Shanghai (ZXZC)- The new premium brand, known by the code name h, of Dongfeng Motor Corporation will be officially launched in 2020 after gaining so much attention, according to a letter Zhu Yanfeng, chairman and secretary of CPC committee of the company, wrote to the workers of h brand.

It is said that the h unit was set up in April 2019 to build an all-new premium auto brand, which will focus on new energy passenger vehicles in the future. Because of the COVID-19 outbreak, the company’s plan to hold a brand conference at Beijing Auto Show this year was delayed. The letter may indicate the new brand is coming.   

As the premium new energy vehicle brand of Dongfeng, the brand aims to be high-end in both brand positioning and market positioning. And also, the brand is also the first EV brand from central government-owned companies. The premium brand will operate independently after its establishment, which means it doesn’t belong to any passenger car subsidiary, but a part of Dongfeng Motor Group Company listed in Hong Kong. The brand will come with 9 new models, covering MPV and SUV segments, according to a source familiar with the matter.

To be high-end in market positioning means to target higher price range. For the present, Dongfeng has a total of four brands,Fengshen, Fengguang, Fengxing and Venucia, prices of which are mostly under RMB150000. With the consumption upgrading, the public’s vehicle demands have changed and prefer medium–to-high end products. That is one of the reasons that drive Dongfeng to launch this new preimium brand, which will compete with such brands like Hongqi from FAW Group, WEY from GWM and Lynk & Co from Geely.