Is the joint venture building "independent brand" intended to grab the market at a low price?

From Guangqi Honda’s own brand “idea” to SAIC-GM-Wuling “Baojun” and then to Dongfeng Nissan’s “Kaichen”, it seems overnight that the joint venture brands have started to build their own brands.

What kind of brand does the joint venture automobile company need to play in its own brand? On the one hand, the view is that after the failure of the market-for-technology road, the Chinese side chose another “technical autonomy” route; on the other hand, the opinion was that the joint venture’s intention to release the self-owned brands was not in favor of the wine, and the market share of the traditional independent brand was of concern. .

"Individual brand" concentrated on the horse

SAIC-GM-Wuling’s "Baojun" is the earliest joint-venture company to launch its own brand, the first mid-level new car will go offline in mid-November this year.

Baojun's prototype came from the Buick Excelle and pointed to the mid-size car market of about 100,000 yuan. SAIC-GM-Wuling has already negotiated with 300 dealers and hopes to establish a strong distribution network when Baojun is listed.

Baojun's rapid operation has made other joint venture brands unable to wait.

Recently, Dongfeng Nissan has released its own brand "Kaichen", which is expected to be officially put into operation in 2012. Dongfeng Nissan called this a new way of thinking and path for the future development of joint-venture car companies.

According to relevant news, Changan Ford, Beijing Hyundai, Guangzhou Automobile Toyota, Dongfeng Honda and other joint ventures will also launch their own brands. The establishment of self-owned brands is an important strategy for future development in the future development plans of Shenlong Automobile and Changan PSA.

Large-scale launch of "individual brand", what is the intention of the joint venture brand?

When interviewed by the reporter of “Daily Economic News”, Chen Gasket, president of Gasgoo.com, stated that “at present, the definition of self-owned brands is not very clear, and the joint venture brands’ release of their own brands actually meets the double-sided demands of the Chinese and foreign parties.”

Chen Wenkai believes that from the Chinese perspective, this is an adaptation of the "market for technology" road. The rapid rise of local self-owned brands, such as the success of Chery Automobile and Geely Automobile, has severely hit the adherents of the joint venture route. The adherents of the "market-for-technology" route hope to rely on this route to continue to build China's auto brands.

Chen Wenkai said, “From the perspective of foreign strategy, some old models still have a market. If the original brand price is reduced, it will affect the influence of the parent brand. If a new brand is launched and sold, it will be in line with the market strategy of multinational companies.”

In fact, the joint venture has long been an attempt to autonomy, the earliest being autonomy in vehicle model R&D and design. FAW-Volkswagen New Bora and Shanghai Volkswagen Lam Yiu are both designed by joint ventures. The company has independent autonomy, but still carries the public's logo.

Chen Wenkai believes that the joint venture brand is not a truly independent brand. “Foreign parties certainly do not want the joint venture company to compete with the parent brand in the international market. If this cannot be achieved, the joint venture company will not be independent, and it cannot call its own brand.”

Encirclement and Anti-encirclement

In fact, the joint ventures released their own brands to meet the “market for technology” line adhere to those who also meet the multinational auto companies to their own brand "encirclement and suppression".