Dongfeng Peugeot keeps falling: fighting with self-independent brands

Gasgoo.com (Shanghai September 26, 2016)-New Dongfeng Peugeot 308 was launched on September 25^th, while Li Haigang, CEO of Dongfeng Peugeot, aims at self-independent brands, meaning Dongfeng Peugeot will keep falling to fight with self-independent brands.

Middle-class car market is always a fierce battle field. Its 3m units per year market size attract as many as 20 models, including both joint-venture brands and self-independent brands. As a second-tier joint venture brand, Dongfeng Peugeot faces a difficult situation to seize market shares from first-tier joint venture brands and is forced to compete with self-independent brands.

Previously, Geely and Chery launched new models, competing with joint-venture brands. “In the past two years, self-independent brands have a fast growth, caused by both opportunities and their efforts. Self-independent brand vehicles have great advances in the craftsmanship, design and marketing. In third- and fourth-tier cities, the hot competition between self-independent brands and joint-venture brands has begun.” Li Haigang said.

Dongfeng Peugeot will challenge self-independent brands in prices and sales channels. Most of self-independent brands focus their sales channels in third- or four-tier cities, but the trend of going high-end makes it quite impossible. Geely announced that its “L” brand will compete with middle-end SUV market with joint-venture brands, using new sales channels. Joint-venture brands are mainly focusing their channels on first- to third-tier cities. Li Haigang believes that, Dongfeng Peugeot’s 500 dealerships are able to complete the future sales targets.

But re-positioning is also a problem for Dongfeng Peugeot. Self-independent brands have winning great growths in prices, quantities and brands over the past years. But second-tier joint-venture brands are lagging behind. Li Haigang reveals that, Dongfeng Peugeot will launch four SUVs from this year end to the next year. “The market is diversified; self-independent brands and joint-venture brands will finally find their own positions and hold key customers.”