Author：He Lun, IIA’s Co-Chief Content Officer, Deputy Head of IIA Academy of Auto

Automobile hot topic Q&A (Ep.209)

TEXT:

Land Rover Range Rover Evoque, a car is inherently superior, quickly became a mature luxury brand soon after its appearance and became the world's largest sales model, but in the Chinese market has experienced ups and downs. Now, with the launch of its second-generation model, the future fate will surely attract people's attention.

Q: The starting price of the new Evoque is RMB 355,800 yuan, which is 20,000 yuan lower than the starting price of the previous generation of 375,800 yuan. What is your comment?

A: I feel that it is more than 20,000 yuan. Because the power of the previous generation of entry-level models is 200 hp, the new generation is 249 hp. The power is higher than a grade, so it is reduced by at least 40,000 to 50,000 yuan.

Q: If it is compared with the German trio of BBA's compact SUV, this price is much more expensive, because the starting price of the German SUV is 260,000 to 270,000 yuan. What is your comment?

A: I don't think Jaguar Land Rover has raised its own value. On the contrary, it is too humble. The value of Evoque is determined by its initial product and market positioning. The manufacturer wants to build a model that is superior to all compact luxury SUVs in technology, performance, configuration and design, a "luxury" class SUV, and a high cost model that matches with the "Range Rover" family. Just like the other three models in the Range Rover series, they are worth more than BBA's same-size models.

Therefore, Pan Qing, President of Jaguar Land Rover China, said at the launch ceremony of the new Evoque, "The new car is superbly above all luxury SUVs of the same size. It is a special one." This is not a bragging, Evoque does not have a direct competitor, unless one day Porsche introduces a compact SUV.

Q: Manufacturers tend to regard the BBA's medium-sized SUV as Evoque’s opponents, but the its wheelbase and body size are indeed compact. Does this make people confuse?

A: Indeed, in China, it is a complicated and laborious task to clarify the positioning of Evoque and other members of the Range Rover family, their relationship with the Land Rover Discovery family members, and their relationship with competitors. I noticed that before the launch of the new Evoque, manufacturers have begun to communicate with the media and dealers about the special positioning of the Range Rover family and Evoque. Of course, this kind of communication will only receive good results if it is not long-term.

On the other hand, we can compare the prices of the German market Evoque and its competing models to their prices in the Chinese market. Germany is the commanding height of global luxury car competition. The car culture is the most developed, and consumers are also the most critical. Manufacturers are afraid to make unreasonable prices.

Take the new 249hp Evoque as an example. Its basic model starts at €48,550 in the German market, which is about 373,500 yuan, while the Chinese version has a price of 355,800 yuan, which is nearly 20,000 yuan cheaper. Germany's GLC 200 is called GLC 260L in China. The two engines are the same. The price in Germany is €46,237, which is €2,313 lower than the Evoque P250's €48,550, or about 17,800 yuan. In China, the price of the same GLC is 419,800 yuan, which is 64,000 yuan more than that of Evoque. Even considering that the Chinese version of the GLC is a long-wheelbase version, there will generally be an increase in the cost of 10,000 to 20,000 yuan, but the Evoque also offers an ultra-low price relative to GLC in China.

Q: What do you think of the new Evoque?

A: I feel impeccable about the design and interior of the new Evoque. This may be because I didn't have enough time to look at it in detail, so I couldn't find any problems. 

The general feeling is that the overall structure of its appearance is still classic. In detail, especially the shape of rear light changes a lot. The lateral size of the lights on the previous generation was too short and small. I think it was a failure. But this change is good. The materials and assembly techniques used in the interior design are top-notch. As for the driving experience, I haven't drive it in person yet, so I don't comment.

Q: Mr. Pan announced at the launching ceremony that the sales of Jaguar Land Rover in China saw a 40% year-on-year increase in July. Do you think the new Evoque can help Jaguar Land Rover reverse the decline in sales?

A: The Jaguar Land Rover's July sales growth was not accidental. In fact, Jaguar Land Rover has been making major adjustments since the beginning of this year. The main task is to reduce inventory and adjust dealer business policies. In May, there has seen a month-on-month growth, and saw a 23% month-on-month increase in June, which paved the way for a 40% year-on-year increase in July. And these are the growth of the retail side, the dealer's inventory has also dropped back to a reasonable range.

In the first half of the year, Jaguar Land Rover sales fell 36% year-on-year, but there have seen signs of steady recovery. Coupled with the upcoming launch of the new Evoque, its overall situation is expected to be better. Looking at it now, with the strong growth in July, the launching of low-price Evoque, and the smoothed dealer system, Jaguar Land Rover is still possible to achieve year-on-year sales growth.