Changan postpones high-end brand plan to 2020 in China

Gasgoo.com (Shanghai August 24) -Since the year of 2008, many Chinese domestic automakers have begun to seek for high-end vehicle strategies, while Changan Auto still hasn’t launched any high-end brand plan at present. The company currently announced that it will postpone the strategy to around the year of 2020.

Changan intends to polish the domestic Changan brand and accumulate strengths before implementing the high-end strategy.

The company entered Chinese passenger vehicle market in 2006, since when it has spared no effort in raising premium price capacity and improving sales structure, so as to reduce the gap behind foreign joint-ventures.

In the first seven months of the year, Changan reported sales increasing 36 percent from a year earlier to 600,000 units in domestic brand passenger vehicles. But, this performance is not good enough to launch high-end vehicles of its own brand. High-end vehicles require not only high-end technology, but also a sound product line, effective marketing, a sound system and mechanism and an influential brand image.

Though Chinese auto market has gone through recession since the beginning of the year, Chinese domestic automakers managed to achieve sales growth and expanding market share. This preferential situation is contributed to their right bets on SUV models.

But, Changan makes another surprising plan that the company won’t focus too much on the SUV market segment. The company believes that domestic automakers are losing their edge in SUV as foreign joint-ventures started to launch an array of competitive SUV models.

The car model will remain to be the primary model of global passenger vehicle market in the long run, SUV only accounting for 30 percent at present and in the future.