FAW Group’s newly-built subsidiary likely to work for Hongqi’s ICV strategy

Shanghai (Gasgoo)- China's state-owned automaker FAW Group established a wholly-owned subsidiary on June 22, which is likely to help Hongqi forge ahead with its ICV (intelligent-connected vehicle) development.

Involving a registered capital of 45 million yuan ($6,359,166), the new subsidiary, named Beijing Qicai Intelligent Technology Co.,Ltd., has a line of businesses including the technology development, consultation, transfer and promotion, the sale of computers, software, electronic products, communications equipment and automobile accessories, the Internet information service, as well as the engineering design, according to the Chinese business data query platform Tianyancha.

On October 30, 2018, FAW Group announced its R.Flag Plan – a technology development plan for Hongqi brand – in Shanghai. As a key measure of implementing New Hongqi Brand Strategy, the R.Flag Plan is also a major achievement in promoting brand image and product competitiveness of Hongqi brand.

The R.Flag Plan, stands for Rise, Future, Leading, Autonomous and Genes, comprises of four strategic plans – i.RFlag, e.RFlag, 5f.RFlag, and m.RFlag.

The “i.RFlag”, dubbed “Qicai” in Chinese, is Hongqi's technology brand for ICV. Given the correlation in name, the newborn subsidiary may involve the implementation of the premium brand's ICV strategy.

(Hongqi H9, photo source: Hongqi's WeChat account)

Under the “i.RFlag” plan, Hongqi has yielded some substantial fruits. At the Boao Forum for Asia Annual Conference 2019, the automaker unveiled three Hongqi-branded intelligent models, including an electric mini bus, the E-HS3 and the H7 PHEV.

Moreover, the e.RFlag, the 5f.RFlag, and the m.RFlag focus on electrification, experience and ride-sharing segments respectively.

Hongqi saw its May sales rose precipitously 133.3% from the previous year to 15,103 units, and its production outputs soared 97.2% to 16,002 units.

The premium auto brand has six models on sales to-day, namely, the H5, the H7, the L5, the HS5, the HS7 and the E-HS3 BEV, including both SUVs and sedans, and is ambitious to form a massive product matrix composed of 21 models by 2025, 18 of which will be NEVs.