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 longterm 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. vicepresident 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 longterm 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 etron 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 1013 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 olinefueled 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 plugin 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 plugin 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, vicepresident 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 highlevel 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 higherquality, 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 FAWVolkswagen to launch 29 models this year despite industry headwinds
By LI FUSHENG percent yearonyear. Jetta, which FAWVolkswagen has set more ambi spun off the Volkswagen brand in tious sales goals for its three brands, SinoGerman 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, “FAWVolkswagen 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, FAWVolks development foundation for sustain The Volkswagen brand will strive wagen delivered 2.13 million vehi able and highquality growth,” said to realize a target of 1.43 million sales. digitalization and cles, beating rival SAICVolkswagen Andre Stoffels, the joint venture’s first Audi will aim for 700,000 and Jetta new services.” and reaching a record high in the vicepresident responsible for finance. will shoot for 200,000, executives company’s 28year history. For example, the company opened said. Liu Yigong, president of Liu Yigong, president of the joint the largest proving ground in Asia Sun Huibin, executive vicepresi FAWVolkswagen venture, said, “FAWVolkswagen went last year. A 960 million yuan technol dent of the joint venture’s Audi divi through an extraordinary year. We ogy development center kicked off sion, said the brand will offer 23 all a sales network of around 200 dealer have made great efforts and achieved construction as well. new or facelifted models this year as ships across the country, which is results in brand building, system The carmaker developed 22 mod part of its efforts to push sales over expected to reach 285 by the end of building, digitalization and new ser els last year, taking into consideration 700,000. this year. vices.” the preferences of Chinese custom Audi was the most popular premi Liu said there are many challenges The joint venture has three ers. um vehicle brand in the country over and great opportunities awaiting the brands, and each posted encourag The joint venture has also built a the past three decades. By the end of joint venture, adding that FAW ing results in 2019. team of over 2,000 people across its 2019, it had delivered 5.9 million vehi Volkswagen will define 2020 as the Sales of Audibranded vehicles five manufacturing bases in the coun cles in China, the largest customer year of transformation. “We will totaled 688,888 in 2019, up 4.2 per try to ensure the quality of its vehicles base among all premium vehicle inspire the potential of Volkswagen, cent yearonyear. through the whole processes, from brands. Audi and Jetta and transform our FAWVolkswagen tops the list of automakers in China in terms of Volkswagen brand saw its sales purchase to aftersales services. Jetta has unveiled three models, selves to offer highquality products sales in 2019. PROVIDED TO CHINA DAILY reach around 1.40 million, up 0.5 Thanks to its solid foundation, the latest a midsized SUV. It has built and services,” Liu said.
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