From 0 to 1, Lynk & Co’s Success in Building a High-end Chinese Auto Brand

Author: Roomy

Outing100, a media company under Lynk & Co, focuses on the evolution of the automobile industry chain.

From Berlin to Shanghai, covering 8,000 kilometers, from 1 to 9, “born global” Lynk & Co has gone through five years of time.

During the on-site launch event of 09, memories from October 20, 2016, when it began in Berlin, Germany, returned with the help of lights and shadows. Two ideas came to mind.

“Undoubtedly, Lynk & Co has succeeded in the process from 0 to 1.”

Over the past five years, from Lynk & Co 01, 02, 03, 05, 06 to 09, as a high-end brand of Chinese automobiles, Lynk & Co has fully constructed a segmented market from A0 level to D level, forming a three-dimensional product layout of “SUV + sedan”, “fuel + new energy”, and performance vehicles.

At the same time, the sales volume of nearly 600,000 vehicles also proves the importance of Lynk & Co’s exploration on the road of high-end Chinese automobile brands. Behind the sales volume, Lynk & Co’s products have an average price of 156,000 yuan, making it the first time that Lynk & Co has made Chinese automobile value not just about price.

During these five years, Lynk & Co has set a reference for the youthfulness and high-end development of Chinese automobile brands. Lynk & Co’s foundation has laid the groundwork for the youthful approach of brands such as Ora and Wuling.

“As a watershed of five years, we have put all our trump cards on the table. How can Lynk & Co continue to maintain its high-end position?”

After all, as Vice President of Geely Automobile Group and General Manager of Lynk & Co Sales Company Lin Jie said, “The automobile market is a marathon, not a sprint.”

As Lynk & Co’s trendsetting moves are gradually being imitated and surpassed by competitors, there are some signs of stagnation. Moreover, hidden under the momentum of the booming new car-making forces is Lynk & Co’s “lack of successors” in dominating the autonomous brand’s high-end market.

How can Lynk & Co innovate marketing and customer service? How can Lynk & Co better communicate with consumers? How can Lynk & Co innovate its channels? How can Lynk & Co better convey the essence and concept of “high-end brand” and “more than just a car” to the outside world?

Lynk & Co needs to constantly answer these questions. On its fifth anniversary, Lynk & Co hopes that Lynk & Co 09 can answer these questions well.

Looking at the entire product lineup, 09, which bears the upward significance of the brand, is crucial for Lynk & Co. However, does the market really need a six-seater/seven-seater Lynk & Co 09?

Two difficulties facing Lynk & Co 09As one of the first car brands born out of traditional automakers that keeps pace with new forces in the automotive industry, Lynk & Co has already broken through the defense line of joint venture brands and frequently played out the storyline of head-on confrontation on the front line.

“Average user age is only 31.7 years old, the average selling price of models is close to RMB 160,000, and the average residual value rate is up to 68.6%, which makes it the most valuable Chinese high-end brand currently”…Lynk & Co has set multiple “luxury labels” and achieved a good start after five years of market exploration.

On the internet and in reality, people are not stingy with their praise for Lynk & Co, and friends who buy Lynk & Co cars are everywhere, from the 01 model to the 06 model. However, this is a story before 2020.

Today, when it comes to Lynk & Co, people often say, “We’re going to replace the 03 model with the Zeekr 001 next year.” This kind of comment is not uncommon. In the current situation, new energy vehicle market positioning for new brands is indeed more popular than traditional fuel vehicles.

2020 was a year of rebirth for new forces in the automotive industry, shaking off the decline of 2019 and experiencing sudden heat.

Li Bin’s NIO, which was “waiting in the ICU for lifesaving,” has become the leader of new forces in the automotive industry and Chinese electric vehicle brands. He XPeng, who achieved financial freedom, also brought XPeng Motors to 100,000 units of sales in a short period of time. The monthly sales of Ideal ONE exceeded 9,000 units, and it is not far from Li Xiang’s goal of “selling more than 10,000 units in a month.”

All the way to 2021, under the shadow of “chip shortages” and “power shortages,” the unstoppable wave of electric vehicles has made Lynk & Co’s “wine and stories” less rich and less discussed than before.

At this time, Lynk & Co launched a six-seater/seven-seater model 09 with two power configurations, “light hybrid” and “plug-in hybrid,” to compete in the large SUV market, priced from RMB 265,900 to RMB 370,900. Is this decision rational enough?

In terms of product layout and brand luxury breakthrough, the arrival of Lynk & Co 09 is justifiable.

Lynk & Co 01 is for family use, Lynk & Co 02 has high appearance value, Lynk & Co 03 emphasizes performance, Lynk & Co 05 is individualistic, Lynk & Co 06 is positioned as “the first good car for young people,” and Lynk & Co 09 achieves a breakthrough, redefining the luxury of Chinese brands.

Just like what Geely Automotive CEO Gan Jiayue said, “72% of Lynk & Co users come from joint ventures and luxury brands. The launch of Lynk & Co 09 makes luxury possible in Chinese brands.”

From the release of the 09 model, Lynk & Co has sent out two messages: the determination to overcome difficulties in the medium and large SUV market and a return to luxury branding.

However, looking at the competitive reality of the market, the Lynk & Co 09 SUV is facing dual challenges.

The first challenge is for its six- or seven-seater SUV models, which appear like a new calf attempting to challenge the Toyota Highlander, but are few in number and many struggling to keep up.

From the sharp looking Ford Edge that “kicked” the Toyota Highlander, to the Shanghai Volkswagen Tiguan platform that was extended into the seven-seater segment, as well as the Touareg and Kodiaq brothers rising to prominence, and even the later Buick Enclave….with ambitious companies gathering, a series of “PK Highlander” dramas play out one after another, making the scene quite lively.

