Besturn X40 launched, dealership network in question

The long-waited latest Besturn X40 ,the sixth model provided by FAW Besturn since Chinese car brand found in 1997,officially lauched this week. It’s also the first self-owned brand model from the previously troubled FAW Group. The Besturn told repoters they sold 5000 X40 on the first day it was lanuched while opinions varied.

“It’s of the strategic importance for FAW Besturn .“,the sales head of the Besturn Cui Dayong said.The Besturn X40, as the second SUV model under Besturn brand, is developed based on FAW's advanced R&D technologies and A Class platform.The new SUV offers customers more comfortable driving space as the wheelbase reaches 2600mm.

It is also the first SUV that equipped with advanced intelligent connective system D-life in China's A0-class auto market and the first SUV featured with social function. The D-Life system is like an intelligent terminal in the car that can customize various online applications. 

Besturn brand has completed its product structure with two SUV-models X80 and X40 ,the company expects a good performance of Besturn brand in the SUV segment . With the introudction of the new model, Besturn targets the young consumers and inject vigor and more fashionable features to the brand.

Dealership network in question

Before the introduction of the Besturn X40,FAW Besturn has launched five models ,one model every four years on average. The last SUV model X80 was lauched four years ago and the other models from Besturn are sedans with two A-class models B50 and B30, two B-class models B90 and B70.

However,the Besturn brand has not achieved a satisfactory result in recent years. The data from CPCA shows that the Besturn sales was 107,300 in 2016,down 29.3% from 2015.The sales of B50 decreased 40% to 33,000 while the numbers of B70 delivered in 2016 dropped 76% as compared to 19,000 vehicles sold in 2015.

The auto indusry analysts Chong Shi says that the Besturn is an economical SUV,the design and equipments are fine and the price is reasonable.But we find out the other domestic brands in the same segments like Baojun behaves better in regard to the scale effect.With larger quantity,the car brands could offer better buys. “At present,the price/performance ratio of Besturn is not so competive as the others and the situation in the Northeastern area could be better.”,Chong said.The network of the dealership plays an important role in the selling of the Chinese independent auto brands,especially for those targeted at the lower market in the third or fourth tier cities. In contrast to SGMW’s favorable policies for dealers, the FAW dealership network is relatively narrow. More work have to be done.