Translated_Premium_Platform_Strategy

1.

ation Strategy of the Domestic Premium
Platform
AURUS Premium Project
OOO "AURUS"
14 December 2024
Creation Strategy of the Domestic Premium Platform
AURUS Premium Project
OOO "AURUS"
14 December 2024
Creation Strategy of the Domestic Premium Platform
AURUS Premium Project

2.

Background:
-Background:
Currently, in the Russian Federation, there are domestic platforms for
passenger
cars only for:
- Currently, in the Russian Federation, there are domestic platforms for passenger cars only for:
-- Mass
Mass
market:
Granta,
LADA
LADA Vesta, LADA Iskra)
market:
(LADA(LADA
Granta, LADA
Niva, LADA
Vesta,Niva,
LADA Iskra)
-- Luxury
Luxury
segment:
EMP)
segment:
(AURUS(AURUS
EMP)
No
domestic
platform
forpassenger
premium
cars
exists,
nor R&D results in
No domestic
platform
for premium
carspassenger
exists, nor R&D
results
in this area.
this
area. Premium market represents 130-150 thousand cars annually, demonstrating high sustainability,
The Russian
The
Russian
even during
crises.Premium market represents 130-150 thousand cars annually,
Premium cars require:
demonstrating
high sustainability, even during crises.
- Significantly cars
higherrequire:
consumer property standards.
Premium
Enhanced
reliabilityhigher
and safety
compared to property
mass-marketstandards.
cars.
--Background:
Significantly
consumer
vehicles
are crucial for
state
and strategic
enterprises.
--- Premium
Enhanced
reliability
and
safety
compared
to mass-market
cars.
Currently, in the Russian Federation, there are domestic platforms
for passenger cars
only for:
--Limitations:
Premium
vehicles
areLADA
crucial
for state
enterprises.
Mass
market: (LADA
Granta,
Niva, LADA
Vesta, and
LADAstrategic
Iskra)
-- Luxury
segment:
(AURUS
EMP) platform requires 3-5 years and financing of 120 billion rubles.
Background:
Developing
a domestic
Premium
Limitations:
domesticinplatform
for premium
passenger
cars
exists, nor
R&D results
in this area.
-No
Currently,
the Russian
Federation,
there are
domestic
platforms
for passenger
cars only for:
--The
Developing
a domestic
Premium
requires
years and
Russian
Premium
market represents
thousand
cars
annually,3-5
demonstrating
highfinancing
sustainability,of
Mass
market:
(LADA
Granta,
LADA
Niva,130-150
LADAplatform
Vesta,
LADA
Iskra)
Suggested
Solution:
during
crises.
120
billion
rubles.
-even
segment:
(AURUS
- Luxury
Reduce
development
time EMP)
and budget by utilizing an external technology partner’s platform and gradually
Premium
carsitplatform
require:
No
domestic
for premium
passenger cars exists, nor R&D results in this area.
transforming
into a domestic
platform.
-- This
Significantly
higher
consumer
property
standards.
The
Russian
Premium
market
represents
130-150
thousand
annually,
highand
sustainability,
Suggested
Solution:
approach
allows
domestic
premium
car production
fromcars
2026
to meetdemonstrating
market demands
improve
Backgr
-transportation
Enhanced
safety
compared
mass-market
during reliability
crises.
securityand
in the
Russian
Federation.
-even
Reduce
development
time
andto budget
bycars.
utilizing an external technology
ound:
- Premiumcars
vehicles
are crucial
state and strategic
enterprises. it into a domestic platform.
Premium
require:
partner’s
platform
andforgradually
transforming
- Significantly higher consumer property standards.
Current

3.

Stages of Development:
**Short-Term
Period (2025-2026):**
Stages
of Development:
- Adaptation
and
modernization of the H9 | H9+ platform.
**Short-Term
Period
(2025-2026):**
Preparing
S | S+ class
sedan
--Adaptation
and for
modernization
of the H9
| H9+ production.
platform.
Launching
sedans by 2026.
--Preparing
for S | all-wheel-drive
S+ class sedan production.
- Launching all-wheel-drive sedans by 2026.
**Medium-Term Period (2027-2029):**
**Medium-Term
Period
- Localization
of(2027-2029):**
production (welding, painting, plastic parts).
--Localization
of production
(welding,
painting,
plastic parts).
Developing
unified
platform
SUVs.
--Developing
unified platform
SUVs.
Collaborating
with
ATOM for PHEV versions.
- Collaborating with ATOM for PHEV versions.
**Long-Term Period (2030+):**
**Long-Term Period (2030+):**
Stages
of Development:
Expanding
the domestic
premium
to new
market segments
and
--Expanding
the domestic
premium platform
to newplatform
market segments
and increasing
production volumes.
**Short-Term
(2025-2026):**
increasingPeriod
production
volumes.
- Adaptation and modernization of the H9 | H9+ platform.
- Preparing for S | S+ class sedan production.
- Launching all-wheel-drive sedans by 2026.
Stages
of Development:
**Medium-Term
Period (2027-2029):**
**Short-Term
(2025-2026):**
- Localization Period
of production
(welding, painting, plastic parts).
- Adaptation
modernization
of the H9 | H9+ platform.
Developingand
unified
platform SUVs.
- Preparing
for S
| S+
classfor
sedan
production.
Collaborating
with
ATOM
PHEV
versions.
Stages
of
Develo
pment:

