China Direct

BMW and Great Wall Auto begin work on China plant

 

 

CBI member BMW has announced that it has broken ground on a new factory in China that will produce battery-powered Mini cars. The factory will be managed in partnership with Chinese domestic automobile manufacturer, Great Wall and the collaboration will be named Spotlight Automotive.

Klaus Fröhlich, member of the Board of Management of BMW AG responsible for Development, said at the official ceremony to mark the inauguration of Spotlight Automotive: “Today we are taking the next step in our collaboration. With the BMW Group as a pioneer in the field of electromobility and Great Wall as a major player and expert in industrialisation in the Chinese market, we are joining forces for development and production of the future electric MINI and new Great Wall models.”

BMW Chief Financial Officer, Nicolas Peter said that the partnership with Great Wall will help BMW to bring down the costs for electrification, especially for smaller cars; which was the automobile industry’s number one challenge.

Executives from BMW and Great Wall were present on Friday for the casting ceremony, held in an empty field on the outskirts of the city of Zhangjiagang in Jiangsu province. The €650m factory will be completed by 2022 and have the capacity to manufacture 160,000 petrol and electric vehicles annually, a portion of which will be exported. BMW will only manufacture electric Minis at the plant.

 

 

Jaguar Land Rover drives China Sales boost

 

 

CBI member, Jaguar Land Rover has announced that strong sales in China have helped the car manufacturer record a pre-tax profit of £156 million in the three months to 30 September, with revenues up 8% to £6.1 billion.

According to Jaguar Land Rover, sales in China were up by nearly a quarter from this time last year.

This is apparently because of the popularity of new models, such as the Range Rover Evoque, which saw a 50% increase in sales. Jaguar Land Rover chief executive, Sir Ralph Speth said that it was “encouraging to see the pact of [JLR’s] Project Charge transformation and our improvement initiatives in the China market start to come through in our results.”

Accenture to acquire China auto tech start-up Futuremove Automotive

 

CBI member, Accenture has announced that it has agreed to acquire Futuremove Automotive, a Chinese vehicle connectivity solution provider, to bolster its service offering in digital consulting in smarted connected in-vehicle and mobility services, to meet rising demand from China-based auto clients.

Futuremove Automotive was founded in 2015 by John Wang, a former head of Microsoft’s China auto business, and has been developing a mixture of in-vehicle software packages and a cloud platform for inter-car connectivity. The Beijing-based start up had secured hundreds of millions of RMB in venture capital funding from some of China’s leading technology companies, such as Haier, and listed six of the world’s largest car manufacturers as its clients. Accenture have announced that Wang will join Accenture as a senior executive for its digital transformation solution business, Industry X.0.

Marcello Tamietti, Managing Director of Accenture Industry X.0, said: “The addition of Futuremove Automotive to Accenture will enhance the company’s service capabilities to drive digital innovation in the automotive industry. With the addition of Futuremove Automotive’s expertise, [Accenture] will be able to provide networking and travel services to a wider range of customers, and continue to drive innovation in this key market in China and its rapidly growing new energy vehicles sector.”

According to Accenture, revenue in the Chinese connected car segment is expected to grow at a rate of 16.5 % annually over the next four years. The company estimates that more than 73 million connected cars will hit the roads by 2023, nearly four times the current figure.

Toyota accelerates in China market

 

CBI member, Toyota has announced that it plans to extend its partnerships with leading Chinese automobile manufacturers, such as BYD, and ride-hailing group, DiDi, to significantly improve its market share in the China market.

Toyota currently only has a 5% share of the China market, and remains far behind other foreign – predominantly German – car makers such as BMW, Audi and Mercedes. Consequently, 5 months ago, Toyota CEO, Akio Toyoda, journeyed west to capture the attention of China’s automobile market.

Since coming in April, Toyota has signed deals with BYD and Contemporary Amperex Technology to develop batteries for electrified vehicles and invested $600 million in DiDi. Building on these initial investments, Toyota teamed up with Chinese start-up unicorn, Pony.ai to carry out a pilot programme for autonomous driving in July, which resulted in the Japanese marque joining Baidu’s self-driving car programme, Apollo.

As Chinese consumers become further entrenched in a trade war with the US, the Japanese group has benefited in a turn in fortunes. While reduced consumer spending saw China’s automobile market fall by 11.4% over the last 12 months, Toyota saw sales rise by 12%.

Mr. Toyoda said: “The potential rewards for Toyota are immense. Especially in this market, China, the speed of change is very, very fast. [Toyota] have to make a lot of effort to follow the changes in China. That’s the biggest issue for us.”

