Chinese automaker BAIC eyes top 100 of Fortune 500 list

Openness and cooperation the future path

As China accelerates in expanding the opening-up of the automotive industry to outside world, Chinese automakers are confronting unprecedented opportunities and challenges. When asked about BAIC's coping strategy, Xu believes further opening-up and embracing new technology and the whole world are the final solutions.

The group established China's first state-level new energy vehicle technology innovation center this March, which aims to integrate global resources in tackling technical problems.

The 11.9 billion yuan ($1.76 billion) Beijing-Benz luxury new energy vehicle factory is under construction, with the first vehicle rolling off the production line in 2019. The first phase of the factory has a capacity of 150,000 units, with an estimated output value of 50 billion yuan. Future capacity can be extended to 30,000 units, according to Zhang Xiyong, general manager of BAIC Group.

The group also signed a strategic cooperation agreement with Canadian global automotive supplier Magna to set up an R&D and manufacturing center for high-end intelligent electric vehicles, with the BJEV high-end brand ARCFOX as the first set of cars to be put into production.

As a positive contribution to the Belt and Road Initiative, BAIC established a production base in South Africa, which will officially go into operation by the end of July.

Besides, the group also signed multiple strategic cooperation agreements with Chinese smartphone leaders Huawei and Xiaomi, ride-hailing behemoth Didi Chuxing, internet search giant Baidu, and e-commerce titan Suning, to build an all-new ecosystem in the era of intelligent connection.

The total operational revenue of BAIC Group was registered as 470 billion yuan in 2017, and it is projected to exceed 500 billion yuan this year, said Xu Heyi, the chairman.

"BAIC's 130,000 staff members are striving to make their own contribution to Beijing, the company's hometown," Xu said. "From the chairman to junior staff, sometimes we won't even have time for lunch," he said. "It is normal for staff members to work until midnight."