One of China’s oldest car brands is remaking itself for the modern era.
Hongqi, the marque that’s ferried Chinese leaders for decades, is now setting its sights on carving out a greater share of the country’s booming electric car market. It’s even teased a foray into aerial mobility as part of its “all in” new-energy vehicle push that’s seen it stop all new investment in gasoline-engine technology.
The carmaker has set an aggressive sales target as it looks to gain ground on better-known EV brands like BYD Co. Hongqi wants to more than double NEV deliveries this year to 250,000 units, accounting for 50 per cent of total sales, up from 28% last year. By 2028, NEVs should make up 70 per cent of sales.
It’s a major pivot for a company deeply ingrained in the national psyche. Established in 1958, Hongqi’s name means “red flag,” a nod to the Communist revolution that resulted in the founding of modern day China. Using the American Chrysler Imperial C69 as a prototype for its first car, Hongqi vehicles were for a time exclusively available to high-ranking officials.
While Hongqi cars are now accessible to the masses, they still play special roles. President Xi Jinping rode in a bulletproof gasoline-powered N701 limousine when he met former President Joe Biden in the U.S. in 2023. Biden, who traveled in the heavily armored Cadillac known as “The Beast,” appeared taken by the vehicle, describing it as “beautiful.”
“Hongqi has really flipped the script on its old image — it’s not just for the old guard anymore,” said Yale Zhang, managing director at Shanghai-based consultancy AutoForesight. “With FAW Group backing it, you’ve got that foundation of quality, reliability, brand continuity, and a history that gives it real credibility.”
But it’s unclear if those qualities will translate to sales in the competitive Chinese market that emphasizes cutting-edge technology. Hongqi’s existing offerings have struggled to gain significant traction in the consumer market. The bulk of its EV deliveries were to ride-hailing services before it announced a strategy change at the start of 2023.
Hongqi’s late entry into the NEV sector means it’s not only playing catch-up with the likes of BYD, but also competing with other state-owned rivals including Dongfeng Motor Group and Chongqing Changan Automobile that have set up independent EV brands or forged partnerships with domestic technology giants.
Its vehicles are priced to move: The entry-level version of its model that competes with Tesla Inc.’s Model 3 now starts at 159,800 yuan ($22,000), contrasting sharply with some of its most luxurious gasoline-powered cars, which can exceed 7.18 million yuan.
Hongqi is also looking beyond its home market. The company aims to establish over 700 experience centers and 1,000 service network points internationally by this year and wants overseas sales to exceed 10% of its total volume, with a goal to hit 25 per cent by 2030. It’s already making inroads, taking pre-orders for its electric EH7 and EHS7 models after showcasing them last year at the Paris motor show. In 2022, it became the first Chinese EV brand to be added to the Dubai police fleet’s patrol car lineup.
It’s also teamed up with Chinese battery giant Contemporary Amperex Technology Co. Ltd. and LongShine New Energy to build a battery-swapping station in Hong Kong for Hongqi E-QM5 electric taxis, with a plan to expand the network across the city and extend into Southeast Asian markets.
In March, Hongqi parent FAW Group forged a partnership with emerging EV maker Leapmotor to jointly develop new energy passenger vehicles and components, including for models targeting export markets.
While Hongqi is betting its storied past will help boost sales, it’s also banking on a much more modern appeal to consumers. The carmaker says its batteries can maintain 98% of the power rate amid the -10C (-22F) to -30C temperatures that hit its headquarters in Changchun in winter.
“It could actually turn to a good selling point for Hongqi,” Zhang said. “Better late than never, right?”
--With assistance from Chunying Zhang.
©2025 Bloomberg L.P.
