[Autohome?Industry]?With the debut of the ID.4 mass-produced model, Volkswagen Group's true pure electric "offensive" in the Chinese market has officially begun. "Change the gameplay", "subvert the market", "become the first choice brand for new energy"... These words expressed by Volkswagen China CEO Feng Sihan at the press conference represent Volkswagen's high expectations for the ID. series models.
How can the giant in China’s fuel vehicle market achieve a gorgeous turn into new energy? On November 4, Feng Sihan accepted an interview with Autohome, and he still frequently came up with golden sentences: "Volkswagen does not want to follow the path of popular stars and plummeting, and it still needs to be steady and steady in the new energy field." The most critical goal is to "become the number one brand in China's new energy vehicle market in 2024 and 2025."
MEB platform establishes strong system competitiveness
Volkswagen has previously launched Lavida pure electric, Bora pure electric and other models in the domestic market, but the oil-to-electric products can only be regarded as testing the waters. It was not until the unveiling of the first ID.4 based on the new MEB electrification platform that Volkswagen's competitiveness and ambition in the new energy field truly emerged.
In the current Chinese new energy vehicle market, high-end models such as Tesla and NIO are gaining momentum at one end, while economical products such as Wuling Hongguang MINI EV are popular at the other end, with prices ranging from 150,000 to 250,000 yuan. However, there is not much splash in the mainstream market. The public obviously needs to see the right time and change the situation.
In Feng Sihan’s view, the development of China’s new energy market in the past was mainly driven by government market subsidies, and the market has also undergone corresponding changes after the subsidies have declined. Volkswagen’s route is to improve its products and services without relying on subsidies, so as to truly build consumer confidence in Volkswagen’s new energy vehicles. Different from the traditional automobile market, the new energy field does not compete for the market share of other competitors, but jointly promotes the development of the overall market, thereby sharing a larger market cake.
"Volkswagen Passenger Car Brand China CEO? Feng Sihan"
This statement may seem quite official, but it actually has a profound meaning. "Not relying on subsidies" means that Volkswagen must have a very high balance between the cost and performance of electric vehicles. By 2023, it will launch 8 ID. models like "dumplings" and try its best to activate the market on the supply side. Volkswagen is focusing on both cost and new car development efficiency, and the MEB platform is its key trump card.
As a modular platform developed by Volkswagen for pure electric vehicles, the MEB platform adopts a new three-electric system layout to bring better energy efficiency and space performance. In addition, in terms of software architecture, it adopts a "hardware-system platform-each application" solution hierarchy similar to that of smartphones, develops Volkswagen's own vw.OS basic software, and supports third-party software integration and development, as well as large-scale data interaction. This makes integration more efficient and application functions richer.
The hatchback ID.3, the first MEB platform product launched in the European market, entered the top five in the global list after batch delivery started in September. The first to be launched in the Chinese market is the ID.4 SUV model that is more in line with user preferences. It will be put into production at the same time by FAW-Volkswagen and SAIC Volkswagen, named ID.4?CROZZ and Guanghe ID.4?X respectively. The NEDC battery life is up to 550km. It is also the product with the longest range among the new energy models launched by Volkswagen in the past. The price after subsidies is less than 250,000 yuan, and delivery is expected to begin during the Spring Festival next year. (Click to view product interpretations of ID.4 CROZZ and Guanghe ID.4 Showed sincerity. If compared with the Model 3, which has a starting price of 250,000 yuan, the Volkswagen ID.4 has a battery life of about 80km higher, and it is also positioned differently. It can be seen that the ID.4 cleverly occupies a relatively blank competitive space. In addition, the battery pack of the MEB platform provides scalability, and users can choose batteries of different sizes according to their needs to obtain a more affordable price or longer battery life.
『Volkswagen MEB Platform』
Feng Sihan attributed the advantages of ID.4 to several aspects, including the performance of the product itself, new electronic architecture and innovative technology applications, and a completely new design style , huge investment in safety, complete charging supporting services, etc.
In his opinion, the price of 250,000 yuan is more cost-effective than pure electric vehicles of the same price in many markets, and it provides good service and quality.
