Dongfeng Fengxing Enters SUV Market, Strive for 270,000 in Sales

Public data show that Dongfeng Liuzhou Motor is a wholly-owned subsidiary of Dongfeng Motor, 75% of the share in Dongfeng Motor, 25% in Liuzhou city. According to the Dongfeng Group, Dongfeng Liuzhou Motor has four bases, commercial vehicle production base, passenger car production base, independent brands R & D base and the production base in Southeast Asia. Dongfeng Liuzhou Motor possesses two brands, the commercial vehicle and passenger car, Dongfeng Fengxing.

Dongfeng Fengxing, silent for the first half of the year, begins to take actions

During this year's Guangzhou Auto Show, the company's will adopt the way of pre-sale to launch the most important product, JOYEAR X5. Plus the modified MPV in September and the launch of SX6 with 7 seats in July, Dongfeng Fengxing begins to take intensive action in the second half of this year.

It is said that the JOYEAR X5 locates in the market of compact SUV. As everyone knows, small SUV and compact SUV are the main battlefield for the independent brands to get a turnaround, catering to consumers’ demand in third or forth-tier cities, with relatively low price, and rich features and diversities.

Wu Xuefeng, deputy general manager of Sales Company in Dongfeng Liuzhou Motor, puts great expectations on this model, "On the one hand, we hope that it can enter into the compact SUV market to gain the share. On the other hand, it is the first product of 2.0 products, so it shoulders dual responsibilities."

Battle in the Compact SUV Market

Many insiders expressed great concern about the current excess in SUV market. There exists not only hot products like Haval H6, Baojun 560, but also many new entrants like FAW Xenia R7, Hanteng X7. So how JOYEAR X5 stands out in the fierce competition?

There is no denying that year-on-year growth of passenger car sales reaches 14.8% for the first three quarters of this year. From the perspective of niche market, SUV is still the main market of independent brands, with higher sales and growth rate than cars and MPV. Though the competition is fierce, there is still a chance to gain.

Wang Guangmin, minister of marketing in Passenger Car Sales Company, Dongfeng Liuzhou Motor, said in an interview, the main market of JOYEAR X5 is the compact SUV market. Strictly speaking, JOYEAR X5, with 2720mm wheelbase, belongs to the products between compact and intermediate products. We will compete in the market of compact SUV.

Review of the performance in 2016, Wu Xuefeng said, the company was relatively quiet in the first half of this year. "we basically sold products of 2015 in the first half of this year, and take actions in the second half of this year." According to his introduction, SX6 with 7 seats was launched in July, and the modified MPV was released in September. In November when Guangzhou Auto show is held, the company's most important new product, JOYEAR X5, will be released.

The introduction of these products make the company have a complete layout in the field of cars, MPV and SUV. "Keep the  dominant position in MPV; as for cars and SUVs, on the one hand, fill the gaps in the market, on the other hand, build quality products to meet the trend of consumption upgrade", added Wu Xuefeng.

Upgrade to Age of 2.0

 Public data shows that Dongfeng Liuzhou Motor is a wholly-owned subsidiary of Dongfeng Motor, 75% of the share in Dongfeng Motor, 25% in Liuzhou city. According to the Dongfeng Group, Dongfeng Liuzhou Motor has four bases, commercial vehicle production base, passenger car production base, independent brands R & D base and the production base in Southeast Asia. Dongfeng Liuzhou Motor possesses two brands, the commercial vehicle and passenger car, Dongfeng Fengxing.

Dongfeng Fengxing shoulders the dual responsibilities for the development of Dongfeng Liuzhou Motor and Dongfeng independent passenger cars.

    Review of the history of Dongfeng Liuzhou Motor, it started from business MPV in 2001, then developed a relatively complete layout from MPV to midrange F600, as well as entry-level Lingzhi. From 2010 to 2015, the company experienced the stage of rapid growth, and sales reached 240,000 in 2014, 250,000 in 2015. Despite shortage of resources this year, sales is expected to achieve 270,000,”introduced by relevant person in charge.

JOYEAR X5 is a product elaborately designed for the consumption upgrade, leading all the products of Dongfeng Fengxing into the age of 2.0.

    "JOYEAR X5, as the first product of quality 2.0, will bring all the series into the age of quality 2.0 so as to better respond to the trend of consumption upgrade."said Wu Xuefeng. "JOYEAR X5 is shouldering the mission, entering into the compact SUV market, and being expected to have a good market performance in this niche market."