Falling compact SUV market: Can Fenglanda help GAC Toyota achieve its annual sales target of one million?

21st Century Business Herald reporter Song Doudou reported that on the evening of January 6, GAC Toyota Fenglanda was officially launched, and a total of five models were launched for the new car, and the market recommended guidance price was 125,800-169,800 yuan. Following Highlander's occupation of seven medium- and large-sized SUVs, Veranda aims at mid-size SUVs, and as the third member of the "Landa" family, Fenglanda complements the family product lineup, which is an important step for GAC Toyota's layout in the field of compact SUVs, filling the market gap between C-HR and Veranda.

Like C-HR, Fenglanda was born on the C platform under the TNGA architecture, with a relatively youthful appearance, and the front face continues the design elements of the Corolla Cross Japanese version of the model. In terms of size, the vehicle's length, width and height are 4485mm/1825mm/1620mm, and the wheelbase is 2640mm. In terms of power, Fenglanda is equipped with TNGA 2.0L Dynamic Force Engine engine, matching the Direct Shift-CVT gearbox, with a maximum power of 126 kW and a maximum torque of 203 N·m, and the official said that its comprehensive working condition (NEDC) fuel consumption reaches 5.8L/100km.

In terms of intelligence, the new car supports HiCar/Carplay/Carlife and introduces the "Fengyun Yuexiang" Intelligent Travel interconnection service, which can realize the remote control of the vehicle by mobile phone. At the same time, in terms of safety, Fenglanda is equipped with Toyota Safety Sense, including PCS pre-collision safety system, DRCC dynamic radar cruise control, LTA lane tracking assistance system and AHB automatic adjustment high beam system.

As an important part of the passenger car market, SUVs occupy half of China's auto market. According to data from the China Association of Automobile Manufacturers, since 2014, the proportion of SUV sales in China has increased year by year, from 20.7% in 2014 to 46.9% in 2020, and the cumulative sales of SUVs in China reached 8.948 million in 2020, accounting for almost half of the annual passenger car sales (19.288 million units). Among them, the compact SUV market is particularly competitive, with sales of compact SUV models reaching 5.183 million units in 2020, an increase of 7.2% year-on-year in the face of the downturn in the auto market.

In the most challenging segment of the compact SUV market, GAC Honda Binzhi, Dongfeng Honda XR-V, and Dongfeng Nissan Qashqai, which are also Japanese joint ventures, will compete directly with Fenglanda. Whether Fenglanda can enter its own "blue ocean" in the booming "Red Sea" market remains to be tested by the market.

According to the production and sales data recently released by GAC Group, in December 2021, GAC Toyota sold 98,500 units, an increase of 36.4% year-on-year, and the cumulative sales volume from January to December 2021 was 828,000 units, an increase of 8.2% over the whole year of 2020. It is worth mentioning that this year is the 18th anniversary of the establishment of GAC Toyota, and it has become its goal to challenge the annual sales of millions and accelerate towards the head camp of the joint venture. However, with the recurrence of the global epidemic and the potential risks of the supply chain such as chip shortages, it is not easy to achieve annual sales of one million.

At the same time, under the wave of in-depth development of intelligence and electrification, wei xiaoli and other new car manufacturers have achieved monthly sales of more than 10,000, gac aviation e-an, Volkswagen ID. and other traditional car companies new energy brands have also ushered in the scale of sales growth, GAC Toyota's all-round electrification strategy urgently needs to be accelerated.

It is reported that GAC Toyota will introduce the first model of the bZ pure electric exclusive series - pure electric SUV bZ4X, which is based on the BEV exclusive platform and is scheduled to be listed in 2022. According to the plan, GAC Toyota will take bZ4X as the starting point to comprehensively promote the expansion of the electrification product lineup, and plans to reach nearly 60% of the sales of electrified models by 2025 and 100% by 2035.