[YesAuto News] As the Lunar New Year draws closer, 2019 will come to an end. In the past ten years, the automobile industry has undergone tremendous and exciting changes, and many new automobile brands have been born during this change. Among these new brands, Chinese consumers are most familiar with two types: one is a new force in car-making that grows with electrification, and the other is a high-end new brand that is born with the upward development of Chinese brands. Today, we will review the development of new car-making forces in the past ten years and the road to high-end Chinese brands. At the same time, we will also talk about some of the more famous brands, namely Tesla, Weilai, WEY, and Ling. Gram etc.
● Tesla is definitely a big winner;
● New Chinese car-making forces represented by Weilai have sprung up like bamboo shoots after a rain;
● WEY has experienced fanaticism to rationality;
● Lynk & Co is trying to use young people as a breakthrough…
★ In the past ten years, electrification has given birth to countless new brands
The rapid growth of the electric vehicle market
The past decade has marked the beginning of a deep transformation of the global automotive industry to electrification. As early as 2010, China had already upgraded new energy vehicles to a national strategy. In the past decade, China has made huge penetrations and policy encouragements to the new energy automobile industry, making China the world's largest new energy automobile market in one fell swoop.
At the same time, mainstream countries around the world have begun the promotion of electric vehicles. In 2010, California also took the lead in promoting the zero-emission point policy for automobiles. In 2016, many European countries put forward a timetable for restricting the sale of traditional fuel vehicles. One year later, the European Union proposed stricter auto carbon dioxide emission standards, which forced the auto industry to transform.
The fast-growing blue ocean market of electric vehicles has attracted a lot of funds, and countless new brands of cars have also been born. Companies established overseas include Tesla, Faraday Future, Fisker, Lucid, Rimac, etc. In China, there are even more countless ones, such as Weilai, Ideal, Weimar, Byton, Xiaopeng, Yundu, Singularity, Ranger and so on.
Around these new brands, there are countless stories, some are admirable and some are laughable. For example, Musk, the helm of Tesla, is not only building cars, but also the founder of Space X Rocket Company; for example, Jia Yueting behind Faraday Future, and the LeTV Empire that fell because of him; for example, Li Bin built a space for Weilai. The grandest press conference in the history of the field, the media circle “ten thousand people empty alleys”; for example, the ideal car that Li wanted to build, unexpectedly cut from the program-increasing hybrid. It can be said that countless new forces have contributed countless new topics to us.
Among these brands, Tesla and Weilai are representatives of overseas and domestic new forces respectively, and they are also the best-selling brands among overseas and domestic new forces respectively. Next, let's talk about the stories of these two brands.
This decade, Tesla is undoubtedly the biggest winner
To say that Tesla is the biggest winner, there should not be much controversy, after all, the data is there. In 2018, the Tesla Model 3 became the world's leading electric vehicle sales model. There is no suspense in 2019. Its sales volume is already several times that of the second place. Tesla's victory is not only reflected in quantity, but also in quality. It is important to know that most of Tesla's models are above 300,000 yuan, and the ranking is followed by BAIC New Energy EU series, BYD Yuan EV, etc. They are all lower-priced models. At the same time, Tesla has surpassed Chevrolet and other traditional car companies in the US market to become the best-selling new energy brand.
Tesla's “fortune” was in the last ten years. In 2008, its first product, Roadster, was based on a model developed by Lotus Elise. At that time, Tesla was still one of many new brands, and the Model S released in 2012 really represented Tesla or horses. Sk's car-making concept. In the first five years of the last decade, many automakers did not really take electric vehicles seriously. At that time, Musk once challenged many car companies, thinking that many cars made by competitors “have no soul.” Ironically, at the time there were still some automakers who claimed that electric cars had no soul.
But consumers can represent the market. After the Model S was launched, it quickly gained the love of mid-to-high-end elites and became a trend in the global electric vehicle market. To this day, some foreign media have jokingly selected the 2013 Model S as the car of the year, to ironic that some automakers are not producing electric cars as good as Tesla's models six years ago.
After gaining a worldwide reputation through Model S, Tesla successively launched Model X and Model 3 in the next five years. Musk said frankly at the Model X press conference that Model X technology is too advanced and not necessary. You can treat yourself as Musk changing the law, but Tesla's huge investment in Model X is indeed a detour for a company that is in desperate need of recovery.
The success of Model 3 is the satisfactory answer that Tesla has given itself over the past ten years. In 2018, this car has become the world's best-selling pure electric vehicle. In 2019, Model 3's lead in the field of electric vehicles is still expanding, with sales almost three times that of the second place. Although this car has some minor defects that the industry “cannot tolerate” in terms of workmanship, etc., these shortcomings have been selectively “ignored” by consumers before its unique product charm. Of course, we can't recognize the existing problems, but this phenomenon is indeed worthy of traditional manufacturers to ponder.
