AutoBeta(AutoBeta.net)06/25 Report--

With the continuous news of Dongfeng high-end brand h, Dongfeng officials recently announced that the brand will be released in the third quarter of this year, and the first model is scheduled to go into production and launch in 2021.

In fact, in early May this year, Zhu Yanfeng, chairman and party committee secretary of Dongfeng Motor Group Co., Ltd., wrote a letter to the employees of the h division, mentioning the h brand, which has attracted much attention both inside and outside the company, and officially released it in 2020.

According to previous data, Dongfeng h Division was first established in April 2019, its mission is to create a new high-end new energy brand, but h is actually the code name of the brand, and it is expected to adopt a new name when it is released in the future.

While Dongfeng h business department is independent of Dongfeng Fengshen, Dongfeng scenery, Dongfeng style and other passenger car brands, does not belong to any brand passenger car company under Dongfeng company, directly belongs to Dongfeng Automobile Group Co., Ltd., and will build its own sales channel in the future. independent operation, under the charge of you Zheng, member of the standing Committee of the Party Committee and Deputy General Manager of Dongfeng Company.

After the completion of Dongfeng h Division, it will continue to use Dongfeng Renault's Wuhan plant, and the plant will also be renovated to produce 150000 vehicles and 50, 000 engines per year. Another internal source said that the h division has planned 9 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.

It is reported that the h division will bear two core tasks: on the one hand, to create high-end new energy passenger car products to lead the Dongfeng brand upward; on the other hand, to explore innovative management mechanism models to form the best operation practices of independent enterprises. Obviously, the 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.

You Zheng also said in a previous interview: "at present, the price ceiling of Dongfeng Group's Chinese brand products is 140000 yuan, but with the upgrading of consumption in China's automobile market, the middle and high-end market of 20-350000 yuan is growing rapidly." only the market at this price can carry the electric and intelligent technology of Dongfeng Group in the future.

From the four Chinese passenger car brands owned by Dongfeng Company, the prices of most of the products of Fengshen, Fengjing, Fashion and Qichen and 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.

Although the current overall sales of Red Flag, as FAW, is not high, since its launch, with the vigorous development of the brand, Red Flag has continued to maintain its growth performance, even in the face of the impact of this year's epidemic. Still stronger than the industry level, it also proves that domestic high-end brands have signs of sustainable development.

Just as the "second Automobile" Dongfeng Automobile Group launched the top high-end brand, can follow the performance of FAW Red Flag brand, with more uncertainty and challenges. Moreover, the Dongfeng high-end brand is still promoted in the new energy field where the current domestic performance is not superior, so for the newly established Dongfeng h project brand, the future situation is particularly difficult.

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