Source: Dugou Photographed at the Shanghai Auto Show in April 2023

To appeal to younger consumers, FAW Besturn, which has been relatively inactive for a long time, has recently embarked on frequent sports marketing campaigns. Not only has it partnered with China's National Track and Field Team as an official sponsor, piggybacking on the hype of the Olympics, but it has also collaborated with the online fitness platform Keep to launch health running events.

This move may help showcase FAW Besturn's youthful image and leave an impression on young consumers. However, marketing is merely an embellishment; ultimately, product performance determines market success. Currently, FAW Besturn lacks competitive models in both the gasoline and electric vehicle segments.

In the first half of this year, Besturn sold a total of 61,300 new vehicles, up 7.4% year-on-year. However, excluding overseas sales and distributing the remaining sales across various models, the results are less than satisfactory. According to Dongchedi data, its best-selling model, the Besturn B70, averaged only 3,372 units per month in the first half of the year; the micro-electric vehicle Besturn Pony, launched in May, sold only 1,764 units in June, struggling to rank among industry leaders.

It's worth noting that relying on FAW, Besturn was once known as the "rich second generation" in the automotive industry, but it is now being questioned as a "wastrel." As FAW Besturn drifts further away from the frontline of independent brands, can sports marketing truly propel it forward in an increasingly competitive era?

1

Wastrel Second Generation ●

Records show that the Besturn brand was established in May 2006, making it FAW's "beloved son" alongside the Hongqi brand. Both boast aristocratic origins, but while Hongqi targets the high-end market, Besturn positions itself as a "creator of affordable quality cars for the people."

Initially, leveraging FAW's state-owned automotive group background and Mazda's automotive technology, FAW Besturn made a strong start. Just eight months after its establishment, it won the "2006 CCTV Autonomous Brand Car of the Year Award" in the "2006 CCTV China Car of the Year" selection, which was specially launched by CCTV's economic channel.

The first sedan model, the Besturn B70, launched in August 2006, also gained popularity among party and government agencies and many families. Statistics show that from 2006 to 2010, Besturn B70 sales exceeded 150,000 units, earning it the title of a "national car."

With the help of the B70 and subsequent new models, FAW Besturn's overall sales continued to set new highs. By 2014, cumulative sales had reached 185,600 units, up 46% year-on-year.

It was also in 2014 that the Chinese automotive market flourished, and independent brands entered a golden period of rapid development. Against this backdrop, the Besturn B70 underwent its first generation change, offering significant pricing flexibility.

At the time, FAW Besturn hoped that the all-new Besturn B70 would continue its previous success and surpass expectations, contributing to FAW Car's goal of achieving 400,000 units in production and sales by 2018. However, market performance fell short of expectations, impacting FAW Besturn's overall sales.

Data shows that FAW Besturn's annual sales suddenly dropped to around 150,000 units in 2015. Although there have been fluctuations since then, the overall trend has remained downward. In 2019, FAW Besturn sold 120,500 units, but this figure hovered around 70,000 to 80,000 units from 2020 to 2022.

Last year, FAW Besturn sold a total of 120,700 units, marking a significant year-on-year increase of 59.4%. However, a closer look reveals that sales have yet to return to their 2014 levels.

Moreover, poor overall sales have negatively impacted FAW Besturn's financial performance. According to a previous announcement on a capital increase project, FAW Besturn suffered net losses of 4.86 billion yuan, 3.758 billion yuan, and 2.097 billion yuan in 2020, 2021, and 2022, respectively. From January to May last year, the net loss was 997 million yuan. In total, FAW Besturn has accumulated losses of over 11.7 billion yuan in the past three and a half years.

This level of "wastefulness" rivals that of some new energy vehicle startups, prompting many insiders and outsiders to joke that FAW Besturn has transformed from a "rich second generation" into a "wastrel." Once considered a "dark horse" among independent brands, it has gradually drifted away.

2

Double Failure ●

Judging from sales figures in the past year and the first half of this year, FAW Besturn is slowly returning to growth. However, this does not mean it can rest easy. Analyzing sales composition reveals that FAW Besturn's products lack significant presence in both the gasoline and electric vehicle segments.

In the gasoline segment, the "sales bearer" remains the Besturn B70, first launched in 2006, though its current generation is weaker than its predecessors. According to Dongchedi data, in the first half of this year, the Besturn B70 sold 20,232 units, averaging 3,372 units per month, with the latest July sales standing at 2,824 units.

Other gasoline models fared even worse. For instance, the SUV Besturn T77 sold a mere 328 units in its best-selling month this year, while the Besturn T55 sold only 94 units in July. The MPV Besturn M9 has sold only single-digit units for two consecutive months.

