Dongfeng Honda takes a key step in the field of electrification

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Dongfeng Honda Lingxi L has been released, with a price of 129,800 yuan, which is not high for a joint venture pure electric vehicle. It is also clear from Lingxi L that Dongfeng Honda is determined to launch a counterattack in the electric vehicle market. Instead of using the H logo, it uses an independent logo, accompanied by a brand-new concept. It is not difficult to see that Dongfeng Honda wants to enter the new energy vehicle market with a brand-new look.

At a time when the development of China's new energy vehicle market is relatively stable, Dongfeng Honda Lingxi L's pursuit of innovation is indeed a bold attempt, which also shows Dongfeng Honda's courage to break the inherent constraints of joint venture auto companies.

However, the price range of Lingxi L is also crowded with talented competitors, including Volkswagen, BYD, Leapmotor, and other auto companies that have deployed their models. Facing many strong competitors, how many opportunities does Lingxi L, as a latecomer, have? Can the new brand Lingxi rewrite Dongfeng Honda's situation in the new energy vehicle market?

Pressure and change

As everyone knows, with the rise of independent new energy vehicles, the highlight moment of joint venture auto companies is no longer there, and Dongfeng Honda's market performance has also been affected to some extent. Civic and CR-V, the two leading products, have also seen their market share continuously eroded by independent new energy vehicles.

In fact, while independent new energy vehicles are developing rapidly, Dongfeng Honda is also actively seeking changes. Honda Motor has created the pure electric vehicle brand e:N and allocated the e:NS1 model to Dongfeng Honda early on, which was officially launched in 2022. However, the competition in the domestic new energy vehicle market was already fierce two years ago, and independent models made rapid progress in the market with their first-mover advantage.

However, joint venture brands, including Dongfeng Honda, have been relatively slow in their electrification transformation, leading to consumers' higher preference for independent new energy vehicles over joint venture new energy vehicles, which has also affected the performance of e:NS1. The same is true for the subsequently arrived Lieguang e:NS2.

Obviously, Dongfeng Honda has been surpassed by independent auto companies in the field of new energy vehicles. To change the dilemma, only by seeking change and bringing innovative designs can it hope to create a beautiful landscape in the new energy race. Dongfeng Honda's attitude and determination to change are effectively reflected in the Lingxi brand and Lingxi L model.

The Lingxi brand is a new brand born from Dongfeng Honda's transformation, carrying the vision of Dongfeng Honda's new energy transformation and the mission of leading Dongfeng Honda to the mainstream in the field of new energy vehicles.

The mainstream car-buying group in the automotive market is young people. To cater to their preferences, the Lingxi brand has also used a young team to lead the design and development of new models, and the first model, Lingxi L, is also built on a brand-new platform, with little trace of the e:NS1.

In terms of youthfulness, Lingxi L performs well. Both its polyhedral shape and in-car designs such as the through-screen penta-display and HUD head-up display system meet the aesthetic preferences and driving needs of young consumers.

The Lingxi brand's embrace of young people is also reflected in its marketing efforts, such as collaborating with Pop Mart to launch customized images and creating trendy booths at the Chengdu Auto Show. The birth of the Lingxi brand and Lingxi L further strengthens Dongfeng Honda's youthful image.

At the same time, backed by Dongfeng Honda, the Lingxi brand has certain advantages in terms of brand reputation and service system. For consumers who value joint venture quality, the birth of Lingxi L can well meet their car-buying needs.

Of course, now that independent models are constantly lowering their prices thanks to the advantages of the new energy industry chain, models such as BYD Qin PLUS, Changan Qiyuan A07, Dongfeng eπ007, and AION S have already occupied a certain market share, and their relatively affordable prices will bring considerable pressure on Lingxi L.

In the view of MomentumEV, it is obviously unrealistic and highly difficult for the Lingxi brand to rely solely on the Lingxi L model to surpass independent brands in the short term and lead Dongfeng Motor to a mainstream position in the new energy race.