4.

КОНФИДЕНЦИАЛЬНО!
Competitive Strategy - Mercedes-Benz Example:
**Strategy Until 2030:**
- Internal Combustion Engines (ICE) to remain over 50% of sales.
- PHEV and BEV models supplement existing lines, reflecting market and customer
trends.
Domestic Premium Sedan 2030+
- Developing optimal ICE and PHEV combinations based on market requirements.
Competitive Strategy - Mercedes-Benz Example:
**Strategy Until 2030:**
- Internal Combustion Engines (ICE) to remain over 50% of sales.
- PHEV and BEV models supplement existing lines, reflecting market and customer trends.
Domestic Premium Sedan 2030+
- Developing optimal ICE and PHEV combinations based on market requirements.
Compe
titive

5.

Roadmap:
Steps to Develop a Domestic Platform:
- Short-term focus on localization of the H9 platform.
Roadmap:
- Gradual transformation into a unified premium platform for sedans
and a
Steps to Develop
SUVs.
Domestic Platform:
- Short-term focus on
- Extensive testing and customer feedback integration.
localization of the H9
platform.
- Gradual
transformation into a
unified premium
platform for sedans
and SUVs.
- Extensive testing and
customer feedback
integration.
Roadm
ap:

6.

Support Measures:
Necessary Actions:
- 100% compensation of recycling fees.
Support Measures:
- Limiting "parallel imports" for premium cars.
Necessary Actions:
- Prioritizing locally produced vehicles for state enterprises.
- 100% compensation of recycling
- Subsidizing R&D for platform improvements and domestic
production.
fees.
- Limiting "parallel imports" for
premium cars.
Support
Measures:
- Prioritizing
locally
produced vehicles
Necessary
Actions:
for state enterprises.
- 100%R&D
compensation
of
- Subsidizing
for platform
recyclingand
fees.
improvements
domestic
Limiting
"parallel
production.
imports" for premium
cars.
- Prioritizing locally
produced vehicles for
state enterprises.
- Subsidizing R&D for
platform improvements
and domestic production.
Suppor
t

7.

Technical Insights:
- Evaluating the A9 prototype (H9 2.0 RWD).
- Enhancing NVH comfort levels.
- Optimizing PHEV components and overall efficiency.
Technical Insights:
- Evaluating the A9 prototype (H9 2.0 RWD).
- Enhancing NVH comfort levels.
- Optimizing PHEV components and overall efficiency.
:
9 prototype (H9 2.0 RWD).
comfort levels.
V components and overall efficiency.
Technical Insights:
Technical Insights:
- Evaluating the A9 prototype (H9 2.0 RWD).
- Evaluating the A9 prototype (H9 2.0 RWD).
- Enhancing NVH comfort levels.
- Enhancing NVH comfort levels.
Salescomponents
in Russia and
2021
2022
2023 6m 2024
- Optimizing PHEV components and overall
- Optimizing
efficiency.
PHEV
overall
efficiency.
S-class
2410 1110 1212
233
EQS
0
59
68
13
Fraction EQS
0%
5%
5%
5%
Techn
cal

8.

