LandWind Fashion Came with Firmness

2006.05.22

Fashion locked its goal by birth that it wanted to be the leading model in the MPV segment market.

On May 18th, the first passenger car after the two automobile enterprises JMV and Changan allied, Fashion, was formally issued. It is the first Chinese multifunctional household passenger car independently designed by the two sides in 3 years. At the same time, this action symbolized the transition of LandWind’s single SUV product line. In addition, the brand-new passenger car CV7 will be induced in the year, so JMC LandWind will enter the domain of passenger car comprehensively. This time, JMC Ltd oriented Fashion to the “Global Resources Automobile” based on the independent research, and its price is as follows:95,800 for 1.6L 5 seats, 97,800 for 1.6L 7 seats, 107,800 for 2.0L 5 seats, 109,800 for 2.0L 7 seats. This price leads the domestic multifunctional passenger car to the 100,000 range, which is the most competitive price in the market.

The independent research has gathered the global resources.

Up to 2005, the independent research ability of Changan can reach the S5 standard (the top class is S6). The code name of Fashion was CV9 during the development stage, and it is the second model based on their independent research. We were told that it cost 3 years for Fashion’s development, which meant from the origin to the design flow, from the manufacture to the quality inspection, there is no short cut such as “Draw from the others”.

By the master designer of Fashion Lin Xu’s introduction, Fashion’s way of development adopted the “Conform the Global Resources” independent innovation mode, the core of which is the association of the advantages for manufacture all over the world while completing the final integration of the system based on us own.

According to the knowledge, the technical parter for Fashion 2.0 series engines, Germany FEV Co, used to be the long term technical partner for Opel and Volkswagen. The engine is provided with pure alloy cylinder cover, four cylinder & sixteen valves, double top cam shaft, and electric controlled multi-points fuel jet. This engine has achieved 36 patented technologies, and features in high power, high moment of torque, compact structure, low vibration, low noise, low oil consumption, low discharge, and its maximal power is 102 kw, performance per litre 51 kw. Its discharge can arrive at European Ⅲ standard. The chassis of Fashion is exactly matched, adjusted and checked by Germany FEV and English MIRA; its derailleur adopts the mature product by GETRAG in its original packaging. And this derailleur is designed to be long last and reliable.

Fashion’s outline was designed by the world class top auto designer JUSTYN NOREK. The broad inner space and the larmier of the old Chinese architectures especially the royal architectures are integrated in the design, so the lines of the body are dynamic and fashionable. Fashion is 4,410mm long, 1,768mm wide and 1,640mm tall. And its wheel base reaches 2,710mm.

The wide wheel base gives more space in the car. The U shaped body seems smooth and fluent in general, and supplies the largest space for the passengers. The adjustable seats can serve for 7 passengers in their comfortable gesture.　　

Occupy the MPV black space with a low price.

We have learnt that as the first multifunctional car with a 90,000 to 110,000 popular price, Fashion’s goal for sale is at least 5,000. For the long term, JMC equity controlled vice president Xigao Wang hope that the independent brand products of JMC, included Fashion, would acquire a larger proportion in the segment market. JMC equity controlled president Yin Jiaxu thought that Fashion was oriented to the sorted household multifunctional passenger car market, which possessed a small proportion in the passenger car market, and there should be a process from recognition to hot sale. He predicted that this sorted market would keep double-digit increasing amplitude.

The senior analyzers inferred that the multifunctional cars can be categoried into commercial, household and double used three kinds. GL 8, Refine etc. incline to commercial use, while ODYSSEY, Touran, Carnival etc major in double use market. But with the advent of the two cars for one family time and the transition of people’s consumption conception, the multifunctional passenger car market where seems to be even no black will embrace a rapid development stage.

Compared in price, the price for the mid end multifunctional market where Premacy exists range between 136,800 and 158,600, while ODYSSEY is between 246,800 and 270,000.

In the 480 000 domain, Touran’s price is 169,000 to 231,800. So Fashion’s 90,000-110,000 price occupies the MPV black space, and this price is in the most competitive range at the same time. Associated with the success of SAIL in 2001 and Elantra in 2004 after their coming into the market, It is a tribute to “First 100,000 for household passenger car” and “First 120,000 mid end passenger car”.

We have also learnt that in this year LandWind started the construction of the Xiaolanyuan (小蓝园) second production basis, the ability of which is 100,000 at first. At present Changbei (昌北) factory where LandWind SUV and Fashion are produced can output 60,000 annually. For the construction of the sale network, LandWind said that it all depended on the market, and in the following exploration of the market the proportion will increase continuously. At present, LandWind’s first degree sale network covered 63 shops, and the secondary network contains nearly 400 shops all over the country.

Editor’s observation

What are the odds in the household MPV market?

Where did the confidence of the top executives come from? Judged by the price, rivals, and potential of the market etc., Fashion should be the high spot in the multifunctional household passenger car market, and it may even seize some share in the economical automobile market.

First, let us have a over view of the rivals, before Fashion, only the Haima Premacy is the actual model for the household multifunctional passenger car. New ODYSSEY, Touran, and Carnival etc. came with the “Both for commerce and household” orientation, aiming at both the two markets. When they “Shyly peek from behind the Pipa” issued the new car, they always like to probe the market with “Both for commerce and household”, and they did not want to be the pioneer, in fear of being robbed the market when it has explored the conception of “Multifunctional passenger car” with great efforts. But in another sense, it is no doubt a great chance. Once the pioneer has set up the brand and the share, it can catch the ball before the bound. Compared with Premacy， Fashion is more large, more fashionable and more powerful. As the old model issued in 2002, Premacy is old but with a good reputation, and its sale has been increasing. In 2005, the sale is 15,019 all the year, up 22% over the same period last year. Although this amplitude is higher than the average increase in the market, the sales volume more than 1,000 can identify the nonnegligible potentiality of this market in the future.

At the same time, due to the superiorities of broad space, multifunction, and practicality, LandWind could both attract the mid and low end users in the multifunctional household passenger car market, and proceed to the domain at the same price. From the present development of the market, though the sales of the business and commerce used car occupies nearly 2/3 of the total sale, the sale will increase over 25% in the coming years by some experts. Especially for the micro multifunctional car, its increasing speed may be faster. In 2005, the need for the micro multifunctional cars doubled and even more. Some critics have inferred that the pattern of the multifunctional car market was quietly changing to the household direction.

Since last year, the coming of “Touring car”, which focuses life and leisure, has given a fine illustration for the potential increase of the multifunctional passenger car market. HRV, Excelle beach wagon etc. are coming to the market one by one, and have achieved benign increase. This fact has proved that the conception for consumption had come to a multielement time.

When everything is ready, the biggest problem testing LandWind Fashion is the marketing might of the independent brands.