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To cut to the chase, SAIC Volkswagen ID.4 X is the true competitor of FAW-Volkswagen ID.4 CROZZ.
Strange things witnessed recently between ID.4 CROZZ and ID.4 X.
What went wrong when they were supposed to work together against a common competitor?
ID.4 isn’t going head to head with ES6 and Model Y. This new car is.
This article provides a detailed account of recent events, for your pleasure.
To cut to the chase, SAIC Volkswagen ID.4 X is the true competitor of FAW-Volkswagen ID.4 CROZZ.
This is not a market analysis article, but rather a compilation of strange things witnessed recently between ID.4 CROZZ and ID.4 X.
When the two car models were launched jointly in November last year under the coordination of Volkswagen China, I made a fascinating discovery in my answer below:
“What is the significance of the existence of joint ventures? After reading the introductions of the leaders of both joint ventures, there is only one question in my mind. In an era of electrification, when it becomes increasingly difficult to differentiate homogenous products, what is the purpose of duplicating and introducing product ranges from both companies? Is it to guarantee double the production capacity and sales channels? Or is it because importing from both sides can lead to double the development fees for German partners?”
The two car versions were almost identical, with some differences in design details and the available capacity of power and batteries, but these differences were negligible. At the launch ceremony, leaders from FAW-Volkswagen and SAIC Volkswagen gave their speeches using apparently different scripts but with identical content, which was truly interesting.
Fast forward to January this year, after the two car models, FAW-Volkswagen ID.4 CROZZ and SAIC Volkswagen ID.4 X, had released their configurations and prices in the same week, the atmosphere became even more bizarre. The two almost identical cars have corresponding car model versions, with SAIC Volkswagen offering slightly lower prices, and both companies focusing on different configurations, with SAIC Volkswagen focusing on comfort while FAW-Volkswagen focusing on ADAS-assisted driving.
When both sides release configuration versions and prices, they also disclose their user benefits and charging plans. FAW-Volkswagen uses the CAMS charging network in cooperation with Volkswagen China, while SAIC Volkswagen uses its own Anyue charging. Without summarizing the differences in their respective benefits, let’s get right to the topic:
Strange Things Observed Recently from ID.4 Crozz and ID.4 X
About an hour and a half after the ID.4 X released its configuration version and price information (January 21, 2021, 18:00), I saw this picture in an ID.4 interest group:
A detailed comparison of the configuration differences between the north and south regions, complete with corresponding price versions. The most outrageous thing is that there is also estimated sales proportion information for both configurations.
Isn’t this each company’s confidential information? Why is it displayed so openly in an interest group? Curious as I am, I clicked on this gentleman’s avatar and found a Crozz concept car used for pre-release presentation of the ID.4.
I won’t reveal his ID, but the location is Changchun, Geelyn. Hmmm?
This group is quite interesting. It seems to be a showdown among employees.
Subsequently, this friend posted a long paragraph:
In these seemingly fair words, there were phrases such as “original version,” “slightly weaker configuration,” and “follow-up will be very advantageous.” It seems that this friend has considerable knowledge of the differences between the north and south configurations.
However, this is not very outrageous. It’s not a big deal to protect one’s own products. What really prompted me to write this response was a video sent by another brother in the group:
This is a video from the “FAW-Volkswagen Sales Friends Circle” that was shared in the group.
[ID.4 Crozz vs ID.4 X – Video channel Sky-high with Thunderhead]
If you don’t feel like watching the video, don’t worry, there’s a screenshot below that tells it all:
Right from the start, the host of the video channel “Thunderhead” makes it clear that there are major differences between the North and the South. He plays the roles of a sales consultant for the FAW-Volkswagen ID.4 CROZZ and for the SAIC-Volkswagen ID.4 X, and he introduces the background information that FAW-Volkswagen is in Changchun and produces Audi, while SAIC-Volkswagen is in Shanghai and produces Skoda.
Isn’t this information quite interesting? Let’s continue:
Two young men and women appear on the screen, apparently going to choose a car. “What’s the difference between both of these ID.4 models?” they ask.
Thunderhead starts to explain by comparing the “China-specific version” with the “global version”, and the “headlights don’t turn on and the key is really missing” with “the key is in your hand and the headlights turn on”.
Now we can compare cars even without a key! It’s almost as if one car can be “China-specific” while another is “global”, which is quite German.
Now they get into the details. When Thunderhead, with a bitter face, shouts that “X is priced 7,000 RMB below you”, he’s already lost his expression.
After he counts off “CROZZ has six more features than you”, Thunderhead, with a smile on his face and no combat, wins.
The young man and woman looking at the car in the video have come to a realization, and they get to the conclusion that “20,000 is greater than 7,000”, just like a math problem in upper elementary school.
And here is a poem to summarize:
Looks can be deceiving,
Substance sets the tone;
Height and depth revealing,
Beauty shines alone.
Which one will you choose?
Why are they fighting each other, when they could be working together?
The true rival of FAW-Volkswagen’s ID.4 CROZZ should not be SAIC-Volkswagen’s ID.4 X. The situation is absurd. Both are products of the same new pure electric platform, invested by Volkswagen globally and two joint ventures. Together, they could have conquered the market, from gas cars to new energy, from Tesla to others. But what went wrong? Why the infighting?
Volkswagen China needs to reflect on the next step for their products in the Chinese market, as do the two joint ventures. They may have won two of the top three positions in passenger car sales with their gasoline cars, but can they do the same with electric cars if they work together and recover their investment?
If they can’t solve the problem, then the MEB and PPE platforms might not be able to meet the demands of the Chinese market.
ID.4 CRZZ is not the product to compete with ES6 and Model Y, this new car is.
Let’s move on to the topic. The price range of ID.4 CROZZ and ID.4 X is between 200,000 and 280,000 yuan. Even if Tesla Model Y launches its standard rear-drive version, it will be priced from 260,000 to 280,000 yuan, while the BAAS battery leasing version of ES6 will cost 265,500 yuan (as of January 2021).
The 60,000 yuan difference in the starting price of ID.4 means that it is not the true rival of these two cars. Rather, the ID.6, the second car of the MEB platform in China (if the north and south variants of ID.4 are considered as the same car but with different specifications), is more appropriate in terms of price. Although it is not a perfect match in terms of product form, it is still feasible to compete with a bigger car and match the price to attract customers.
Yesterday evening, the Ministry of Industry and Information Technology announced the 341st batch of new car declarations, and SAIC Volkswagen submitted an application for the ID.6 X. Based on previous information, this model with the code name VW 316/7 is the largest product of the MEB platform. The SAIC Volkswagen version is the prototype, and the FAW Volkswagen version will be developed by German counterparts.
I am @sunflowerzzz, and my job is automotive product planning. I can talk a little about the ins and outs of this industry.
After the cars of both companies are launched, I hope we won’t see another “global” VS “special supply” video.
If you’re interested in my answers, you can click to read my five latest responses:
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This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.