Just a few days ago, Musk's passionate dance at Tesla's Shanghai factory hit the media. Facing the world's largest new energy vehicle market, Tesla is more eager to achieve further development in China. The Tesla factory built in less than a year has made it possible for Tesla to achieve crazy growth in China. We also understand why Musk is so excited. Of course, just like the introduction of Volkswagen that allowed the growth of China's auto industry, Tesla will also play a certain role in promoting the rapid development of China's electric vehicle industry. The rest depends on how Chinese car companies respond.
Weilai, now it's just getting started
Saying Weilai is good in 2020 is much harder than saying Weilai is good in 2018. After all, Li Bin, the chairman of Weilai, has been awarded the “worst of 2019” hat by the media. However, at this stage, it is still Weilai that can represent the new power of the Chinese brand. After all, in 2019, Weilai ranked first in the new force with a delivery volume of 20,565 vehicles. At the same time, Weilai still guarantees the ES6. Landing. In contrast, there are many new forces that have slowed down the car-making progress, and even some new brands that were more active in the past have no specific product launch information.
Weilai’s first model, the Weilai ES8, was launched on NIO Day in December 2017, when the price before subsidies was 448,800-548,000 yuan. As the most concerned new car-making force in China, NIO’s first NIO Day has become a headline topic in the automotive industry, whether it is the cast or the product itself, and it is definitely NIO’s highlight moment.
In 2018, NIO went all out on the delivery of ES8, and the annual delivery volume reached 11,348 vehicles. But like Tesla in the past, although the car was sold, it could not stand the fact that it was losing money. Weilai's net loss in 2018 was 9.639 billion yuan. Previously, Weilai rarely commented on comparisons with Tesla, but when it comes to losses, Weilai likes to use Tesla as an example: Tesla continued to lose money since it went public in 2010. It was not profitable until 2018. In the past ten years, Tesla has not been easy.
At the end of 2018, the Weilai ES6 model was officially launched. As a more people-friendly model, its starting price dropped to 358,000 yuan. Throughout 2019, Weilai ES8 and ES6 delivered a total of 20,565 vehicles, a year-on-year increase of 81%. In terms of delivery volume, NIO is attracting more consumers to accept the “future” it describes.
However, 2019 was an extremely difficult year for Weilai. As early as when Weilai went public in the United States, some industry insiders said, “I think Li Bin should be very stressed, and the money in the primary market has not been given to him.” Putting aside the apparent data such as sales in 2019, Financial pressure has become the “melon” that the outside world cares most about Weilai. Li Bin said that the financial improvement process is expected to continue for 3-5 years. At the same time, there are more and more people questioning Li Bin. Some people even asked whether Li Bin, the founder of Weilai Automobile, is the next Lei Jun or Jia Yueting?
This reminds me of the questioning of Musk in various American media when facing Tesla product problems and not making profits for a long time. In contrast, the new Chinese forces represented by Weilai are still just getting started. With doubts and challenges, they still have a long way to go.
Tesla is a role model for the new forces in China to build cars. On the one hand, many brands and product concepts of new Chinese car-making forces have more or less learned from Tesla; on the other hand, Tesla, which was also a new force at the time, has now achieved phased success. With the commissioning of Tesla's Shanghai factory, this triple-good student will bring a double impact of brand and products to Chinese colleagues, and the life of Chinese brands will only become more and more difficult.
When facing new forces, one topic will definitely be brought up: Who will survive in the end? We are very clear that those new forces that have lost their voices forever after the release will not survive, and those new forces whose brands have been released for several years without news of new cars are unlikely to survive. Where is Wei Lai? How about Weimar, Xiaopeng, ideal? The future winners will most likely appear in these brands. In 2019, Wei seems to be bumpy, but who dares to say that the road to success will be smooth sailing?
★ In the past ten years, Chinese brands have continued to explore the way forward
Chinese brands can only move up
I don’t know if you remember the era when Chinese brands “have more children, it’s easier to fight”. As representatives of Chinese brands at that time, Geely and Chery had incubated many brands, dazzling and short-lived. Until today, when Great Wall launched WEY, Geely launched Lynk & Co, and Chery launched Xingtu, some people believed that these brands had been stable for a few years and “reversed history.” But in fact, the two are completely different.
The reason for having more children back then was because the brand was not good enough and needed to be reinvented. In recent years, when new brands have been launched, Haval, Geely and Chery have been unable to carry the subsequent product value themselves. Competing through prices, channels, and configurations does not create barriers, and branding is the key to creating barriers. For a long time, the core products of Chinese brands have been concentrated in 100,000 and lower-level markets. Chinese brands are often a symbol of entry and low prices. After completing the layout of the low-end market, they want to further expand their own sand table. Driven by the brand's jump in sales.
