Better Times Lie Ahead for China's Car Sector, Say Officials
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16 | Monday, January 20, 2020 Motoring CHINA DAILY HONG KONG EDITION Better times lie ahead for JLR banks on Project Dragon to drive China’s car sector, say officials steady local sales Despite lagging sales figures, vehicle ownership has massive room for long-term growth By LI FUSHENG [email protected] By CAO YINGYING There is not a silver [email protected] For Jaguar Land Rover, 2019 was composed of two distinct bullet you can shoot The Chinese auto industry is halves in China, where the overall to change a trending upwards in the long- vehicle sales had fallen for two term and has great development years in a row. company. There are potential as the market is not yet Like most brands operating in a lot of things you saturated, officials said at an auto the country, the British premium show last week. carmaker was plagued by sales need to bring Wang Xia, chairman of the slumps in the first half, but together.” automotive industry committee reversed the trend by reporting a of China Council for the Promo- 24 percent growth in the second Tim Howard, executive tion of International Trade, said half. vice-president of JLR China that China’s total auto sales fell Tim Howard, executive vice- for the 18th consecutive month. president of JLR China, said the dealers to 1.5 months, from 2.2 The new energy vehicle sector fell result was thanks to Project Drag- months at the end of 2018. Those a sixth straight month in Decem- on, a program initiated 12 months figures are better than the indus- ber. ago to “fix the basics” in market- try average. “The auto industry has entered ing, sales and services. Their collaboration is expected into an adjustment period and He said the company’s fast to further facilitate the Project has great development potential expansion in past years has result- Dragon this year as Shore began in the long-term because of some ed in a number of growing pains: serving as president of JLR and its positive factors,” he said. the system’s processes and retail Chinese joint venture’s integrated Wang was speaking at the open- network were underdeveloped in marketing, sales and service in ing ceremony of the 2020 Haikou An Audi e-tron is showcased at the 2020 Haikou International New Energy Vehicle and Connected some places. China on January 1. International New Energy Vehicle Mobility Show in Hainan province. CAO YINGYING / CHINA DAILY Such imperfections became Shore worked at JLR China for and Connected Mobility Show in glaring when the market slowed four years as chief financial offer Hainan province. down and became more competi- and acting president from 2013 to It ran from Jan 10-13 and show- tive — China saw its first dip in 2016. cased around 260 new energy vehicle sales in 2018 in almost 30 In a statement late last year, JLR vehicles from global carmakers. The auto industry has years — and the company decided said it hoped Shore’s understand- Hainan will ban the sale of gas- it had to do something to consoli- ing of the Chinese market, custom- oline-fueled automobiles by entered into an date the fundamentals. ers and retail business will help 2030; it is the first Chinese prov- adjustment period Then the project, composed of transform the company’s opera- ince to unveil such a timeline. 46 items, was initiated. Aimed at tions in the country, its largest Wang said car ownership in the and has great cutting costs and improving effi- market globally. United States per 1,000 people is development ciency of the sales, marketing and Shore said Project Dragon fits more than four times of that in service systems, it also seeks to with Project Charge. Both are con- China. The number in the Euro- potential in the long- build a sustainable organization cerned with improving effective- pean Union countries and Japan term because of some for the future. ness and efficiency in operational is more than triple of China. “There is not a silver bullet you processes. “The Chinese auto industry still positive factors.” can shoot to change a company,” “I am helpful because I bring the has quite a large growth space. It’s Wang Xia, chairman of the Howard said. “There are a lot of global expertise about the Project not going to be as explosive as it automotive industry committee things you need to bring together.” Charge from the UK into China,” used to be, but a continuous and of China Council for the Promo- Encouraging results started to said Shore. winding process,” Wang said. tion of International Trade emerge following the arduous He said he will work with How- According to the Ministry of work by JLR China in collabora- ard to further promote the Project Public Security of China, the tion with the British team headed Dragon to a new level. country had 260 million vehicles by