Launching five new car models in one go, Zunjie initiates the group combat mode. Does it imply two potential risks?
I thought that "having more children to fight better" was an involution tactic of mainstream brands. Unexpectedly, ultra-luxury brands are also playing this game.
According to a report by "36Kr Auto", the Zunjie brand will launch SUV and MPV models next year, and both models will be available in standard-wheelbase and long-wheelbase versions. The Zunjie S800 will also add a high-end customized version.
Counting the current Zunjie S800, Zunjie's product matrix will expand to three series and six models next year.
The report further points out that the planned SUV and MPV will be positioned slightly lower than the Zunjie S800, but they will still target the high-end market.
Image source: Shot by Electric Vehicle News
Based on the above information, it's not difficult for us to sort out three key trends:
1. Complete the layout of three major categories. With comprehensive coverage of sedans, SUVs, and MPVs, Zunjie is gradually establishing itself in the core track of the ultra-luxury market.
2. Lower the price and break the barriers. The price range of the Zunjie S800 is from 708,000 to 1,018,000 yuan. The two new models will be positioned lower than the Zunjie S800, which means that the price threshold of the two new models will be pulled below 700,000 yuan. Ultra-luxury brands are actively breaking their own pricing defenses.
3. Raise the ceiling again. The launch of the high-end customized version of the Zunjie S800 further breaks through the price limit upwards, forming a three-dimensional product offensive of "covering downwards and breaking through upwards".
As soon as the news came out, it caused a stir in the automotive circle: Has the luxury market above the 500,000-yuan level become so involuted that car companies have to frantically expand their product layouts?
You know, traditional luxury brands such as Maybach, Bentley, and Rolls-Royce have mainly focused on the sedan and SUV fields for many years, and only occasionally launched concept cars to test the sports car market. However, Zunjie has started a full-category expansion in just a few years of development.
Ultra-luxury brands essentially operate an "influence business", and "intensive new product launches" do not necessarily mean a sure win. Zunjie will aggressively target the market with six models next year. In the view of Electric Vehicle News, this radical layout not only carries the ambition to reshape the pattern of the ultra-luxury market but also faces the real test of whether the brand can support the full-line premium.
Zunjie accelerates expansion, supported by technology, production capacity, and funds
Zunjie's "radical" strategy of launching five new cars in one year is by no means blind confidence. Behind it is the solid market foundation laid by the first model, the S800.
The Zunjie S800, priced from 708,000 yuan, exceeded 18,000 pre-orders in 175 days after its launch. In October alone, 1,970 units were delivered, which is more than ten times that of the NIO ET9 at the same price. It has already surpassed traditional luxury models such as the Maybach S-Class and the Porsche Panamera, and its monthly sales are also dominant.
It can be said that the Zunjie S800 has laid a solid "trust foundation" for the subsequent product promotion of the brand with real sales.
Image source: Shot by Electric Vehicle News
However, some people have questioned that the popularity of the Zunjie S800 is simply due to the word "cheap". If price is the only answer, how can we explain that the NIO ET9 at the same price has not sparked the same level of market response?
In the view of Electric Vehicle News, the success of the Zunjie S800 cannot be simply attributed to the price. Instead, it lies in its real understanding of the "core pain points" and "hidden needs" of ultra-luxury users:
The dual-power route of extended-range and pure electric solves users' range anxiety problems; the Tuling Longxing platform enables the system's decision-making response speed to reach the millisecond level; full-stack technologies such as Huawei's Qiankun Intelligent Driving, intelligent cockpit, and Xinghe Communication build a protection barrier with the "Angel Seat" active safety system...
These hardcore technologies have become a technological moat that other luxury brands are difficult to cross in the short term.
In the past, brand awareness was almost the only pass in the luxury market. Now, as users' needs are quietly changing, traditional perceptions are being gradually reshaped by technological experiences.
Today, when mobile phones and tablets have become an "extension of the human body", as a "second living space", the intelligence level of a car has become a key factor in car purchase. As Zhou Hongyi said, "I sold my Maybach S600 just to experience a new generation of luxury cars."
Behind this statement is the strong desire of high-end users for technological configurations and the redefinition of luxury. Traditional luxury brands are more likely to be impacted by new energy brands in the market.
Image source: Shot by Electric Vehicle News
Thanks to Zunjie's high-end breakthrough, Jianghuai Automobile has successfully reversed the previous five consecutive quarters of revenue decline and achieved double growth in operating income and gross profit margin in the third quarter. This stable and upward trend has undoubtedly strengthened the financial foundation for the continuous R & D investment in subsequent products.
What's more noteworthy is that although Zunjie currently only has one sedan, the S800, on sale, according to the official information released before, the Tuling Longxing platform that created the Zunjie S800 has a high degree of scalability. It can be compatible with dual-motor to four-motor layouts, and the power, torque, and carrying capacity all have a wide adjustment range. Moreover, it covers various body forms such as sedans, SUVs, and MPVs.
This means that it is completely technically feasible for Zunjie to launch multiple products in different forms at once.