Taking the data from 2010 to 2016 as an example, the average selling price of Chinese branded models has continued to rise as a whole, and was around 90,000 yuan in 2016, while the average selling price of overseas brands in the same period was around 188,000 yuan. Obviously, overseas brands have a stronger premium ability compared to Chinese brands.
At the same time, we compare the sales proportions of Chinese brands in various price ranges in 2011 and 2016, and we can see that Chinese brands are constantly making breakthroughs: while maintaining their dominant position in the market below 50,000 yuan, they have completed sales of 50,000-100,000 yuan. The expansion of the meta market and occupy the core position of the market. But we can also see that 100,000 yuan was still a ceiling for Chinese brands at that time.
It is against this background that Chinese brands need to launch an impact on the 100,000-150,000 market and make targeted breakthroughs in the 150,000-200,000 market. Some brands choose to launch high-end models, such as GAC Trumpchi, such as Changan, while others choose to start from scratch to create new brands, such as WEY, Lynk & Co and Star Way. Today, let’s talk about WEY and Lynk & Co, which have been exploring for several years, and see what kind of results they have delivered.
WEY, experienced fanaticism to rationality
On the eve of the 2016 Guangzhou Auto Show, the WEY brand “suddenly” was released, which caught all the media colleagues who were still preparing for the auto show by surprise. But having said that, the launch of the WEY brand is a long-term dry and rainy affair for Chinese brands. Who doesn't want Chinese brands to have a thrilling day? Coupled with Wei Jianjun's bold naming with his own surname, the WEY brand brings a pretty good brand story. Under the package of various sentiments, WEY became the headline event of China's auto industry at the end of 2016.
Half a year later, at the 2017 Shanghai Auto Show, the first product of the WEY brand, the VV7, was officially launched. The range of RMB 160,000 to RMB 160,000 directly pointed to the core market of overseas brand compact SUVs. Four months later, VV5 was listed at a price of RMB 150,000 to RMB 160,000, which further lowered the threshold. As WEY's first year in the market, WEY spared no effort in product promotion, and the market also gave the two cars “fanatic” feedback: that year, the sales of both models successfully exceeded 10,000.
In 2018, the market returned to rationality after experiencing the frenzy. The monthly sales of the core models VV7 and VV5 declined overall, from an average of 10,000 vehicles at the beginning of the year to an average of 4,000 vehicles at the end of the year. In the same year, the new model VV6 was officially launched, and the addition of new models made the overall performance of the WEY brand in 2018 more reasonable. The annual sales of nearly 140,000 vehicles are at least a lot better than the sales of 86,200 vehicles in 2017. Of course, everyone knows that the latter’s 86,200 vehicles were acquired in half a year.
WEY failed to achieve year-on-year sales growth in 2019, which is inseparable from the overall decline in the automotive market. But it has to be said that Haval, the core brand of Great Wall, has achieved year-on-year growth. Facing the decline in sales, Wei Jianjun emphasized that he would rather lose some profits to keep market share. From product price cuts, strategic cooperation with China's aerospace, etc., WEY has made more bold attempts at the product and brand level, but the year-on-year decline in the year-on-year results should not satisfy Wei Jianjun. In the last month of 2019, Liu Yan, general manager of the WEY brand, announced his resignation and assumed the post of Deputy Secretary-General of the China Automobile Association.
2018 and 2019 are not very good trends, giving WEY a big question mark. Where is the problem, is the product not good enough? Or is the brand positioning not precise enough? These are all questions facing the people of the Great Wall. And Wei Jianjun, as the founder of WEY brand, must find a new direction for WEY at this time. He shouted the slogan “Luxury brand, we are on the bar.”
At the WEY third anniversary press conference at the end of 2019, Wei Jianjun announced that he will serve as the chairman of Wei Pai, a newly established independent brand company. In the next five years, the WEY brand will invest 30 billion yuan to form a leading edge in active and passive safety technology, intelligent interconnection, and autonomous driving. In terms of the market, Wei Jianjun announced that WEY will enter the European market in 2021 and enter the European market in 2023. The North American market will then attack other markets around the world. By 2025, WEY will challenge its annual sales target of 300,000 vehicles.
Great Wall has used its cumulative sales of 300,000 vehicles as a gift for its third birthday. Such an achievement is not easy for a brand-new brand that is moving upwards. The improvement of the premium ability of auto brands is the most difficult issue facing auto companies. Under the background of the overall decline in the industry and the downward price of overseas brands, WEY will face up to joint venture brands, and the difficulty can be imagined. From fanaticism to rationality, the market has taught WEY a vivid lesson. From low-price to high-end, WEY also paved the way for Chinese brands. I hope WEY can go faster on this road in the next ten years.
