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With dual growth, how does Chery achieve the ultimate in product segmentation?

From:Internet Info Agency 2020-10-16 18:02:27

This year's automobile market has undergone an unprecedented test. The COVID-19 pandemic has accelerated the economic downturn, the consumption ability of the people has been restricted, the demand for products has been surplus, the inventory has been overstocked through sales, and the various environments of the industrial chain have been affected. However, the old saying goes that "strikes on iron requires one's own hard work." In such an extremely complex economic environment, only those who can withstand the beating may have the last smile.

Recently, IIA learned from Chery that the group's sales in September reached 69,075 vehicles. Chery's sales reached 42,317 vehicles, a year-on-year increase of 9.9% and a month-on-month growth of 5.2%. It has achieved a year-on-year double growth for four consecutive months.

In terms of specific models, the sales volume of the new generation of Tiggo 8 were 12,768, a year-on-year increase of 7.4% and a month-on-month increase of 3.8%. The new generation of Tiggo 7 was sold 6,770 units, a year-on-year increase of 579% and a month-on-month increase of 15.9%. Sales of the new generation of Tiggo 5x were 7,721, a year-on-year increase of 1.8% and a month-on-month increase of 2.6%. The sales volume of Tiggo 3 lineups was 3841 vehicles, a year-on-year increase of 34.3% and a month-on-month increase of 40%. The Arrizo lineups were sold 6,647 vehicles. The above-mentioned main models of Chery still sold well under the influence of the epidemic. This is mainly due to the acceleration of Chery's product iteration and further enhancement of product strength and market competitiveness.

Tiggo 8 is still the main source of Chery sales. As an entry-level mid-size SUV, although Tiggo 8 is currently Chery's flagship car with the highest brand positioning, it has been recognized by consumers for its high quality and affordable prices. It can be said that the popularity of Tiggo 8 is not accidental.

In two years, in order to keep up with consumer demand for cars, Tiggo 8 has undergone several model changes and upgrades, and Chery has always been keen on capturing consumer needs. According to media reports, not long after the 2020 Tiggo 8 was launched, the mid-term facelift model has entered the road test phase. Chery's subdivision of its mid-size SUV to the extreme can undoubtedly better meet the needs of different consumers.

The significance of subdividing models is to try their best to meet the various needs of consumers. Among the mid-level SUVs, many consumers have begun to pay attention to the sense of technology and driving comfort, so Chery once again launched the Tiggo 8 PLUS that faces different consumer needs. The new car has been pre-sold at the 2020 Beijing Auto Show and will also hit the market this month.

It is hard to go far just by subdividing a mid-level SUV. Tiggo 8 is equipped with Chery's third-generation ACTECO 1.6TGDI four-cylinder turbocharged engine. This famous engine is not only one of the top ten engines of 2019, but also the best embodiment of Chery's core technology. It adopts in-cylinder direct injection technology, fuel injection pressure reaches 200Bar, can burst out 197Ps maximum horsepower, 290N·m peak torque, liter power reaches 123 horsepower, and the actual driving experience has always been praised by users. With the increasingly fierce competition in the mid-size SUV market, the new generation of Tiggo 8 will also usher in a new breakthrough in sales.

Making breakthroughs in market segments seems to be the secret of Chery's strong sales. From subdividing a car to subdividing different brands, as well as the addition of Jetour and Exeed, this has undoubtedly expanded Chery's sales span.

In order to satisfy some young people, Chery's Jetour brand quickly achieved monthly sales exceeding 10,000 yuan after launching Jetour X70 in 2018. Last year, the cumulative sales volume of Jetour X70 reached 128,100 units, which is very popular among users. Even with the impact of COVID-19 this year, sales have doubled since July.

As the impact of COVID-19 fades away, it is believed that Jetour will continue to sell well by virtue of its super cost-effective advantage, the product market will gradually increase, and the Jetour brand will continue to accumulate good product reputation. The Jetour brand ushered in the second anniversary of the product launch in August this year, with cumulative sales exceeding 230,000 vehicles.

Another brand that specializes in the high-end market is Exeed. The original intention of Chery to launch the Exeed was to create a good car that the common people could drive, just like Chery QQ back then with the mission of letting cars go to thousands of households.

From a technical point of view, its representative model Exeed TX is equipped with 1.6TGDI engine, M3X platform, Chery Lion system and other innovative technologies. It can be said that this car is a combination of Chery's current cutting-edge technology. And its price is affordable.

The Exeed TXL SUV under the Exeed brand won the 2020 C-NCAP five-star+ evaluation with a combined score rate of 93.6%, ranking first among all mid-level SUVs in the evaluation since the implementation of the latest rules. When the market gradually recovers, I believe Exceed TXL will show even more impressive results.

A veteran in the industry once said: There are only two positive R&D platforms that can be used in independent brands, one is Chery and the other is Geely's CMA.

Chery has also been constantly updating its lineup. Since 2020, Chery Automobile has successively launched a new generation of Tiggo 5x, a new generation of Tiggo 7, a new generation of Tiggo 8, Tiggo 3x PLUS, and so on. This is all thanks to the four positive R&D platforms of T1X, M1X, T3X, and M3X launched in the 3.0 era of its products. These four platforms cover the development capabilities of cars, SUVs, MPVs and new energy modular platforms, and can provide a steady stream of products based on market needs.

In addition to Chery's series of innovative research on engines, Chery New Energy released a new @LIFE platform with key core technologies on August 28. At the same time, the first new-generation high-energy pure electric SUV based on this platform, the Ant, opened pre-sale simultaneously.

Such solid technology undoubtedly provides enough confidence for Chery Automobile to subdivide models.

Over the years, Chery has been committed to researching and developing its own core technologies and processes, and its series of achievements have been highly recognized by the industry.

Under the harsher market environment, companies have to actively adapt to changes in consumption and the trend of necessary product upgrades, and accelerate the launch of new products, new technologies and new services that meet consumer needs, driving rapid sales growth. In this year's special market environment, Chery's segmentation strategy can be regarded as a textbook response.

Editor:Tian Qian