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Opel's second visit to China: Chinese consumers prefer German cars

2024-09-08 Update From: AutoBeta autobeta NAV: AutoBeta > News >

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AutoBeta(AutoBeta.net)07/09 Report--

With the gradual marginalization of DPCA, a joint venture of PSA Group in China, PSA Group is trying to inject new brands to change the pattern of the Chinese market. According to media reports, the current Opel brand plans to enter China are in progress, but the exact time can not be determined.

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At the end of last year, there were media reports that Dongfeng Motor said it had reached an agreement with PSA Group to extend the term of the joint venture DPCA, and planned to introduce the Opel brand to the Chinese market. If agreed by both sides, DFM will own the monopoly of the Opel brand. However, Peugeot-Citroen did not comment on the report, so that the news was gradually forgotten.

Today, there is news that the Opel brand has applied for design patents for a number of models in China. According to the announcement of Chinese patents on the official website of the State intellectual property Office, PSA has declared design patents for at least six models to the State intellectual property Office for more than a year from August 2018 to November 2019. Among them, three models were granted design patents on July 3 this year. It means that Opel's "second" entry into China has been confirmed.

According to the domestic model reported mass production time of only one year, that is, the Opel model may be on the market as soon as the end of this year or early next year. But a few days ago, the Chinese side of PSA Group said: "the Opel brand is still in a very early stage of market research." In other words, it will take time for Opel's domestic progress.

Some industry insiders close to PSA and DPCA said that the reason is that Opel wanted to be manufactured by DPCA before, but it has not been settled yet. As for Opel's entry into China, the insider said that "there is no specific timetable for Opel's entry into China". And Opel's "batch" declaration of appearance patents in China is just studying its possibility.

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I believe we are no stranger to the Opel brand. As early as 1993, the brand entered the Chinese market for the first time and brought Yingsuya, Saifei and other models, which were imported, resulting in poor sales. The brand withdrew from the Chinese market in 2015.

PSA bought the Opel / Vauxhall brand from GM in 2017 and led Opel to turn a profit in 2018. For this reason, it is also regarded by PSA as one of the plans to introduce into the Chinese market. According to Oli, executive vice president of PSA Group, president of China, and vice chairman of DPCA, "German cars are very attractive to Chinese consumers, while Dongfeng does not have German brands in its current product range." So the introduction of Opel may play a positive role.

Opel was founded in 1862. It started as a manufacturer of sewing machines and bicycles. It only started producing cars in 1899 and is not a sub-brand of any group. Although Opel has been building new cars based on Buick / Chevrolet models on the same platform since it became a subsidiary of General Motors, these models are derived from Opel, which means they are not American models, but German models.

Therefore, Opel, as a German model, may also have a certain degree of market competitiveness in the Chinese market. the original failure was mainly due to the failure of positioning with the Buick brand, which led to sluggish sales. After all, one of the same model has a joint venture price, and one has no competition at the import price. If Opel can find the right position to highlight its technological advantages, coupled with the localization of research and development and reasonable positioning for the Chinese market, it will inevitably be no better than SAIC GM's Pan-Asia in the Chinese market.

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Of course, for Opel's second entry into China, it is also possible to face a situation like the Renault brand, even if it is more reliable than Citroen and Peugeot in an environment where there is no brand in the Chinese market. but also can not resist flagging sales choose to withdraw from the domestic fuel market.

According to industry insiders, if Opel is introduced, it will not only face a lot of uncertainty, such as if Opel fails to succeed in China, it will also be a drag on PSA's existing business in China. Data show that in 2019, DPCA sold 113500 vehicles, down 55 per cent from a year earlier; from January to May this year, cumulative sales were only 17900, a decline of 67.3 per cent.

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