Global Market Overview:
-Global
Growth
BEV and PHEV/REEV in China (44% market share in 2024).
Marketof
Overview:
-- Growth
Decline
in and
BEV
marketinshare
in Europe
dueinto2024).
reducedREEV
subsidies and BEV
of BEV
PHEV/REEV
China
(44%
market share
ICE
PHEV
increased
costs
ofshare
ownership.
- Decline in BEV
market
in Europe due to reduced subsidies and increased costs of ownership.
Engine
3.0T V6
2 x EM + Internal
combustion engine 2.0 T
2 x EM
2 x em
8AT
DHT
Reducer
Reducer
On-board generator
-
Internal Combustion
engine 2.0T
Internal combustion
engine 1.5T
-
Drive
Full
Full
Full
Full
Energy density, Wh/kg
11600
11600 and/or 400
400 (11600 for charging)
400
30%~40%
30%...90%
<30%...90%
>90%
75 l
70 l + 50 kW * h
60 l + 70 kW * h
150 kWh
>700 km
EV 150~250 km
General >1200 km
EV 200~350 km
General >1200 km
(depends on the conditions)
6.5
4~5
4~5
3~4
Power consumption
~9 l/100 km
4 l/100 km
4 l/100 km
Equivalent 2 l/100 km
Refueling service
Recharge with 20% before 80%
on EDS DC 50 / 150 / >300
kW
< 3 mines
< 3 mines
< 3 mines
-
-
40 mines / 15 mins / 10
mines
60 mins / 20 mins / 10
mins
3 tsch / 45 mins / 15
mines
Low
Average
Average
High
Transmission
EFFICIENCY RATIO
Tank capacity and battery
capacity
Power reserve
Acceleration 0-100 km/h, s
Cost BOM
350~800 km
Global
Market
Overvi

9.

Domestic Premium sedan 2030+: what does the customer expect?
safety
- Ability to instantly replenish the power reserve
- Independence from the charging infrastructure
- Light weight: better handling, shorter braking distance
- Feasibility of creating armored versions
DYNAMIC CHARACTERISTICS
- Efficiency: low consumption due to energy recovery
- Acceleration at the level of a sports car (less than 6 seconds at 0-100 km
acceleration)./h)
- High maximum speed (more than 200 km/h)
- Power reserve in winter, dynamics when the traction battery is low
- Economy at high speed (more than 130 km/h)
comfort
- Extended wheelbase with equal dimensions
- Increased cabin height with equal dimensions
- Reduced noise and vibration levels
Internal
combust
ion
engine
PHEV
REEV
BEV
++
++
++
++
+
+
+
-
-
------
-++
++
+
++
+
++
+
+
++
++
---
++
++
----
++
-
+
++
+
++
+
++
-++
expenses
- No additional costs for powerful charging stations
++
+
- Low cost of ownership
+
- High after-sales value
++
+
-OPTIMAL GAMUT: Internal combustion
engine
+ PHEV
-++
--
9

10.

КОНФИДЕНЦИАЛЬНО!
Domestic Premium Platform Development Strategy
until 2030
2
10

11.

Creating a domestic premium all-wheel drive platform
2025
2026
Step 0
X
Hongqi
H9 3.0 4x4
H9+3.0 4x2
2027
Step 1
UPGRADED VERSION
SOURCE PLATFORM
…
….
Step 2
LOCALIZED VERSION
platform
Resourcing services risk
components
(if appropriate)
Development of domestic
SUV of the class S/S+, wide
unification with sedans
SENAT
A9 3.0 4x4
A9+ 3.0 4x4
2030
Step 3
Development of the sedan
model range and SUV
c Internal combustion
engine 3.0 T +PHEV
DOMESTIC
platform
new SUV AS9 3.0 4x4
on a unified platform
domestic platform
Step 4
• Unified Information System E/E architecture and IT with
modifications to meet the needs of the premium segment
• Unified controllers (IVI, TCU, VCU, ADAS)
• Borrowing high-voltage components for PHEV: battery
(cells or modules), BMS, OBC etc.
Unification of components
of the domestic premium
platform with AURUS LUX
Develop design changes and optimize
the design for broad unification of
components
11

12.

Roadmap for creating a domestic premium platform
Content
Beugene
BymechaniI
Sedan development S/S+ on the upgraded platform
- 4x4 development exclusive to the project for S+
- AURUS-style design, including tooling manufacturing
- Improving the user interface, CarPlay/Android Auto, reconfiguration ADAS
Improving consumer properties (based on experience H9 4x4)
- Winter tests, comparative tests with Mercedes S-of the class
- Improvement of sound insulation, microclimate, seats, tires, etc.
Preparation of market conditions for project launch
- End of sales in Russia Hongqi H9 (4x4 – via AURUS)
- Implementation of the project protection package
- Contracting the supply of domestic sedans for 2026
2.6 billion
rubles.
Preliminary estimate of the
property improvement
budget. The scope of the
upcoming changes will be
clarified based on the results
of tests of the H9 4x4, H9+
and Mercedes S-class.
Step Q1-1 of 2026
Launch of domestic all-wheel
drive sedans S/S+
DKD andndustrialization (process)
Factory Restart (starting the project)
Project team
Plant maintenance until 2025
Launching a brand (marketing)
After-sales service (including working capital)
RUB 0.6 billion
RUB 0.6 billion
RUB 0.4 billion
1.9 billion
rubles.
1.4 billion
rubles.
0.5 billion
rubles.
Step 2-2027-2028
Localization, resourcing services
CKD: stamping, welding, painting, plastic (including snap-ins)
Resourcing services critical components (if appropriate)
8 billion rubles.
up to 5 billion
rubles.
Evaluation based on the data
of N and the experience of
others OEM
Step 3-2027-2029
Development of a domestic
premium service SUV of the
class S/S+
Development of a new domestic product SUV of the class S/S+ , wide
unification of the component base with sedans
- Design and layout development
- Component development, validation, and certification
- Complete tooling kit for new parts
15 RUB billion
Evaluation according to
external engineering
resources (IAT/Launch) and
the experience of others
OEM
Step 4-after 2028
Deep localization
Deep localization of complex systems (for example, E/E architecture,
controllers, screens, etc.), achievement 3000 ~ 3500 SPIC points
6 billion rubles.
Preliminary assessment of
SPIC and localization
Step 0 – 2025
Upgrading the source platform
Preparing the launch
RUB 0.4 billion
12

