The Chinese are grown. Its enormous potential allows them to consider a future that until now they could not even imagine. So much so that BYD will launch a premium sub-brand and its first model next year.
We have been warning this for a long time, we must begin to leave behind the association of concepts from China and the cheap car. In a short time, the Chinese have gained such prominence that today their brands are beginning to knock on the doors of many markets. Most of them present themselves as general brands, but some already think of the upper classes. That is the case with BYD. The Asian giant has just announced that it will present a new sub-brand for the premium market. It will be launched on the market next year and has already given details of what its first model will be.
NIO, XPeng, BYD, MG…brands that sound more and more familiar to us every day seek to dominate the automobile industry, not only in their homeland but also in other territories such as Europe. Many of them have officially opened the first branches in the old continent with a commercial landing that for now is discreet but that in the future will expose more than one traditional manufacturer. Chinese brands act forcefully and quickly to demonstrate the tremendous potential behind them.
Although in recent years we have been repeatedly talking about new models, we have rarely referred to the premium segment, although BYD already warned of this possibility a long time ago. The Chinese know that profitability is in the volume and that is why they have a look focused on the category. Few dare to stand up to the all-powerful German firms, the great dominators of the premium category. BMW, Audi, and Mercedes all have an almost unique aspirational goal, and if there’s one thing to like in the new People’s Republic of China, it’s luxury. Premium manufacturers have seen their sales grow rapidly in recent years in the absence of indigenous rivals.
That hegemony may soon come to an end with BYD’s new release. The Chinese are celebrating twice. In addition to the production of its three millionth electric, the company’s CEO has announced the launch of the new Yangwang brand, which translates as “look up”. If this was not enough, Wang Chuanfu, president of the company, has announced that Yangwang will join another company, still unnamed, which will focus on product customization. In other words, it will create a division like BMW Individual, Audi Exclusive, or Mercedes Manufaktur.
The offensive will begin soon, in the first third of next year. The launch event will be accompanied by the presentation of the firm’s first product. It is a luxury SUV whose starting price will be around 800,000 renminbi, which in exchange is more than 110,000 dollars, a figure that a few years ago we could not have imagined associated with a car made in China. Yangwang will reserve the best materials and the most advanced technology with which to win over its new customers. At the moment we cannot confirm or rule out whether the new premium brand will land in Europe, although it will largely depend on local success.