Author | Zhen Yao

Editor | Li Guozheng

Produced by | Bangning Studio (gbngzs)

For six consecutive days, with multiple launches, new products, and a string of new technologies...In October 2024, Changan Automobile, one of China's four major automotive groups rooted in Chongqing, captured most of the industry's focus and traffic.

The climax came from the 18th to the 21st, when the Fourth Changan Automobile Technology Ecology Conference was held.

Since the first Technology Ecology Conference in 2021, Changan Automobile has consistently adhered to the strategy of "New Automobile, New Ecology," announcing cutting-edge technologies and the latest research and development achievements at each conference.

At this year's conference, Changan Automobile continued to showcase its innovative strength, unveiling the mystery of Changan's digital and intelligent factory, and for the first time, introduced the Tianshu Large Model, Changan Intelligent Driving System, Tianheng Distributed Electric Drive Technology, and the Intelligent New Blue Whale 3.0 Platform.

Its three major new energy brands—Qiyuan, Shenlan, and AVATR—also unveiled their latest products, the Qiyuan E07, Shenlan S05, and AVATR 07. Among them, the launch of the Qiyuan E07 marked a milestone achievement in Changan's "New Automobile, New Ecology" strategy, entering a new track of digital and intelligent development and kicking off the second half of the automotive industry's journey.

"New energy vehicles are just the prologue; digital and intelligent automobiles are the real future," Zhu Huarong, Chairman of Changan Automobile, reiterated in his speech at the conference. "We have always adhered to this view and worked towards it."

On October 17, at the 2024 World Intelligent Connected Vehicle Conference, Zhu Huarong also stated that "new energy vehicles are just the starting point, and digital and intelligent new automobiles are the real future direction," conveying Changan Automobile's strategic orientation towards the future.

At the 2024 ESG Global Leaders Conference on October 16, Wang Jun, President of Changan Automobile, said in his speech, "Changan Automobile is committed to creating digital and intelligent new products, vigorously promoting digital and intelligent manufacturing, continuously innovating in smart and low-carbon technologies, and actively fulfilling corporate social responsibility. We are specifically implementing carbon reduction from these four aspects." Currently, the automotive industry has far surpassed the scope of traditional transportation tools, rapidly evolving into a new type of mobile intelligent terminal integrating travel services, intelligence, and interconnectivity, which Changan refers to as digital and intelligent new automobiles.

Recognizing that the second half of the automotive industry will enter the "digital and intelligent era," Changan Automobile began to focus its efforts on comprehensive digitization, building core competitiveness in this era, and aspiring to become a pioneer in digital and intelligent automobiles.

To achieve this goal, Changan Automobile unveiled its strategic direction for the next five years at this conference. After a decade-long battle in the new automobile sector, it has once again sounded the charge.

Its "Five-Year Commitment" primarily includes: launching 37 new digital and intelligent products globally over the next three years; investing a cumulative total of 250 billion yuan over the next five years and adding 10,000 new members to its technology innovation team; achieving a group sales volume of 5 million vehicles by 2030, with new energy sales accounting for more than 60% and overseas sales accounting for 30%, ranking among the top ten globally in total sales and becoming a world-class Chinese brand.

01

The Decade's Answer Sheet for New Automobiles

In June 2014, Changan Automobile's independent brand achieved a milestone—cumulative sales exceeding 10 million vehicles, making it the first Chinese automotive enterprise to achieve this feat in the shortest time.

At the time, during the unveiling ceremony celebrating the 10 millionth vehicle sold by Changan's independent brand, Zhu Huarong, then President of Changan Automobile, summarized the four key factors behind its rapid growth:

Firstly, adhering to market orientation and carefully studying market and customer needs. Secondly, continuously enhancing research and development capabilities. Thirdly, diligently following the development and research laws of the automotive industry to produce high-quality products. Lastly, continuously grasping new demands and technological trends.

"Changan Automobile has made significant technological reserves in areas such as autonomous driving, voice control, Internet of Vehicles, and new energy vehicles," Zhu Huarong explained. For example, in intelligence, Changan has invested heavily; in new technology research and development, there are dedicated preliminary studies, with researchers accounting for approximately 10% of the total research and development team, and annual research and development expenses accounting for approximately 20% of overall expenses.

In 2014, Changan Automobile also announced its new energy strategy, unveiling its next decade plan and focusing on new energy vehicles to prepare for sustainable development.

Three years later, in 2017, Changan Automobile embarked on its third entrepreneurial journey—the Innovation and Entrepreneurship Plan, advancing the "Shangri-La Plan" in new energy and the "Beidou Tianshu" Plan in intelligence.