However, it does not mean that Lingxi L has no advantages. On the one hand, Dongfeng Honda has a solid foundation and sufficient "bullets" to fight a protracted war, which gives it an edge over many independent new energy auto companies. Moreover, most independent new energy auto companies are currently losing money, and it is uncertain how long they can survive. As long as Dongfeng Honda continues to invest resources in the Lingxi brand, the Lingxi brand may eventually emerge victorious.

Prospects and challenges

Although the Lingxi brand may not have a smooth ride in the new energy race, one thing is certain: the entry of the Lingxi brand and Lingxi L is a key step for Dongfeng Honda in the field of electrification.

Dongfeng Honda has already announced its commitment to full electrification and plans to increase the electrification ratio to over 50% by 2025, with no new fuel-powered vehicles to be launched after 2027. To achieve this goal, Dongfeng Honda plans to launch more than 10 pure electric vehicle models by 2030, covering various segments of the market, including SUVs, MPVs, and sedans, to meet the needs of different consumers.

In addition to the Lingxi brand, Dongfeng Honda also has a new pure electric brand called "Ye." Strictly speaking, this is an exclusive new energy vehicle brand created by Honda Motor for the Chinese market, and Dongfeng Honda will produce the Ye S7 in the future.

It can be said that Dongfeng Honda is working harder than many other auto companies in its electrification transformation. The entry of Lingxi L, Ye S7, and other new energy vehicles will further enhance Dongfeng Honda's market competitiveness.

However, the challenges facing Dongfeng Honda in the field of new energy vehicles cannot be addressed solely by enriching its product lineup. The competition in the new energy vehicle market has now evolved into an intelligent battle. Looking at independent new energy vehicles, it is now a battle of advanced autonomous driving, lidar, and end-to-end technology.

In the new energy vehicle market, Huawei's Kunpeng ADS 3.0 has become a hot technology that auto companies are vying to cooperate with. For example, Xpeng has released an end-to-end large model, NIO has introduced the NWM world model, and LIXIANG has brought an end-to-end + VLM dual-system solution. It can be said that as electrification comes to an end, three-electric technologies are becoming increasingly similar, and intelligence has become a battleground for all auto companies.

It is also worth noting that in terms of three-electric technologies, new energy vehicles in the tens of thousands of yuan range are basically rigid demand models for consumers. This consumer group needs designs that offer low energy consumption, long range, and ample space, which can be more attractive than personalized styling. For Dongfeng Honda's new energy vehicle products to break through in the market in the future, a more advanced autonomous driving solution and three-electric system are indispensable.

Of course, both advanced autonomous driving and three-electric systems are core components of new energy vehicles, and they cannot be achieved overnight. It is unrealistic for Dongfeng Honda to build an advanced autonomous driving system and three-electric system in a short period of time. However, Dongfeng Honda has been working hard on it.

Earlier, Honda Motor has also established a research framework for a memorandum of understanding on strategic partnerships in automotive intelligence and electrification with Nissan and Mitsubishi. The three companies will cooperate in software, battery, and other electric vehicle-related technologies. This cooperation is expected to enable Honda Motor to develop more market-competitive autonomous driving technologies and three-electric systems at lower costs, thereby empowering Dongfeng Honda's electric vehicles. There is currently no definite timeline for the launch of products resulting from this cooperation.

For auto giants like Honda Motor, fighting a protracted war is not a problem due to sufficient financial resources and other businesses to sustain long-term development. On this basis, Dongfeng Honda is expected to build an insurmountable technological moat for itself through continuous breakthroughs in new energy technologies.

However, it is also concerning that traditional auto giants like Honda have a long decision-making process, which may make it difficult for their future new energy products and technologies entering the Chinese market to keep up with the rapid development pace of domestic independent brands. This will be a particular challenge for Honda Motor to ensure consistency in its automotive operations both domestically and internationally.