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.
Sereshas already sold 107,711 units in 2022, formerly badged Dongfeng.
Sereshas 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.