In April 2023, Changan Automobile advanced the "Hainabahai" Plan in globalization. Simultaneously, it launched three smart electric vehicle brands—Qiyuan, Shenlan, and AVATR—to accelerate its transformation into a smart and low-carbon mobility technology company.

The automaker has established 16 technology and product research and development centers and 17 technology companies, building a technical research and development team of 18,000 people and mastering over 2,200 key technologies in new energy and intelligence. It adheres to the principle of investing at least 5% of sales revenue in research and development annually and remains committed to developing digital and intelligent technologies.

Efforts have paid off. To date, Changan Automobile has achieved results in six key digital and intelligent technology areas.

Firstly, at the mechanical level, it has integrated the development of Tianheng intelligent chassis and distributed electric drive systems, currently breaking through over 70 advanced technologies, including hydraulic suspension, rear-wheel steering, and steer-by-wire, as well as industry-first technologies such as megawatt tank-class power and three-direction, five-domain integrated control.

For example, it can provide users with 45 functions such as agile cornering, trajectory planning, loss of control prevention, and in-place turning.

Secondly, at the energy level, it has achieved over 400 core technological breakthroughs in the three electric fields. For instance, the "Golden Bell Cover" battery system, optimized iBC digital battery manager, and the iterative Intelligent New Blue Whale 3.0, New Blue Whale engine, and range-extended electric drive system.

Thirdly, at the electronic and electrical architecture level, it has mastered 74 key technologies, including the Super Brain Central Computing Platform and Ethernet Ring Network Communication.

Fourthly, at the operating system level, it has developed the Changan Tianyu OS operating system and smart cockpit, providing users with a more intelligent driving experience.

Fifthly, at the vehicle-level intelligent application level, it has accumulated 133 key core technologies. Applying the Changan Tianshu Large Model, it has built the Changan SDA Tianshu architecture, serving as the central nervous system that coordinates the various functional modules of the new automobile.

Sixthly, at the cloud big data level, it has pioneered the era of open digital and intelligent automobile ecosystems. It has created a vehicle data service platform and an industry-leading one-stop ecosystem opening platform.

▲ Zhu Huarong, Chairman of Changan Automobile

At the product level, Changan Qiyuan E07, Shenlan S05, and AVATR 07 represent the latest products and technological achievements of the three brands.

For example, as order volumes continued to climb, AVATR 07 users reported difficulties in vehicle delivery.

In response, Zhu Huarong stated at the Technology Ecology Conference on October 21, "If AVATR is responsible for any delays in vehicle delivery or failure to claim national trade-in and local replacement subsidies, AVATR will assume full responsibility for compensation."

Data shows that within 17 days of the AVATR 07's launch, over 25,000 large orders were placed. To date, deliveries have surpassed the 5,000-unit mark.

As Changan's first product targeting the high-end market and a culmination of its most advanced technologies, the Qiyuan E07 features seven key technological achievements in mass production.

▲ Wang Jun, President of Changan Automobile

Since its inception, the Shenlan brand has successively launched five models, including SL03, S07, G318, L07, and S05, covering sedans to SUVs and encompassing various power modes such as pure electric and range-extended, catering to diverse user needs.

To date, Shenlan's cumulative sales have surpassed 300,000 units, making it a significant force in China's new energy vehicle market.

It can be said that over the past decade, Changan Automobile has made remarkable achievements in technological innovation, product development, strategic planning, and brand building.

02

Winning with "Intelligence"

The industry inflection point has arrived.

At the 2024 World Intelligent Connected Vehicle Conference, many leaders in the automotive industry took the stage to share their companies' latest situations and visions.

Yu Chengdong, Executive Director of Huawei, Chairman of Terminal BG, and Chairman of Intelligent Vehicle Solutions BU, stated that the development trend of intelligent connected vehicles is clear. In the second half of intelligence, networking is the key throughout. He emphasized that with the advent of L3 and higher levels of autonomous driving technology, the practicality and user experience of smart driving will significantly improve.

Lei Jun, Founder of Xiaomi Group, announced that Xiaomi will invest over 24 billion yuan in its "human-vehicle-home" ecosystem strategy in 2024 and plans to further increase investment to 30 billion yuan in 2025, for a cumulative investment of 54 billion yuan over two years.

Li Shufu, Chairman of Geely Holding Group, introduced Geely's developments and breakthroughs in smart cockpits, smart driving, and intelligent connected vehicle chips.

"Last year, we fulfilled our ambitions. This year's ambition is that next year, Chery's intelligence will not be polite, and it must enter the forefront of the industry," Yin Tongyue, Secretary of the Party Committee and Chairman of Chery Holding Group, said at the 2024 Chery Global Innovation Conference on October 18.

In summary, smart vehicles are ushering in a new round of significant changes.

