“Smart Power” Gives Birth to the Great Revolution, and BAIC Group Builds an Ecosystem


BAIC Group has won widespread praise with an enterprising, forward-looking, open and inclusive attitude in the following aspects: the change from "Made in China" to "Created in China" and the warm embracement of the Internet +; active devotion to new energy vehicles and exploration of intelligent automobiles, and the creation of system innovation with capital innovation. BAIC Group, dares to use, can use, and all the more makes good use of "smart power" while pioneering and constructing innovative ecosystem mode, which has made it set up a new benchmark for “Made in China 2025”.

Xu Heyi, chairman of BAIC Group, said: “Science and technology is the primary productivity, and a new round of technological revolution and industrial revolution has kicked off.” BAIC Group will further use the Internet thinking, technique and method to promote innovative transformation, drive the traditional manufacturing industry to the manufacturing networking, informationization, intellectualization and specialization.

“Made in China 2025” and Internet+ expand a new level of BAIC Group

The term "Smart Power" was proposed by the American scholar Suzanne Nossel, which emphasizes to achieve the goal of enhancing national power through the combination of hard and soft power. This concept had received wide attention from the political and business circles the moment it was put forward. The smart power is to use "late-mover advantage" to achieve the effect of "getting twice the result with half the effort" through forward-looking layout.

BAIC Group, as an outstanding enterprise among the first automobile industry group in China, unceasingly promotes the development with innovation and reconstructs the ecosystem with change. Chairman Xu Heyi also stressed on many occasions: “BAIC Group should finish the transformation from a manufacturing enterprise to a service-oriented and innovative strategic enterprise.

BAIC Group, on the one hand, strengthens the traditional manufacturing, actively responds to the national strategy of "Made in China 2025", and promotes the exploration of "Industry 4.0" of Chinese version. In the first half of this year, under the overall downturn of the car market environment, BAIC Group’s business modules maintained the good development momentum, especially Beijing Benz and BAIC BJEV, becoming the highlight of high-speed growth by virtue of the brand promotion and innovation layout.

BAIC Group made a good beginning in the first quarter of this year. Its 7 main complete vehicle modules (BAIC Motor, Changhe Auto, BAIC BJEV, Beijing Hyundai, Beijing Benz, Foton, BAIC Yinxiang), were in full swing, accumulatively selling 642,000 vehicles, with an increase of nearly 9% on a YoY basis, and the sales growth rate was far above the industry average. Since May 2015, 7 complete vehicle brands of BAIC Group have also introduced as many as 17 new models (excluding modified cars and imported cars), to hit the group's annual sales target of 2.7 million vehicles.

Xu Heyi, at Global Automotive Forum 2015 (the 6th), boldly predicted that: "From the current total number of China's automotive enterprises, by 2020, at least 20% of them will be knocked out, i.e., over 1/5, and such number may be 1/3 if we predict radically. What kind of automotive enterprises will be eliminated? The enterprises slow in technological progress, poor in innovation ability must be out."

Xu Heyi believed that China's automobile industry had formed a certain scale of production after decades of development, but since it started later, and the basis was poor, it still lagged behind in manufacturing capacity, product quality and technical content compared with abroad level. China's automobile industry was still in the phase of from Industry 2.0 to Industry 3.0. If we wanted to popularize Industry 2.0, make up a missed lesson of the Industry 3.0 and realize catch-up with and surpassing in the Industry 4.0, we should strengthen the basic ability, improve the level of comprehensive integration, cultivate the new mode of production with the promotion of the intelligent manufacturing as the breakthrough point, and promote digital, networked, intelligent manufacturing. BAIC Group has long-term thinking and exploration in the practice of “Internet+”. At the beginning of 2015, BAIC Group accelerated the integration with Internet. BAIC Group cooperated with e-commerce for many years and won the champion of single automobile sales on the “Double 11th”; its strategic cooperation with DiDi Kuaidi achieved the integration of "Internet +" with BAIC Group’s rental business. On the basis of this, BAIC Group makes its products to faster integrate with IOV, which promotes resource advantage for BAIC Group, and injects the new momentum for opening up a new “blue sea”.

Intelligent automobiles and NEVs -explore the new pattern of BAIC Group

BAIC Group has always been "Brave to be a pioneer", who provided personalized service and personalized products for consumers by means of the Internet thinking and Internet technology on the basis of cultivating the traditional automobile market.

As intelligent and lightweight characteristics of Internet were further applied to electric vehicles, BAIC Group built an "IOV conceptual system" in cooperation with Internet companies, realizing the information interaction and synchronization. Combined with the specially designed Adaptive Cruise Control (ACC), intelligent terminal keys for remote start, smart exterior rearview mirror, automatic parking and other functions, as well as intelligent mobile terminal wireless charging, new UI display interface, SNS team, convenient car hitchhiking and other powerful social network configurations, BAIC Group will provide users with more intelligent, convenient and enjoyable experience.

BAIC Group jointly developed the Internet intelligent automobiles with LeTV and launched the first “IOV conceptual system” during Auto Shanghai 2015, which attracted many domestic and foreign audiences to stop and experience and became a beautiful scenery line at Auto Shanghai.

Xu Heyi once said that the future cars would be a combination of "hardware + software", and its core value source would shift to services and software; in the future, vehicles would also be human's mobile information terminals and interactive life scenes, and produce new consumption demands and market opportunities. The IOV system of BAIC Group produced by using the Internet thinking is exactly a good tool to meet the above conditions/capture the market. In the Internet age, BAIC Group is creating a new profit model by grasping the industry trends.

As a business module of BAIC Group with rapid development in recent years, new energy vehicles have won the industry's attention and praise. As a leading enterprise in domestic BEVs, BAIC BJEV has accumulatively sold more than 10,000 new vehicles, ranking first in all the NEV brands by sales. Data show that from January to June this year, BAIC BJEV achieved the total sales volume of 6,223 NEVs, with a Beijing market share of 66.5% and a national market share of 23.1%, continuing to maintain the first place in China. In the global ranking list of the NEV sales volume from January to May, BAIC Group’s EV series single model ranked among top 10 in the global ranking and the 6th place in the BEVs ranking, obtaining widespread high praise in the industry.

In terms of critical charging pile construction, BAIC BJEV, on the one hand, intensifies efforts to invest at home, completing the construction of more than 5,400 charging piles; while, on the other hand, is working with SINOPEC to develop and construct the BEV technology of battery quick change, which is another major pattern innovation of BAIC BJEV. The quick change technology is very convenient, with which the electricity changing process will be no more than 3 minutes. As long as the unification of the battery standard and charging interface is realized, the bottleneck for the promotion of BEVs in the oversize city can be resolved, so that the general public and ordinary consumers can experience the new pattern of "plug-in and charging" double-track electric vehicle life.

Xu Heyi once said: "Innovation is the origin, so automotive enterprises intending to win the future competition must shift to innovative enterprises, and traditional automobile industry will definitely develop towards intellectualization and ecologicalization." With clever layout, active forward and full use of "smart power", BAIC Group created a brand new concept of industry to firmly go along the way of transformation and innovation.

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