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dialogue with saic volkswagen's fu qiang: sales volume is needed to support brand positioning during the critical period of transformation

2024-09-06

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fu qiang, general manager of shanghai saic volkswagen sales co., ltd.

it's already 2024, and there are still car companies pushing fuel-powered cars?! this sounds a bit unbelievable.

it is no wonder that the reason why everyone has such a reaction when hearing about the new product launch of fuel vehicles is because the voice of new energy vehicles is so loud that it completely overshadows the existence of fuel vehicles.

however, saic volkswagen is one of the few companies that continues to enhance its product strength in fuel vehicles and further develops intelligence in fuel vehicles.

at the chengdu auto show, fuel vehicles were still the protagonists at saic volkswagen's booth. the passat pro made its debut and the tiguan new was officially launched.

among them, passat pro and tiguan l pro, which was launched in may this year, both have smart cockpit and smart driving as one of their main selling points.

in the view of fu qiang, executive vice president of sales and marketing of saic volkswagen automotive co., ltd. and general manager of shanghai saic volkswagen automotive sales co., ltd., whether a vehicle is intelligent or not has nothing to do with the vehicle transmission system, and fuel vehicles can also use intelligent auxiliary driving systems. he hopes that in the future, compared with pure electric products, the intelligence of fuel vehicles can reach a higher level.

in recent months, the penetration rate of fuel vehicles has started to increase again. thanks to the policy that encourages users to scrap old cars and replace them with new ones, the market below 100,000 yuan has grown rapidly. fu qiang shared a number with titanium media app.the penetration rate of a-class compact suv fuel vehicles exceeds 62%.

it can be seen that even though new energy vehicles are developing rapidly, the market share of fuel vehicles will still be large in the short term. this is one of the reasons why saic volkswagen will continue to attack the fuel vehicle market.

targeting competitors

in previous press conferences of saic volkswagen, fu qiang admitted that he never mentioned competing products, but at this press conference in chengdu, he was no longer secretive and was also targeting competitors and looking for "anchor points", but the key was to bring better benefits to users.

"in the market changes, the best defense is offense, but there are certain skills to how to attack. i have to decide where and with whom i want to fight," said fu qiang.

as the big brother of joint venture brands, saic volkswagen’s marketing actions this year were described by the media as very "offensive".

especially at this chengdu auto show, saic volkswagen launched the new tuyue, with a starting price of less than 100,000 yuan, only 79,900 yuan, and provides a lifetime warranty on the powertrain, which is lower than industry expectations.

as a new member of the tiguan family, the price of tiguan xinrui is obviously to boost sales. in the fierce competition in the compact suv market, saic volkswagen tiguan has sold more than 660,000 units in total.

regarding this car, fu qiang directly said, "for suvs under 100,000 yuan, tuyue xinrui has no competitors."

in fu qiang's opinion, the tuyue new rui is not only affordable, but also very powerful. the new car is equipped with a 1.5t evo ii net-efficiency engine, porsche's vtg variable-section turbocharger technology, 350bar high-pressure fuel injection system, miller cycle, aps plasma cylinder coating and other advanced technologies, with a fuel consumption of only 5.7l per 100 kilometers.

"volkswagen has always been against labels. volkswagen labels it 5.7l, but the actual driving speed is definitely lower than 5.7l. i dare to say that on the highway, the fuel consumption of japanese hybrid products cannot be as low as ours." said fu qiang.

in addition, fu qiang also said that saic volkswagen needs to break some car-buying misunderstandings.

he pointed out thatfirst, when looking at a car, don’t just look at the exterior size; the wheelbase and “room ratio” are the key.some consumers, especially those who are buying a car for the first time, like to refer to the car's exterior dimensions (length, width and height). a large car body is quite inconvenient for girls and novice drivers and is prone to scratches. at this time, it would be better if it is a little tighter and not "fat"; a long enough wheelbase, combined with exquisite space design, provides more internal passenger space and a higher "room ratio".

second, don’t look at the rated engine power, the wheel power is the key.the engine power is high, but the wheel power is not good, and the acceleration from 0 to 100 km/h is not good. in addition, its quality is also important. the materials and quality determine the residual value of the product.

there will definitely be people online who will attack our dq200 gearbox. after several technical upgrades, the tuyue new rui is equipped with the fifth-generation dq200 high-efficiency seven-speed gearbox, combined with our lifetime powertrain warranty, which is the strongest counterattack against these trolls. "why are you still worried about dry or wet type? first of all, the gearbox has been upgraded and there is no problem at all. secondly, in order to dispel users' concerns, we directly provide a lifetime free warranty for the powertrain."

sales volume is needed to support brand positioning

many industry insiders predict that in the future, there may be less than 10 car brands that will survive in the chinese market. "if this prediction is true, then offense is our only strategy. we must sit at the table and eat the food, not become the food on the table. this is the consensus of the volkswagen marketing team, including the executive committee members," said fu qiang.

so, in the new era of intelligent electric vehicles, how does saic volkswagen view the trend of joint venture brands’ technological lead shrinking? do joint venture brands still have a chance to regain dominance in the chinese market?

fu qiang admitted that some joint venture brands are indeed lagging behind in new energy, intelligence and networking. however, saic volkswagen has seen the current situation and taken active action."but saic volkswagen is not satisfied with the status quo, especially since there is a big gap between our market share in new energy vehicles and that in fuel vehicles. saic volkswagen will accelerate the pace of change. an elephant can turn around very quickly. in my opinion, saic volkswagen has almost completed its turnaround."

in terms of intelligence, saic volkswagen chose to cooperate with local enterprise dji to make up for its shortcomings. passat pro and tiguan l pro both use binocular inertial navigation systems jointly developed with dji, with functions such as intelligent following, turning during following, changing lanes with levers, and intelligent bypassing of obstacles, which are considered the "top brands" in the fuel vehicle market.

through product strategy adjustments, saic volkswagen achieved cumulative sales of more than 600,000 vehicles from january to july, a slight increase compared with last year. however, senior executives previously revealed that saic volkswagen temporarily sacrificed the prices of some models for market share and sales, which also caused losses for a small number of individual products, such as the id.3.

in fu qiang's view, this is a strategic choice, which is why saic volkswagen's strategy has been so radical recently. "we clearly know that saic volkswagen is in the most critical period of transformation.at this critical time, we need sales to support the entire network and the brand positioning of the volkswagen brand."

in other words, without sales volume, a series of effects will be triggered. if there is a problem with the dealer network system, then even if the transformation is successful later and sales volume increases, there will be no way to sustain it.

therefore, fu qiang said that saic volkswagen does not measure its success in the past one or two years, but focuses on the future. including saic group and volkswagen group, what role will saic volkswagen play in the chinese market in the future? will it still be a company that stands at the forefront? the answer is always "yes".

fu qiang is not optimistic about some joint venture brands choosing to lie flat. in his opinion, once they choose to lie flat, they will never be able to stand up again. moreover, the price of lying flat is much higher than the price of standing up, because everyone has forgotten the brand.

"saic volkswagen's choice is very firm. the transition period must have a transition strategy and a transition method of play. of course, some interests will be temporarily sacrificed during the transition period, but what is won is the future battlefield. this is exactly the same as fighting a war. this is a strategic position and you must take it at all costs. i only want tashan, and i don't want casualties. you must take tashan. this is the strategy. only by occupying tashan and occupying the members of the million club in the next two years, will we usher in a completely different saic volkswagen in the second half of 2025 and 2026." fu qiang said.