Zunjie Launches Five New Car Models at Once, Initiates Legion Combat Mode: Do Two Hidden Dangers Loom? – 36Kr
I thought that “having more children to fight better” was an involution strategy for mainstream brands. Unexpectedly, ultra-luxury brands have also adopted this approach.
According to a report by “36Kr Auto”, the Zunjie brand will launch SUV and MPV models next year, and both models will be available in standard-wheelbase and long-wheelbase versions. The Zunjie S800 will also have a high-end customized version.
Counting the current Zunjie S800, Zunjie’s product portfolio will expand to three series and six models next year.
The report further points out that the planned SUV and MPV will be positioned slightly lower than the Zunjie S800 but will still target the high-end market.
Image source: Shot by Electric Vehicle News
Based on the above information, we can easily identify three key trends:
1. Complete the layout of three major categories. With full coverage of sedans, SUVs, and MPVs, Zunjie is gradually establishing itself in the core segment of the ultra-luxury market.
2. Lower the price and break the barriers. The price range of the Zunjie S800 is between 708,000 and 1.018 million yuan. The two new models will be positioned lower than the Zunjie S800, which means that the price threshold for the two new models will be pulled below 700,000 yuan. Ultra-luxury brands are actively breaking their own pricing defenses.
3. Raise the ceiling again. The launch of the high-end customized version of the Zunjie S800 further breaks through the price limit upwards, forming a three-dimensional product offensive of “covering downwards and breaking through upwards”.
As soon as the news came out, it caused a stir in the automotive circle: Has the luxury market above the 500,000-yuan level become so involuted that car companies have to frantically expand their product layouts?
You know, traditional luxury brands such as Maybach, Bentley, and Rolls-Royce have mainly focused on the sedan and SUV segments for many years, and only occasionally launched concept cars to test the sports car market. In contrast, Zunjie has launched a full-category expansion in just a few years of development.
Ultra-luxury brands essentially operate an “influence business”, and “frequent new product launches” do not necessarily guarantee victory. Zunjie will launch six models to attack the market next year. In the view of Electric Vehicle News, this radical layout not only carries the ambition to reshape the ultra-luxury market landscape but also faces the real test of whether the brand can support the premium across the entire product line.
Zunjie’s “radical” strategy of launching five new models in a year is not blind confidence. Behind it is the solid market foundation laid by its first model, the S800.
The Zunjie S800, priced from 708,000 yuan, exceeded 18,000 pre-orders within 175 days of its launch. In October alone, 1,970 units were delivered, more than ten times that of the NIO ET9 at the same price range. It has already surpassed traditional luxury models such as the Maybach S-Class and the Porsche Panamera, and its monthly sales also dominate.
It can be said that the real sales of the Zunjie S800 have laid a solid “trust foundation” for the subsequent product promotion of the brand.
Image source: Shot by Electric Vehicle News
However, some people have raised doubts, saying that the popularity of the Zunjie S800 is simply due to its “low price”. If price is the only answer, how can we explain that the NIO ET9 at the same price range has not caused the same level of market splash?
In the view of Electric Vehicle News, the success of the Zunjie S800 cannot be simply attributed to price. Instead, it lies in its ability to truly understand the “core pain points” and “hidden needs” of ultra-luxury users:
The dual-power route of extended-range and pure-electric solves users’ range anxiety problems; the Tuling Longxing platform enables the system’s decision-making response speed to reach the millisecond level; full-stack technologies such as Huawei’s Qiankun Intelligent Driving, intelligent cockpit, and Xinghe Communication, and the “Angel Seat” active safety system build a protection barrier…
These hardcore technologies have become a technological moat that other luxury brands are difficult to cross in the short term.
In the past, brand awareness was almost the only pass in the luxury market. Now, as user needs are quietly changing, traditional perceptions are being gradually reshaped by technological experiences.
In today’s world where mobile phones and tablets have become an “extension of the human body”, as a “second living space”, the intelligence level of a car has become a key factor in car purchasing. As Zhou Hongyi said, “I sold my Maybach S600 just to experience a new generation of luxury cars.”
Behind this statement is the strong desire of high-end users for technological configurations and the redefinition of luxury. Traditional luxury brands are more likely to be impacted by new energy brands in the market.
Image source: Shot by Electric Vehicle News
Thanks to Zunjie’s high-end breakthrough, Jianghuai Automobile has successfully reversed the downward trend of its revenue for five consecutive quarters and achieved double growth in operating income and gross profit margin in the third quarter. This trend of stabilization and recovery has undoubtedly laid a solid financial foundation for the continuous R & D investment in subsequent products.
What’s more noteworthy is that although Zunjie currently only has one sedan, the S800, on sale, according to the official information released earlier, the Tuling Longxing platform that produced the Zunjie S800 has a high degree of scalability. It can be compatible with dual-motor to four-motor layouts, with a wide adjustment range for power, torque, and carrying capacity, and it also covers various body styles such as sedans, SUVs, and MPVs.
This means that it is completely technically feasible for Zunjie to launch multiple products in different forms at once.
