I. Background Situation
New energy vehicles are both the cornerstone of China’s automotive industry’s transformative leap forward and a key driver of high-quality development through green momentum. China FAW Group Corporation has vigorously implemented its “All in” new‑energy strategy, undertaking a comprehensive, all‑encompassing, system‑wide shift toward NEVs and charting a course for green development in China’s auto sector in the new era. Notably, FAW Hongqi has unveiled a global strategy for new‑energy vehicles, embarking on a full‑process, cross‑sectoral transition to green, low‑carbon practices—spanning design and R&D, production and manufacturing, supply‑chain management, and overseas sales.
II. Main Practices
(1) Technology-Driven Transformation. The company has focused on key technological priorities, successfully mastering 983 critical core technologies. It has devoted significant resources to developing three major technology platforms: the HME all‑electric platform under the “Hongqi·Tiangong” brand, the HMP hybrid platform under the “Hongqi·Honghu” brand, and the HIS intelligent platform under the “Hongqi·Jiuzhang” brand. With technical attributes such as ultra‑low energy consumption, exceptionally strong power, supreme comfort, and unparalleled driving dynamics, these platforms have comprehensively enhanced the competitiveness of the company’s new‑energy vehicle lineup.
(II) Reshaping the Energy Consumption Structure. The company actively assumes its responsibility for energy conservation and carbon reduction, driving a green transition in its energy mix through “four key areas of reinforcement.” First, it strengthens the development and application of energy‑saving and carbon‑reduction technologies, phasing out high‑energy‑consumption equipment and processes. Second, it integrates energy management with digitalization and intelligent technologies, continuously optimizing its energy control systems. Third, it accelerates the substitution of clean energy by developing renewable resources on its own premises, thereby increasing the share of green electricity in its portfolio. Fourth, it refines its energy‑infrastructure planning, expands green‑power consumption, advances the construction of photovoltaic power stations, and steadily raises the proportion of clean energy used, injecting green momentum into the company’s high‑quality development.
(3) Strengthen supplier development. Adhering to the principles of fairness, impartiality, openness, and transparency, the company has established a full‑life‑cycle management framework covering supplier onboarding, performance evaluation, capability enhancement, and exit, thereby enhancing supplier governance. In addition, the company actively promotes and guides suppliers to embrace sustainable development by upholding integrity and compliance, as well as adopting environmentally friendly practices, thus fostering greater transparency and sustainability throughout the supply chain.
(4) Practicing responsibility across the entire product lifecycle. The company is actively serving as a pilot enterprise for extended producer responsibility, accelerating the implementation of this system and extending its resource‑and‑environmental responsibilities to cover the full lifecycle—from distribution and consumption through recycling and waste management. By rigorously managing green design, green procurement, and green logistics, the company seeks to minimize the environmental impacts of its products at every stage—research and development, design, sourcing, manufacturing, packaging, transportation, and end‑of‑life disposal. Through a multi‑pronged approach, it is fostering a circular‑economy framework throughout the industrial chain, thereby driving green and low‑carbon development across the entire value chain. In 2023, China FAW invested RMB 12.58 billion in new‑energy initiatives, up 22% year over year; expenditures on energy conservation and environmental protection totaled RMB 411 million, with comprehensive energy intensity per ten thousand yuan of output falling by 4.4% and carbon emissions per ten thousand yuan of output declining by 7.4%.
