Dongfeng brand to focus on utility vehicles
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Dongfeng brand to focus on utility vehicles
- We saw in a previous Auto Analysis that the third large traditional Chinese group, Dongfeng, has experienced a constant decline since 2017.
From 3.7 million vehicles produced in 2016, its production volume fell to 2.7 million in 2020 and only 1.9 million in 2023 (Inovev forecasts). Dongfeng is suffering from the cumulative fall in sales of Peugeot, Citroën, Renault, Nissan, Honda and Kia. But its own passenger car brand, Dongfeng, marketed in China is experiencing significant difficulties to face the numerous and fierce competition. Its sales have continued to decline for five years, going from 415,011 units in 2018 to 349,877 in 2019 and 254,112 in 2020. The year 2021 did not really record a recovery, with 273,300 units sold. To make matters worse, the “utility vehicles” subsidiary (Dongfeng is one of the largest producers of heavy utility vehicles in China) saw its sales collapse, going from 671,694 units in 2020 to 393,540 in 2022.
From 3.7 million vehicles produced in 2016, its production volume fell to 2.7 million in 2020 and only 1.9 million in 2023 (Inovev forecasts). Dongfeng is suffering from the cumulative fall in sales of Peugeot, Citroën, Renault, Nissan, Honda and Kia. But its own passenger car brand, Dongfeng, marketed in China is experiencing significant difficulties to face the numerous and fierce competition. Its sales have continued to decline for five years, going from 415,011 units in 2018 to 349,877 in 2019 and 254,112 in 2020. The year 2021 did not really record a recovery, with 273,300 units sold. To make matters worse, the “utility vehicles” subsidiary (Dongfeng is one of the largest producers of heavy utility vehicles in China) saw its sales collapse, going from 671,694 units in 2020 to 393,540 in 2022.
- Dongfeng therefore made four decisions to halt its decline:
§ Dongfeng has decided to boost its Fengshen brand which is progressing well thanks to a vast product range well adapted to demand: its sales increased from 95,311 units in 2018 to 130,300 in 2021 and 226,330 in 2022.
§ Second decision: the creation of a Premium brand (Voyah) like other Chinese carmakers.
§ Third decision: the creation of a new passenger car brand (Seres) which will gradually take over all Dongfeng brand passenger cars.
Seres has already sold 107,711 units in 2022, formerly badged Dongfeng.
Seres has already sold 107,711 units in 2022, formerly badged Dongfeng.
§ Fourth decision: The Dongfeng brand will focus on the subsidiary's “utility vehicle" products.
- According to Dongfeng, its three brands Fengshen, Seres and Voyah should partly compensate for the losses suffered by JVs producing foreign brand models which should accelerate over the coming years.
2023 Munich Motor Show - Audi Q6 E-Tron
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2023 Munich Motor Show - Audi Q6 E-Tron
- Audi is expected to unveil its battery electric Q6 E-Tron SUV at the 2023 Munich Motor Show, which will be in the carmaker's range between the battery electric Q4 E-Tron and the Q8 E-Tron.
- The battery electric Audi range is therefore being built rapidly, in order to better position itself on the market against BMW and Mercedes, its two main competitors. It is however unfortunate that the Audi brand has not yet invested in the category of battery electric sedans, apart from the E-Tron GT which is located in the very top range.
- BMW has its Mini Cooper, i4, i5 and i7 sedans while Mercedes has its EQE, EQS and its Smart. We are therefore impatiently awaiting the launch of the battery electric Audi A2, A4, A6 and A8 as the carmaker has announced that the even numbers attributed to its models will be dedicated to battery electric cars.
- The new Audi Q6 E-Tron SUV is the brand's first model to be based on the PPE platform that will be used by other Volkswagen group models such as the future Porsche Macan, a higher-end platform than the MQB and MEB which is currently reserved for Audi and Porsche.
- In 2022, Audi produced 109,353 electric vehicles including 57,301 Q4 E-Tron, 39,986 Q8 E-Tron and 12,066 E-Tron GT according to Inovev, which represents barely 7% of its global production. Inovev expects 50,000 units per year of the new Q6 E-Tron.
2023 Munich Motor Show - Inovev forecasts 100,000 units per year in Europe for the new VW Passat
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2023 Munich Motor Show - Inovev forecasts 100,000 units per year in Europe for the new VW Passat
- Until 2022, the Volkswagen Passat (D-segment sedan) was produced in Europe, China and the United States, with a different body for each of these regions. Production of the Passat ceased in the United States in 2022, while it continues in Europe and China. In China, the local Passat has seen its sales stabilize at around 200,000 units per year for ten years, while in Europe, the Passat has seen its sales divided by three for ten years and even divided by four since 2006-2007.
