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A few days ago, it was reported that Dongfeng Automobile Group will set up h division, which focuses on high-end new energy passenger cars. At present, h division has begun to recruit.

As early as May this year, Dongfeng Motor interior named this project code-named "Plan H" and announced its implementation. Dongfeng Group has this description of "H Division": it is committed to integrating and developing new technologies for the global automotive industry, and to build high-end intelligent networked vehicles from the perspective of "science and technology, quality and exploration".

At present, Dongfeng Motor Group will set up H Division and has begun recruitment, which means that the project will be carried out immediately.

According to Dongfeng company insiders previously revealed that the "H plan" is Dongfeng company to prepare high-end new energy vehicle project. According to the plan, the project will be like FAW Red Flag, as an independent high-end brand, will build its own sales channels and will not be subordinate to Dongfeng's existing independent brand passenger car company.

Dongfeng Motor Group Co., Ltd., a company listed in Hong Kong, already has two new energy companies, namely Dongfeng Electric vehicle Co., Ltd. And easy New Energy vehicle Co., Ltd. Among them, the former was established in 2001, and completed the core three-electricity system and other technology development, launched hybrid public transport, pure electric special-purpose vehicles and other products.

As to why the program has not been launched until now, insiders say that companies such as Red Flag have made frequent efforts on high-end passenger car projects in the past two years, which has put Dongfeng under pressure. In the field of passenger cars, Dongfeng launched pure electric cars and other products a few years ago, but mainly concentrated in the field of medium and low-end cars. Hold a conservative attitude to the prospect of the project, on the one hand, Dongfeng Company lacks FAW Red Flag-style high-end brand assets, on the other hand, Dongfeng itself lacks successful high-end passenger car operation experience.

According to Dongfeng Motor's first-half data, Dongfeng Motor's revenue in the first half of this year was 6.761 billion yuan, up 16.79% from the same period last year, while the net profit belonging to shareholders of listed companies was 246 million yuan, down 15.53% from the same period last year. In terms of sales, Dongfeng Motor Co., Ltd. sold 104000 vehicles from January to August, up 11.45% from a year earlier.

Independent brand high-end has always been a dilemma, often because the performance and price of various types of products are too close, can not well open the range, mutual constraints, the loss outweighs the gain.

High-end models are aimed at so-called high-net-worth customers, whose needs will be more complex and sensitive. The high-end brand built on the brand endorsement itself needs to be significantly improved in terms of "quality" and "technology", so as to get rid of the gap with the low-end products. If one's own brand has a deep-rooted impression of low-grade in the minds of consumers, and then forcibly bundled marketing with the help of mother and child brands, if there is no higher added value, it will easily lead to counteractivity. dilute the sense of nobility of the sub-brand that was originally intended to be launched as a high-end car.

In the face of the continuing downturn in the overall market, coupled with the decline of the new energy policy, sales in the new energy sector have declined for three months compared with the same period last year. In addition, through other independent high-end brands such as LinkedIn and Red Flag, how to position Dongfeng's high-end new energy brand is the key.

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