Theme idea: As a representative of domestic independent brands, Roewe once had unlimited scenery with popular models such as RX5. However, in recent years, due to frequent product quality problems and weak new energy transformation, Roewe's fuel vehicle sales have continued to decline, and new energy models have not improved, and the overall performance has been in a sluggish state. The frequent launch of new models by domestic brand competitors such as Changan and Geely has put great pressure on Roewe. Roewe needs to speed up product upgrading, improve quality control, and achieve breakthroughs in the field of new energy, otherwise the prospect is worrying.
The status quo of the Roewe brand
A. Sales of major models declined
In 2017, the annual sales of RX5 reached 240,000 units, contributing more than 60% of SAIC Roewe's sales, which can be described as the brand's sales pillar. Over time, sales of the RX5 have also been declining.
According to the data of the Passenger Association, the overall market performance of Roewe fell sharply in 2019, and the two main models RX5 and i5 were even more sluggish; Affected by the epidemic in 2020, the sales volume of the Roewe brand will decline sharply again; Roewe's market performance remained sluggish in 2021. Taking RX5 as an example, its sales in 2018 were as high as 220,000 units, accounting for nearly 5% of Roewe's total sales, but in 2019, it fell sharply due to the outbreak of quality problems.
Entering 2022, although the Roewe RX5 series achieved a month-on-month growth of 31% in January, its performance throughout the year was still lackluster. For the whole of 2023, the sales of the RX5 will only be 37,592 units, which is a significant decline compared to previous years. Even at the beginning of 2024, the monthly sales of the RX5 series only hovered around 10,000 units, which is far from the glory of that year.
The performance of new energy vehicles is weak
In addition to the downturn of the main fuel models, Roewe's layout in the field of new energy is also struggling. Although SAIC Motor is very determined in the new energy transformation, the new energy product line under the Roewe brand is still single.
Taking 2022 as an example, the sales volume of Roewe new energy models will be 9,892 units, although it has achieved a year-on-year growth of 85%, but in the tide of the entire new energy vehicle market, this number is obviously a drop in the bucket. Self-owned brand new energy models, such as BYD Song PLUS DM-i, have shown strong strength.
In 2023, Roewe launched a plug-in hybrid version of the eRX5, but it ushered in a price cut less than a month after its launch, and sales in May were only 164 units, which needs to be improved to be attractive to consumers. Roewe's efforts in the field of new energy are far from enough, and more competitive new energy products need to be launched.
Plagued by quality problems
In addition to sluggish sales and sluggish new energy transformation, quality problems are also a major pain point that has plagued the Roewe brand for a long time. Taking the RX5 as an example, in 2018, its quality complaints broke out, mainly focusing on the 7-speed dry dual-clutch transmission, body accessories and electrical failures.
In February 2019, the Roewe RX5 was recalled on a large scale due to parts quality problems, which also shows that Roewe does not pay enough attention to product quality. In addition to the RX5, Roewe's other main model, the i5, also has a series of quality problems such as "abnormal transmission noise, transmission stuttering, abnormal engine noise, engine stalling, engine shaking, and abnormal braking system noise".
Industry insiders generally believe that quality is the life of an enterprise, the cornerstone of enterprise development, and a strong guarantee to convey trust and win consumer confidence. The Roewe brand seems to be moving away from its original intention of making cars, and the excellent quality that was once trusted by the market is gone, but blindly using marketing methods to guide consumers.
The Roewe brand is indeed facing a serious dilemma at present. The decline in sales of major models, the lack of new energy transformation, and the frequent occurrence of quality problems are all problems that need to be solved urgently. If effective countermeasures cannot be taken in a timely manner, the prospects of the Roewe brand will become more and more worrisome.
Competitor movements
A. New models such as Changan CS75 are selling well
In stark contrast to the sluggishness of the Roewe brand, the new models of other car companies in the independent brand camp have frequently achieved hot results. Taking Changan Automobile as an example, its third-generation CS75 PLUS is positioned in the 100,000-150,000 yuan compact SUV market, and its sales volume in May 2023 will be as high as 21,700 units, ranking at the top of the domestic SUV model sales list.
