Dongfeng Thirteenth Five-Year Autonomous Production and Sales Scale will reach 3 Million Units

On April 21, the 2014 China Automobile Forum hosted by China Association of Automobile Manufacturers was held in Anting, Shanghai. The theme of this forum is the transformation of China's auto industry under the new normal economy. The following is the statement made by Liao Zhengbo, the director of strategic planning department of the guests Dongfeng Motor Company.

Colleagues and colleagues, especially our colleagues in the planning strategy for the automotive industry, have the opportunity to share with you the planning vision of our Dongfeng Motor Company this afternoon. As the meeting is scheduled, it is an idea, especially since the 12th Five-Year Plan has not ended yet. Five has not yet been completed. At present, Dongfeng’s 13th Five-Year Plan is in the process of being conceived. Like other companies, it may be that by the end of this year, the 13th five-year plan for the entire group will be completed.

The contents of the report for everyone are divided into three parts. One is the analysis of the business environment. The second part is the vision of our strategic plan for Dongfeng, the focus of strategic development, and the third part is the direction of the 13th Five-Year Plan.

As the previous few speeches stated, the business environment we are facing globally, the global economy is gradually recovering. Although we say that the recovery is not balanced, in terms of our 13th five-year plan, we must consider What areas of the world are recovering, the different states of economic recovery. At the same time in China, we should say that the economy is in a new normal, especially in the automotive industry. In the past ten years, when the average annual growth rate is higher than 20%, the next 13 years, especially the next 5-10 years, We think that the growth of the entire automotive industry will be less than 10%. In the automotive industry, global growth over the next five years is basically a return to normal levels as the economy recovers. The average annual growth rate of the global automotive industry in the past 13 years has been between 3% and 4% under normal circumstances. Then China's development happens to be at a relatively high growth period, and it also brings high-speed and stable growth to the world's automotive industry. Then the global development pattern of the auto industry is now more and more obvious. Therefore, when we do the 13th Five-Year Plan, we must lay out a global strategy according to each market and every company.

The second point is that the development pattern of the automotive industry is changing. Now that it is global procurement, global R&D, and changes in localized manufacturing methods, we consider such a trend to arrange our 13th Five-Year Plan.

The overall auto industry in China is still in an opportunity for strategic development. We say that the origin of the rapid development of Chinese automobiles is from 2003, the duration of this rapid development, in the past 16 years to 18 years, in other words, there are still several years of rapid development. However, changes in this market will show the following aspects in the future. Market concentration will continue to increase, and the competitiveness of independent brands will continue to increase. We think that in the next three to five years, the use of the Chinese automobile market will be the habit of customers using their own brands. It will soon be the same as the choice of home appliances by customers 20 years ago. The acceptance of independent brands will take place in the next three to five years. huge change. At the same time, the pace of going out will increase further. The development of internationalization will become the focus of business development. Because from the development history of the international developed countries, when the country's market growth rate reaches 5%, it is seeking overseas markets. Therefore, during the next 13 years, I believe that all companies, especially Chinese companies, will pay extra attention to the international market.

Another feature is that new energy will quickly enter the development period. Another, the value chain of the automobile industry chain is continuously expanding, and the development of the horizontal industry has entered the fast lane. Thirteen Five should be from the mobile internet, smart cars, and industrial 4.0, and each auto company has to think about this issue.

Dongfeng is to create a sustainable development of the century's east wind, facing the world's east wind, independent research and development of the east wind. Our corporate strategic goals are very clear and we are doing our best. In the field of commercial vehicles, we are a first-class enterprise of international business. In terms of passenger vehicles, we will be a first-rate enterprise in China during the 13th Five-Year Plan period. At present, we are in the leading position in the industry in terms of scale and profitability of our domestic business. In terms of business layout in China, whether it is commercial vehicles or passenger vehicles, including our layout across the country, we are very sophisticated and reasonable. At present, it is the most competitive commercial vehicle company in China.

During the 13th Five-Year Plan period, Dongfeng must be one of the strongest auto companies in China. Our goal is to have a Dongfeng brand scale and be one of the most influential brands in the forefront of the industry.

In addition, in the group's overall strength, it should be among the best in the industry. Commercial vehicle business, the domestic to do the strongest. Among the world-famous brands, we need to be more advanced, and our autonomous passenger vehicles must lead the country. After the end of the thirteenth five-year plan, we are in the fourteenth five-year plan. We have a new goal that is to integrate into the international community. In the course of the 13th Five-Year Plan, we will also make a 10-year plan, that is, a plan from 2016 to 2025.

Dongfeng’s overall business development approach is still to strengthen its autonomy, while accelerating the four aspects of internationalization, innovation and development and win-win cooperation. In the 13th five-year development plan, we have to achieve 18% of the market share. Through five years, our market share, our goal is a bit low, but our task is also very arduous, increase by 1.8 percentage points. Our revenue targets must be higher than the domestic level on the premise of adhering to quality. During the 13th Five-Year Plan period, we still have to insist that such a level of earnings should lead.