Turning to the new energy segment, FAW Besturn was not late to enter the market but failed to seize the initiative. As early as 2008, FAW Besturn launched the Besturn B70HEV, a full hybrid electric vehicle. Then, at the 2009 Shanghai Auto Show, it showcased the B50 HEV hybrid sedan, followed by the B50 pure electric sedan in 2010.

At that time, BYD, which dominated the new energy vehicle market, was just beginning to venture into electric vehicles, while NIO, XPeng, and Li Auto had yet to emerge. Unfortunately, these electric vehicles, including the Besturn E01 launched in 2019, failed to make a significant impact on the market. Data shows that the Besturn E01 sold only one unit in the past six months.

Currently, FAW Besturn's new energy lineup includes the Besturn NAT targeting the B-end market and the micro-electric vehicle Besturn Pony. While their sales figures are better than the Besturn E01, they still fail to break into the mainstream.

Specifically, the Besturn NAT sold a total of 8,569 units from January to July this year, averaging approximately 1,224 units per month. Since the Besturn Pony was launched in May, its cumulative sales from May to July stood at 5,406 units, with sales of 1,277, 1,764, and 2,365 units in May, June, and July, respectively, showing a promising trend.

It is reported that the Besturn NAT is a customized model developed by FAW Besturn for the mobility services market, with T3 Mobility assisting in development. However, based on its current performance, it seems unlikely to carry the flag for FAW Besturn's future new energy ambitions. Instead, the focus will shift to the Besturn Pony's potential.

Nevertheless, the A00-segment micro-electric vehicle market is fiercely competitive, with rivals ranging from the Wuling Hongguang MINI EV to Chery QQ Ice Cream, Chery eQ1, Changan Lumin, and Geely Panda mini. With a weak brand foundation, the Besturn Pony faces an uphill battle.

3

Transformation and Self-Rescue ●

Looking back at FAW Besturn's development, complaints, logo changes, and executive departures have been constant issues. One of the most criticized aspects is its alleged "copycat" designs, with accusations of Imitation and Plagiarism ranging from Volkswagen to Cadillac readily available online.

Moreover, since FAW Besturn initially relied on Mazda's powertrain and chassis technology, it was long considered devoid of its unique identity. These adverse factors have significantly impacted FAW Besturn's reputation and recognition, despite its decent sales performance.

In this context, change is imperative, and FAW Besturn has indeed been engaged in continuous "self-rescue." Recent frequent sports marketing campaigns aim to demonstrate to consumers that amidst the rapid transformation of the automotive industry, FAW Besturn is adopting innovative measures to invigorate its development and embark on a new growth path.

While driving brand rejuvenation through innovative marketing, FAW Besturn is also striving to fully stimulate business vitality, such as accelerating the successful implementation of shareholding system reform. In March this year, FAW Besturn Car Co., Ltd. underwent a business change, with its name changed to FAW Besturn Automobile Co., Ltd., and its business type shifted from other limited liability companies to other joint-stock companies (unlisted).

Officials stated that through this shareholding reform, FAW Besturn will embark on a lighter footing with a more flexible system and mechanism, forming a broad "network of partners" for joint ventures and cooperation, further accelerating its new energy transformation. Industry insiders believe that FAW Besturn's move may be preparing for an IPO.

Moreover, this is not the first time FAW Besturn has focused on corporate shareholding matters. Last September, FAW Besturn announced an investment agreement with Jiangsu Yueda Automobile Group Co., Ltd., which contributed approximately 166 million yuan to its capital increase. Additionally, China FAW Group Corporation and FAW Equity Investment (Tianjin) Co., Ltd. jointly contributed a total of 5 billion yuan to FAW Besturn's capital increase.

Such operations enable FAW Besturn to facilitate investment, mergers and acquisitions, and listings while pursuing a lighter footprint in transforming and developing its new energy business.

According to FAW Besturn's plans, the company will no longer introduce new gasoline models and will instead focus on new energy vehicle development. Over the next three years, it aims to build seven new energy models based on the FMA and FME platforms, facilitating the rapid implementation of innovative achievements in core electric drive technologies and smart cockpits.

Objectively speaking, as an established independent automaker backed by the powerful China FAW Group and armed with technology and resources, FAW Besturn has still struggled to keep pace with the changing times. Even if it is now determined to transform and catch up, the road ahead may not be easy.

Author | Bai Yuan Source | CarVisibility Disclaimer This account aims to share automotive knowledge for readers' reference and communication, not constituting investment advice for any individual or organization. Please refrain from making investment decisions based solely on information provided in this account. Any direct or indirect losses incurred due to the improper use of such information shall be borne solely by the individual. This article is originally created by CarVisibility and its copyright belongs to CarVisibility. For reprinting, please contact us for authorization.