The third-generation Roewe RX5, which is also aimed at the 100,000-150,000 class SUV market, sold only about 3,000 units in May with the plug-in hybrid eRX5, which is in stark contrast to the Changan CS75 PLUS. From the perspective of power parameters, the starting price of the 2.0T engine model of the third-generation CS75 PLUS is 139,900 yuan, while the third-generation RX5 is a 1.5T engine for all series, which seems to be slightly inferior in terms of power output.
In addition to Changan Automobile, other domestic brands have also launched new models in the compact SUV market. Taking Geely as an example, its Binyue model provides consumers with 1.5T and 1.4T power options in the price range of about 100,000 yuan, and performs well in terms of configuration and intelligence.
New models such as Geely and BYD were launched
Changan Automobile is not the only independent brand that has achieved hot sales in the compact SUV market, and new models under Geely, BYD and other car companies have also made frequent appearances, which has brought huge pressure to Roewe.
Taking BYD as an example, its Song PLUS DM-i model has shown strong strength in terms of product strength. The model not only provides four-wheel drive options, 0.24Cd ultra-low wind resistance and other selling points, but also has a good performance in terms of intelligent networking and safety configuration.
In terms of Geely, in addition to the Binyue model, its new models such as Jiaji are also performing well in the mid-to-high-end market. The launch of these new models will undoubtedly further distract consumers' attention and bring greater impact to the Roewe brand.
Roewe's countermeasures
A. Accelerate product upgrading
In the face of such a grim situation, the Roewe brand urgently needs to take decisive and effective countermeasures. Speeding up the upgrading of products is undoubtedly a top priority.
Judging from the current situation, Roewe's main models such as RX5 and i5 are already facing greater competitive pressure, and their product strength needs to be further improved. Roewe needs to speed up the R&D and launch of new models, and launch more new varieties that meet consumer needs.
For example, in terms of powertrain, Roewe can consider launching models equipped with engines with a displacement of more than 2.0T to enhance its competitiveness in terms of power output. In terms of intelligent networking and security configuration, Roewe also needs to increase investment to keep up with the pace of industry development.
Roewe also needs to speed up its layout in the field of new energy. At present, Roewe's new energy product line is too single, and the degree of force in this field is far from enough. Roewe needs to launch more competitive new energy models as soon as possible to seize the development opportunities of the new energy vehicle market.
Improve quality control
In addition to speeding up product upgrading, improving quality control is also a major problem that the Roewe brand needs to solve urgently. As industry insiders say, quality is the life of an enterprise, the cornerstone of enterprise development, and the key to winning the trust of consumers.
The performance of the Roewe brand in this regard has been unsatisfactory. From the quality problems of the RX5's gearbox to the engine and braking system failures of the i5, the quality problems of the Roewe model can be described as endless. This will undoubtedly seriously affect consumers' trust in the Roewe brand, which in turn will affect the performance of sales.
Roewe needs to fundamentally strengthen quality control, and strictly control every link from R&D, manufacturing to sales to ensure that there are no omissions in product quality. Roewe also needs to strengthen after-sales service and solve various problems encountered by consumers in the process of use in a timely manner to reshape the brand image.
Breakthroughs have been made in the field of new energy
If the Roewe brand wants to rejuvenate itself, it is also the only way to achieve a breakthrough in the field of new energy. New energy vehicles have become the development trend of the entire industry, and no car company can stay out of it.
At present, Roewe's layout in the field of new energy is still quite lagging behind. Except for the plug-in hybrid version of the eRX5, there are almost no other new energy models under Roewe. Other car companies in the independent brand camp, such as BYD and Changan, have achieved good results in the field of new energy.
Roewe needs to increase investment in the field of new energy and launch more competitive new energy models as soon as possible. Whether it is a pure electric model or a plug-in hybrid model, Roewe needs to achieve breakthroughs in this field to keep up with the pace of industry development and win the favor of consumers again.
The Roewe brand is indeed facing a serious dilemma at present. The decline in sales of major models, the lack of new energy transformation, and the frequent occurrence of quality problems are all problems that need to be solved urgently. Other car companies in the independent brand camp, such as Changan, Geely, BYD, etc., are frequently launching new models, which has brought great pressure to Roewe.
Roewe needs to take decisive and powerful countermeasures to speed up product upgrading, improve quality control, and achieve breakthroughs in the field of new energy, otherwise its prospects will become more and more worrisome. Only through these measures can the Roewe brand regain its vitality, regain the favor of consumers, and regain its place in the camp of independent brands.