Over the past few years, the industry has reached a consensus on at least two aspects regarding the development of China's new energy vehicles:

Firstly, electrification is the first half. BYD, Geely New Energy, and Changan New Energy have gained a first-mover advantage and achieved remarkable results in market performance, technological breakthroughs, and industrial chain layout.

Secondly, intelligence is the focus of competition in the second half. In this arena, traditional brands, new forces, joint ventures, and ICT technology companies compete fiercely, accelerating the shuffling of the industry landscape.

In August and September this year, the market penetration rate of new energy vehicles exceeded 50% for two consecutive months, meaning that more than five out of every ten cars sold were new energy vehicles. Notably, sales of intelligent connected vehicles are expected to reach 17 million units this year, with a market penetration rate exceeding 63%.

Public perception of new energy vehicles has also subtly shifted, evolving from the initial concept of "electric cars" to the idea of "smart cars." New energy is just the starting point of the automotive industry's centennial transformation, while intelligence is the core area where major automakers will compete in the future.

Digital and intelligent new automobiles are becoming a key consideration for consumers when purchasing vehicles.

Changan Automobile believes that new automobiles should include at least three tangible characteristics:

Firstly, morphable form. Future usage scenarios will be richer and more diverse, and new automobiles should integrate urban commuting, long-distance travel, and other needs.

Secondly, morphable functions. Automobiles will become the third smart space beyond home and office, and new automobiles should also provide entertainment, learning, and other functions, becoming game rooms and meeting rooms.

Thirdly, morphable software. New automobiles must be highly compatible and evolvable intelligent terminals, becoming smarter and making users' lives easier.

Based on the concept of "morphability," in 2021, Changan Automobile launched its first new automobile project, codenamed "E07," at its inaugural Technology Ecology Conference. After 1,154 days, the world's first mass-produced, fully-scenario intelligent and morphable new automobile—the Changan Qiyuan E07—was launched. It is a new species of automobile with morphable form, functions, and software, satisfying multiple vehicle needs with a single vehicle and ushering in the era of morphable new automobiles.

The connotation of new automobiles goes beyond the automobile itself and represents an open intelligent ecosystem. So, where does the solid foundation of this ecosystem come from? Changan Automobile's answer is the digital and intelligent factory.

Bangning Studio learned that Changan Automobile's digital and intelligent factory is currently Changan's largest investment, the most intelligent, and most advanced in terms of process equipment among its new energy vehicle manufacturing bases. It is a comprehensive 5G digital and intelligent AI flexible super factory, marking Changan Automobile's entry into a new era of intelligent manufacturing.

This factory integrates the advanced technologies and digital and intelligent experiences of Changan Automobile, Huawei, and China Unicom.

"The digital and intelligent factory aims for full manufacturing process digitization, widely applying over 40 advanced technologies such as 5G, AI, and digital twins, featuring intelligence, low carbon, and high efficiency," Zhu Huarong explained.

Here, Huawei provides a digital transformation methodology as a guide, ensuring implementation based on the advanced architecture of "one cloud, one network, and one platform"; China Unicom provides the latest 5G technology to support the overall C2M architecture and business implementation.

Avita 07, SL03, and Changan Qiyuan E07 are all intelligently manufactured at this "smart" factory. With the support of various "black technologies," the manufacturing efficiency of the digital-intelligent factory has improved by 20% overall, with a 20% reduction in costs and a 19% reduction in energy consumption. On average, a new car rolls off the production line every 60 seconds.

For instance, this factory supports highly flexible customized production, allowing consumers to place orders online and freely choose the vehicle model, color, configuration, and even delivery date. This experience is vastly different from traditional car-buying models.

In the future, once all components of new energy vehicles are fully modularized, users may participate in the vehicle manufacturing process and truly customize a car that fully meets their individual needs through this factory.

Changan Qiyuan E07, originating from this factory, is a masterpiece of Changan's digital-intelligent production. Its customized value concept of "one thousand people, one thousand faces" allows each car to precisely respond to and deeply satisfy individual needs. This year, in addition to Changan Automobile, FAW, GAC Motor, Great Wall Motor, and others have also emphasized the importance of digital-intelligent manufacturing for industrial transformation and upgrading, as well as the new opportunities it brings. 2024 is entering its final countdown. Since the beginning of the year, the Chinese automotive industry has been mired in extreme anxiety and intense competition, with no signs of a price war abating, and the path to going overseas is fraught with challenges. In terms of technology, the trends of electrification and intelligence are intertwined, making it complex and ever-changing. Against this backdrop, all major automakers are facing immense pressure.

How to stabilize one's footing and adhere to a strategic direction amidst upheaval tests the wisdom and courage of every automaker in making decisions.