Richard Shore, who was The project has three phases: fix at the end of 2019, including 207 260 involved in JLR’s Project Change. the basics, regain the confidence million private cars. million Project Change is a global turn- and accelerate the growth. A Toyota Corolla plug-in hybrid is displayed during the event. Another positive factor is that vehicles in China by the end of around plan started in 2018 to cut “The Project Dragon has been with more electric vehicle start- 2019, according to the Ministry CAO YINGYING / CHINA DAILY costs and improve cash flows by going for a year and we have made ups tapping into the Chinese mar- of Public Security of China 2.5 billion pounds ($3.2 billion) tangible results. Implementation ket, traditional manufacturers over 18 months. is everything,” Shore said. “The are facing fiercer competition and year cannot represent the situa- Xiang Dongping, chief market- By the end of 2019, JLR China focus is to make sure that we have increasing their investment on tion this year. ing officer of Chinese electric car had cut the inventory level of its sustainable growth.” product research and develop- 1.22 Early this month, Miao Wei, startup Enovate, said it’s not easy ment. Global carmakers are also million minister of industry and informa- to promote industry develop- making efforts to promote the charging piles in China by the tion technology, said at the annu- ment, which is in need of support development of electrification. end of December last year al China EV 100 Forum that there from governments, the media and “All these efforts help to make would not be substantial subsidy manufacturers. breakthroughs in the research slashes this year. Wang Xiangrui, president of Chi- and application of new energy cars and plug-in hybrids deliv- He said China’s new energy na Machinery Industry Federation, vehicles,” Wang said. ered in China last year, down vehicle industry has gained a lead said Chinese carmakers need to boost China has invested a lot, install- from 1.25 million in 2018. globally and the country will con- industry development and upgrade ing charging piles to offer conve- At a forum during the auto tinue the strategy to consolidate its structure by strengthening collabo- nience to owners of new energy show, Xiao Yong, deputy manager the momentum. rative innovation, upgrading capabili- vehicles, Wang added. of GAC New Energy Automobile, An Jiheng, vice-president of elec- ties and accelerating technological The statistics of the China Elec- said that the change from State V tric vehicle startup Aiways, shares breakthroughs of pure electric, plug- tric Vehicle Charging Infrastruc- emissions standards to State VI — optimism about new energy vehicle in hybrids and fuel cells. ture Promotion Alliance show which came a year earlier than sales this year. Through high-level coopera- that there were 1.22 million the national plan — and the cut in He said drivers would find that the tion, Chinese carmakers will pro- charging piles in China by the end government subsidies starting in usage cost of new energy vehicles is mote advanced technologies, such of December 2019. June resulted in the runaway cost low. When the electric vehicles are as digital and autonomous driving According to the China Associa- regulation of new energy vehicle higher-quality, safer and more intel- technology, to expand new devel- tion of Automobile Manufactur- companies. ligent, customers’ acceptance will opment in the auto industry, he One of Jaguar Land Rover’s dealerships in the United Kingdom. ers, there were 1.2 million electric Meanwhile, the sales of last increase, he claimed. added. PROVIDED TO CHINA DAILY FAW-Volkswagen to launch 29 models this year despite industry headwinds By LI FUSHENG percent year-on-year. Jetta, which FAW-Volkswagen has set more ambi- spun off the Volkswagen brand in tious sales goals for its three brands, Sino-German joint venture FAW- late 2019, delivered 45,000 vehi- although the overall market is expect- We have made great Volkswagen will launch 29 models, cles. ed to face a downturn in 2020. including six new energy vehicles, “FAW-Volkswagen has not only “China’s overall economic situa- efforts and achieved this year in China, where it sold the won the sales championship, but also tion is good from the perspective of results in brand most cars of any vehicle manufac- became an automobile company historical development,” Stoffels said, turer in 2019. with extensive market coverage, “so there is still a lot of potential in the building, system Despite the headwinds of China’s excellent brand reputation and solid automotive industry.” building, overall vehicle market, FAW-Volks- development foundation for sustain- The Volkswagen brand will strive wagen delivered 2.13 million vehi- able and high-quality growth,” said to realize a target of 1.43 million sales.