In addition, according to the “Environmental Impact Report of Jianghuai’s Annual Production of 200,000 Mid – to High – End Intelligent Pure – Electric Passenger Vehicles Construction Project” previously publicized by the Anhui Provincial Department of Ecology and Environment, the total investment in Zunjie’s super factory is about 3.981 billion yuan, of which the new fixed – asset investment is about 2.298 billion yuan, and the planned annual production capacity is 200,000 new energy passenger vehicles.
The current monthly sales of the Zunjie S800 are around 2,000 units. If the subsequent models can maintain this sales level, the monthly sales are expected to be around 12,000 units, and the production capacity of Zunjie’s super factory can just handle it.
Technical feasibility, sufficient production capacity, and financial support do show that Zunjie’s plan to launch five models at once is not unfounded. However, it should be noted that building a good reputation is a long – term process. The subsequent models must maintain the same quality control standards and user experience as the Zunjie S800 to avoid a decline in product strength due to “over – rapid expansion”. Otherwise, the trust foundation established earlier may face the risk of collapse.
Zunjie has the strength to complete the blitzkrieg of “launching five models in a year”, but upon closer inspection, there may be two serious challenges.
Firstly, the product differentiation may fall into the dilemma of “form over substance”.
To ensure high efficiency, Zunjie’s six models will most likely be built on Huawei’s Tuling Longxing platform, sharing the powertrain, intelligent system, and core design language. This is an advantage in controlling costs and ensuring the speed of new product launches. However, in the ultra – luxury market where consumers pursue unique identities and exclusive experiences, it may fall into the “homogenization trap”.
Currently, the known information is that the new SUV and MPV will serve business people and family users through the long – wheelbase and standard – wheelbase versions respectively. However, this differentiation currently only stays at the basic levels such as the body, wheelbase, and seats, and has not extended to higher – order dimensions such as the usage scenarios, functional configurations, or the core of the experience.
Image source: Zunjie Automobile official
This “changing the shell but not the core” differentiation strategy may effectively segment the market in the mainstream market through price and function, but it is difficult to meet the core demands of the ultra – luxury market for unique identities and exclusive scenarios.
A key question is: Although the standard – wheelbase SUV can guarantee the travel quality of family users, can’t it also meet the travel needs of business people?
Electric Vehicle News has noticed that the product portfolios of ultra – luxury brands are not rich, but each model has a clear positioning.
Take the Yangwang U8 Luxury Edition and the U8L Ding Shi Edition as an example. In addition to the differences in wheelbase and body size, the U8L Ding Shi Edition has completed a full – range of configuration upgrades for high – end business and private luxury scenarios. Even though both models can meet both family and business scenarios, the U8L Ding Shi Edition still forms an essential difference from the U8 Luxury Edition with its exclusive luxury configurations.
If Zunjie’s long – and short – wheelbase versions only stay at the basic parameter differences and do not establish substantial differences in scenario experience, exclusive configurations, and luxury perception, users’ choices will ultimately return to their budgets or aesthetic preferences. In this way, the market value of the multi – version strategy will be greatly reduced.
Image source: Shot by Electric Vehicle News
Secondly, as a new brand fully targeting the high – end market, its premium ability faces a severe test.
It has only been half a year since Zunjie launched its first model. The brand’s premium foundation mainly relies on Huawei’s technological endorsement and the market reputation of the Zunjie S800. Whether this premium can be replicated across the entire high – end SUV and MPV product lines still needs to be tested by the market.
Take the high – end SUV market in the 500,000 – yuan range as an example. The current market pattern has formed a confrontation between new and old forces: new energy models such as the Wenjie M9 and the Jikr 9X are competing with traditional fuel models such as the Mercedes – Benz GLC, BMW X5, and Toyota Prado.
Looking deeper, their premium logics are completely different: the Wenjie M9 and the Jikr 9X rely on the leadership of “technology” and “technical architecture”, while the Mercedes – Benz GLC and BMW X5 maintain user loyalty with their long – standing “brand appeal” and “mechanical qualities”.
In this context, if Zunjie’s new SUV cannot clearly define its differentiated value proposition – for example, what is the reason for its higher price than the Wenjie M9 – then its path to high – end across the entire product line will be extremely difficult.
Image source: Hongmeng Smart Mobility official
After all, Zunjie’s strategy of “launching five new models in a year” is not a blind bet. In essence, it is a strategic choice based on technological verification, production capacity reserve, and the market reputation of the Zunjie S800.
However, in the ultra – luxury market, speed alone is not enough. The two tests of product differentiation and brand premium remain unresolved and will directly determine how far Zunjie can go.
While traditional ultra – luxury brands rely on one or two models to dominate the market, Zunjie is directly betting on “full – category coverage”, trying to capture the sedan, SUV, and MPV markets. Another brand adopting a similar strategy is Yangwang under BYD.
Yangwang is still in the trial – and – error stage, and Zunjie is still in the planning stage. Whether this radical market strategy will work remains to be tested by the market. However, we can be sure that once this strategy succeeds, it will completely rewrite the competition rules of the ultra – luxury market and win unprecedented voice for Chinese brands in the global high – end automotive market.
This article is from “Electric Vehicle News” and is published by 36Kr with permission.
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