Company executives reportedly see China as one of the few markets where Toyota has the potential to sell its broad line-up of electrification technology used in hybrids, electric cars, and fuel cell vehicles. Beijing wants to become the world’s champion in fully electric vehicles by 2025, after all.

BP fuelling China's regional growth

 

CBI member, BP has announced that it has opened a brand-new BP-branded petrol station in Hebei Province.

BP operates in Hebei Province in partnership with Dongming Petrochemical Company, and the two companies have already opened one petrol station in the province together. BP’s second petrol station is located in Tangshan City, in the Lubei District.

The new service centre will provide BP’s customers with “high-quality fuel and high-quality services.” The station will provide customers with ready-made, BP-branded ‘Wild Bean’ Coffee, delivered to the car, as well as free WiFi across BP stores, allowing customers to easily log in and enjoy the BP membership reward scheme, which entitles them to benefits in partnership with 6,000 companies across the country.

BP China Gas Stations, President, Retail, Hannah Hao, said: [BP] welcomes Tangshan customers to our new petrol station. We believe that consumers will have a pleasant refuelling and user experience when using our new facilities.”

The Tangshan Petrol station is BP’s second station in Hebei Province. Two further petrol stations are under construction within the province, in Tangshan City’s Kaiping District, and the Luancheng District of Shijiazhuang City. The completion of these stations marks a step closer to BP achieving its goal of opening 1,000 petrol stations in China over the next 5 years. 

Rolls-Royce Motorcars launches four new models to the China market

 

CBI member, Rolls-Royce Motorcars caused a storm at this week’s Shanghai Motor Show, after the luxury car manufacturer launched four brand new bespoke Rolls-Royce models in China. Subscribers to China Direct will remember that the luxury car manufacturer had an incredibly successful 2018, with the Greater China market playing a significant role; becoming Rolls Royce’s second-largest market. In recognition of the value of the China market to the brand, Rolls Royce decided to launch the Phantom Extended Wheelbase model, featuring the Privacy Suite, alongside the Cullinan, Ghost and Wraith, Black Badge model at China’s biggest motor show.

Speaking at the event, Rolls-Royce Motorcars CEO, Torsten Muller-Otvos said: “[Rolls-Royce] is very pleased with our performance in Greater China. At Rolls-Royce our patrons are our lifeblood. They are our heroes and friends. We are wholeheartedly committed to meeting their diverse needs and desires. For our Chinese customers, being in a Rolls-Royce is a special experience, like no other. And they are deeply appreciative of our meticulous attention to the most modest details, and we welcome their custom.”

Rolls-Royce is gaining ever increasing favour amongst young, ultra-high-net worth Chinese customers who are attracted to the brand’s youthful model range, and exceptional personalisation options. Phantom, which is Rolls-Royce’s premiere product, sells more in China than anywhere else in the world.

According to Leon Li, director of Rolls-Royce Motorcars, Greater China: “[Rolls-Royce’s] China patrons are younger than in other markets, exceptionally successful, and have a global perspective. All of this contributes to their unique tastes and appetite for highly bespoke Rolls-Royces.”

To read the full press release, including the features of each bespoke Rolls-Royce model, please follow the link.

 

Aston Martin roars ahead in China with Shanghai launch of Rapide E

 

CBI member, Aston Martin launched its first electric model, the Rapide E, in Shanghai on Tuesday. Aston Martin have swapped the original car’s 6.0 litre V12 engine for an 800V battery with a 65kWh capacity that powers the Rapide E to a top speed of 155 mph. The Rapide E’s all-electric engine produces 950Nm of torque, meaning that 0 to 60 mph takes as little as four seconds.

Aston Martin said that they launched the Rapide E in Shanghai to further demonstrate their long-held commitment to the rapidly growing China market.

Mark Reichman, EVP and Chief Creative Officer, Aston Martin Lagonda, said: “The automotive world is developing at a rapid pace and these new models demonstrate the direction we have taken with Aston Martin’s product strategy to future proof our business. Unveiling Rapide E is a milestone for Aston Martin as it kickstarts a new era for Aston Martin’s powertrain strategy. The Chinese market continues to be strong for us as we see the benefits of the investments, we made to strengthen our brands and our sales infrastructure throughout the region.”

Aston Martin also launched its new Lagonda All-Terrain Concept car on Tuesday. Sedans and SUV-type vehicles are immensely popular in China, in contrast to Europe, where luxury consumers still prefer to buy traditional two-seater sportscars. The Lagonda All-Terrain Concept has been launched to appeal to Chinese consumers who value the size and presence of their vehicle on the road, while the Rapide E is a long-wheel base but low-slung sports car.

