Chery takes on the small car market again. What are its chances of success this time?
Recently, the Chery Domi was launched, which is also a new move by Chery in the pure - electric small car market.
From an industry perspective, from the Wuling Hongguang MINI EV and Wuling Bingo to the Geely Xingyuan and BYD Seagull, including Changan's Lumin and FAW Bestune's Bestune Pony, the performance of the pure - electric A0 & A00 small car market this year has been quite spectacular.
From the media reports that Chery's Ant and QQ Ice Cream would return to Chery to the subsequent launch of the Chery Domi, and the upcoming launch of the "grown - up" new QQ next year, it can be seen that Chery is making great efforts to rebuild the pure - electric small car matrix of the QQ series.
As for the iCAR brand, one of Chery's five major brands, currently, there is the iCAR V23, and the upcoming iCAR 05. These are mainly large - sized vehicles, with dimensions above the compact class (Class A cars).
Then, considering the results of Chery's internal adjustment, a question arises: How will the new small car strategy affect the development of Chery's new energy vehicles?
The Battle of Small Cars
Actually, the small car segment has always been exciting. Chery's previous Ant had very good sales.
Regarding Chery's future product development, perhaps due to internal disagreements, it has been constantly integrating externally, reflecting a problem of wavering strategies.
Obviously, the pure - electric small car market at the A0 & A00 levels is quite promising. In May of this year, we could see that the Geely Xingyuan sold more than 30,000 units, and the BYD Seagull even reached more than 60,000 units. Although this includes exports, it is still an astonishing sales volume.
According to the data from the Passenger Car Association, from January to May, the total sales of the Xingyuan reached 164,500 units, and the combined sales of the Seagull and Dolphin exceeded 300,000 units. So, why can the sales of A0 + A00 small cars be so high? Let's analyze it.
Personally, I think the reason why the Geely Xingyuan has become a hit can be described by a sales manager of a Geely Galaxy 4S store as "competing with the BYD Dolphin at the price of the Seagull". It positions itself as a "smart pure - electric boutique small car" in the A0 - class pure - electric market with a price range of 69,800 - 98,800 yuan. With local subsidies, the actual landing price of its 410 - kilometer - range version can drop to the 50,000 - 60,000 - yuan range, truly posing a challenge to fuel - powered cars.
Not to mention features like the standard 540 - degree panoramic image across the whole series, Flyme Auto paired with a 10.25 - inch central control screen, the Shield battery system, high - strength steel body + tire pressure monitoring + reversing radar. The main thing is that for urban commuters, users of a family's second car, and young first - time buyers, the Xingyuan has launched a precise combination of "ultra - high cost - performance".
The BYD Seagull, as an entry - level small car in the 70,000 - yuan range, has few weaknesses. Coupled with the standard BYD "God's Eye C" intelligent driving assistance triple - camera version (DiPilot 100), that is, "intelligent driving for all", it also competes in the market with "ultra - high cost - performance".
Moreover, last year, the BYD Seagull became the model with the highest single - month sales in the entire industry. To a certain extent, it changed the structure of a niche market, bringing the consumption of commuter cars from the single - function 1.0 era to the boutique era that emphasizes quality and experience, and also made competitors realize "this is how commuter cars can be made".
In addition, the Geely Xingyuan and the BYD Seagull based on the BYD e - platform 3.0 are no longer traditional commuter small cars. Through technological iteration, they have completed the transformation into "boutique small cars", making a significant leap forward compared with the previous generation of products in terms of technology, exterior design, interior, safety (including the body and battery), and intelligence.
In terms of space, the Seagull's 2500mm wheelbase and the flat - floor design in the rear row represent a great improvement compared with the previous generation of products. The Geely Xingyuan, with a body length of only 4.1 meters, has a longer wheelbase of 2650mm and a longitudinal rear - row space of 890mm, providing a stronger sense of interior space.
Therefore, it is obvious that Chery's launch of the Domi is also an effort in this direction. The wheelbase, design, interior, etc. of the Domi, which is positioned as an SUV, have all been further improved compared with the Ant and QQ Ice Cream.
From the stage layout at the press conference, it can be seen that there is a relationship of "small cup, medium cup, and large cup". Next year's QQ will be even larger, like an "extra - large cup".
To put it simply, compared with all previous products in the same class, the Geely Xingyuan and BYD Seagull are new technologies that address consumer pain points from the source in the face of consumers' increasingly diverse needs in the new era. Even the Wuling MINI EV has timely launched a four - door, four - seat version, and with the support of the Wuling Bingo, it has created new attractions.
As market competition enters a new stage, the Xingyuan, Seagull, four - door, four - seat Wuling MINI EV, and Wuling Bingo have fully activated the potential of the entire niche market with their leading product strength and ultra - high cost - performance, and have reaped rich market rewards.
