Nissan's magic car can no longer beat middle-aged people

"Previously, many who drove Teana for ride-hailing services have switched to new energy vehicles."

Like most ride-hailing drivers, Zhang Mingyuan, a post-80s Beijing master, initially chose the Teana not only for its "spacious interior" and "low fuel consumption," but more importantly, the Teana was the cheapest among the models used for premium ride-hailing services.

However, in the past two years, the ride-hailing industry has seen an oversupply of drivers, with many regions issuing warnings about the saturation of ride-hailing capacity, and the issue of commissions has also attracted much attention. With fewer and fewer orders and increasing commissions, the cost issues that were once roughly the same, such as car prices, fuel consumption, and maintenance, are now calculated by drivers with their fingers crossed.

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"Now those who drive with fuel vehicles are like living Lei Fengs; no matter how fuel-efficient a fuel car is, it can't save more than an electric vehicle." In order to take on more jobs, Zhang Mingyuan has started driving express rides and no longer needs to rely on the Teana to squeeze into the premium ride-hailing industry. He is currently preparing to change his car and is indecisive between BYD and GAC Aion.

The two models that Zhang Mingyuan is torn between are the major brands favored by ride-hailing drivers today. Data from the Passenger Car Association shows that in 2023, the number of new ride-hailing vehicles nationwide approached 850,000, a year-on-year increase of 18%, of which new energy ride-hailing vehicles accelerated to 740,000, with a growth rate of 23%. Among these 850,000 new ride-hailing vehicles, Aion ranked first with nearly 220,000 units, and BYD was second with 190,000 units. Together, these two account for almost half of the new ride-hailing vehicles added in 2023.

Compared to Zhang Mingyuan, Wang Xin, another Beijing master of the post-80s generation, abandoned the Teana earlier. In 2018, when Wang Xin decided to drive a ride-hailing service, he was torn between the Nissan Sylphy and the Volkswagen Lavida. "High cost-performance ratio, durability, and fuel efficiency are the necessary conditions for becoming a ride-hailing vehicle." The two models that Wang Xin was interested in had a landing price of about 110,000 yuan, and in the end, he chose the Volkswagen Lavida. The Teana was not considered in his options.The CVT gearbox was once a major selling point for Dongfeng Nissan, but as time went on, the "Technological Nissan" halo gradually faded, and there have been multiple large-scale recalls for problematic models.

As one of the "Three Greats of the Japanese Series," the Teana, which entered China in 2004, was once a standard for middle-aged successful individuals. With a price tag of around 300,000 yuan, a Teana could match the price of a house in Beijing at that time.

In 2008, Li Yue, a post-70s generation, was working at a material storage and transportation company in Beijing. The company's top leader had two cars, one was a Ford, and the other was a Nissan Teana Duke. "The Teana's price at that time was around three hundred thousand yuan, which, although not a luxury car, was still very outstanding among B-class cars, and it was very prestigious to drive."

However, since the model change at the end of 2018, the sales of the Teana have shown a downward trend. For sedans, a monthly sales volume of 10,000 units is a watershed. Before 2019, the monthly sales of the Teana were basically around ten thousand, but after that, it became increasingly difficult to sell ten thousand units a month. Just in the past July, the domestic market sales of the Teana were only 3,726 units. As of the end of July 2024, the cumulative sales of the Teana in 2024 were 42,139 units, far behind its former rivals, the Camry and Accord.

The Teana, which has fallen out of the mainstream mid-size car category, is also facing continuous competitive pressure from domestic new energy vehicles. In July of this year, the retail market share of Japanese brands in China was 12.9%, a year-on-year decrease of 3 percentage points; the retail market share of German brands in China was 17.6%, a decrease of 2.9 percentage points compared to the same period last year; the retail market share of American cars in China was 5.8%, a year-on-year decrease of 1.9 percentage points.Faced with increasingly fierce market competition, traditional car manufacturers are embracing change, and even former rivals like Accord and Camry have followed the market by launching hybrid models in succession. Only the Teana still clings to the gasoline camp.

From a middle-class "god car" priced at 300,000 yuan, to now falling into the ranks of specialized vehicles, the Teana has not yet found a suitable path for its transformation.

A

In the hearts of ride-hailing drivers, the once "king of specialized vehicles" - Nissan Teana, is gradually falling out of favor.

Zhang Mingyuan used to run a restaurant, but in 2019, due to operational difficulties, he started driving a ride-hailing car. His original personal vehicle was an SUV, which was not suitable for ride-hailing. Therefore, after closing the restaurant, he specifically bought a Teana and became a full-time specialized vehicle driver."Drivers who operate specialized car services with Teana vehicles generally choose them because of their affordability," said Zhang Mingyuan, whose purchase price for the car was 168,000 yuan. "Teana was the cheapest joint venture B-class car at the time, cheaper than Magotan, Passat, Accord, and Camry."

