In 2023, BAIC Group achieved “double breakthroughs” in operation and development, with sales increasing by 17.6% year-on-year and operating incomes exceeding CNY 480 billion

On January 13, BAIC Group announced its operating results in 2023. Its annual vehicle sales exceeded 1.708 million vehicles, with a year-on-year of 17.6%. The growth rate outperformed the broader market. BAIC Group achieved an operating income of CNY 480.3 billion. Its output value in Beijing was CNY 292.4 billion, playing the leading role in the capital’s economic development and achieving the goal of competitive growth. In the past three years, guided by high-quality development, BAIC has practiced the “five-development” initiatives, constantly consolidated the reform results, and sped up the transformation of performance dividends. With its perseverance and confidence accumulated, it achieved “double breakthroughs” and “double harvests” in its operation and development in 2023, and handed over a solid answer sheet of struggle.

Comprehensive Improvement of Operating Quality, and Focusing on Steady Growth of Main Business

In 2023, BAIC Group achieved a sales volume of 190,000 self-owned passenger vehicles with a year-on-year increase of 69.1%, a sales volume of self-owned commercial vehicles of 634,000 vehicles with a year-on-year increase of 36.7%, and an export of 190,000 vehicles with a year-on-year increase of 73.5%. It focused on the main business. With many highlights in its major sectors, BAIC’s operating quality was comprehensively improved.

In the year of comprehensive rejuvenation, BAIC Motor promoted market-oriented reforms, and completed the rejuvenation of brand, technology, and ecology. Driven by both domestic and international markets, it drove the “Beijing” brand to rise strongly. Its annual sales increased by 60% year-on-year, and its international business increased rapidly. The sales volume was more than exceeded the total in 2022 by more than twice. and its sales exceeded the total for the whole year of 2022 by more than twice. BAIC BJEV is committed to scenario-based vehicle manufacturing. Defining products based on the real needs of users, Arcfox brand doubled its annual sales volume.

(BAIC Motor’s rejuvenation development strategy, launching the brand-new BJ40 of aristocratic-family level all-terrain Yup SUV)

BAIC Foton’s main business sectors advanced side by side, and its annual sales volume ranked first in the commercial vehicle industry, with a cumulative production and sales of 11 million vehicles, which demonstrated its strong position as a leader in the commercial vehicle industry. BAIC Truck Digital Twin Factory was officially completed and put into operation. Its core product Beijing Trucks was successfully launched. The production, sales, and operation work has been carried out in an orderly manner.

(BAIC Trucks builds the first digital twin smart factory in the commercial vehicle industry)

Beijing Mercedes-Benz and Mercedes-Benz Beijing Sales Service Co., Ltd. deepened the achievements of Sino-German cooperation. Many new models, such as new long-wheelbase GLC SUV, new long-wheelbase E-Class vehicle and new EQE pure electric SUV, have been put into production and launched successively, bringing more excellent quality star-emblem vehicles to domestic consumers and helping the high-end automobile manufacturing industry to transform and upgrade in the capital. Foton Benz actively promoted the electrification transformation and continued to play a leading role in the luxury commercial vehicle market. Beijing Hyundai stabilized and recovered. The shareholders of China and South Korea further deepened their cooperation, adding a “booster” into the development of enterprise. Beijing Hyundai successfully joined the “12 million vehicle club” and its competitiveness was comprehensively enhanced.

Scientific and technological innovation leads the new track, and nearly 40 new products of passenger vehicles and commercial vehicles are launched.

In recent years, BAIC has continued to promote scientific and technological innovation, and Technology BAIC has reached a new height.Regarding technological innovation, BAIC focuses on seven key technological fields such as intelligent cockpit and intelligent driving. It gradually promoted independent grasp and control of key technologies, and won 2023 The First Prize of China SAE S&T Award. Regarding product innovation, the development and layout of new generation products of passenger vehicles were actively promoted. Within three years, all old self-owned brand models available for sale were replaced with new ones. Commercial vehicles achieved full coverage of the three technical routes of pure electricity, hybrid power and hydrogen fuel, gradually achieving double leadership in market and technology. In 2023, there were 6 brand-new products, 5 heavy-weight vehicles replaced with new ones and 26 annual retrofitted vehicles. A total of nearly 40 new products of BAIC passenger vehicles and commercial vehicles further enriched consumers' vehicle purchase choices.

(Arcfox Kadla opened up a new category of “smart parent-child car vehicle”)

Among them, Arcfox Kadla opened up a new category of “smart parent-child car vehicle”, redefining parent-child travel products with health, safety and convenience as the core. Super-powered pure electric SUV Arcfox Kadla redefined a new generation of family vehicles. The new BJ40 staged the Return of the King, and continued to expand the pan-off-road market share. Beijing Hyundai Mufasa groundbreakingly created the multi-functional zoning concept of "two bedrooms and one living room” in a vehicle. Brand-new EQE pure electric SUV, a Mercedes-Benz’s first domestic luxury pure electric SUV positively researched and developed on the basis of EVA pure electric platform, created a pure electric all-around vehicle that meets the needs of Chinese customers ...

