Chinese car manufacturers are showing increasing interest in the European market. The latest brand to announce its expansion plans in the Old Continent is Hongqia historic luxury brand controlled by the state-owned FAW group. In recent Goodwood Festival of SpeedHongqi has revealed plans to launch well 12 models within the next five years.
Hongqi’s strategy aims to penetrate European markets, with particular attention to France e Germaniathe two main markets on the continent. The first fruits of this expansion plan will be visible by the end of this year, with the launch of the electric sedan EH7 he was born in SUV EHS7. These mid-range models will join the Electric SUV E-HS9already available in some Northern European markets such as Norway, Sweden, Denmark, Luxembourg, Belgium and the Netherlands.
Hongqi’s Goal and Strategies
Hongqi has an ambitious goal. To reach among the 30.000 and the 50.000 annual sales within the next five years, competing directly with German luxury brands such as Mercedes, BMW and Audi. To achieve this goal, the Chinese brand is aiming for a balance between price, quality and style. However, there remains the unknown of customs duties, which could significantly affect the competitiveness of Hongqi’s prices. The group’s top management is still evaluating whether to absorb these costs or pass them on to consumers. If the latter solution were to be chosen, the price of the SUV E-HS9 could increase by 20.000 euro.
Despite these potential challenges, Hongqi is confident that the “inflated” prices will not compromise their growth strategy in Europe. The electric sedan Hongqi EH7 (pictured above) is expected to debut next fall, promising a significant technology package. The all-wheel drive, dual electric motor version will offer a maximum power of 619 hpan acceleration from 0 to 100 km/h in 3.5 seconds and a potential range of around 700 kilometres, although these specifications have to be confirmed according to the WLTP cycle criteria. In addition, the model will be equipped with a 250 kW fast charging system.
Not just 100% electric
In the coming years, Hongqi’s offering will include not only electric vehicles, but also plug-in hybrid models. This broad range of options demonstrates Hongqi’s determination to compete with European luxury brands, despite the anticipated difficulties.
Hongqi has the strength of tradition on its side, being the China’s oldest car brand. With a prestigious history behind it, the company is preparing to challenge the giants of the European market with innovation and quality. If their strategy is successful, the European automotive landscape could see significant diversification in the coming years, thanks to the entry of a new and ambitious competitor.
Source: www.autoblog.it
