Just last month, the market share of domestic new energy vehicles exceeded 27%. This is much ahead of the market share of about 20% in 2025 proposed by the national new energy vehicle industry plan. On the one hand, we are rejoicing at the rapid development of the new energy vehicle industry, but on the other hand, we also need to consider how the fuel vehicle industry, which is still very large, can cope with the speeding electrification.
According to the statistics of the Passenger Car Association, by the end of 2021, the total domestic passenger vehicle production capacity will reach 40.89 million units, most of which are fuel vehicle production lines. At the same time, we also see that the vast majority of domestic consumers still choose traditional fuel vehicles as travel tools. This shows that the domestic demand for fuel vehicles still exists, and the proportion and scale are not small.
How can traditional car companies better meet this part of the real consumer demand? How to deal with the market impact brought by electrification? With these questions in mind, we took the opportunity of the Tuang X exchange meeting to interview Yang Siyao, Secretary of the Party Committee of SAIC Volkswagen Sales Co., Ltd. and Executive Director of SAIC Volkswagen Brand Marketing.
Yang Siyao, Executive Director of SAIC Volkswagen Brand Marketing
The era of subtraction: the market demand for fuel vehicles is still there, and the concentration will be higher
With the rapid increase in the proportion of new energy vehicles, the domestic fuel vehicle market has entered the era of subtraction. However, the data that fuel vehicles still account for more than 70% are enough to show that the consumer demand for this segment is still huge. According to Yang Siyao’s prediction, around 2030, the ratio of new energy and fuel vehicles will reach about 1:1. At that time, if the overall passenger car sales of 26 million to 28 million are maintained, there will still be a market of 13 to 14 million fuel vehicles, and the fuel vehicle market will still be very large.
However, in the face of intensified market competition, stricter energy consumption and emission requirements, and increasingly stringent policies such as network security, the threshold for building fuel vehicles will continue to increase. Some fuel brands with small market scale, low technical reserves and low overall competitiveness will be more and more difficult to deal with, and it is very likely that they will gradually withdraw from the mainstream market. For SAIC Volkswagen, which has the highest sales volume of a single brand and high product standards and strong competitiveness for many years in a row, this also means that we still have great market opportunities in terms of fuel vehicles.
Addition of product power: more practical, more fashionable appearance, high intelligence, young people also like
In Yang Siyao’s view, the overall environment of fuel vehicles is in the era of subtraction, and the first step to grasp market opportunities is to improve the competitiveness of products.
What is commendable is that SAIC Volkswagen has quite a pattern. It does not oppose fuel vehicles and electric vehicles like many car companies. Instead, it fully absorbs and draws on the advantages of trams in terms of design and intelligence. Continued efforts in and intelligence, product strength has improved significantly.
For example, the new Tourang X is a representative model of this kind of thinking. It can be seen from the slogan of Tuang X that it is “big more than big”, and its practicality is very strong. The car length of nearly 5 meters, the wheelbase of 2980mm, and the space layout of 5 doors and 5 seats bring the most luxurious space in its class, and it also has the most comfortable and spacious enjoyment in the same price range.
The exterior design of the whole car is also more trendy. The high-gloss black kit that shows the passion of young sports is particularly refreshing. The high-gloss black sports kit includes high-gloss black roof height and light black wheels, as well as the R-Line side logo and red brake calipers. Passing through the body, throwing down and passing to the front.
In terms of intelligence, the Touron X is supported by Volkswagen’s new IQ. technology, such as the new matrix headlights, the practical and easy-to-use IQ. Drive intelligent driving butler supports the whole journey intelligent driving assistance, including ACC advanced adaptive setting Speed cruise system, Front Assist front safety assistance system with AEB automatic emergency braking and other dozens of functions IQ. Drive intelligent driving butler, leading the same class models. The SAIC Volkswagen brand is very willing to this flagship model, and almost all the best and latest technologies are configured on the new Touran X, a luxury flagship SUV.