The sales volume of independent brands, we will gather the strength of our company-wide group, in the scale of independent brands, but also to be the industry in front. In the 13th five-year period, we will reach 15% of our entire Dongfeng brand. During the 13th Five-Year Plan period, new energy vehicles will acquire some key technologies and core resources. Leading. This is a target vision for the development of the 13th Five-Year Plan. In Dongfeng brand planning, it is also the focus of our planning. In the commercial vehicle sector, we will further enhance the brand influence of our commercial vehicles. From the current situation with other international brands living in the same region, our brand power in the same area, we have to enter the top brand influence. In terms of passenger vehicles, our brand value must be close to this international non-mainstream brand enterprise.

With regard to the development of independent businesses, the scale of our own brands and the overall sales volume will reach the scale of 3 million units. Commercial vehicles must become world-class companies. I am very proud of our Dongfeng commercial vehicles. As far as the world is concerned, it is no less than the influence of other international brands. International multinational companies have recognized Dongfeng brand commercial vehicles, both domestically and internationally in China. Especially in China, foreign brands are not competitive with the Chinese brand.

In Dongfeng's own brand business plan, we have 1 million commercial vehicles, and our own brand will have a scale of 2 million, of which the self-owned brand belonging to the Dongfeng Shuangfeiyan brand will achieve 1 million. Then, in addition to Dongfeng Shuangfeiyan's other independent brands (Qichen, Nazhijie, Siming, etc.), we also achieved 1 million, reaching the scale of 3 million during the 13th Five-Year Plan period. We will do some specific project arrangements for our own brand of passenger cars. During the period of the 12th Five-Year Plan, we introduced some of the layout arrangements for traditional cars, focusing on some powertrain platforms and vehicle development. During the 12th Five-Year Plan period, we also made some arrangements on the electronic technology platform. However, during the 13th Five-Year Plan period, we will make new arrangements in terms of electronic technology platforms and connected smart cars. Therefore, during the 13th Five-Year Plan period, we will still make corresponding arrangements on product platforms, powertrains, key technologies, and resource synergy.

In terms of new energy vehicles, by 2020, it should be said that in the field of electric vehicle technology development, it will also develop toward fuel cells and electric vehicles in the field of new technology batteries. Currently, during the 13th Five-Year Plan period, it is still the development of traditional pure electric vehicles and PLUGs. In the electronic control of the vehicle, it is possible to enter the production of batteries and motors. Judging from the judgment of the Twelfth Five-Year Plan, the entire vehicle company has entered the field of batteries, and we think it is an inappropriate time. However, at the end of the 13th Five-Year Plan period, after the battery's technical development route was determined, or after we judged the battery development route, we would enter it at a proper time.

In terms of internationalization planning, we will deepen such strategic cooperation with multinational corporations. For example, during the 12th Five-Year Plan period, we will arrange alliances with PSA, Volvo Alliance, and Volvo Trucks. With an international perspective, we will integrate global resources. At present, during the 13th Five-Year Plan period, we will use the opportunity of the twelfth five-year plan to fully cooperate with multinational companies on manufacturing resources, on networks, and in research and development. During the 13th Five-Year Plan, our overseas sales will reach 300,000 units each year. Overseas exports will enter the top three of the industry. The current Dongfeng company's overseas exports, in the industry, this is not enough to do, is currently the sixth place in the country. During the 13th Five-Year Plan period, we will enter the top three and will focus on exploring ten overseas markets. In these markets, we will mainly carry out the output of technology, etc., and carry out production investment construction.

In the auto parts field, we will focus on the development of parts and components to support the development of the entire vehicle business. We will become a domestic first-class, internationally competitive parts supplier and supply group in several parts and components business. Prior to 2015, our group's internal planning was mainly synergy and R&D collaboration. In the next years, from 15 to 17 years, it is still a consolidation of some resources within our group. By 18 to 20 years, it is mainly to do something like how to make our parts and components companies neutral, and develop and release markets. After 2020, we will promote parts and components to the world.

With respect to the expansion of the value chain and the development of the horizontal business, Dongfeng strives to use the company’s current important resources for the development of our company’s horizontal business and create more profit growth points. Includes other aspects from used cars, e-commerce, oil products, and more.

The 13th Five-Year Plan has a very important challenge. It is how to make this Internet smart car, as well as smart manufacturing, and our products from the same design, market integration, to create such a cyclical process. Then ventilation company will be in the thirteenth five-year plan, just complete the Dongfeng Motor plus Internet as the core, and promote the network infrastructure platform, including cloud computing, industrial intelligence system, and the Internet. It may be implemented in some areas. We cannot do this completely in the thirteenth five-year plan, but we must do this framework.

The above is the basic work we have done in the 13th Five-Year Plan of Dongfeng. The current work has not yet been fully implemented and it is expected to be completed by the end of the year.

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