However, in Zhang Mingyuan's view, apart from its low cost, the Teana does not have many commendable features, but it does have several shortcomings. "Apart from the comfortable large sofa, everything else is quite average. The power is lacking, and the fuel consumption is not low, especially when the air conditioning is on in the summer, the average fuel consumption approaches 9 points, and it doesn't even have heated seats, which makes it quite uncomfortable in winter."

Recently, Zhang Mingyuan is preparing to change his car. "A car can only operate as a specialized car service for 6 years; to continue operating, it must be downgraded to a quick car." Another reason that has strengthened Zhang Mingyuan's resolve to change his car for quick car services is the decreasing number of specialized car orders. As a full-time specialized car driver in Beijing, he used to be able to drive over 10,000 kilometers per month, with the highest earnings reaching 15,000 yuan on average per month, but now, with the decrease in specialized car orders, it is difficult to earn even 8,000 yuan in a month.

Zhang Mingyuan's idea to change his car is not a recent one. In recent years, the development of new energy vehicles has been rapid, with prices becoming increasingly competitive. Compared to fuel-powered cars, the operating costs of new energy vehicles are significantly lower. The improvement of infrastructure such as charging piles has also alleviated the initial "range anxiety," and the new energy vehicles are gradually penetrating and occupying half of the ride-hailing market.

"Under these circumstances, Teana no longer has a price advantage. If I continue to operate a specialized car, I can choose BYD Han or hybrid Accord and Camry. If I operate a quick car, the options are even broader, including BYD, GAC, and Volkswagen, etc., with similar prices in the hundreds of thousands, the configurations are much better than Teana."Like Zhang Mingyuan, after a year of renting a Teana to run a dedicated car service, 90s Beijing part-time ride-hailing driver Lin Xiang changed his car to a FAW Besturn this year. Last year, Lin Xiang, who decided to use his commute time to run a part-time ride-hailing service, rented a Teana for 7,000 yuan/month. Although he did not expect to make a lot of money, he also hoped that he could subsidize his daily transportation costs by running a dedicated car.

However, after a few months of running, Lin Xiang found that his monthly turnover was basically the same as the car rental fee, and after calculating, he still had to pay for his own fuel costs. "Petrol cars are too expensive."

Entering 2024, Lin Xiang gave up the idea of running a dedicated car and rented a pure electric FAW Besturn for 6,000 yuan/month. "Now the monthly turnover is about 10,000 yuan. With the electric car, at least I don't have to spend extra money."

Zhao Ming, a salesperson at a Nissan 4S store in Beijing, said that the group that used to choose Teana was mainly dedicated car drivers and middle-aged groups. Now, the number of people consulting and buying Teana is indeed less than before. "Many consumers will feel that it is expensive and not cost-effective after understanding the price."

(Note: The original text has been translated into English, and the punctuation has been adjusted to fit English grammar rules.)Regarding the reasons why few young people choose the Tianlai, Zhao Ming believes that on one hand, it is because the vehicle's appearance is too business-like and does not conform to the aesthetic preferences of young people. On the other hand, the "special car image" has also influenced the car purchasing decisions of individual buyers.

"Why would I buy a Tianlai at this price when I could get a BYD Seal DM-i or Han DM-i, or even opt for a ninth-generation Camry hybrid or an 11th-generation Accord 1.5T?" As a young car owner, Zhang Mo, a post-90s generation, not only dislikes the "old-fashioned" appearance of the Tianlai but also worries that his colleagues will ask him if he is going to drive for DiDi after he drives one. At the same time, what Zhang Mo cannot understand is, "What era is it now, they are not even willing to equip a full LCD dashboard, let alone other intelligent features."

Today's Tianlai is not favored by either end of the spectrum: middle-aged people look down on it, and young people do not like it.

B

In the brief history of B-class car development, the Tianlai has once left a significant mark."Transcending the concept of luxury car manufacturing, the comprehensive sublimation of sensory experience... integrating modern life philosophy into automobiles." In the first advertisement aired in China when the Teana was introduced in 2004, a blue Teana was seen gliding through a bamboo forest, with leather seats and walnut wood interior, exuding a sense of luxury.

This fourth-generation Teana was born in the second year of the joint venture between Dongfeng and Nissan, at a time when Japanese cars were at their peak in the Chinese market, and it was highly anticipated by Dongfeng Nissan to penetrate the mid-to-high-end car market.

At that time, the size of China's passenger car market was only one-tenth of what it is today, and the demand was dominated by public and business sectors. The "old three" - Accord, Passat, and Regal - became the mainstream choices in the B-class car segment.

"He who wins the mid-level car market wins the world," in an era when private car ownership had just begun, when the mainstream models in the mid-to-high-end car market were mostly competing on the basis of handling and technology, the Teana, which sold itself on comfort and a luxurious aura, focused its promotional efforts on the experience. The deeply ingrained label of "Nissan's big sofa" was precisely the one that the Teana attached. This title greatly benefited the Teana and the Nissan brand over the following decade.

