AutoBeta(AutoBeta.net)05/06 Report--

Another independent high-end brand is coming. Dongfeng h Division will build high-end new energy vehicles. On May 6, Zhu Yanfeng, chairman and party committee secretary of Dongfeng Automobile Group Co., Ltd., wrote a letter to the employees of the h division, mentioning that the h brand, which has attracted much attention both inside and outside the company, will be officially released in 2020.

According to the information, Dongfeng h Business Department was first established in April 2019, and its mission is to create a new high-end new energy brand, and take the internal code name "h". As a new high-end new energy brand of Dongfeng, h brand will create two "high-end"-- high-end brand positioning and high-end market positioning. At the same time, h brand, as the first high-end electric brand of the central enterprise, will become the "red flag" of Dongfeng in the future, and it is an important strategy for Dongfeng to achieve brand upward and brand power.

It is understood that Dongfeng h brand new high-end new energy brand plans to hold a brand launch at the Beijing auto show in April this year, but due to the impact of the pneumonia epidemic, the Beijing auto show has been postponed to September 26. This time, Zhu Yanfeng issued a letter to the employees of the h business department, which may mean that the brand launch will be held in the near future.

At present, Dongfeng internal code-named "h" high-end brand project, there is no formal brand naming and other information, the brand will focus on high-end new energy passenger cars.

In addition, the h project will operate independently after its establishment, not subordinate to any independent brand passenger car company of Dongfeng company, but to Dongfeng automobile group co., Ltd., a Hong Kong listed company of Dongfeng company Dongfeng Automobile Group Co., Ltd. has Dongfeng passenger vehicles, Dongfeng commercial vehicles, Dongfeng special vehicles, Dongfeng Liuqi, Dongfeng Limited (Dongfeng Qichen, Dongfeng Nissan, Zhengzhou Nissan, Dongfeng Infiniti, etc.), Dongfeng Honda, Dongfeng Renault, DPCA and other subsidiaries.

At present, Dongfeng Company has a total of four Chinese passenger car brands, which are Fengshen, Fengjing, Fashion and Qichen, and the prices of most of the four brands are less than 150000 yuan. Therefore, the new high-end new energy brand created by h division undertakes the market impact to the higher price range, and the consumer demand is concentrated to the middle and high-end products.

According to internal sources, the h division has planned nine new models for the new brand, including SUV, MPV and so on. From the positioning point of view, the brand will mainly target FAW Red Flag, Xilai Automobile, Tesla, Guangqi NIO Co-creation and other brands.

In fact, after a substantial departure from state and local subsidies, sales of new energy vehicles have declined for nine consecutive months, new car-building forces have also entered a reshuffle period, and many new power brands with huge investments are on the verge of closing down. at this time, the new high-end brands of the Dongfeng h project are not favored by the outside world.

According to the China Automobile Association, sales of new energy vehicles in China in 2019 were 1.206 million, 4.0% respectively compared with the same period last year, and new energy vehicles showed negative annual growth for the first time. In 2020, affected by the cold winter of the car market and the epidemic situation, new energy vehicles were even more severely hit. Sales of new energy vehicles from January to March were 114000, down 56.4 percent from the same period last year. So far, the sales of new energy vehicles in China have declined for nine months in a row, and policy help is urgently needed to tide over the difficulties.

Chen Shihua, deputy secretary-general of the China Automobile Association, said that the sharp decline in 2019 subsidies had a great impact on production enterprises. The production and sales of new energy vehicles showed a sharp decline, and the whole industry was in a state of loss, so it was difficult to make a profit through new energy vehicles. He also expressed the hope that the country will continue to support the development of new energy vehicles in the next step, but it is impossible to continue to provide substantial financial subsidies, but to guide them through policies such as taxation and use links. Consumers' recognition of new energy vehicles has not been confirmed, and they are cautiously optimistic about new energy vehicles in 2020.

The market share of new energy vehicles is small, and the proportion of high-end products is even less. Under the current environment of new energy vehicles, it has been difficult to accommodate dozens of new power car-building enterprises, and some brands and enterprises may fall down. For the newly established brand of Dongfeng h project, the future situation will be more difficult.

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