The ARCFOX T, the first mass-produced model of BaiC group's high-end new energy vehicle brand, has been launched, a departure from the b-segment brand's familiar positioning.

Beijing Auto 'forced' to launch high-end products?

        Earlier this year, Due to its early entry into the market and policy support, BaiC's sales volume reached 20,000 vehicles in 2015, rising to 150,000 vehicles in 2019. Meanwhile, it has been the first in the pure electric car market in China for 7 consecutive years.

But with the recovery of China's car market, BaiC new energy sales not only did not increase but plummeted. In September, BaiC sold just 2,245 units, down 77.57 percent from a year earlier, according to previously released data. In the first nine months of this year, BaiC's cumulative sales of new energy were just 21,000 vehicles, down 78.57 per cent year-on-year.

It is worth noting that the production and sales of new energy vehicles in China reached 136,000 and 138,000 respectively in September, up 48% and 67.7% year-on-year respectively. In other words, the domestic new energy market recovered, while the sales of BaiC new energy did not recover.

As sales plummeted, BaiC new Energy did not put much effort into its once-proud B-segment models. Instead, it is the first mass-produced ARCFOX T from the high-end ARCFOX brand, which went on sale on October 24th.

In response, Ren Wanfu, an analyst, told CRRC that ARCFOX had been established in 2016 but had not started mass production until BaiC's new energy sales plummeted. At the same time, due to the late entry into the high-end market, if BaiC wants to rely on ARCFOX re-rise, it is not easy.

ARCFOX T is the first model of Beijing Auto's high-end new energy brand ARCFOX, which is jointly built by BaiC Blue Valley and Magna. The ARCFOX T, a continuation of the Arcfox-ECfConcept designed by master designer Walter DE Silva, is priced at $24.19 to $314,900 after subsidies.

As for ARCFOX, which is backed by BAIC group and built with the world's top resources like Daimler, Magna and Huawei, etc. ARCFOX has no brand clout for now, analysts say. Magna is familiar only to auto industry insiders, and consumers should be indifferent to the parts maker. For BaiC, consumers are familiar with only Beijing Benz and Beijing Hyundai. Many of baiC's self-owned brands have been abandoned by consumers, and the sales volume speaks for itself.

It is difficult to move directly into the high end

        It is understood that BaiC New Energy's products are mainly b-end customers such as taxis and online car-hailing vehicles, and the overall product positioning is relatively low-end. With the saturation of the B-end market, it is not surprising that The sales volume of BaiC New energy, which relies on the travel market as the main seller, has dropped significantly. And Beijing Auto new energy at this time to enter the high-end market, the outside world is speculated to be a strategic abandonment of the B end of the market. In this regard, Ren Wanfu told CNR that the B-end market is in a shrinking state, when the outbreak again is not known, BaiC may also have to give up temporarily.

However, ARCFOX's first product directly enters the price range of tesla, Nextev, Ideal and other main products of new car forces, and faces brands that have been recognized by consumers. "ARCFOX's courage is admirable, but the pressure and difficulties it faces will be very great," Ren said.

At the same time, some industry insiders believe that the baiC launch of high-end brand logic has been not very understand. There are good reasons for companies like Geely and Great Wall, both of which have been relatively successful in their markets of less than 150,000, with a full product line, to launch high-end brands to compete with joint ventures. Nextev is a new force without the burden of traditional car enterprises, light, directly cut high-end. However, BaiC's own brand fuel vehicles and low-end new energy vehicles are not competitive at present.

"We never consider Tesla, Nextev and Xiaopeng as ARCFOX's competitors," said Liu Yu, general manager of BaiC New Energy. "Our common competitors must be gasoline cars." He believes that new energy vehicles have a bright future and the new energy vehicle market, which is jointly promoted by multiple power sources, is about to explode. In the future, this market will not be driven by policies, but by commodity nature and consumers' purchase willingness.

In September, Tesla sold 11,329 Model 3s, Ideal ONE 3,504 and Nextev ES6 3,226.

Later, CRRC interviewed BAIC New Energy about ARCFOX T sales targets and other related issues. A relevant official told CRRC that for ARCFOX T, sales volume is of course a relatively intuitive and visual judgment standard. However, in the process of reaching the expected sales volume, it is more necessary to gradually implement the brand reputation, user demand, and improve products and services. She expressed confidence in ARCFOX's future and believes ARCFOX T will be recognized by the market and its users.

High-end is the choice of the market?

When faced with the outside world about Beijing Auto new energy at this stage rushed into the high-end market when the voice of doubt, the industry is opposed to this. He believes that the 60 years of history of BAIC, and Beijing Benz's annual profit of 10 billion yuan, may be ARCFOX trying to get rid of the BaiC label, into the high-end margin. After all, new energy is the only way for traditional car companies to overtake on the curve.

In fact, with the increasing trend of high-end new energy vehicle market, SAIC, Dongfeng, FAW and other "national teams" are also planning high-end new energy vehicle products, intending to take a share in the market.

For BaiC, in the field of high-end new energy is a newcomer. Beijing Auto New Energy launched the high-end intelligent new energy brand ARCFOX to meet the needs of the market and enterprise development, a person in charge of the company told CNR.

However, according to the latest data, The sales of Wuling Hongguang Minivan in September has surpassed that of tesla Model, which has the dominant position in the high-end market, and occupied the top position of new-energy vehicle with 14,495 units. Not only that, the Euler R1 also won the third place in new energy sales in September with 5,141 units. Therefore, in the future, whether the new energy market is polarized or high-end, there is no way to draw a conclusion. But judging from September's sales figures, high-end cars are no longer the only option for consumers.

Zhang Xiaoliang, auto analyst, said on the future development prospects of BaiC's new energy vehicles in the high-end market. The biggest opportunity for the pure electric vehicle market at present is still to do something that gasoline vehicles cannot do, to win the market by stimulating users' desire to buy by relying on unique functions and experiences. In this direction, high - end, high - performance and intelligent is the most clear choice. So there are multiple players following this trend.

Of course, there is no way to conclude whether BaiC New Energy was the right choice to enter the high-end market in the face of plummeting sales. Some believe that BaiC's strong background will enable ARCFOX T to successfully enter the high-end market. Others argue that ARCFOX T, which has no brand and no obvious advantage, will have a hard time finding a place among brands that have been recognized by consumers.

          As for the success of ARCFOX T, perhaps only as Qiufeng Wang, vice President of ARCFOX Business Unit, said, "As for the success of ARCFOX T, we actually have a sales target for next year, but we cannot disclose it at the moment. We are always results-oriented, so please give me some time, and give ARCFOX T some time, and I'll see you in the market."