With its luxury car appearance, powerful V6 engine, and riding comfort, the Teana gradually gained recognition from domestic consumers and soon became known as one of the "Japanese Big Three" alongside Honda's Accord and Toyota's Camry, becoming a new synonym for high-end B-class cars.The success of the Teana has also established the position of Dongfeng Nissan in the Chinese automobile market. Following the lead of the Teana, Dongfeng Nissan introduced brands such as the Qashqai, X-Trail, and Sylphy, achieving a million-unit production and sales scale within 5 years. In 2011, the Teana reached its peak moment in China, with the fifth-generation model setting the highest monthly and annual sales records in the country.

The turning point occurred in 2018, during the major model change, when the Teana missed a golden opportunity. As the car-buying demographic became increasingly younger, all car models targeted the youth. The Teana, which was modernizing to keep up with the times, was a step too slow. The Accord and Camry, both part of the Japanese "Big Three," completed their model changes a year earlier than the Teana and seized the market.

For cars aimed at young people, the pricing naturally cannot be too high. The expensive engine, as a signature feature, naturally could not be abandoned. To control costs, the Teana had to make compromises in configuration and materials, resulting in the birth of the most "contradictory" Teana: priced at 215,800 yuan, it lacked an electronic parking brake, and featured a small 5-inch liquid crystal instrument, halogen headlights, and poor safety features, losing its competitive edge against similarly priced models from the Accord and Camry.

In 2019, the Nissan Teana's annual sales volume was only 97,800 units, a year-on-year decline of 13.15%, with an average monthly sales volume of just over 10,000 units. In 2020, it only sold 118,088 units, further widening the gap with the Camry, which exceeded 180,000 units, and the Accord, which exceeded 210,000 units, falling out of the top three in the joint venture mid-size car segment. Subsequently, even the Buick Regal, Volkswagen Passat, and Toyota Avalon successively surpassed the Teana in sales volume, with the Teana's ranking continuing to slide.

Seeing its sales crushed by competitors, the Nissan Teana had to adopt a strategy of trading price for volume, with prices falling to around 150,000 yuan. However, in the increasingly competitive Chinese market, the Teana, unable to offer more attractive differentiated product selling points, could not recover its decline by merely reducing prices.Nowadays, the Tianlai has become the bottom-tier player in the B-class car market with monthly sales of over three thousand units.

C

In terms of innovation, the Tianlai is also increasingly lacking in sincerity.

To commemorate the 20th anniversary of the Tianlai, Nissan launched a brand new Black Gold Edition of the Tianlai. However, the so-called special edition does not differ much from the previous models, and the ones currently available on the market are essentially the same as those from two years ago. "The Black Gold Edition adds some features to the Enjoyment Edition, such as heated and ventilated seats, as well as lock-on-exit and unlock-on-approach functions, and changes the silver trim to gold, with a price increase of 2,400 yuan," said Zhao Ming. The Tianlais currently on sale are mostly from the 2022 model year, and there is not much difference between the 2024 model and the 2022 model.

Traditional car manufacturers often make significant changes every three years and replace the model every five years to keep consumers feeling fresh. However, with the fast pace of domestic new energy vehicles being updated every six months, the Tianlai's model replacement speed has become slow, with the last replacement being the seventh generation at the end of 2018.Catching the golden era of the development of domestic joint venture vehicles, joint venture car brands, including Nissan, have achieved a leap forward. However, in the torrent of the times, foreign car companies have been slow to respond to the changes in the Chinese market, and their transition to new energy has fallen behind.

In the past five years, new domestic car manufacturers have risen one after another, but Toyota, Honda, and Nissan have not had any new energy technology that can be taken out. Toyota bZ3 even directly used BYD's three-electric technology, and joint venture electric cars have been jokingly called "miscellaneous brands" by consumers.

In fact, Dongfeng Nissan has not been late in entering the new energy field. As early as 2018, it launched a Sylphy·Pure Electric. However, it was not until September 2022 that the first global strategic model of NISSAN NEXT, based on the pure electric platform of Nissan, was officially launched in the Chinese market.

For the Teana, whether it is in the replacement or the transition to new energy, Nissan's attitude has not been active enough. Nissan's product plan shows that the brand is planning to launch a new pure electric car, positioned as a medium-sized car under the brand. It is understood that the new car will not become a direct successor model, and will replace the former product position with a new product form. The main competitors in the same level are Volkswagen ID.7, BYD Han and other models.

The above news has triggered widespread speculation in the industry about Nissan's future product layout. Some people in the industry even speculate that the launch of the new car is expected to replace the currently available Nissan Teana model.As the ride-hailing market becomes increasingly saturated and the price war among new energy vehicle manufacturers intensifies, the once comfortable position of ride-hailing is leaving less and less time for Tianlai to catch up.