Beijing (ZXZC)- BAIC Group's Vice General Manager, Gong Yueqiong, recently spoke about the company’s perspective on new energy vehicle market, and revealed that in the next five years, BAIC Group will invest at least 50 billion yuan in R&D of the technologies related to intelligent new energy vehicles.

Photo credit: BAIC Group

Gong stated that there are currently three types of new energy vehicle companies. The first type, represented by a few companies such as Tesla and BYD, have already achieved profitability. The second type of companies have products with a premium, but overall, they are still in the red due to massive investments. The third type of companies have negative gross margins.

BAIC Group's new energy vehicle-dedicated subsidiary, BAIC BluePark, has been in a constant state of loss since it went public. Despite this, BAIC Group remains optimistic about BAIC BluePark's future.

BAIC Group is a key force in the development of Beijing's automobile industry, with a production capacity of 1.467 million vehicles in Beijing and a range of vehicle brands such as ARCFOX, BEIJING, Foton Motor, Beijing Benz, Beijing Hyundai, etc.

In the first quarter of this year, BAIC Group achieved a production value of 86 billion yuan in Beijing city, representing a year-on-year increase of 2.6%.