htmlOn October 11, the latest production and sales data released by the China Association of Automobile Manufacturers showed that from January to September 2022, my country's automobile production and sales reached 19.632 million and 19.47 million respectively, with increasing by 27.4% and 4.4% year-on-year, and the growth rate expanded by 2.6 percentage points and 2.7 percentage points compared with the previous eight months.
China is not only the world's largest automobile consumer market, but also one of the markets with the most diverse consumer demand and the most active technological innovation. For multinational car companies, to achieve success in China, it must better meet the actual situation of the Chinese market and the needs of Chinese consumers.
"Ouwang " News Weekly reporter found that from introducing mature products through joint ventures or sole proprietorships, opening R&D centers to launching products that meet the needs of the Chinese market, and then joining the current hot battlefield of new energy and intelligent connected vehicles, the localization process of multinational car companies in China is becoming increasingly deepening.
Reporter | Li Song
This article is reprinted from the Outlook Client. The original text was first published in the 44th issue of "Outlook" in 2022, with the title "Multinational Automobile Enterprises Accelerate China's Localization".
Lincoln Luxury brand Chinese elements
htmlOn August 26, the 2022 Chengdu International Auto Show officially kicked off at the Western International Expo City of China. The auto show welcomed 128 domestic and foreign automobile brands including German, American, French, Japanese, Korean, joint ventures and independent participation, with about 1,600 vehicles on display, with an exhibition scale of 200,000 square meters.
At the auto show, multinational car companies launched many localized new cars. Among them, Lincoln's first American ultra-luxury full-size SUV, Lincoln Navigator No. 1, has attracted much attention for integrating the essence of Chinese traditional culture.
The upcoming Lincoln Navigator No. 1
is a customized model. The car is built on the presidential version of the Navigator's long axis and has been exclusively upgraded in the details.
reporter learned that while continuing to deepen American luxury, Navigator One has incorporated a large number of Chinese cultural elements into its design. The most conspicuous one is the two-color car paint with purple on the top and blue on the bottom. The supreme purple that symbolizes "the purple air comes from the east". Echoing this, there are silver-purple double color-blocking 22-inch super-large wheels, and the purple-inspired Chuanjue purple interior color scheme.
In traditional Chinese culture, "one" is the beginning of numbers, and purple air is the auspicious air. Lincoln Navigator No. 1 integrates the visual elements of "Supreme Purple" and has a unique taste.
In addition to the naming, the interior design of this car also incorporates the traditional design of "the sky is round and the place is round": square and round, with both rational spatial texture and emotional life aesthetics.
Many industry insiders believe that this Lincoln Navigator No. 1, which pursues China's localization, reflects the importance and attention to the Chinese market from its naming to design.
Multinational auto companies China localization trajectory
Looking at the development of the global automobile market in recent decades, a very obvious trend is that more and more multinational auto companies are constantly accelerating their localization transformation in China.
Since 2022, many multinational car companies such as Volkswagen, Mercedes-Benz , BMW , Tesla and other multinational car companies have expressed that they will strengthen China's local R&D and operations.
"There are few markets in the world that can be like the Chinese market, which has prompted multinational car companies to make such great efforts in the localization of model design and development." He Lun, a senior media person, believes that "Chinese consumers have their own special needs for the functions and aesthetics of cars, and the number is huge."
reporter reviewed the history of China's localization of multinational car companies, and can clearly see a successful trajectory of the localization of international brand model design and development of China's localization -
Santana 2000, which was launched in 1995, is the first line of the localization of international brand model design and development of China's localization. It is mainly based on the prototype car, the whole vehicle is lengthened by 108 mm, greatly improving the rear space. Then came the first luxury car that was launched in 1999 that was synchronized with the international market - Audi A6, which was 90 mm longer than the prototype.This is the 90mm that Chinese partners who are well versed in the needs of Chinese consumers and Germans who are highly confident in automotive design and development have won after fierce debate. The Santana 2000 and Audi A6 both have achieved great success.
