Interview with Ceng Qinghong of Guangzhou Automobile Group: Maximize overtime work and strive to recover lost output value.


Interview with Ceng Qinghong of Guangzhou Automobile Group: Maximize overtime work and strive to recover lost output value.

Since 2003, Ceng Qinghong, Party Secretary and Chairman of Guangzhou Automobile Group, has been elected to the National People’s Congress for three times from the 10th, 11th to 13th sessions.

Ceng Qinghong, deputy to the National People’s Congress and chairman of Guangzhou Automobile Group

The National People’s Congress in 2020 is the 13th year for him to participate in and discuss state affairs as a representative of the National People’s Congress. This time, he brought five suggestions, three of which were related to the automobile industry.

"Overall, the impact of this epidemic on the automobile industry is not small, and it may take a long time to digest and absorb these effects. However, we must also actively face up to this impact, and our confidence in the long-term development of China’s automobile industry cannot be shaken. " Recently, Ceng Qinghong said this in an interview with a reporter from The Paper.

Guangzhou Automobile Group actively carried out the work of resuming work and production.

In the interview, in addition to carefully interpreting his own suggestions, Ceng Qinghong also comprehensively analyzed various measures that Guangzhou Automobile Group was prepared to face difficulties, and responded to the latest progress of strategic cooperation with SAIC and Weilai Automobile, which were concerned by the outside world.

He revealed that although the current production and operation encountered some difficulties and challenges, the sales volume of new energy vehicles of Guangzhou Automobile Group rose by 85% against the trend in the first four months, and the group’s goal this year is to achieve a sales growth of 3%.

In his view, the future automobile market will be the world in the field of intelligent networked new energy. Guangzhou Automobile Group will further expand joint ventures and cooperation, and is willing to join hands with new forces to create a better future.

It is suggested that the cost of car purchase should be substantially reduced.

You have brought five suggestions to the two sessions this year, three of which are related to the automobile industry. Among them, the proposal to reduce the total tax burden of automobile consumption is particularly impressive. Compared with the various policies that have been introduced to promote consumption, what are the advantages of this proposal?

Ceng Qinghong:This year, I put forward suggestions related to the automobile industry from three aspects: fighting against epidemic, reducing burdens, promoting automobile consumption, and accelerating the construction of new energy automobile industrial cluster in Guangdong-Hong Kong-Macao Greater Bay Area.

Among them, further reducing the overall tax burden of automobile consumption will essentially reduce the cost of consumers’ car purchase, reduce the burden of consumers’ cars and promote automobile consumption.

One of the suggestions is to reduce the tax burden of vehicle purchase tax and vehicle consumption tax. The second is to further reduce the value-added tax burden. Third, the eligible car loan interest will be included in the special additional deduction of personal income tax to reduce the burden on residents.

Recently, countries and localities have introduced policies to promote automobile consumption, such as liberalizing purchase restrictions and subsidizing car purchases. What do you think of these policies?

Ceng Qinghong: No matter in the short term or in the medium and long term, these policies are conducive to the further development of domestic new energy vehicles.

Guangzhou Automobile Plus Car Purchase Discount, Guangzhou "Guangzhou Car Purchase" launched to promote automobile consumption.

The state has taken many measures to improve the automobile consumption environment and reduce the tax burden on automobile consumption. Especially since the outbreak of the COVID-19 epidemic this year, many departments have issued a number of policies on stabilizing and expanding automobile consumption, including subsidies, delays and financial support for national sixth and new energy vehicles, which have effectively boosted automobile consumption.

Guangzhou Automobile Group actively participates in live broadcast with goods to promote sales.

For example, on the eve of May 1 ST, Guangzhou launched the subsidy activity for automobile consumption benefiting the people. During April and May 1 ST, the passenger flow and order volume of various brand stores under Guangzhou Automobile Group increased significantly, and some even exceeded the level of the same period last year. During the May 1 ST period alone, the total passenger traffic of seven vehicle brands under GAC increased by 6% year-on-year, the number of clues increased by 19%, the order volume increased by 20%, and the terminal sales increased by 19% year-on-year. The effect of promoting sales is quite remarkable.

It takes a long time to digest and absorb the impact of the epidemic.

In April, China’s auto sales ended the negative growth for 21 consecutive months. Does this mean that the turning point of auto market recovery has arrived?

Ceng Qinghong:On the whole, the impact of this epidemic on the automobile industry is not small, and it may take a long time to digest and absorb these effects. However, we should also face up to this impact positively, and our confidence in the long-term development of China’s automobile industry cannot be shaken.

What impact did this epidemic have on Guangzhou Automobile Group? What measures have we taken to make up for the possible losses?

Ceng Qinghong:Affected by the COVID-19 epidemic, from January to April, domestic automobile production and sales were 5.596 million and 5.761 million, down 33.4% and 31.1% year-on-year; From January to April, the production and sales of Guangzhou Automobile Group were 444,000 vehicles and 472,400 vehicles, down by 30.54% and 27.49% respectively, which was slightly better than the industry average.

Although there are some difficulties and challenges in current production and operation, our goal of 3% sales growth has not changed, and we mainly make efforts in the following aspects:

First, make real moves in increasing sales. Strengthen product innovation, and develop vehicle products equipped with CN95 high-efficiency vehicle air conditioning filter elements; Strengthen marketing innovation, such as VR car watching, live broadcast with goods, etc.; Actively follow up local policies to promote automobile consumption.