- The one that was Volkswagen's revival car in 1973, after the collapse of the Beetle in the early 1970s, gradually became a marginal car within the German carmaker. So much so that Volkswagen had considered not replacing the current Passat. Especially since the brand's D-segment sedan promised a bright future was the battery electric ID7. Finally, a new generation of Passat will see the light of day in 2024, but only in station wagon (SW) version in order not to interfere with the ID7 available only in sedan body.
- The new generation of the Volkswagen Passat SW presented at the 2023 Munich Motor Show shares its MQB platform with the future Skoda Superb which is evolving on the same market, in sedan and station wagon versions. The Passat SW is 15 cm longer, than the Superb. The engines are numerous: a 2.0 petrol TSI (201 hp or 261 hp), a 2.0 diesel TDI (120 hp or 148 hp), a 1.5 petrol 48V MHEV (148 hp) and a 1.5 petrol PHEV plug-in hybrid (201 hp or 268 ch). Obviously no electric motor. Inovev forecasts 100,000 units per year in Europe the new VW Passat.
2023 Munich Motor Show - Porsche Mission X Concept
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2023 Munich Motor Show - Porsche Mission X Concept
- To celebrate its 75th anniversary, the Porsche firm (a subsidiary of the Volkswagen group) is presenting a concept car called Mission X at the 2023 Munich Motor Show. This high-performance model is in line with the Porsche 959 (1985), Carrera GT (2003) and 918 Spyder (2013), but adds the battery electric motorization.
- Ten years after the 918 Spyder and twenty years after the Carrera GT, the Mission X with "butterfly" doors seems closer to competition machines than road cars. However, the carmaker plans to market this model in limited quantities (perhaps 75 copies?).
- From a small marginal carmaker in the 1950s, Porsche was able to create a strong brand image in the 1960s with the success of its sports cars in Europe and North America. His victories at the 24 Hours of Le Mans in 1970 and 1971 in a Porsche 917 amplified his notoriety in the 1970s. The Porsche 911 launched in 1964 became THE sports car par excellence.
- The diversification that began in the 1970s gained momentum over the following decades.
- SUV and 4-door sedan completed the range in the 2000s. Passed under the control of Volkswagen in 2012, the Porsche firm has continued to develop since then. From 100,000 sales in 2005, Porsche saw the number of its sales increase to 150,000 units in 2013, 200,000 units in 2014, 250,000 units in 2017 and 300,000 units in 2021. Remember that in the year 2000, Porsche only produced 32,000 cars and only 17,000 in 1970.
2023 Munich Motor Show - Inovev predicts 500,000 sales of the new Volkswagen Tiguan SUV in 2025
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2023 Munich Motor Show - Inovev predicts 500,000 sales of the new Volkswagen Tiguan SUV in 2025
- The third generation of the C-segment Volkswagen Tiguan SUV will probably be the last, as this model unveiled at the 2023 Munich Motor Show will see its seven-year commercial career come to an end in 2030, when all Volkswagen models sold in Europe are expected be equipped with fully electric motorisation. However, the range of battery electric cars is identified by the designation ID (ID3, ID4, ID5, ID6, ID7, etc.).
- The Volkswagen Tiguan will therefore make its last lap in Europe between 2024 and 2030. And it will really be a challenge for the carmaker because the Tiguan is one of the best-selling SUVs in the world, with 800,000 sales in 2018, 700 000 sales in 2019 and another 530,000 sales in 2022. It will be very difficult for Volkswagen to produce a battery electric SUV at such a volume.
- The new Tiguan unveiled at the 2023 Munich Motor Show will still be equipped with petrol (1.5 TSI) and diesel (2.0 TDI) engines and plug-in hybrid petrol engines of 204 hp and 272 hp, but will not be entitled to battery electric motorization reserved for the ID range.
- This is why Inovev is not optimistic about the expected production volume of the new Tiguan, in a period when battery electric motorization should develop strongly and where internal combustion engines will continue to decline.
- We can count on 500,000 sales per year in 2024-2025 then 400,000 in 2026-2027, 300,000 in 2028-2029 and 200,000 in 2030.
- The new Tiguan will compete with the Hyundai Tucson, Kia Sportage as well as the Peugeot 3008, Citroën C5 Aircross, Opel Grandland, DS 7 which will be available in a battery electric version.
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