13.

Preparatory work for the launch of domestic sedans S | S+ of the class
Exclusive distribution Hongqi H9 4x4
• The version was created specifically for Russia. Sales in China – less than 5%, not represented in other markets
• Organizing sales via AURUS will allow you to get complete information about the customer experience and promptly take it into
account when finalizing it domestic class sedans S/S+ before their sales start
Joint development of all-wheel drive sedans AURUS Premium Service (brand SENAT) S and S+
• Together with a partner (IAT): design in style AURUS - new bumpers, radiator grille, rims, etc.
• Together with Hongqi (exclusive to the project): significant upgrade of the sedan platform S+. Applied intelligent all-wheel drive,
modified engine V6 (325 hp/445 Nm against 280 hp/400 Nm), transmission AT8 instead of DCT7, improved driver assistance
systems, etc.
Shared with Hongqi modernization of the structure based on the results of evaluation of consumer properties
• Preliminary tests (April 2024) showed high competitiveness a car on the H9 platform subject to work on adaptation and revision
• Priority areas: improvement of the climate system software, development CarPlay and Android Auto, noise reduction, improved seat
comfort, optimization of lighting control software, etc.
• In January 2025, it is planned to mileage reports tests to refine and prioritize improvements
Comparative tests with Mercedes S-class, roadmap for further modernization
• Large-scale comparative tests for the development of improvements in all consumer properties based on significance for the
client, technical feasibility and economic feasibility
13

14.

Necessary measures to support the creation of a domestic Premium platform
Basic project support measures
• 100% compensation of the recycling fee, starting from the stage DKD
• Termination of schemes "parallel"import of premium cars for individuals without paying the recycling fee,
epaid service approach for premium cars with internal combustion engines and PHEV
• Strict focus of purchases on locally produced vehicles for state institutions and joint-stock companies with
a share of state-owned companies/banks by 50% or more
Subsidizing joint projects R & D for upgrading the H9 platform
• Together with a technology partner IAT (China) – development design in the style of AURUS
• Together with Hongqi (FAW) – development all-wheel drive class sedan platforms S+
• Tests to improve consumer properties and implement modifications
Subsidizing R & D to create a domestic platform based on H9
Acquisition of rights to H9 platform elements and tooling, resourcing services components
Development of upgraded components and assemblies together with suppliers
Tooling transfer, localization of components and processes, including welding, painting and stamping
Developing a new premium product SUV and a new generation of sedans
Powertrain localization and version development PHEV (if appropriate)
14

15.

КОНФИДЕНЦИАЛЬНО!
ADDITIONAL MATERIALS
15

16.

Preliminary expert assessment of the car prototype A9 (H9 2.0 RWD)
Score
All customers will have complains (Reject
zone)
Customers will have
complains
No complains, good level
Not acceptable
Need improvement
Competitive level
Not
working at
all
Missing or not
working
Inappropriate
Insufficient
1
2
3
4
1,5
2,5
3,5
4,5
High disappointing
5
5,5
HMI
Disappointing
6
6,5
A9
Common
functions
8
8,5
9
9,5
Outsta
nding
A9
10
-
CarPlay and Android Auto missing
Russian language menu need to be
improved
High level of mid-freq vibrations
A9
A9
Ergo
ADAS
7,5
High level
A9
Handling
and Ride
comfort
HVAC
7
Very good
-
Acceleratio
n and
Braking
NVH
Good
“Wow
effect”
-
Low-freq noise
High level of tire noise
-
Fogging while using START-STOP
function
Insufficient and delayed reactions to
temperature settings changes
A9
-
A9
-
ICC max speed is 140kph
A9
A9
A complete list of properties and areas for improvement will be created based on the results
of winter and summer vehicle testing. H9 4x4, H9+ and Mercedes S-of the class
16

17.