Since then, with the further understanding of the characteristics of Chinese consumer demand by multinational car companies, the localization of international brand model design and development has been upgraded from extending and increasing the exclusive configuration of China's local to vehicle development, and some "exclusive cars" newly designed and developed for the Chinese market have been launched one after another. With the three-box compact luxury sedan developed by Audi , BMW and Mercedes-Benz, the Chinese localization of international brand models seems to be at its peak. Going further up, designing and developing higher-level and higher-end international brand models for the Chinese market, with great market risks.
But the Chinese market is so incredible attraction that Mercedes-Benz has to take the risk of taking advantage of its top S-Class sedan to create an exclusive Mercedes-Maybach S-Class sedan for the Chinese market (launched in 2015). is different from the exclusive models of domestic international brands in the Chinese market. This car is produced in Germany and is a flagship model of an international luxury car brand.
So, the new flagship SUV that was made the same way - Mercedes Maybach GLS, is here; a new Audi brand new flagship - Audi A8L Horch founder version, is here; now, the flagship model of the Lincoln flagship series exclusive to the Chinese market - Navigator No. 1, is also here.
elevates the Chinese localization of the design and development of top international brands to the artistic level. The future of Lincoln Navigator One remains to be tested by the market. But one thing is certain: in a large market like China with diversified size and demand, nothing is possible.
Integration into culture is a more advanced localization
In recent years, the transformation of China's automobile market has accelerated, New energy vehicle production and sales have continued to grow significantly, and BYD and other Chinese independent brand car companies have risen rapidly. The latest data released by the China Association of Automobile Manufacturers shows that China's production and sales of new energy vehicles in the first half of the year reached 2.661 million and 2.6 million respectively, an increase of 118.2% and 115% year-on-year, with a market share of 21.6%.
It is worth noting that with the increase in sales of the luxury car market, the penetration rate of new energy vehicle in the luxury car market has also increased significantly. Auto Home research report shows that the sales of high-end new energy vehicles are expected to exceed 1 million in 2022, accounting for 20% of the overall sales of new energy.
Secretary-General of the National Passenger Car Market Information Joint Conference Cui Dongshu believes that Chinese people have increasingly high requirements for the quality of cars, and the Chinese automobile market is bidding farewell to the era of "making money even when you lie down." Taking new energy vehicles as an example, the new energy performance of China's mainstream passenger car companies is becoming stronger and stronger, and the sales of new energy vehicles of most mainstream car companies have exceeded 20,000 per month. If domestic and foreign automakers cannot seize this opportunity to accelerate changes, they are likely to lose relevant market share.
Relevant experts said that multinational car companies are now entering a new stage of localization in China. It is different from the auxiliary modification and development of the previous "sewing and patching" and instead needs to fundamentally reconstruct the system and keep pace with China. After all, China is already at the forefront of the world in the fields of human-computer interaction, voice recognition, battery energy storage, etc.
The new energy and intelligent automobile industry led by China is becoming clearer and clearer, and the market size is also showing a rapid expansion. A significant change brought about is that major multinational auto companies are actively adjusting their strategies and actively making arrangements to cope with new changes in the Chinese auto market.
This further confirms the localization logic of multinational car companies over the years - whenever the needs of Chinese consumers change, they will develop and design models that can adapt to changes as soon as possible.
How can we persist in capturing the preferences of Chinese consumers? How can we achieve the goal of passively meeting needs to actively leading needs? This is a question to be answered in the future localization of multinational auto companies.
Industry insiders believe that for multinational car companies, truly lasting localization will not only take root in the Chinese market and bring contributions to the field of automobile manufacturing, but also integrate into Chinese culture and become a part of it. Such localization is a more advanced localization. In this regard, Lincoln Navigator One undoubtedly made a bold attempt.
The shell of multinational car companies may incubate more and more "local enterprises".