III. Application Outcomes
(1) New‑energy vehicle exports have achieved a breakthrough. Taking Hongqi’s new‑energy models as its vanguard, the company has actively entered the European market. In recent years, it has successfully established a presence in Norway, the Netherlands, Sweden, Denmark, and other European markets, while also expanding into key European markets such as Germany, as well as countries along the Belt and Road Initiative, including those in Central Asia and Southeast Asia. For example, the company secured a provincial‑ and ministerial‑level government‑vehicle project in Laos and provided vehicles for diplomatic events such as the 2022 Shanghai Cooperation Organization Summit in Uzbekistan and the 2023 ASEAN Summit, thereby firmly establishing Hongqi’s high‑end brand image. By the end of 2023, the company’s products had been exported to 87 countries and regions worldwide, with more than 150 first‑tier overseas distributors. In 2023, China FAW exported 92,000 vehicles, a volume 7.6 times that of 2020, representing an average annual growth rate of 96.4% and marking a record high. Notably, the Hongqi brand has launched a full‑scale offensive in Europe, the Middle East, Southeast Asia, and Central Asia, significantly enhancing the international profile of this national premium automotive brand. In the first half of 2024, Hongqi’s exports exceeded 13,400 vehicles, up 168% year over year, achieving double‑digit growth for the fourth consecutive year.
(II) Leveraging Intelligence to Strengthen Brand Advantages. In September 2021, the Hongqi brand’s strategic model—the all‑electric, intelligent SUV E‑HS9—was officially exported to Norway, marking a key step in China FAW’s commitment to the “dual carbon” initiative and a significant milestone for China’s premium domestic automotive brands in achieving large‑scale exports to the European market. Following the launch of end‑user deliveries in 2022, thanks to its cutting‑edge features—including an advanced smart cockpit and cloud‑based vehicle control—and the exceptional driving and riding experience it delivers, the E‑HS9 surpassed 1,000 units delivered within just six months, securing a top-three position in Norway’s midsize and large luxury SUV segment. Building on this strong performance in the Norwegian market, Hongqi has swiftly expanded its distribution network across Europe, including the Netherlands and Sweden.
In September 2021, the Hongqi brand’s strategic model, the all-electric intelligent SUV E-HS9, was exported to Norway.
IV. Innovations
(1) Coordinate resources and refine the overseas expansion framework. Strengthen top-level design, integrate overseas resources, and enhance the Group headquarters’ oversight over the entire lifecycle of Hongqi’s international operations. Adhering to the principle of “culture, management, talent, and risk control” as priority pillars, we will explore the development of an integrated overseas business operating system that seamlessly integrates brand and culture, human resources and management, products and technology, as well as investment and governance. By rigorously controlling standards and quality across multiple dimensions—including product R&D, manufacturing, service responsiveness, and problem resolution—we will ensure the sustained, healthy growth of Hongqi’s global operations.
(II) Innovation-Driven, Strengthening R&D Capabilities. To better align with global market trends and the real‑world needs of overseas customers, the company has reinforced its innovation‑driven approach, establishing the core principles of “groundbreaking originality and world‑first launches” and “self‑reliance and win‑win collaboration,” while setting the fundamental requirement for product innovation to be “exquisitely visionary and stunningly captivating.” The company has built a globally integrated R&D framework, enabling real‑time sharing of worldwide innovation resources and synchronized development across regions. By continuously bolstering forward‑looking R&D and leveraging technological innovation as a driving force, it has successively introduced multiple strategic models into overseas markets, swiftly attracting a large base of loyal customers.
(3) Co‑creation and win‑win outcomes, deepening global cooperation. The company is strengthening strategic partnerships worldwide, enhancing exchanges and collaboration with enterprises, universities, research institutions, and other stakeholders, and proactively establishing ecosystem alliances based on synergistic cooperation and shared value creation. This fosters a powerful collective force to drive high‑quality development, while continuously reinforcing, stabilizing, supplementing, and extending industrial chains. In turn, this spurs the joint growth of upstream and downstream firms, steadily elevating the sophistication of the industrial base and the modernization of the industrial chain.
In July 2024, the Hongqi brand’s mid-to-large-sized all-electric sedan, the EH7, made its debut at the Goodwood Festival of Speed in the United Kingdom.
V. Company Profile
China FAW Group Corporation, formerly known as the First Automobile Works, operates five major production bases in Northeast, North China, East China, South China, and Southwest China. It owns domestic brands such as Hongqi, Jiefang, and Bestune, as well as joint-venture brands including Volkswagen, Audi, Jetta, and Toyota.
(The relevant materials are provided by the enterprise, which has undertaken to assume responsibility for their authenticity.)