Feng Xingya at the interview session of the 2024 Fortune Global 500 Summit

 

The 2024 Fortune Global 500 Summit commenced in Guangzhou under the theme “Resilience and Innovation: Paving the Way for Sustainable Prosperity” on September 26. The summit brought together business leaders, experts, academic scholars, and entrepreneurs from around the world to discuss topics such as smart business, sustainable development, energy, modern healthcare, supply chains, low-altitude economies, and global enterprise expansion. Feng Xingya, President of GAC Group, was invited to attend the summit and was interviewed by Zhang Maiwen, Executive Editor of Fortune China. During the interview, Feng shared his insights on the current state and future of China's automobile industry in terms of cutting-edge technologies, market competition, and industry policies.

 

Feng Xingya and Zhang Maiwen in the interview about China's automotive industry amid unprecedented changes not seen in a century.

 

In the interview, Feng Xingya stated that China's automotive industry has undergone significant restructuring over the past 20 years. This transformation involved a shift from traditional gas-powered vehicles to new-energy vehicles.

 

L2++-equipped HYPTEC GT

 

In addition, intelligent technology innovations contribute to product enhancement. Given the rapid development of automobile intelligence, GAC Group has adapted positively by launching several new energy models this year, all equipped with the L2++ advanced assisted driving system. These included the HYPTEC HT, HYPTEC GT, and the second-generation AION V. This demonstrates that GAC Group is keeping up with the industry's latest trends in intelligence and new energy.

More importantly, the competitive landscape of the Chinese automobile industry is changing. The market’s main players have moved from joint venture brands to self-owned brands. These self-owned brands accounted for 66.9% of the market in August this year, with an average share of more than 63% from January to June.

 

Feng Xingya answered the questions related to equalization of ICEs and NEVs.

 

Feng Xingya stated that President Xi Jinping emphasized in 2014 that the development of new energy vehicles was the key to China becoming an automotive powerhouse. Over the years, China's strategy for developing new energy vehicles has been very successful. Given the current situation, the proportion of new energy vehicles is expected to reach nearly 50% by 2025. This will enable the achievement of the national strategic goal ten years ahead of schedule. The development of an industry requires a smooth, planned, and systematic transition. In this new phase of development, China has adjusted policies regarding purchase taxes and other related matters. Ensuring a reasonable energy mix in the automotive industry for its healthy development has become a hot topic both at the national and industry levels.

 

Feng Xingya talked about industry competition in the interview

 

Lastly, Feng Xingya shared his views on the ongoing price war in the automobile industry. He believed that price wars were an inevitable part of market competition, which was a fundamental principle of the market economy. Therefore, price competition was a normal aspect of competition. However, he emphasized that price war should be approached rationally, as it cannot be the only means of competition. A healthy cycle of enterprise investment and development must be maintained through a well-balanced pricing strategy.

According to Feng Xingya, price is used for positioning rather than for beating rivals. Based on this price positioning, companies must offer more value to enhance their competitiveness.

 

GAC Group provided reception vehicles for the summit

 

As the official designated vehicle of the 2024 Fortune Global 500 Summit, GAC provided high-quality, comfortable, and intelligent mobility services for the leaders and guests, receiving unanimous praise.

 

GAC brand displayed area at the summit