He further explained, “When calculating this price, we did not consider any government subsidies to ensure that future models do not rely on existing subsidy policies to maintain long-term development. Take ID.4 as an example , unlike the price and cost of traditional SUVs, the battery is a major cost item, and the economies of scale cannot be unlimited; the ID. model also has an advanced electronic architecture, and this advanced technology will also increase costs to a certain extent. In the future, we will. While delivering first-class quality and technology to users, it can also become more and more competitive in terms of price."
Sprinting towards the goal of being the first brand in new energy sources
In the first three quarters of 2020, Volkswagen has become more and more competitive in terms of price. The brand's new energy models sold approximately 34,000 units in China, a year-on-year increase of 40.7%. Compared with the scale of fuel vehicles, it is still a drop in the bucket. Feng Sihan believes that electrification cannot be achieved overnight, and Volkswagen brands will take a long-term view and look at production capacity and market launch in four to five years. Through the Anting and Foshan factories of the two joint venture partners, it can achieve an annual output of 600,000 vehicles. At the same time, the cooperation with Jianghuai will also increase production capacity.
Talking about competitors, Feng Sihan said that Volkswagen respects Chinese local brands and emerging brands very much, and they are also launching good products. However, some brands may encounter some bottlenecks after launching one or two popular models. Therefore, new energy vehicles cannot only look at the present, but also take a long-term view. In response to the "top-down" approach of Tesla, NIO and others, Volkswagen still adheres to the positioning of mainstream brands, hoping to better stabilize the universal route and further increase its market share.
It can be seen that Volkswagen’s electrification offensive will never be a single breakthrough, but a competition of the entire system, including matrix product launch, mature supply chain management, complete marketing service channels, etc. All-round capabilities. At the same time, Volkswagen also needs to establish a new brand image. The ID series is an important display window, and the design language is younger. Developing towards a cool and popular style, changing the old-school impression. At the same time, we should not forget our original intention and be able to pass on traditions and classics.
『FAW-Volkswagen ID.4?CROZZ』
『SAIC-Volkswagen ID.4?X』
According to the " Planning? Round? 68", planning to invest 60 billion euros in hybrid power, electric travel and digitalization from 2020 to 2024. The investment in pure electric field is about 33 billion euros, and the investment in hybrid and digital field is 27 billion euros. In terms of products, it is planned to launch 75 pure electric vehicles and nearly 60 hybrid vehicles by 2029. The sales volume of electric vehicles will reach 26 million units and the sales volume of hybrid vehicles will be nearly 6 million units; of which there will be nearly 20 million electric vehicles. Produced on the MEB platform, nearly 6 million electric vehicles use the PPE luxury version pure electric platform jointly developed by Audi and Porsche.
Such a large amount of investment and production and sales planning determines Volkswagen’s goal of building the first choice brand for new energy, and it must be achieved in just a few years. "We plan to achieve this goal around 2024 to 2025. New energy vehicles include not only electric vehicles, but also plug-in hybrid models."
In order for new energy vehicles to occupy a higher share in the future Market share, Volkswagen's original sales channels and sales concepts will all change. For example, Germany has changed many sales strategies since ID.3. For example, online services and sales can be completed directly online. Volkswagen already has more than 2,000 dealer outlets in China through its two joint venture partners. Feng Sihan revealed that Volkswagen will work with all joint venture partners to reform and transform the sales side. Special programs are currently being developed to train experts in the sales and technology of ID. models. In the future, more online modes will be introduced to sell and promote new energy models such as ID.4 in a new way.
“In the new energy market, Volkswagen is indeed an emerging player, and there are many new competitors constantly joining this territory. Popular trends come and go quickly. Yes, we don’t want to follow the path of rapid success and sudden collapse, but to stay steady and follow our own path in the Chinese automobile market.”
Written at the end:
Volkswagen enters China. The market has been in the market for 36 years. While it has secured the top spot in China's passenger car market, it is also facing unprecedented challenges and pressures.
New forces such as Tesla have had an impact on the traditional automobile landscape, and major Chinese brands and other foreign brands are also pressing harder.
However, Volkswagen still has its own confidence. The strength of the MEB platform system has been demonstrated. A large number of vehicle models are covered, and economies of scale bring excellent cost control, reliable quality management, extensive marketing service outlets, and comprehensive coverage. Brand awareness and other advantages are Volkswagen's advantages. ID.4 has also shown sufficient cost performance and sincerity. It seems that the goal of "becoming the first choice brand for new energy" has made a good start. (Text/Autohome? Du Junyi)