Research On The New Energy Vehicle Development Strategy For FAW Car Co.,Ltd.

No matter from the consideration of solving energy security,environmental pollution,global warming,or from the perspective of transformation and development of automobile industry,vigorously developing new energy vehicles is the inevitable trend of the evolution of automobile industry.At the same time,with the rising of new energy vehicle sales,the improvement of charging(replacement)station infrastructure and the increasing willingness of users to purchase.In the future,new energy vehicles,especially pure electric vehicles and hybrid vehicles,will have a broad market potential.FAW Car Co.,Ltd.as the first Chinese auto manufacturing enterprise to go public,was once an auto enterprise with three major auto brands-Hongqi,Bestune and Mazda.It has undergone a huge restructuring from a joint-stock listed company to a wholly state-owned subsidiary as well as significant changes to the Group’s internal functional and business structures.The organization,staff structure and business scope of the company have undergone significant adjustments.Since 2015,China’s new energy vehicles have long occupied the top position in the world’s new energy vehicle sales,and continue to maintain a high growth trend.On the contrary,although FAW Car Co.,Ltd.has made an early start in the industry,its market share has been declining and the survival and development of the Bestune brand is facing a critical test.This paper studies the new energy vehicle development strategy for FAW Car Co.,Ltd.based on theories related to corporate strategic management.By analyzing the development history and current situation of FAW Car Co.,Ltd.and its new energy vehicles,it is found that FAW Car Co.,Ltd.’s new energy vehicle business.are facing the problems such as unreasonable product layout,insufficient market development and low market share in its growth.Based on this,a Strategic Analysis of the external environment facing the new energy vehicle development of FAW Car Co.,Ltd.was conducted using tools such as PEST analysis and Porter’s Five Forces Model from four aspects: political,economic,social,and technological.The internal environment of FAW Car Co.,Ltd.’s new energy vehicle business,such as Human Resources,Finance,Manufacturing,and Management,R&D,Sales,Procurement and Information System,was analyzed strategically.Finally,the SWOT analysis method and QSPM matrix are used to systematically analyze the strengths,weaknesses,opportunities and threats to the development of the new energy vehicle business of FAW Car Co.,Ltd.,and then conclude that FAW Car Co.,Ltd.’s new energy vehicle business should choose WO strategy in its development,and then it should take a comprehensive strategy combining integration strategy and multi-business strategy.In order to ensure the smooth implementation of FAW Car Co.,Ltd.’s new energy vehicle business development strategy,this paper also provides steps for the implementation of the strategy in terms of organizational guarantee,technical guarantee,talent guarantee and cultural guarantee to ensure that the target of the strategy is actually implemented.The rapid growth of new energy vehicles is a great opportunity for the whole auto industry.With the new energy innovation transformation of traditional domestic vehicle companies and the entry of new companies,the future competition in the new energy vehicle industry will become more and more intensive.At the same time,because of the strengthening of the Matthew Effect,the industry will accelerate the elimination of vehicle companies with a low market share in the future.If the new energy vehicle business of FAW Car Co.,Ltd.want to stop falling and stabilize in the competition,and then achieve sustainable growth,it requires a strong spirit of innovation,mastering key core technologies,improving product quality,increasing product exposure,optimizing service quality,and improving the core competitiveness of the company.