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Following design and configuration, what is the next breakthrough point for independent brands?

In 2018, Changan Passenger Vehicles sold a total of 850,000 units annually; Chery Automobile sold 750,000 units; and Geely Automobile sold 1.5 million units. At first glance, these sales results of our Chinese independent brands seem quite impressive. But do you know how many units Volkswagen sells in a year? Following design and specifications, what is the next breakthrough point for Chinese independent brands? SAIC Volkswagen sold 2.06 million units in 2018, and FAW-Volkswagen sold 2.03 million units. Even Beijing Hyundai, which many people were not optimistic about, achieved annual sales of 790,000 units. It is an undeniable fact that sales of Chinese independent brands have been rising in recent years. However, only a few of the most prominent brands in the independent sector can truly compete with joint‑venture brands in terms of sales volume. Following design and specifications, what is the next breakthrough point for Chinese independent brands? Thinking back a decade ago, almost everyone shuddered at the mention of “domestic cars”. Back then, Chinese independent brands were still in their infancy. Many models were crudely made, with no aesthetic appeal in design, interiors full of hard plastic, poor workmanship, and frequent minor defects. Following design and specifications, what is the next breakthrough point for Chinese independent brands? Today’s independent brands are like China’s large‑scale manufacturing industry: developing rapidly and standing among the world’s leaders. Overall, the strong sales performance of independent brands — with BYD Tang, Changan CS75, Geely Boyue, and Trumpchi GS8 seen everywhere on the streets — is attributed to two major breakthroughs. ### Internationalized Design Appearance is the top priority for Chinese consumers when buying cars. Today’s independent brands clearly understand what consumers want. BYD is a perfect example. After hiring Wolfgang Egger, former Design Director at Audi, BYD’s new models have received wide acclaim for their exterior design. The Song MAX, the all‑new Tang, and the Qin Pro have all been well received by consumers. Following design and specifications, what is the next breakthrough point for Chinese independent brands? Everyone knows what BYD’s designs were like in the old days. If a car cannot even attract buyers with its looks, how can anyone be willing to pay for it? BYD acted wisely: if it was not good at car design, it would simply bring in experts. It took a bold, decisive approach — hiring top talent from Audi, widely recognized as a leader in automotive design. Following design and specifications, what is the next breakthrough point for Chinese independent brands? There are many such examples. Kevin Rice, a renowned automotive designer who joined Chery in October 2018, previously held design positions at foreign brands including BMW and Mazda. Zhang Fan, Chief Design Director at GAC Group, was a lifelong designer at Mercedes‑Benz’s design headquarters in Germany before joining GAC in 2011. The design teams of independent brands more or less include foreign designers, and even many Chinese designers have studied abroad. Following design and specifications, what is the next breakthrough point for Chinese independent brands? This has helped new models gradually move toward international standards and align with the global market. From copying others in the past to independent innovation today and going global, Chinese independent brands truly deserve recognition in the field of design. ### Unmatched Equipment Levels High specifications have become almost synonymous with Chinese independent brands and are part of their strength. A decade ago, the Chery A3, priced at less than 80,000 yuan, already featured automatic air conditioning, rain‑sensing wipers, automatic headlights, and a 9‑speaker audio system. For the same price back then, buyers could only get a basic 1.3‑liter manual Suzuki Swift. Following design and specifications, what is the next breakthrough point for Chinese independent brands? As more Chinese auto parts suppliers have grown, new production lines have been introduced, and vehicle manufacturing technologies have continuously improved, the production costs for independent brands have been further reduced, and new models keep setting new highs in equipment. Following design and specifications, what is the next breakthrough point for Chinese independent brands? High‑tech features such as adaptive cruise control, automatic parking, and automatic emergency braking were rarely seen on independent brand models in the past, due to patents, costs, and other restrictions. Following design and specifications, what is the next breakthrough point for Chinese independent brands? But today it is a different story. A new model from a Chinese independent brand would almost be embarrassed to hold a launch event without collision warning, automatic emergency braking, or driving assistance systems. A car priced around 100,000 to 150,000 yuan can satisfy almost all equipment demands — highly attractive to Chinese consumers who value cost‑performance. ### The Next Step Forward Have you ever wondered why Chinese independent brands mainly focus on the 80,000 to 180,000 yuan price range? Once the price exceeds this range, consumers are unwilling to pay. Over time, manufacturers have simply given up on breaking into the high‑end market. Following design and specifications, what is the next breakthrough point for Chinese independent brands? Following design and specifications, what is the next breakthrough point for Chinese independent brands? There are many such cases. Geely, Changan, Zotye, Lifan, and Roewe all tried launching midsize sedans to challenge the market. Even putting all their technical capabilities on display, they still could not compete with joint‑venture models. Following design and specifications, what is the next breakthrough point for Chinese independent brands? It was not due to insufficient cost‑performance, lack of equipment, or poor materials and workmanship. The key issue was that their mechanical performance was simply incomparable to joint‑venture models in the same price range. Their technology in the three core components of a car lagged behind. The powertrain matching between engines and transmissions is the most urgent problem for independent brands at this stage. Following design and specifications, what is the next breakthrough point for Chinese independent brands? ### Honda’s Legendary 1.5T Engine Powertrain calibration is extremely complex; improvements are not as immediate as in design or equipment. A poor engine and transmission combination cannot be fixed even by the most skilled engineers. Transmissions are relatively easier to address — brands can simply purchase units and software from major suppliers. Many independent brands currently use Aisin transmissions. Engines, however, are much harder to resolve. A decade ago, independent brands could buy Mitsubishi engines, but doing so today would be ridiculed. Admittedly, some Chinese independent brands have developed engines with impressive power figures, delivering strong performance. Yet none have fully solved fuel consumption issues, as this involves the calibration of the entire powertrain system. Following design and specifications, what is the next breakthrough point for Chinese independent brands? Following design and specifications, what is the next breakthrough point for Chinese independent brands? It is no exaggeration to say that a Toyota Yaris from 10 years ago, equipped with a 1.6L engine and 4AT transmission, still drives better than many current independent‑brand cars. I have tested many independent models with CVTs that exhibit noticeable shifting shocks, delayed downshifts, and noisy, sluggish acceleration — all frustrating issues. Following design and specifications, what is the next breakthrough point for Chinese independent brands? Following design and specifications, what is the next breakthrough point for Chinese independent brands? Solutions do exist, and Geely has set a good example through an indirect approach. In August 2010, Geely Group completed the full acquisition of Volvo Cars. In October 2016, Geely and Volvo jointly established the Lynk & Co brand. The first model, the Lynk & Co 01, is based on the CMA platform led by Volvo, which also underpins the Volvo XC40. Following design and specifications, what is the next breakthrough point for Chinese independent brands? The Lynk & Co 01 shares parts procurement and various technologies with Volvo. Its 2.0T turbocharged engine is derived from Volvo, and even its entire active safety system is calibrated by Volvo. The Lynk & Co 01 received strong market feedback upon launch. To some extent, it can be viewed as a rebranded Volvo, with all the aforementioned problems effectively resolved.