The Highlander miracle has caught the attention of Ford and Volkswagen. Starting from the mid-size to full-size SUV fight in 2015, to this day, the question of “who is most likely to upset the current market structure” no longer has an answer, and the “six- or seven-seater large SUV model” has become a pseudo-proposition.

Judging from Lynk & Co’s 09 positioning and price, it competes with the Buick Enclave and the Volkswagen Touareg. At the same time, it will also compete with the Highlander at the same price level and “confront” luxury brands at the nearly 400,000 yuan price point.

For a while, Lynk & Co 09’s situation is more difficult than imagined. “Lynk & Co 09 really makes one sigh because there is no debut of the five-seater version to start with.” This lament comes from a Lynk & Co 02 owner.

So, does the large SUV market need a Lynk & Co 09? The long-standing Highlander remains silent.

There is also a competitor that Lynk & Co 09 cannot avoid, which is the Ideal One that also has a six- or seven-seater layout. The news that the Ideal One is “the best-selling high-end electric SUV” once again puts pressure on Lynk & Co 09, whose “product attributes are limited to the framework of gasoline, hybrid, and plug-in hybrid.”

As mentioned earlier, with the support of intelligent and technological factors, gasoline vehicles cannot match the popularity of electric vehicles.

“I am a Lynk & Co 05 owner, it’s not that Lynk & Co isn’t good, but when talking about Ideal One, it must be considered for new energy vehicles beyond the seven-seater options.” This answer was highly praised for the question of whether to choose Lynk & Co 09 or Ideal One.

Thus, some clues can be gleaned from this.

“The hardest market is also the best opportunity””The hardest market is also the best opportunity.”

As a high-end explorer, Lynk & Co has always believed in and exemplified the importance of being innovative.

Although the current large SUV market is not entirely prosperous, the Lynk & Co 09 enters the market with confidence and two chips up its sleeve: the technical support of Volvo and, unlike previous large SUV models, Lynk & Co has equipped the 09 with cutting-edge intelligent driving technology.

The statement “Lynk & Co 09 is the XC90 Plus version” or “An XC90 with a different badge” is common. The balance between the Lynk & Co and Volvo models has always been a popular topic of discussion.

The Lynk & Co 09 and Volvo XC90 share the same SPA architecture and dimensions, with identical wheelbases of 2984mm. The driving system is also consistent, utilizing BorgWarner’s fifth-generation Haldex four-wheel drive system.

In terms of power, the Lynk & Co 09 has various powertrain combinations, including a 2.0T+8AT 48V mechanic four-wheel drive, 2.0T+8AT PHEV electric four-wheel drive, and 2.0T HEV light hybrid electric four-wheel drive. The total output ranges from 252 horsepower to a maximum of 431 horsepower, with the mechanical four-wheel drive utilizing BorgWarner’s sixth-generation four-wheel drive technology.

As Lynk & Co’s new flagship SUV model, in addition to originating from SPA and using large-scale module architecture, the 09 also features an “enhanced design of urban opposition aesthetics” and superior product capabilities. The air suspension system used can intelligently adjust the ground clearance between 160mm-250mm, making it superior to similar models from joint ventures.

Therefore, for 270,000 to 350,000 yuan, it is a great bargain to purchase the platform technology of the Volvo XC90. This is also the reason why the Lynk & Co 09 is not compared to independent domestic brands’ large SUV models.

Product quality is the foundation of successful branding, and architecture is the foundation of successful products. Lynk & Co’s 01 to 05 models share the CMA architecture with Volvo’s XC40, and their product quality has been recognized by the market, with sales of nearly 600,000 being the most direct proof.

Therefore, as Lynk & Co’s exclusive architecture for high-end models, sharing the same platform as the Volvo XC90, the Lynk & Co 09 has hardware development that meets Volvo’s safety standards, and Lynk & Co has conducted extensive research and development on software safety.In terms of smart driving, Lynk & Co 09 is equipped with the Lynk Co-Pilot smart driving assistance system, 24 high-performance perception hardware devices across the entire vehicle, 31 driving assistance functions, highly focused on user travel scenarios, and forming a full-range, high-precision three-dimensional perception.

At the same time, Lynk & Co 09 adopts the third-generation Qualcomm Snapdragon Automotive Digital Cockpit platform to create a new smart cockpit. It is the first to use the 7nm level 8155 chip from Qualcomm, equipped with a cloud map-style intelligent control six-screen, and the first to be equipped with the LYNK OS intelligent cockpit control system.

Although limited to the framework of “fuel, hybrid, and plug-in hybrid”, Lynk & Co 09 tries to become more intelligent and closer to consumer demand for intelligence.

Lin Jie said that Lynk & Co’s mission has always been clear, not to produce low-value products but to provide high-value product experiences for consumers. “To build a high-end brand, we must have the perseverance and determination to fight a lasting battle. Price wars are not acceptable. Only by winning the value war can we stand firm in the fiercely competitive market.”

Lin Jie has also embedded a positioning for Lynk & Co 09. “To rebuild a new height of value for Chinese automobile brands and further consolidate Lynk & Co’s position as the leader in high-end Chinese automobiles.” However, as the exploration of high-end markets deepens and touches on more high-end and differentiated markets, the “perseverance and determination” required to fight a lasting battle will become more acute.

But the original intention remains unchanged. “We must return to the market and the needs of consumers.” This is a sentence Lin Jie often says, and it is also the fundamental thinking of Geely and Lynk & Co brand development.

The dream has taken off, and reality still needs to return to the market. The first problem that Lynk & Co 09 needs to solve is still to “make the market need a Lynk & Co 09.”

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.