NVH (vibroacoustic comfort) of a prototype car A9 (H9 2.0 RWD)
NVH Performance group Score
Static condition
7,0
Dynamic condition
(Acceleration and braking in different driving
modes)
Road comfort (noise and vibration)
Wind noise and isolation feel
Comment
Countermeasure/Further action
Pos.: Engine low freq noise on good level
Neg.: Low freq noise on speeds 100 kph and higher. Noted
especially on RR seat
To get engineering delegated vehicle to work on deep
analysis and improvement proposal
Neg.: Tire rolling noise on high level. High freq noise on high
level
Proposal to compare RunFlat tires with non-Runflat for
further actions
6,0
5,0
Pos.: Good level of overall isolation. Wind noise masked by tire
noise
7,0
Rough road driving / Driving on dust
5,0
Squeak and Rattle
4,0
Neg.: Tire noise on high level. Peaky stone and sand noise
coming through B- and C-post to head area
To get engineering delegated vehicle to work on deep
analysis and improvement proposal
Neg.: Rattle from headlining area near DR sunvisor. Possible
reason – ERA Glonass wiring
To get engineering delegated vehicle to work on deep
analysis and implement assembly quality control with H
A complete list of properties and areas for
improvement will be created based on the results of
winter and summer vehicle testing. H9 4x4, H9+ and
Mercedes S-of the class
17

18.

Types of cars by powertrain type: Internal combustion engines and xEV
Internal combustion engine
PHEV
Driving motor
REEV
BEV
Internal
combustion
engine only
Internal
combustion
engine + EM
Just EM
Just EM
Transmission type
ButT
DHT
Reducer
Reducer
On-board generator
No
Yes
Yes
No
xEV
18

19.

Rapid development of battery technology over the past 10 years
• Power reserve
h6
Battery efficiency
• Energy density
h4
• Effective volume
(percentage of
cells in a batch)
h2
Power
reserve
Density
Percentage
of cells
Power reserve
Density
Percentage of cells
Power reserve
Density
Percentage of cells
Power reserve
Density
Percentage of cells
Percentage of
cells
Power reserve
Density
Percentage of
cells
Power reserve
Density
Percentage of
cells
Power reserve
Density
Percentage of
cells
19

20.

Top 10 cars more expensive than 400,000 yuan in China: 0 BEV, 3 REEV, 7
Internal combustion engine
1
Sales volume for the year 6 months of
2024
AITO M9 REEV
6
Toyota Siena PHEV
x10 RMB
2
AUDI A6L ICE
x10x10
RMB
RMB
7
BMW X3 ICE
x10 RMB
3
Benz GLC ICE
x10 RMB
8
Denza D9 PHEV
x10 RMB
4
Benz E ICE
x10 RMB
9
BMW 5 ICE
x10 RMB
5
AUDI Q5L ICE
x10 RMB
10
LIXIANG L9 REEV
x10 RMB
Major premieres Premium segment of China
x10 RMB
2026
• "Chinese Maybach" MAEXTRO – REEV
• New Hongqi (replacing H9) – PHEV
MAEXTRO (Huawei &
JAC)
2027
20
Hongqi H9 (new generation)

21.

Market BEV and PHEV/REEV in China
• xEV - strategic direction of all leading car manufacturers China
• Record share xEV in 2024: 44% (24% BEV + 20% PHEV/REEV)
Second half of 2024: fraction xEV more 50%
The main driver of growth xEV – PHEV/REEV
Contribution BEV and PHEV in growth xEV
BEV
PHEV/REEV
Growth rate BEV and PHEV
BEV
PHEV/REEV
Market share BEV and PHEV/REEV
BEV
PHEV/REEV
Growth rate BEV (10k)
Growth rate PHEV
(10k)
Growth rate xEV
(10k)
21

22.

Market BEV in Europe: decline instead of growth
Fraction BEV below forecasts in 2023 and
2024…
...in unfavorable conditions
Fraction BEV in passenger car sales
by 2023:
Curtailment of state support
has reduced the share of BEV,
especially in Germany and the
UK
Rising electricity prices
increased the cost of ownership
BEV by 4000 EUR in the UK and
for 2000 EUR – in Germany,
Italy and France
Growth in the number of
charging stations is lagging
behind from the original plans
due to lower costs
forecast
fact
22