To read more and see photos of the launch, please follow the link.

CBI members on track in 1,000th F1 Grand Prix in China

The best of British automotive engineering was on show this weekend, as Formula One held its 1,000^th Grand Prix in Shanghai. 50 years after the first world championship race was held at the Silverstone race track in the UK, it was all eyes on China - in a demonstration of how a sport that was born out racing around disused British airfields after the Second World War, has grown to take on the world! In a further sign of the sport’s growing popularity and potential in the Asia-Pacific, the British Business Group Vietnam announced on Friday that construction had begun on the Hanoi Grand Prix racetrack, scheduled for March 2020.

Formula One has become a key marketing platform for British businesses seeking to appeal to petrol heads. CBI members, BP, ExxonMobil and Shell went head-to-head this weekend in Shanghai, powering the majority of the main competitors in the race, including Aston Martin Red Bull Racing.

Diageo was on hand to ensure that the drinks flowed, and Tata Communications kept track of the position of the cars as they rocketed around the track. Be it big business or small, Formula One provides huge opportunity for exposure on the world stage, and provides a solid customer base for British manufacturing SMEs, such as Shropshire-based ACE Engineering, who use the racing series as a platform to sell their high-performance engine components.

Motorsport is big business for the UK. Eight of the current 11 F1 teams are based in the UK, availing of an expert supply chain, comprising more than 40,000 people, that earns £6 billion in sales a year. Much of the UK’s motorsports expertise is located close to the Silverstone racetrack in Northamptonshire, where it is possible to find a diverse range of specialist suppliers providing a specialist manufacturing capability to the big marques, such as Ferrari and Mercedes-Benz, as part of an intricate international supply chain exporting parts in support of races all around the world.

The majority of Formula One’s logistics is managed by CBI member, DHL who will soon need to add Vietnam to their calendar, following the announcement that ground breaking on the new Hanoi grand prix track took place last Friday. The new racetrack features the longest straight in the F1 calendar and will see cars reach speeds of over 200 mph. The event is due to take place in March 2020, and will be sponsored by HSBC.

To read more about the involvement of British Business in F1 Hanoi, please follow the link.

Rolls Royce Motors to record China sales growth

CBI member, Rolls-Royce Motorcars enjoyed strong demand from Chinese clients over the course of 2018 according to figures released last week. Rolls-Royce boosted sales in China by 43% last year, far exceeding the average 8% increase in volume for luxury vehicles in the market. Rolls-Royce is confident that this strong performance will continue through 2019 despite the world’s biggest automobile market experiencing the worst slowdown in a generation.

Rolls-Royce CEO, Torsten Mueller-Oetvoes said, “I am very confident that [Rolls-Royce] should see again this year a record year in the Chinese market. […] Rolls-Royce are to a certain extent decoupled from what happens in the ordinary car market. […] our clients don’t need a car to get them from A to B, a [Rolls-Royce] is a true luxury good. […] from our side, China’s economy is still strong and in particular our Chinese dealers are flamboyant and optimistic about the future.”

The car marque has taken several key steps to cater to the increasingly influential tastes of China’s market of late, including launching the Cullinan SUV model – Rolls-Royce’s first SUV and a nod to younger clients seeking a ‘sportier’ aesthetic. The Cullinan is due for release in the China market later this year.

Jaguar Land Rover roars and wins Chinese copycat legal battle

CBI member, Jaguar Land Rover has won a legal case to prevent Chinese car manufacturer, JiangLing Motor Corporation from selling a copycat vehicle, ending a three-year court battle.

On Friday, the Beijing Chaoyang District Court ruled that five major features of JiangLing Motor’s Land Wind X7 sport utility vehicle had been copied from Jaguar Land Rover’s Range Rover Evoque model. JiangLing motors was ordered to cease production, sales and marketing of the vehicle.

Jaguar Land Rover is also seeking RMB 1.5 million (£170,000) in costs and lost business, a sum which may rise in the future.

Keith Benjamin, Jaguar Land Rover global head of legal said: “This ruling is a clear sign of the law being implemented appropriately to protect consumers and uphold their rights so that they are not confused or misled, whilst protecting business investment in design and innovation. [Jaguar Land Rover] welcomes this decision of the Beijing court, which further strengthens our confidence in investing in China and in the fairness of intellectual property adjudication in the Chinese courts.”

The new Range Rover Evoque will be launched in China next month.

To find out more, please follow the link.