Workers are busy at a production line of the new energy vehicle AVATR at a workshop of Chang'an Auto in Jiangbei District, southwest China's Chongqing Municipality, July 20, 2023. (Photo/Xinhua)
Chongqing - The AITO M9, the flagship model from Chongqing-based automaker Seres, has emerged as a market leader in the premium segment priced above 500,000 yuan ($68,759) in China. With this success, Chongqing-made vehicles are making significant inroads into the global mid-to-high-end luxury automotive market in the era of new energy vehicles.
The share of “Made in Chongqing” vehicles priced above 200,000 yuan has now reached 24.3%, doubling since the end of 2021.
In mid-November, Pascal Benke, Quality Management Manager at Volkswagen FAW Platform Co. Ltd, visited Chongqing alongside other German industry experts to tour Seres and Changan Automobile.
“These new models produced in Chongqing feature many advanced and interesting new technologies and functions, and their manufacturing is of a very high level,” said Benke.
CEO of German automotive marketing firm Welike, Luke Mathes added, “Now I have a clear understanding of the advanced technology of Chinese automotive brands.”
The innovation behind these technologies is exemplified in Changan’s new models. Mathes expressed optimism about introducing these products to the German market in the future.
Unlike international automotive giants, Chongqing’s automotive industry is shaping its own definition of luxury—a concept referred to as “new luxury.” This means electric, intelligent, and capable of autonomous driving.
“For me, the ‘new’ means electrification and intelligence. These, combined with traditional luxury, represent the new luxury,” said Zhang Xinghai, Chairman of Seres Auto. He highlighted the AITO M9 as a prime example, noting that in areas like space, interior design, and seat comfort, the model meets or even exceeds offerings from competitors such as BMW, Mercedes-Benz, and Audi.
Changan Automobile exemplifies this “new luxury” through its three new energy brands: Avatr, Deepal, and Nevo. Avatr models are priced between 200,000 and 450,000 yuan, with most Deepal and Nevo models in the 200,000 to 300,000 yuan range. Mid-to-high-end models now dominate Changan’s new energy portfolio. Between January and October, Changan’s new energy vehicle sales exceeded 530,000 units, marking a year-on-year increase of over 45%.
Similarly, Seres has seen remarkable growth. Alongside the AITO M9, the AITO M5 and M7 models are priced at or above 250,000 yuan. From January to October, Seres achieved cumulative new energy vehicle sales of 352,724 units, representing a staggering 310.99% year-on-year growth.
The transformation of Chongqing’s automotive brands has been a joint effort between the government and the industry. A representative from the Chongqing Municipal Commission of Economy and Information Technology noted that between 2018 and 2019, the government initiated discussions with automakers, academic institutions, and research entities to steer the industry toward intelligently connected new energy vehicles. This strategy aimed to establish Chongqing as a global leader in this sector.
“We support leading automakers like Changan and Seres in collaborating with tech companies such as Huawei to innovate across areas like technology and distribution channels. Our goal is to encourage mid-to-high-end product development and enhance brand value,” said the representative.
Chongqing’s “33618” modern manufacturing cluster plan further prioritizes the intelligently connected new energy vehicle industry. Automakers, in turn, have embraced this direction by implementing significant reforms. For instance, Changan encourages mid-level and senior managers to invest in vehicle projects, linking their incentives directly to market performance. The company also overhauled its management structure, fostering an environment where talent and innovation drive growth.
Seres adopted a different approach. The company shifted its focus to new energy by establishing SF MOTORS in Silicon Valley in 2016, leveraging Tesla co-founder Martin Eberhard as a strategic advisor. By 2021, Seres partnered with Huawei to create the AITO brand, combining automotive expertise with cutting-edge technologies such as autonomous driving and smart cabins.
The collaboration yielded impressive results. The AITO M7 became the fastest brand to achieve sales of 100,000 units, reaching the milestone in just 15 months.
A drone photo taken on Feb. 26, 2024 shows the welding workshop of Chinese vehicle manufacturer Seres Group in Liangjiang New Area, southwest China's Chongqing Municipality. (Photo/Xinhua)
Quality is paramount for premium automotive brands. The rapid improvement in Chongqing’s new energy vehicle quality stems from advancements in manufacturing standards and the creation of an innovative industrial ecosystem.
Seres’ super factory in Chongqing features over 1,600 intelligent terminals and more than 3,000 robots, achieving 100% automation in welding, painting, and intelligent servo press lines. Similarly, Changan’s digital factory employs 5G and industrial IoT technologies, networking over 12,000 devices and processing 1 million data points per second, making it a leader in the global automotive industry.
In addition to intelligent factories, Chongqing has fostered an integrated automotive industry ecosystem. Seres, for example, partnered with Wencan Group, CATL, and Yanfeng to establish a localized supply system that streamlines production, reduces costs, and enhances efficiency.
Changan has also revolutionized its supplier relationships by engaging in collaborative on-site research and development. This new model integrates the innovation and supply chains into a cohesive ecosystem, driving progress across the entire industry.
As Chongqing’s automotive sector transitions from linear supply chains to networked ecosystems, its impact is being felt nationwide, solidifying the city’s position as a leader in the global new energy vehicle market.
(Bai Lin, a reporter from Chongqing Daily, contributed the Chinese version of this report.)
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