During the 14th Five-Year Period (2021-25), China’s vehicle industry has navigated pivotal challenges and pursued industrial upgrading. In the face of the profound transformation towards electrification, intelligence and connectivity in the global automotive sector, CHINA FAW GROUP CO., LTD., (FAW) committed to innovation-driven development and environmentally friendly transformation, thus opening a new chapter for the high-quality development.
Achieving Self-Reliance Through Core-Tech Breakthroughs
Over the past five years, FAW has focused on high-level technological self-reliance and self-improvement. It has intensified efforts to master core technologies, make systematic and foresighted layouts, and tackle critical challenges head-on.
FAW released the R.Flag SIGHT 531 Technological Development Strategy to seek breakthroughs in automotive chips, operation systems, and artificial-intelligence-assisted driving of new energy vehicles (NEVs). Since 2024, FAW has made breakthroughs in over 500 new technologies. With the implementation of “Red Core” and “Dual Core” projects, the self-development rate of FAW’s vehicle-grade operating system, FAW.OS, has exceeded 90 percent.
FAW’s technology innovation base. [Photo/sasac.gov.cn]
In 2023, FAW put an innovation base into operation, which housed a smart energy system and the dynamic wireless charging roads that support 5G-assisted driving. FAW established R&D centers in cities of Beijing, Shanghai and Munich as well as the Guangdong-Hong Kong-Macao Greater Bay Area, enabling the global share of innovative resources.
FAW introduced the “AI plus” special initiative in the fields of smart interconnectivity and assisted driving. OpenMind, an AI agent powered by large language models, was thus unveiled for better enterprise governance. Its integrated driving assistance system employs a trinocular stereo vision design that mimics the human eye, boasting a recognition accuracy 50 times higher than that of a laser radar. FAW’s five major production bases witnessed the rise of 25 smart factories that directly collect over 160,000 data bytes directly from industrial equipment and offer 128 kinds of data services. The Hongqi brand unveiled Hongqi No.1, China’s first 5-nanometer five-domain integrated automotive-grade chip, providing critical hardware support for the scalable and autonomous application of high-level assisted driving and thereby reducing reliance on external supply chains.
Key technological breakthroughs make products and brands better. Leveraging its three major technology platforms, the Hongqi brand has established a complete product portfolio covering gasoline, pure-electric, plug-in hybrid, and range-extended vehicles. Having mastered core technologies such as the high-efficiency oil-cooled electric drive axle and lightweighting for NEVs, the Jiefang brand has seen the efficiency of its fully self-developed medium-sized electric drive axle rank among the world's best.
Embrace New Energy Revolution for Low-carbon Development
Striving for the carbon peaking and neutrality goals, FAW pushed forward “All in” new energy strategy to conduct low-carbon transformation. During the 14th Five-Year Plan period, over 70 percent of FAW’s newly added car-making capabilities were dedicated to NEVs, which was accompanied by record-breaking sales growth. By the end of 2025, FAW’s zero-carbon factories secured a reduction of 22 percent in comprehensive energy consumption and 29 percent in carbon emissions per 10,000 ($1441.74) yuan of output values, compared with 2020, significantly exceeding the initial targets.
The green transformation of FAW was systematic. FAW committed to blanketing new energy reforms around its brands. During the 14th Five-Year Plan period, its three major brands, Hongqi, Jiefang and Benteng, as well as its joint or collaborative initiatives with foreign capital, have unveiled many NEV plants and key projects. Among these, the launch of Audi FAW NEV Co., Ltd. set a new benchmark for China-German cooperation in electrification. Furthermore, the establishment of China Automotive New Energy Technology Co., Ltd, aims to cultivate a leading state-owned power battery enterprise, thereby enhancing the security and resilience of the industrial chain. Holding such a modern automotive cluster, FAW, as a flagship automaker in China, has spurred the improvement and upgrading of the regional and national NEV industrial chain.
FAW committed to developing a multi-technology roadmap to meet diverse market demands. Hybrid Hongqi vehicles, such as Hongqi HS6 Plug-in Hybrid Electric Vehicle (PHEV), have demonstrated outstanding energy efficiency. It has achieved a Guinness World Record for a consistent drive of 2327.34 kilometers on a single full tank of fuel and a full charge, showing that China’s proprietary hybrid technology has reached a world-leading level.
The Jiefang brand, targeting the complex operational scenarios and high cost-efficiency requirements of commercial vehicles, has offered effective solutions for new energy trucks travelling on main routes. FAW is actively improving the charging service network in collaboration with leading industry partners. With a combined package of products and services, FAW directly addresses the core challenges in NEV promotion, facilitating the electrification transformation of the whole society.
As the solid foundation of FAW’s green transformation, green manufacturing and low-carbon industrial chain exemplified how the company adheres to the high-quality development concept. FAW now has many nationally recognized green factories. Through widespread use of renewable energy and recycling initiatives, the company has boosted energy efficiency and slashed carbon emissions.
Notably, FAW has committed to establishing a carbon footprint monitoring system throughout the product lifecycle. In addition to engaging in internal refinement, FAW also played a leading role in the low-carbon transformation across the whole industrial chain through standard setting and supply chain management.
A Hongqi-branded vehicle is assembled on a smart production line. [Photo/sasac.gov.cn]
Green-Tech Fusion for a Leap into a Mobility Tech Company
The deep integration of technology innovation and green transformation is driving FAW’s evolution from a traditional automaker into a world-leading mobility technology company. It showcases how new quality productive forces boost the development of the vehicle industry.
Intelligent digitalization serves as a key to the coordination between technology, green transformation and industrial upgrading. FAW has applied it to all commercial landscapes, from R&D, production and supply chain, to sales and services. The flexible production and intelligent scheduling have been launched in FAW’s smart factories and on digitalized production lines. Within the supply chain, digital platforms enhance risk resilience. Digitalization in light of FAW’s mass production optimizes resource allocation, reduces energy and material consumption and offers a technological guarantee for green manufacturing. It represents an essential pathway for the transformation of traditional manufacturing industries.
FAW’s Jiefang J7 heavy truck smart factory. [Photo/sasac.gov.cn]
FAW’s Hongqi manufacturing center in Changchun City, capital of Northeast China’s Jilin Province. [Photo/sasac.gov.cn]
FAW has innovatively established an interdepartmental cooperative mode to spur innovation, transform technological breakthroughs into market competitiveness, and provide a valuable reference for the market adaptability reform of commercial giants in traditional industries.
On a new historic position, FAW will remain true to its original aspiration of “serving the nation through industry and strengthening the nation through auto manufacturing,” and facilitate the technological innovation and low-carbon transformation with a focus on developing new quality productive forces. Striding towards the goal of becoming a world-class automotive enterprise, FAW is committed to contributing significantly to the Chinese modernization effort.
(Executive editor: Yuan Ting)
