Why do enterprises with independent brands promoting "mass production modified vehicles" bet on personalization?

Source: Beijing News

Original title: Why do independent brands invest in "mass production modified vehicles"?

In the summer of 2021, car modifications intensified.

The Hongguang MINI EV, which defeated Tesla in sales, has set off wave after wave of conversion fever, and even become a cultural phenomenon. Cheap is just the most basic advantage of Hongguang MINI EV. In the eyes of many young people, personality is the key to their choice. According to user portraits of Hongguang MINI EV, nearly 60% of them are female customers, with the "post 85" accounting for 70%. On Xiaohongshu, Tiktok, Kwai, Hongguang MINI EV personalized modification, as well as with Xicha, YOHO! 's joint modification cases continue to become traffic hotspots. At the previous Shanghai Auto Show, the Hongguang MINI EV convertible version once again attracted attention.

Behind this, the car buying community is becoming increasingly young, and the demand for young people to promote their individuality is increasing. In the past, they watched super girls and listened to pop music. Now, they watch hip-hop and create 101 in China, and the younger generation is increasingly daring to show their taste. From a certain perspective, "conservatism" is the biggest original sin for manufacturers to develop young users.

In the pursuit of personalization, "mass production converted vehicles" is becoming a new trendy term. Automobile brands attach importance to consumers' personalized needs and have launched "mass production modified vehicles" to meet these users

Original title: Why do independent brands invest in "mass production modified vehicles"?

The needs of. Dongfeng Fengshen has launched the Yixuan MAX with scissors doors, GAC Motor has launched the Trumpchi Shadow Leopard, MG has launched the MG6XPOWER, and Geely has already launched a fully modified model such as the Nike 03+in 2019

"Personalization" is popular throughout the country. Whether it's new forces or traditional car companies, whether it's new energy vehicles or fuel vehicles, companies and brands are actively promoting "younger" products. Mass production converted cars are a microcosm of the trend of personalization and youth.

Release consumer demand, car companies call for "open access to modified cars"

The modified car culture originated from overseas, and the earliest related exhibitions can be traced back to the SEMASHOW held in Las Vegas, USA, in 1963. Modified vehicles are also closely associated with the event. The racing team will make adjustments to the vehicle's appearance, interior, power, chassis, and other aspects to improve the vehicle's styling and performance.

This modification quickly extended to the civilian field. Currently, the modification in the overseas market has become mature. Not only are modifications allowed to a certain extent by laws and regulations, but also many modification factories have gained a reputation, such as Babos, TRD, and other enterprises. Sailin, once a controversial company in the Chinese market, also started as a refitting factory. From sports events to civilian use, the overseas modified vehicle industry has also developed rapidly, with a market value of up to trillion yuan.

As the automotive culture continues to take root and sprout in China, young people in China are gradually beginning to come into contact with personalized modified cars. With their unique car paint, surging sound, and handsome tail wings, many consumers seem to have been opened to the new world.

The Transportation Administration Bureau of the Ministry of Public Security has released a report that in 2020, the number of motor vehicles owned nationwide reached 372 million, but there are few official data released on modified vehicles. The development speed of the modified vehicle market in China is not fast, which is mainly limited by policies. Previously, China's regulatory authorities had strict requirements for modified vehicles, and consumers could not change the structural characteristics of vehicles without authorization. This largely inhibits the need for personalized modifications.

The voice of the industry regarding the opening of modified cars has also been higher and higher. As representatives of the National People's Congress, Li Shufu, Chairman of Geely Automobile, and Wang Fengying, President of Great Wall Automobile, both proposed a proposal to "regulate the automobile modification industry and promote the upgrading of automobile consumption" at the 2019 two sessions.

According to Fu Bingfeng, secretary-general of the China Automobile Industry Association, several ministries and commissions, including the Ministry of Commerce and the Ministry of Public Security, are actively discussing with enterprises and associations, planning to step by step open the modified vehicle market and release consumer demand. Currently, modifications to vehicle body colors, luggage racks, pedals, bumpers, heat dissipation masks (middle mesh), wheel rims, and other parts have been conditionally permitted.

Wang Peng, Deputy General Manager of the Marketing Planning Department of Dongfeng Fengshen, said in an interview with reporters that the company launched the Yi Xuan MAX Dark Edition, on the one hand to meet the personalized needs of consumers and make it young, on the other hand, it is also to demonstrate its brand power, enhance brand tone, and try more possibilities. In the future, enterprises will successively launch different types of personalized products to help their brands move upward.

An insider from an independent brand also mentioned to the reporter that mass production of modified cars and personalized products will provide consumers with a "cultural bond". Although some independent brands have performed well in sales, their loyal followers are limited. Companies hope to capture the psychology of young consumers through personalized products and gradually cultivate consumers' loyalty to the brand through a series of car club activities.

Wang Peng also mentioned that currently older consumers have a relatively complete propensity to buy cars, and companies hope to capture the needs of young people and work hard in the young people market. Insiders of independent brands are even more outspoken: Since we can't impress you (referring to older consumers), we'll go and impress your children.

GAC Trumpchi officials also told reporters that the Shadow Leopard team hopes to create a community environment where young people can create and play together, and to unite a group of consumers through the shape and performance of product sportsmanship and racetrack style.

The thinking behind "mass production modified vehicles", customization and modification become the direction under the wave of intelligence

It seems that the birth of mass production converted cars is just a new trend in the new era, and it is a means for enterprises to gain user intelligence and harvest sales. However, Fu Bingfeng painted a larger landscape in the interview.

In Fu Bingfeng's view, with the continuous development of intelligence, the market for personalized modified vehicles will flourish in the future, and its form will also shift from providing different vehicle configurations by the earliest enterprises to personalized customized modification.

Fu Bingfeng mentioned that currently, mass production modified vehicles are approved by the manufacturer and customized in batches. With a certain degree of supply chain management capabilities, these products can better meet the needs of consumers with high personalized demand. However, with the continuous development of intelligence, manufacturers can achieve "customized modification" when they have more advanced digital production management systems and supply chain systems.

Overseas, car companies do not have high bike configurations, but they provide a wide range of options, which can meet the different needs of consumers and effectively improve the profits of bicycles. The product cost is also controllable without major changes to the chassis and body structure.

With the advent of intelligence and electrification, in addition to the performance and appearance of car modification, there is also new room for modification in the interior and electrical aspects. Fu Bingfeng mentioned that currently, it is relatively difficult for enterprises to achieve personalized customization production. On the one hand, meeting different consumer needs means that the same number of orders requires different parts, and the procurement and production costs will increase linearly. On the other hand, if the production line and supply chain cannot be effectively managed, the production rhythm will also be affected.

However, companies are also trying to push in a new direction. For example, the customized options of Weilai have been considered since the top-level design. SAIC MAXUS's Spider Smart Selection has experienced years of tempering, effectively improving its gross profit margin on bicycles. Currently, there are not a few enterprises that rely on orders to schedule production.

"With the continuous relaxation of national regulatory policies and the continuous development of electrification and intelligence in the automotive industry, there will be a large market for modified vehicles and personalized needs," concluded Fu Bingfeng.