Self-independent brands face options in launching new brands or making high-end products

 Shanghai December 6th Gasgoo GWM released its new brand WEY just the day prior to Guangzhou Auto Show, attracting great attention from the industry. It’s the second high-end brand launched by self-independent brands after Geely’s LYNK&CO. At the same time, self-independent brands, represented by Chana, Chery and GAC, all showed their high-end products on the Guangzhou Auto Show.

It seems that self-independent brands are facing an option in producing high-end models or forging influential new brands. But looking backward, Geely and Chery all expanded their brands once but were forced to move back to “one brand” strategy by competition from their own products. At the same time, self-independent brans also face great difficulties in producing high-end models.

Geely launched its new brand LYNK&CO at a time less than three years after it claimed to return “one Geely” strategy in April, 2014. When asked about why Geely would choose to establish a new brand, Lin Jie, Vice President of Geely Group, said that, “LYNK&CO is targeted at young customers across the global market, which is quite different from the current Geely products.” Lin Jie told reporters that, “Although new brands will suffer suspicion when they are launched, but products will change people’s view towards new brands. When the current brands cannot hold new products’ characteristics, it is essential to build a new brand.”

GWM also chooses to release its new brand WEY this year. Wei Jianjun, Board Director of GWM said that, “To isolate a new brand from GWM’s current SUV models will keep the luxury characteristics and amiable prices. Most WEY products are priced at RMB 150,000 to 200,000, which is an acceptable price for customers.”

However, more auto companies choose to develop high-end products among current brands. Chana CS95, GAC Trumpchi CS8, JAC Refine A60 and other high-end products all made their debut recently. “Developing high-end products in the current system will face fewer risks, compared with building a new brand.” One expert said.