for over 50% ahead of schedule, and achieve the expected target 10 years ahead of schedule.
It is worth mentioning that recently the Standing Committee of the National Committee of the Chinese People's Political Consultative Conference (CPPCC), deputy director of the Economic Committee, the former Minister of Industry and Information Technology, Miao Wei, at the 18th China Automotive Industry Forum in 2023, said that the trend of new energy vehicles replacing traditional fuel vehicles has been formed, the original goal of exceeding 50% of new energy vehicles by 2035 is likely to be achieved ahead of schedule by no later than 2026. Yuan Qinshan's views coincide with Miao Wei.
Big waves wash away sand, there may be only 10 domestic car companies left in the future.
In Europe and the United States and other mature countries in the automotive industry, brand concentration is very high, and each country has only 3-5 major automotive groups. For example, the U.S.traditional car companies only includes three major auto groups, General Motors, Ford, Chrysler. Germany only has BMW, Daimler, Volkswagen. Many industry insiders have said in public that China may only have 3-5 car companies in the future.
In this regard, Yuan Qinshan believes that any industry has competition before development, no competition there is no development. The future of China's auto market is certainly a big wave of sand, there can not be hundreds of brands survive at the same time. However, China's auto market has a very large capacity, and Chinese car companies are also expanding to overseas markets, so it is unlikely that there will be only 3-5 car companies.
“I think there may be about 10 Chinese car companies left in the future." Yuan Qinshan said, "At present, Dayun Group has low-end and high-end new energy vehicles, which can cover different consumer groups and meet both domestic and international market demands."
Down-to-earth, integration of advantageous resources, next year's sales target of 50,000 vehicles
At present, the competition in the domestic automobile market has reached a white-hot stage, and all major automobile enterprises can be said to be "You just finished and I come on the scene" in terms of the price war; they are also constantly making breakthroughs in technology to seize the market opportunity with the advantage of product differentiation.
In August 2022, Dayun Group released its high-end new energy vehicle brand - Yuanhang Automobile. On 8 November this year, Yuanhang Automobile was officially mass-produced off the production line. In the face of fierce market competition, as a latecomer in the field of new energy vehicles, the pressure faced by Yuanhang Automobile is not insignificant.
In this regard, Yuanqinshan said that each enterprise has its own strategic planning and market approach. Dayun combines its own actual situation to establish brand development strategy steadily, becoming stronger and bigger but also profitable. "Our advantage is that we have 30 years of car-making heritage and strong centralized integration capability. To build a good car, it is necessary to combine all aspects of human, financial and material resources. Among them, people are the most important factor. Decision-makers and leaders of car companies should firstly keep abreast of the times, continue to learn and progress, and constantly improve themselves. Secondly, tens of billions of Renminbi are needed for the basic capital of car-making. With these two points, the rest is a matter of people."
"We also established a strategic partnership with the National New Energy Vehicle Technology Innovation Centre, take respective advantages of the two sides in technology research and development, vehicle energy efficiency, automotive chips, digital scene, product power empowerment and other aspects to carry out exchanges and cooperation, build industrial innovation ecology, and jointly promote the high-quality development of new energy vehicles in Yuncheng. " Yuan Qinshan said.
Before the start of this exclusive interview, the reporter also personally experienced the first flagship model of Yuanhang Y6, which is a eye-catching car in the appearance, performance, space, interior and other aspects. Positioned as a D-class ultra-luxury pure-electric executive sedan, the Y6 has technologies such as 800V high-voltage architecture, super-fast charging, and air suspension, with a 100-kilometre acceleration time of just 3.2 seconds, the fastest possible range of more than 300 kilometres in 10 minutes of charging, and a maximum range of more than 1,020 kilometres. In addition, Yuanhang Y6 is equipped with a memory parking function, which will be pushed through OTA in March 2024 for upgrading, according to Yuan Qingshan.
"The plan for Yuanhang Auto is to build 500 offline shops in 2024, with an annual sales volume of 50,000 units. In the future, the annual sales volume will reach several hundred thousand vehicles, and the sales target of over 100 billion yuan will be achieved within ten years" Yuan Qinshan said.