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"Xia Li produced 1 million cars in 18 years." This news, announced by Tianjin FAW a few days ago, has become another example of the unique phenomenon in China’s automotive industry: the longevity of old models. In contrast to foreign markets where car models typically have short life cycles, many Chinese car models continue to be sold for over a decade, sometimes even more than 20 years. This raises questions: why do these older models persist in China while they are long gone abroad?
Last year, Shanghai Volkswagen's Santana achieved a cumulative production of 2 million vehicles over 20 years. This longevity has sparked curiosity and debate. While new models constantly evolve, some older ones remain on the market. For instance, despite the launch of the third-generation Xiali N3, Tianming, the general manager of Tianjin FAW Xiali Co., Ltd., stated that "old Xiali will not stop production; new products will be developed alongside the old ones until there is no longer market demand."
The pricing strategy also plays a role. The N3 model is priced about 20,000 yuan higher than the old Xiali, which suggests that the older model’s price range is carefully protected. Moreover, in the first seven months of this year, Xiali remained the top-selling model in its class. Similarly, after two months of price cuts, Santana reclaimed the sales leadership in July with 28,000 units sold, including 13,000 units from the older 78,000-yuan version.
This raises the question: is this a sign of success or stagnation? Compared to other models like the Carnival 1.3, which was discontinued just two years after its launch, or the Buick and Accord, which underwent complete design changes, some models stick around much longer. General Motors, for example, decided to discontinue the Chevrolet SUV and focus on producing the GL8 in Shenyang. Even the new Bluebird Zhizun seems to be gradually pushing out the older models, despite Denial from Dongfeng Limited.
According to common sense, many of these models haven’t been profitable enough. However, one key factor is the time difference. Models like Santana and Xiali have been on the market for nearly 20 years, during which they faced little competition. As a result, they didn't need to worry about discontinuation. Unlike typical product life cycles, which involve rapid growth followed by decline due to new competitors, Santana has managed to stay relevant through slow but steady adaptation.
A Japanese PR representative once remarked, “Santana can’t be sold in Germany, but it sells well in China and even suppresses our products.†This highlights the unique position of these models in the Chinese market. Other models, such as the Carnival, Vios, and Excelle, are constantly lowering prices to compete, while the Carnival 1.3 was eventually discontinued due to low profitability.
Changan Ford, however, has shown that it's possible to keep an old model running. Since the second quarter, it has sold over 20,000 cars per month, proving that bold decisions can pay off. Companies often choose to launch new models early to capture market share, and today’s competitive environment favors newer models. So why do some older models still persist?
For Santana, the answer lies in high investment. It’s the longest-running production line in China, and moving it to Jiangsu would cost too much. Similarly, Xiali, although now free from ST status, still faces significant risks if it stops production. On the other hand, the N3 model brings in more profit with higher configurations and better pricing, allowing both old and new models to coexist and generate more revenue.
The longevity of these models isn’t just about design or price—it’s also about the ecosystem they support. From parts suppliers and dealers to repair shops and even black-market thieves, the entire supply chain benefits from the continued presence of old models. With 21 years of production, Santana’s spare parts have become cheaper, creating a sustainable market for maintenance. This gives dealers and suppliers a steady income, something that newer brands don’t enjoy.
Moreover, the used car market thrives on these models. Many people buy older cars because of their affordability and ease of repair. Even theft gangs target them, as seen in Beijing, where Santana frequently appears on stolen vehicle lists. These factors contribute to the continued popularity of older models.
In summary, the persistence of old car models in China is a complex mix of historical investment, market dynamics, and economic incentives. While some may see it as outdated, others view it as a strategic move to maintain profitability and market share. Whether this trend continues remains to be seen, but for now, these models are far from disappearing.