Hongqi holds hands with Palace Museum to create brand with Chinese characteristics

Since the launch of the new strategy in last January, FAW-Hongqi has been committed to a new attitude to integrate into the public's vision, such as the joint release the mass production plan of L4-class auto-driving passenger car with Baidu, the first participation in the World Internet Conference, and cross-over cooperation with Li Ning. January 29, IIA learned from FAW-Hongqi that Hongqi and the Palace Museum formally signed a strategic cooperation agreement. Both sides will jointly build a brand with Chinese characteristics through inheritance and innovation, and promote Chinese culture through a series of cultural, educational and benevolent activities. In the future, Hongqi will serve as the official designated reception vehicle for the Palace Museum, and will launch an exclusive model for memorizing the 600th anniversary of the Palace Museum next year.

This year marks the 70th anniversary of the establishment of the People’s Republic of China (1949). The Hongqi brand will jointly hold the “Wan Zi Qian Hong Exhibition (‘万紫千红大展’ in Chinese) ” with the Palace Museum to celebrate this significant time. At the same time, Hongqi brand “Flag China (‘旗迹中国’ in Chinese) ” project will be launched to create an image and products with Chinese characteristics that are exclusively owned by the Hongqi brand.

“With 60 years of history, the Hongqi decide to work with the Palace Museum, which has a 600-year history of culture, to pay tribute to Chinese culture. One of us is a national treasure, and the other is the pillar of the country. The cooperation between us will be a cross-over cooperation that demonstrates the strength of Chinese brands, digs into Chinese cultural charm, and creates cultural classics. It will also be the best collision between the outstanding cultural representatives of the automotive industry and traditional Chinese culture.” said Xu Liuping, chairman and party secretary of China First Automobile Group Corporation. “There are many similarities between the Palace Museum and the Hongqi. One is the inheritance of history. We expect to cooperate with the Palace Museum to show the treasures of the automobile industry. Another is social responsibility.”

Shan Jixiang, director of the Palace Museum, said: “It is delighted to work with the Hongqi brand to jointly enhance China's cultural self-confidence. The Hongqi is the pride of the Chinese and an outstanding representative of the Chinese automotive industry. I believe that the cooperation between us will be brilliant.”

Sales volume in 2018 & Plans of new cars

2018 marks the 60th anniversary of the birth of the Hongqi brand and a key year for the revitalization of the new Hongqi. Last year (by the end of December 14), the Hongqi brand completed the annual sales target of 30,000 vehicles 17 days ahead of schedule, and is one of the few Chinese car companies that have completed sales plans.

According to the plan, the Hongqi brand will launch main products such as the E-HS3, the HS7, the HS5 and the new H7 this year, and will begin to pilot the operation of fuel cell electric vehicles. The first electric vehicle based on the FME platform will be launched in 2020. 15 electric vehicles will be launched in 2025. It is expected that, by 2025, the new Hongqi will launch 17 new models and achieve an annual sales target of 500,000 units in 2035.

Moreover, interconnectivity and self-driving will also become the focus of the new Hongqi. It will launch a L3-class self-driving model in 2019, L4-class in 2020, and L5-class fully automatic driving model in 2025.

In terms of channel planning, the Hongqi brand has been opened more than 90 Hongqi Experience Centers by the end of last November. Moreover, the Hongqi brand will also launch considerate services such as lifetime free warranty, rescue, and delivery, and used car value preservation plan.