AutoBeta(AutoBeta.net)10/25 Report--

With the rapid rise of domestic independent brands in recent years, Korean, legal and other joint venture brands have been gradually marginalized, especially the market share of legal models has further declined in recent years. The latest report shows that since Renault brand launched into the market, the market share of legal brands from January to September has dropped to 0.3%. In this regard, Shenlong Automobile is expected to reinvigorate the market by pushing a variety of models.

Although Renault brand has no choice but to withdraw from the Chinese market due to continued sluggish market sales, Citroen and Peugeot, which are owned by PSA Group, have always valued the Chinese market and insisted on not withdrawing from the Chinese market. PSA Group has decided to continue to export funds for DPCA to help it achieve sufficient cash flow. It can be seen that PSA attaches importance to the Chinese market.

To meet the demand for funds, DPCA announced the "Yuan +" plan at the 2020 DPCA Culture Festival launched on October 24, including four aspects: products, marketing, services and operations. In the industry's view, behind all the plans released at this cultural festival, it is revealed that Shenlong has made preparations for breaking the boat and fighting against the water.

In terms of products, Shenlong Automobile plans to realize the full configuration layout of all its best-selling models, and all the configurations that customers pay attention to and use frequently will be carried, and it is necessary to realize additional allocation without price increase, so as to maximize customer value.

At the same time, the company will also plan to build and launch 14 new vehicles in the next 5 years. On the basis of all existing engines realizing the emission standard of National VI B and realizing "three rises and one drop", the company will fully start the R & D of MHEV light hybrid and National VII, and launch more economical and fuel-saving new powertrain products.

Specific products will include the Peugeot 508L PHEV, which will be launched at the end of 2020; the mid-term Peugeot 4008 and 5008; and the new sedan C5 (E43) and C4L (C43). Among them, Peugeot 4008 and 5008 will continue the appearance of the European version, while adjusting the configuration and other aspects according to the needs of Chinese consumers. The biggest change between the two is the replacement of the family design language and the addition of the iconic fangs LED daytime running lights/turn signals.

The new C5 model code is "E43", and the car's white body has been rolled out, production models will be officially launched next year; the new car code "C43", will be launched in 2022. The new car can be regarded as a replacement for the current C4L. Both cars are based on the CMP platform jointly launched by Dongfeng and PSA, and will be available in gasoline and pure electric versions. C43 is positioned as a boutique and strategic model for Shenlong in the next 3 years. It is planned to start mass production in June 2021. After launch, the car will replace the discontinued C4 Sega and C4L market position. The E43 uses a new styling language that will draw on design elements from the CXPERIENCE concept car.

On September 29, PSA Group and Dongfeng Motor announced that they would provide 50 million euros to DPCA in the fourth quarter of this year, and Dongfeng would also provide strong support for the liquidity needs of DPCA's production and operation. In addition, from 2020 to 2037, PSA Group will provide hundreds of millions of yuan of funds to Shenlong Company every year for brand image construction and channel development of Dongfeng Peugeot and Dongfeng Citroen brands. At the same time, the two major shareholders have also decided to increase the capital of Shenlong Company in the first quarter of 2021.

It should be noted that after the adjustment of the company's leadership team in September this year, Shenlong Automobile accelerated the pace of reform, focused on the core measures of double-brand sales breakthrough, and comprehensively improved operation efficiency.

All these behaviors are enough to prove that Dongfeng Group and PSA Group attach importance to DPCA, among which PSA Group is unwilling to let go of China, the largest single market in the world. Even if its performance is weak at present, PSA Group will also be the market that the new alliance needs to pay most attention to after the smooth merger with FCA in the future. For Dongfeng Group, Shenlong Automobile, as the first passenger car project of Dongfeng Joint Venture, carries more missions.

However, in Dongfeng Company's production and sales express, Shenlong Automobile once again "absent". In the face of "losing" sales, Chen Bin, general manager of Shenlong Automobile, once said at a media meeting: "Shenlong is on the edge of life and death, and this cannot be avoided." Neither Dongfeng nor Peugeot Citroen can afford to lose this battle."

After all, since the peak sales volume of 704,800 vehicles in 2015, Shenlong Automobile has begun to decline. Since 2016, Shenlong Automobile has experienced a waist-cut decline, from 704,800 vehicles in 2015 to 113,600 vehicles in 2019. In the first August of this year, the cumulative sales volume of Shenlong Automobile was only 81045 vehicles, with a decline of 63.36%.

It has to be said that the plan announced this time can be regarded as the battle of "giving it a shot" of DPCA, but for the current depressed market, Peugeot and Citroen-based legal brands have fallen to 0.3% of the domestic passenger car market share at present. With the injection of funds, the road to the revival of DPCA is bound to be a protracted war.

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