Second, efforts should be made to replenish production and increase production. Strive for the support of all parties, stabilize the effective operation of domestic and foreign supply chains, and avoid supply interruption, especially the imported parts and components. Major vehicle companies make the best use of working days after work and weekends to arrange overtime, do everything possible to tap and improve production capacity, and strive to recover the lost output value.

Third, make a fuss about project guidance. Focusing on the construction task of "attacking the city and pulling out the village" project in Guangzhou in 2020, we will continue to strengthen the construction of independent research and development capabilities and accelerate the construction of a series of projects of Guangzhou Automobile Zhilian New Energy Automobile Industrial Park.

Fourth, tap the potential in increasing revenue and reducing expenditure. Vigorously carry out the activities of increasing revenue and reducing expenditure, reducing costs and increasing efficiency, actively expand the international market, and reduce the minor expenditures of various management affairs.

Guangzhou Automobile Group’s sales of new energy vehicles increased by 85% in the first four months of this year.

The rapid development of GAC New Energy in the past two years is obvious to all. What advantages do you think GAC has in developing new energy products?

Ceng Qinghong:Guangzhou Automobile Group has accelerated its layout and investment in the field of new energy vehicles, and its strategic transformation has achieved initial results.

From January to April, 2020, although the overall sales volume of the automobile industry suffered a double-digit decline due to the epidemic, GAC’s new energy sales volume increased against the trend. In April, Guangzhou Automobile Group sold 5,281 new energy vehicles, a year-on-year increase of 55%; From January to April, the sales volume of new energy vehicles was about 15,900, an increase of 85% year-on-year. Among them, GAC New Energy sold 4,006 vehicles in April, up 125% year-on-year and 14% quarter-on-quarter; From January to April, the sales volume was 11,900 vehicles, with year-on-year and quarter-on-quarter growth exceeding 94%.

Rendering of Guangzhou Automobile Zhilian New Energy Automobile Industrial Park

In terms of new energy vehicle manufacturing, the first phase of the Guangzhou Automobile Zhilian New Energy Automobile Industrial Park, which started construction in 2017, was completed at the end of December 2018.

The key technology of GAC Class A pure electric vehicle won the first prize of Guangdong Science and Technology Award.

In terms of pure electric platform GEP, GAC GEP platform can expand different levels of pure electric platform models, greatly saving development costs, shortening development cycle and enhancing product competitiveness. At present, three models of Aion S, Aion LX and Aion V have been launched, and a new energy vehicle is planned to be launched every six months.

In terms of new energy R&D test, in December 2019, Guangzhou Automobile South (Shaoguan) Intelligent Networked New Energy Vehicle Test and Testing Center officially started.

ADiGO (intelligent driving interconnection) ecosystem

In the future, we will jointly develop core technologies with SAIC to jointly expand overseas markets.

In December 2019, GAC and SAIC signed a strategic cooperation framework agreement.

After cooperating with Weilai, GAC announced a strategic cooperation with SAIC at the end of last year. What is the current cooperation progress and project promotion?

Ceng Qinghong:Win-win cooperation, innovative development, Guangzhou Automobile Group has always adhered to joint venture cooperation and independent innovation for common development, and we very much welcome partners who share common goals and seek common development.

Guangzhou Automobile Group and Weilai are committed to all-round cooperation in all aspects of the industrial chain. In May 2019, GAC Weilai’s brand new brand "HYCAN Hechuang" was officially released; In April this year, HYCAN 007, the first model of Guangzhou Automobile Weilai Hechuang brand, was officially launched.

In December 2019, Guangzhou Automobile Group and SAIC signed a strategic cooperation framework agreement, and Guangdong-Hong Kong-Macao Greater Bay Area and the Yangtze River Delta Economic Circle, two leading high-end manufacturing enterprises, joined hands for the first time.

At present, we are exploring the feasibility of cooperation from the technical field. Logistics, mobile travel, big data, international business, spare parts, insurance and other fields are also gradually sorting out the cooperation direction of business.

In the future, we will jointly develop core technologies and discuss joint investment and development of strategic core technologies and platforms in the fields of new energy, intelligence, networking and lightweight. Share industrial chain resources, explore cooperation in the field of manufacturing, and plan to cooperate in logistics, auto finance, insurance services, aftermarket, industrial investment and so on; Focus on new business models and jointly strengthen research and cooperation in new business models such as car sharing, travel service, and separation of vehicles and electricity; Work together to expand overseas markets.

Further expand joint ventures and cooperation, and are willing to create a better future with Ctrip, a new force in car manufacturing.

This year, the automobile market has obviously accelerated the speed of elimination. Do you think there is anything that traditional car companies can learn from the new car companies?

Ceng Qinghong:In the long run, the automobile industry is in a period of profound historical changes in the transformation of old and new kinetic energy. Electrification, intelligence, networking and sharing are the general trend of automobile development. The future cars will be self-driving cars and driverless cars to solve the problems of traffic, environment and old-age care. Artificial intelligence will change life and travel. Therefore, the future automobile market will be the world in the field of intelligent networked new energy.

Most new car-making forces are better than traditional car-making enterprises in terms of internet thinking and business model innovation. Guangzhou Automobile Group is willing to further expand joint ventures and cooperation with Ctrip, a new car-making force, and accelerate the innovation of "car+internet".


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