FAW launches NEV business unit
FAW Jiefang, the commercial vehicle division of the Chinese FAW Group, has established a new business unit for electrified vehicles and presented its plans for the unit. The new brand will include all ‘New Energy Vehicles’; battery-electric vehicles, hybrids as well as hydrogen-powered vehicles.
The company now aims to achieve sales of 120,000 vehicles with New Energy Vehicles by 2025, rising to 320,000 by 2030 and 500,000 by 2035. This corresponds to a share of 20, 50 and 70 per cent of the company’s total sales, respectively.
To structure the new vehicle sales strategy, FAW Jiefang New Energy will focus on five major vehicle platform products to cover five major product lines: traction, cargo, dump, particular purpose, and passenger cars. This way, FAW Jiefang hopes to corner the entire electrified vehicle market.
The new sales and production targets are a part of FAW’s new ‘15333’ NEV strategy. The numbers mean the following: The ‘1’ embodies the company’s ambition to become a leader among global CV makers, the ‘5’ refers to the five vehicle platforms, while the ‘333’ refers to the three NEV technical routes; battery-electric, hybrid electric, and fuel cell, as well as the deployment of the three areas of R&D, production capacity, and ecosystem, and three new energy CV-dedicated services entailing the separation of cars and batteries, the car rental and transport capacity connection, and the recycling of used cars and batteries.
The strategic five-year plan, which is the 14th in the company’s history, covers the period from 2021-2025. To facilitate the growth, FAW Jiefang plans to pour over 20 billion yuan ($3.092 billion) in building new energy innovation bases in four countries, and invest more than 10 billion yuan ($1.546 billion) in constructing a base focusing on fuel cell vehicles and systems, according to Hu Hanjie, chairman of FAW Jiefang.
In return, FAW Jiefang wants to earn money quickly with electric vehicles. For stages from 2025, 2030 and 2035, the commercial vehicle division of the state-owned Chinese carmaker FAW forecasts revenues of 50 billion yuan (6.68 billion euros), 150 billion yuan (20 billion euros) and 250 billion yuan (33.4 billion euros) from the sale of its NEVs. The first customers are also said to be lining up: According to the company, orders for a total of 10,000 electric vehicles have already been signed with twelve logistics companies.