FAW Jiefang has established a new business unit for electrified vehicles and presented its plans for the unit. The new brand will include all ‘New Energy Vehicles’, battery-electric vehicles, hybrids and hydrogen-powered vehicles.
The Chinese company aims to achieve sales of 120,000 vehicles with New Energy Vehicles by 2025. Then rising to 320,000 by 2030 and 500,000 by 2035.
To structure the new vehicle sales strategy, FAW Jiefang New Energy will focus on five major vehicle platform products to cover five major product lines: traction, cargo, dump, particular purpose, and passenger cars.
This way, FAW Jiefang hopes to corner the entire electrified vehicle market.
The strategic five-year plan, which is the 14th in the company’s history, covers the period from 2021-2025. To facilitate the growth, FAW Jiefang plans to pour over 20 billion yuan ($3.092 billion) in building new energy innovation bases in four countries, and invest more than 10 billion yuan ($1.546 billion) in constructing a base focusing on fuel cell vehicles and systems, according to Hu Hanjie, chairman of FAW Jiefang.
In return, FAW Jiefang wants to earn money fast with electric vehicles. For stages from 2025, 2030 and 2035, the commercial vehicle division of the state-owned Chinese carmaker FAW forecasts revenues of 50 billion yuan (7 billion USD ), 150 billion yuan (20 billion euros) and 250 billion yuan (38 billion USD) from the sale of its NEVs.
The first customers are also said to be lining up: According to the company, orders for a total of 10,000 electric vehicles have already been signed with twelve logistics companies.