In addition, according to the "Environmental Impact Report of Jianghuai's Annual Production of 200,000 Mid - to High - End Intelligent Pure Electric Passenger Vehicles Construction Project" previously publicized by the Anhui Provincial Department of Ecology and Environment, the total investment in Zunjie's super factory is about 3.981 billion yuan, of which the new fixed - asset investment is about 2.298 billion yuan. The planned annual production capacity is 200,000 new energy passenger vehicles.
The current monthly sales of the Zunjie S800 are about 2,000 units. If the subsequent models can maintain this sales level, the monthly sales are expected to be about 12,000 units, and the production capacity of Zunjie's super factory can just handle it.
It is true that the technical feasibility, production capacity, and financial support can prove that Zunjie's plan to launch five cars at once is not unfounded. However, it should be noted that reputation building is a long - term process. The subsequent models must continue the quality control standards and user experience of the Zunjie S800 to avoid a decline in product strength due to "excessive expansion". Otherwise, the trust foundation established in the early stage may face the risk of collapse.
There are two hidden dangers in Zunjie's "group combat" model
Zunjie has the strength to complete the blitzkrieg of "launching five cars in a year", but upon closer inspection, there may be two serious challenges.
Firstly, the product differentiation may fall into the dilemma of "form over substance".
To ensure high efficiency, Zunjie's six models will probably be built on the Huawei Tuling Longxing platform, sharing the powertrain, intelligent system, and core design language. This is an advantage in controlling costs and ensuring the speed of new product launches, but for the ultra-luxury market, which pursues unique identities and exclusive experiences, it may fall into the "homogenization trap".
Currently, the known information is that the new SUV and MPV will serve business people and family users through the long-wheelbase and standard-wheelbase versions respectively. However, this distinction still remains at the basic levels of body, wheelbase, seats, etc., and has not extended to higher-level dimensions such as vehicle usage scenarios, functional configurations, or the core of the experience.
Image source: Zunjie Automobile official
This "changing the shell but not the core" differentiation strategy may effectively divert customers through price and function in the mainstream market, but it is difficult to meet the core demands of the ultra-luxury market for unique identities and exclusive scene experiences.
A key question is: Although the standard-wheelbase SUV can ensure the travel quality of family users, can't it also meet the travel needs of business people?
Electric Vehicle News has noticed that the product matrix of ultra-luxury brands is not rich, but each model has a clear positioning.
Take the Yangwang U8 Luxury Edition and the U8L Ding Shi Edition as an example. In addition to the differences in wheelbase and body size, the U8L Ding Shi Edition has completed a full - scale configuration upgrade for high - end business and private luxury scenarios. Even though both models can meet both family and business scenarios, the U8L Ding Shi Edition still forms an essential distinction from the U8 Luxury Edition with its exclusive luxury configurations.
If Zunjie's long and short wheelbase versions only stay at the basic parameter distinction and do not build substantial differences in scene experience, exclusive configurations, and luxury perception, users' choices will ultimately return to budget or aesthetic preferences. In this way, the market value of the multi - version strategy will be greatly reduced.
Image source: Shot by Electric Vehicle News
Secondly, as a new brand fully impacts the high - end market, its premium ability faces a severe test.
It has only been half a year since Zunjie launched its first model. The brand's premium foundation mainly relies on Huawei's technical endorsement and the market reputation of the Zunjie S800. Whether this premium can be replicated to the full - line high - end of SUVs and MPVs still needs to be tested by the market.
Take the high - end SUV market in the 500,000 - yuan range as an example. The current pattern has formed a confrontation between new and old forces: new energy models such as the Wenjie M9 and the Zeekr 9X are competing with traditional fuel models such as the Mercedes - Benz GLC, BMW X5, and Toyota Prado.
Looking deeper, their premium logics are completely different: the Wenjie M9 and the Zeekr 9X rely on the leading nature of "technology" and "technical architecture", while the Mercedes - Benz GLC and BMW X5 maintain user loyalty with their long - standing "brand appeal" and "mechanical quality".
In this context, if Zunjie's new SUV cannot clarify its differentiated value point - for example, what is the reason for its higher price than the Wenjie M9 - then its full - line high - end path will be extremely difficult.
Image source: Hongmeng Zhixing official
More Chinese brands are impacting the ultra - luxury market
After all, Zunjie's strategy of "launching five new cars in a year" is not a blind bet. In essence, it is a strategic choice based on three foundations: technological verification, production capacity reserve, and the market reputation of the Zunjie S800.
However, in the ultra - luxury track, speed alone is not enough. The two tests of product differentiation and brand premium are still pending, which will directly determine how far Zunjie can go.
While traditional ultra - luxury brands rely on one or two models to dominate the market, Zunjie directly bets on "full - category coverage" and tries to dominate the sedan, SUV, and MPV markets. Yangwang under BYD also adopts a similar strategy.
Yangwang is still in the trial stage, and Zunjie is still in the planning stage. Whether this radical market strategy will work remains to be tested by the market. However, we can be sure that once this strategy succeeds, it will completely rewrite the competition rules of the ultra - luxury market and win unprecedented influence for Chinese brands in the global high - end automotive market.
This article is from "Electric Vehicle News", and 36Kr is authorized to publish it.