(In December 2023, super- powered pure electric SUV Arcfox Alpha T5 was launched)

In the field of new energy commercial vehicles, BAIC Foton continued to make efforts, achieving a sales volume of over 40,000 vehicles throughout the year with a year-on-year increase of 84%. It grandly released its new energy strategy 2.0. In 2030, the proportion of new energy will exceed 50%. In 2050, full value chain carbon neutrality will be achieved. To assist in the upgrading of transportation in the capital and solve the livelihood issues of going to and from school, BAIC Group and BAIC Foton have built buses leading to schools, highlighting every kilometer of quality transportation with safety guarantees, green technology, and humanistic care.

(BAIC Foton firmly adhered to the first strategy of new energy, and the sales of its new energy vehicles increased by 84% year-on-year in 2023)

Overseas exports increased by 73.5% year on year. 
The first overseas passenger vehicle production base was completed.

BAIC continued to develop its overseas business. In 2023, it exported a total of 190,000 vehicles, with a year-on-year increase of 73.5%. It has made new achievements in going out, staying and integrating.

BAIC Foton has promoted the internationalization strategy in depth. It has kept the first place in China’s commercial vehicle export for 12 consecutive years. It won a large order of 2,080 new energy passenger vehicles in the Indian market, and rolled the 1,000th mini truck product together with Argentina manufacturer. It signed a strategic cooperation agreement with Thailand Chia Tai Joint Venture, jointly developed the European market with Piaggio Group, and consulted green energy opportunities with Latin American entrepreneurs. It has served more than 110 projects from more than 60 countries along the Belt and Road, contributing the Foton wisdom to the joint construction of high-quality “the Belt and Road”.

Since the beginning of this year, BAIC Motor has made a series of breakthroughs in overseas markets. BAIC Rubik’s Cube has been sold in South American countries such as Argentina, Ecuador, Mexico, Chile, and Peru. Under the layout in the Middle East market, Beijing BJ60 was sold in the United Arab Emirates. It also officially landed in the Polish market, its X3, Rubik's Cube and new X7 vehicles went into the market simultaneously, further expanding its presence in the European market. At present, BAIC Motor has conducted business in 49 countries and regions around the world, leaving a profound “Beijing” mark in the global market.

(In December 2023, Beijing BJ60 landed in the United Arab Emirates and initiated a global booking model)

In addition, the plant in South Africa, the first overseas passenger vehicle production base of BAIC Group, has been fully completed and put into operation, creating a global production base and export model base based in South Africa and radiating to regions such as Africa, the Middle East, and Latin America. The first Beijing Rubik's Cube SUV made in South Africa has been successfully rolled off the assembly line.

Playing the Role of Chain Leader with Opening up and Cooperation
Building a High-quality Development Community

In the past year, BAIC Group continued to deepen its cooperation with the two strategic partners of Mercedes-Benz and Hyundai, sped up the strategic cooperation layout with leading enterprises in the industrial chain, and strengthened collaborative innovation between industry, academia, and research. It also worked hand in hand with Beijing municipal enterprises to build a strategic community.

Regarding joint venture cooperation, a series of consensus has been reached in new product introduction, new project introduction, cooperative development of new vehicle models, and accelerating reform by continuously strengthening communication between shareholders. Such cooperation is moving forward quickly under the promotion of senior management of both parties.

(All-new Mercedes - Benz E-Class Long Wheelbase)

BAIC actively give play to the role of “chain leader” to carry out in-depth cooperation with Bosch, Bertelli, Horizon Robertics, CATL and other manufacturers in the fields of new energy and intelligent networking, firmly grasping core resources and ensuring the security and stability of the industrial chain. It collaborates with China Automotive Technology and Research Center Co., Ltd., National Innovation Center of Intelligent and Connected Vehicles, China International Capital Corporation Limited, China Academy of Transportation Sciences, Beijing Institute of Technology, Beijing University of Technology and the like in research and development cooperation, financial support, talent support, etc., to promote high-quality development. It also cooperates with municipal enterprises such as Beijing Public Transport Group, Beijing Tourism Group and Beijing State-owned Assets Management Co., Ltd. in vehicle procurement, marketing services, and other aspects.

(11th-generation Sonata and 5th-generation Stelato, Brand-new “Strength Warriors”)

2024 is the tenth anniversary of the implementation of the coordinated development strategy of Beijing, Tianjin and Hebei. BAIC Group continues to empower the coordinated development of Beijing, Tianjin and Hebei. It carries out strategic cooperation with Tianjin Port Group to achieve win-win development of state-owned enterprises in Beijing and Tianjin. BAIC Foton and China Capital Logistics Co., Ltd. successfully achieved the demonstration operation of cross-regional fuel cell vehicles in Beijing, Tianjin and Hebei, and played a good demonstration and leading role.

The journey is long, and what we can do is only striving. The determination to move forward is increasingly evident in the footsteps of overcoming difficulties. In the new year, BAIC Group will deepen the “five-development” initiatives, and continuously strengthen product and marketing capabilities. It will continuously enhance its core competitiveness, consolidate competitive growth achievements, and speed up the promotion of high-quality development.