Lynk & Co, takes youth and fashion as a breakthrough
At the end of 2016, the Lynk & Co brand was officially launched in Germany. At the 2017 Shanghai Auto Show, the Lynk&Co brand was unveiled in China. In November of the same year, Lynk&Co 01 was launched in China with a price of RMB 158,800 to 220,800, which also hit the core market of overseas brands.
Unlike WEY, Lynk & Co had a very distinctive brand personality at the beginning of its creation, that is, tide. Whether it is a press conference full of rock and roll or “moving times and hitting times”, or individual and public car design, Lynk & Co chooses to further cater to the tastes of young people.
In 2018, Lynk&Co achieved sales of 120,000 vehicles with Lynk&Co 01, Lynk&Co 02 and Lynk&Co 03, which also made a good start. The ability to launch so many products in a short time is due to the CMA basic module architecture jointly created by Geely and Volvo. Lynk & Co 01 is a compact SUV positioned in the mainstream market, focusing more on household needs; Lynk & Co 02 is a coupe-style SUV aimed at consumers who pursue individuality; Lynk & Co 03 is the brand’s first sedan. Main sports. It is worth mentioning that the Lynk & Co 03+ has become a rare “small steel cannon” model in its class, and has truly created a precedent for Chinese brand performance cars.
In 2019, Lynk & Co experienced the same ups and downs as WEY. The sales of the former core model Lynk & Co 01 dropped sharply compared to 2018. The highest monthly sales volume of the year was just over 5,000. Lynk & Co 02 also maintained a low sales level. The two SUV models failed to become Lynk & Co. At the core of sales growth in 2019. On the contrary, the annual sales volume of Lynk & Co 03 reached a level of about 50,000, becoming the sales responsibility of the Lynk & Co family at the end of 2019. According to official data, Lynk & Co's sales reached 128,000 in 2019, achieving a year-on-year growth.
Lynk & Co has many bright moments in 2019, such as participating in the WTCR Touring Car World Cup and winning the annual championship. It is important to know that Lynk & Co faces famous brands such as Honda, Hyundai and Audi in WTCR. It is very important for Lynk & Co to become the first Chinese brand team to win the annual world championship in international competitions. At the same time, as the Lynk & Co 03 TCR racing car won the championship, the Lynk & Co 03+, a performance car that is positioned as a “small steel gun”, has also attracted the attention of many young people.
However, we must also see that the decline of the two important models of Lynk & Co 01 and Lynk & Co 02 in 2019 cannot be concealed by the better performance of Lynk & Co throughout the year. It attracts young consumers through brand tonality, design and concept, but how to turn attention into transactions is something that Lynk & Co needs to solve urgently. In addition, in terms of products, whether the new coupe-style SUV Lynk & Co 05 and the entry-level compact SUV Lynk & Co 06 can bring new growth to the brand is also particularly important.
WEY and Lynk & Co are just representatives. The upward movement of Chinese brands is not an individual behavior, but the common vision of many Chinese brands. Chery, which focuses on technology, has launched Star Road, focusing on quality and technology; FAW Hongqi has risen strongly, and the new HS series and H series cars have given us great surprises; Changan and Trumpchi have not launched new brands, but many models are positioned High-end models are also driving the brand to expand upward.
In 2019, among the newly launched models of Chinese brands, the proportions of the two levels of 100,000 to 150,000 yuan and 150,000 to 200,000 yuan are increasing, and there are many core models of various brands. Next, the 100,000-200,000 yuan range will become another hilltop for Chinese brands.
Full text summary:
In the past ten years, these new brands have all gone through stages of birth and growth. Some have just sprouted, and some have grown into small trees. In the next ten years, there will be greater wind and rain waiting for them. We see that many traditional and established manufacturers will launch a new energy offensive in 2020-2025. We see that first-tier overseas brands are accelerating their deployment in the low-end market. Both Tesla and Lynk & Co will suffer new energy from their core opponents. A round of blows. Whether these new players can counterattack, let's see next time.
Today’s topic is the new brands in the past decade. We have divided it from the two dimensions of new car-making forces and Chinese brands going high-end, and talked about some of the brands that everyone can come into contact with in daily life. In addition, there are also some new brands that have appeared in the past decade. Among them are Italdesign, which has transformed from a design company to a supercar manufacturer, and Volkswagen Jetta, which has evolved from a classic model to a brand new brand. Transition, a brand of flying cars, etc. As long as the automotive industry is still developing, new brands will be born, and we will continue to tell their stories.