So, whether it is called "technological equality" or "technological inclusion", consumers can enjoy the latest technological achievements in the industry transformation at a price of about 50,000 - 80,000 yuan, which was almost impossible in the past. This is the result of competition.
For this reason, Chery has also started to explore the potential of this market. Although it is a bit late, it is quickly participating through the current Domi and the new QQ next year. To borrow a popular saying, "Chery may be late, but it will never be absent."
Turning Points
The launch of the Domi actually shows that Chery has realized that its previous Ant and QQ Ice Cream can no longer meet the demand for "grown - up" small cars, and new products are needed to replace them.
Although the Domi can only be regarded as a transitional product, and the truly "grown - up" QQ will be launched next year, at this moment, the Domi still has to shoulder some responsibilities.
The rapid changes in the pure - electric small car market have made the internal structural adjustment of Chery New Energy inevitable. This includes the re - division of factories and product lines that originally belonged to Chery New Energy, which has also made the outside world see that Chery is playing a "big game" in the new energy system.
At the Domi press conference, I saw Zhang Hongyu, who was previously transferred to the group headquarters, sitting in the center of the rostrum, which confirms the previous rumor of the "QQ Domestic Business Unit". I also learned that QQ will become a product series on par with Chery and Fengyun. In this regard, it is inevitable that the business unit led by Zhang Hongyu will be responsible for products such as the Chery Ant, QQ Ice Cream, and Domi.
In addition, some media have reported that a new model with the internal code T12A in Chery will also be under the responsibility of the QQ Business Unit. Generally speaking, QQ is becoming a revived and growing product series. Similar to the "Fengyun", Chery's reconstruction of the entire product series is quietly taking place, but this time it is very low - key, using a gradual approach.
As we all know, Chery New Energy was established in 2010. Before the launch of iCAR, its main products were all new - energy small cars, including the Ant, QQ Ice Cream, and the Wujie PRO (which has a relatively low profile).
In terms of large - sized cars, Chery New Energy once tried to launch the "Big Ant" eQ7, but it was not successful. Therefore, the iCAR brand was later incubated.
In Chery's organizational structure, Chery New Energy is subordinate to Chery Automobile Co., Ltd. Now, the senior management, brand, and business organizational structure of Chery New Energy have been re - divided, forming two business units, iCAR and QQ, which also shows the idea of separate development for pure - electric small cars and large - sized cars.
Regarding the iCAR brand, the first car, the iCAR 03, launched in April 2023, was a product developed before the arrival of the Su Jun team and only underwent some adjustments. So, it will also return to Chery. After all, the iCAR 03 is more targeted at the family - use scenarios in lower - tier cities.
According to the current situation, the iCAR 05 with the internal code V25 will be launched in the second half of the year. In addition, the V23 is expected to be transferred to a new factory that Chery is building in the Sanshan Economic Development Zone of Wuhu City for production. However, it is unknown what other products iCAR will have in the future.
Chery Chairman Yin Tongyue once said that the iCAR brand is Chery's "special economic zone", and now the zone has been further liberalized. From Chery New Energy to iCAR and then back to Chery, a series of twists and turns have made the outside world see the thinking differences between traditional automakers and Internet companies. The winding process of the integration between Chery and Zhimi is also an inevitability of the era.
Of course, this has also led to a relatively high time cost for the structural adjustment of Chery New Energy. After all, this is the current situation of Chery "crossing the river by feeling the stones" in the field of pure - electric vehicles. Not having thought things through clearly in the beginning and taking one step at a time has come at a high price. This situation must be reversed as soon as possible.
Now, looking at the entire small car market, Chery New Energy doesn't have much time for maneuvering. After a long period of indecision, Chery, which previously focused more on fuel - powered and hybrid vehicles, didn't invest much in the small car market. It will still be a bit difficult to catch up now.
In contrast, Geely and BYD have thought more clearly and acted quickly in the small car market.
This is what Chery needs to learn.
Similar to Chery, Great Wall is also trying to revive its Ora brand. Recently, Great Wall replaced the general manager of the Ora brand with Lü Wenbin, indicating that it has started to attach importance to this niche market.
Ultimately, whether it is Chery or Great Wall's Ora, the reason why they haven't been able to make their pure - electric small cars bigger and stronger is that the profits from the fuel - powered vehicle segment are too large, resulting in a lack of real motivation.
Now, there is a question of whether to focus on short - term or long - term interests. After all, the small car market is promising both at home and abroad.
This article is from the WeChat official account "Automobile Commune" (ID: iAUTO2010), written by Wang Xiaoxi, and is published by 36Kr with authorization.