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DPCA, which is rapidly declining in sales and share in the Chinese market, has a new plan. In the face of powerless fuel models, PSA Group will increase the promotion of electric models in China and consider introducing its European model of "renting and selling" into China.

Sales figures show that DPCA sold 9730 vehicles in October, down 47.4 per cent from a year earlier, and accumulated sales of 100779 vehicles from January to October this year, down 54.83 per cent from a year earlier. DPCA lost 2.5 billion yuan in the first half of 2019.

It was only in the face of a serious decline in sales and continued losses in performance that the Dragon realized that it was in urgent need of change. The "Yuan" plan was released in September this year, which will promote brand renaissance in three stages. In addition to speeding up the pace of "returning to the track" in the Chinese market, in the face of the impact of the wave of "new four modernizations" in the automotive industry, PSA Group will also intensify its offensive with electrification. In the view of senior executives of PSA Group, the domestic market with fierce competition, the just-started "electrification" is an opportunity.

According to the plan, all new models that the PSA Group will launch in the future will be available in hybrid and all-electric versions. By early 2021, PSA will launch 15 electrified models, including eight PHEV models and seven EV models, including the logo, Citroen and DS brands, and PSA will be 100% electrified by 2025.

Peugeot global CEO Ambato said, "the transformation of electrification is of great significance for Peugeot. In the European market, Peugeot's electric models already account for 20% of Peugeot's total sales, and the proportion is increasing rapidly." This is also due to the fact that the "sell by rent" model has been promoted in Europe, from being unacceptable to consumers to the rapid increase in market share in Spain and Italy, which also shows that the model is effective.

With this model, consumers do not have to worry about the preservation rate of the product, the aging of the car, or even maintenance. For the rapidly changing domestic market, it is believed that the "rent instead of sale" model is more acceptable to Chinese consumers. It is understood that DPCA has been preparing relevant financial products since July this year in order to promote the "rent-for-sale" model in China.

For a long time, new energy vehicles do not seem to be favored by consumers. in the face of short mileage, car owners should not only consider whether they can find a place to recharge, but also consider whether to turn on air conditioners because of insufficient mileage. Even many electric cars will lose power innocently.

In addition to the mileage, there is also a biggest problem with new energy vehicles, that is, the value preservation rate. According to the China Automobile Circulation Association, the value preservation rate of new energy vehicles is falling all the way. Now the three-year value preservation rate of second-hand electric vehicles is only 70% discount. When the vehicle uses a certain number of years, the battery should be replaced, while the normal price of a battery is more expensive than that of new cars, which is really unacceptable to consumers. It can be said that the concerns of consumers have been taken into account for the "rent-for-sale" of Shenlong cars.

However, how to determine the rental price and rental time is also a question to be considered, if there is not much difference between renting a car and buying a car, how should consumers choose. If the rental contract is too long, is it a breach of contract that consumers want to change cars? Including the vehicle purchase tax, insurance premium and license fee incurred before the lease, who should bear the cost? Who should be responsible for the maintenance expenses of the leased vehicle and the settlement of claims after the accident?

For car companies, it is impossible to engage in the rental business all the time. After all, it is not a "car rental company." attributing the practice of vehicle maintenance to dealers, and whether the returned vehicles choose to renew their old cars or return to the factory to renew and re-rent, will increase the late pressure on dealers, and the profits will be less.

As GM's president said, electric cars will not become mainstream until they address the issues of mileage, ease of use (charging infrastructure) and cost. Because the above problems are not solved, whether it is "rent for sale" or direct sale, there are more problems that need to be solved.

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