Brilliance launches cheap 1.8T Zhonghua sedans

Shanghai, May 27 (Gasgoo.com) Brilliance China Auto yesterday launched Zhonghua sedans powered by the 1.8T (turbo) engine, which has achieved a breakthrough in the mid- and high-end automobile segments of China's own brands. The average price of the 1.8T Zhonghua cars has risen by about 40,000 yuan ($5,740). Brilliance aims to sell 175,000 cars of this own brand in the coming three years and at this rate the carmaker is expected to increase its sales revenue by 7 billion yuan.

Zhonghua Junjie (at 2008 Beijing auto show)

Equipped with the 1.8T (turbo) engine are five Zhonghua Zunchi models and four Zhonghua Junjie models. Their selling prices range between 125,800 yuan and 199,800 yuan. The turbo engine features the cutting-edge technology, and the imported or joint-venture-made 1.8T cars would sell for at least 180,000 yuan, but Brilliance's 1.8T sedan can sell at a price lower than 130,000 yuan. So some analysts and customers doubt whether the low pricing is a sales gimmick by Brilliance.

In response to the doubt, Brilliance CEO Qi Yumin said that the company set the prices of its 1.8T sedans very cautiously, mainly based on possible brand recognition they will bring and the long-term returns on the investment. However, Qi admitted that the low pricing will also help the Zhonghua sedans penetrate into the domestic and global markets more quickly. In addition, it is impossible for the homegrown brand to sell at the same price of imported or JV-made brands using this technology.

Brilliance aims to sell 80,000 Zhonghua sedans equipped with the 1.8T engine this year and 100,000 units in 2009 to balance the carmaker's hefty investment in the 1.8T (turbo) engine technology. The company had invested 1.05 billion yuan in the research and development of the 1.8T (turbo) engine, Qi said.