According to Cao Yun, the high-end model marketing/product strategy manager of SAIC Volkswagen, the Touron X is expected to become a new choice for consumers besides BBA when purchasing high-end SUVs in the price range of 350,000-400,000.
Of course, other models have also benefited a lot. According to Ren Zheng, manager of the high-end model marketing department of SAIC Volkswagen, for example, the design of Passat’s latest “starry face” has attracted many young consumers. According to Yang Siyao, the consumer group who chooses Passat starry face Passat The owner of the classic face design is a whole 3 years younger.
There is also a Volkswagen car that is the least like the Volkswagen-Lingdu L, and the catchy nickname of “spicy steamed bun” has changed the whole market’s inherent cognition of SAIC Volkswagen products.
Marketing Multiplies: Rejuvenation Doubles the Effect
With the increasing proportion of young consumers, how to integrate with young people at the marketing level has also become a great test. The product strength is very strong, but the models that are dragged down by the weak marketing can be found everywhere.
In this regard, SAIC Volkswagen has also carried out an upgrade at the marketing level. According to Yang Siyao, in addition to the traditional vertical media, SAIC Volkswagen has also strengthened the use of social media, especially focusing on new communication positions such as Station B, Douyin, Zhihu, and Xiaohongshu, which even once became Top search topics.
For example, SAIC Volkswagen often interacts with consumers in the form of official accounts, and has already ranked first in the industry in terms of live broadcast viewing and fan accumulation. At the same time, the SAIC Volkswagen APP also has more than 10 million registered users, significantly ahead of its competitors.
SAIC Volkswagen’s interpretation of rejuvenation is to insist on doing the right thing: to make the product cool, it will naturally resonate with young people; then use appropriate channels to reach them, play with them, and gain their approval.
Architecture to do division: TOC reform has achieved remarkable results
In addition to the changes at the product and marketing levels, SAIC Volkswagen has also learned from the advantages of the new forces in terms of internal, marketing and user services, and has carried out innovations that are more in line with their own conditions.
In Yang Siyao’s view, SAIC Volkswagen’s ultimate goal is to complete the To C reform, play with consumers, have sufficient communication and interaction, clearly understand consumers’ opinions, and make real-time improvements to meet consumers’ needs.
Of course, it is very difficult to make such a change, especially in the automobile industry with a long industrial chain. Therefore, SAIC Volkswagen first adjusted its own structure.
In the past, SAIC Volkswagen was the same as most traditional car companies. The sales department was responsible for sales, the marketing department was responsible for publicity and maintenance of brand awareness and reputation, and the network department was responsible for the health of dealer channels. However, through the transformation of To C, SAIC Volkswagen has established a marketing center, which has merged channels and sales, and the market has become a part of market communication and customer operations. Responsible for the management of user satisfaction.
At the same time, SAIC Volkswagen has also set up three front-end institutions for ID., high-end cars and mainstream cars based on product lines. A lot of self-operated business. Judging from market feedback, this move has achieved good results and consumers have responded positively.
write at the end
SAIC Volkswagen has been the sales champion for many years, and its production and sales scale has remained at more than one million vehicles. It is a pivotal car company in the domestic auto industry. From this perspective, SAIC Volkswagen is also one of the best windows to observe how traditional car companies respond to electrification.
In fact, the shrinking of the overall market size of fuel vehicles brought about by electrification cannot be avoided, which is probably the general trend that people often say cannot be violated. But just as not every new force can succeed, not every traditional car company will be eliminated. On the contrary, brands that fully listen to users, continuously improve the competitiveness of their products and services, and can keep up with changing consumer demands have even better opportunities.
For users who still like and still choose fuel vehicles, they prefer a group of traditional car companies that are newer than the new forces to stand out. For SAIC Volkswagen, which has a large number of fuel vehicles and has ID electric models, electrification brings more opportunities.