The three-row SUV of joint venture car companies is not selling well? They don’t

tech | 2024-08-18

Recently, there has been a topic trending online: Who should sit in the third row of an SUV? This reminded me of the comparison I made a few days ago between the Highlander and the Lynk & Co 09 seven-seater versions. At that time, everyone raised a question: How should one sit in such a third row? They are all like small stools, and the knee room is not very good either. The Highlander's rear row is slightly better, but the head is almost touching the rear window glass. So why not make it a large five-seater instead?

Thus, the question of whether the third row in an SUV is meaningful and who should sit there actually answers why Chinese new force brands can make a comeback in the new energy SUV market.

Going back to the initial question, why did the Highlander and Lynk & Co 09 have a third row? I said at the time that the car itself is sold as a large five-seater, but it just comes with a third-row seat as a temporary addition.

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In fact, the demand for three-row SUVs was mainly born in the North American market. A typical American family might consist of a couple and three to four children, which requires a large vehicle. However, due to age differences, except for family vacations, older children generally do not go out together, so the temporarily added third row is sufficient.

Europe has a similar demand, which is why before the new force in China switched to six-seaters, most three-row SUVs were high-end vehicles—three-row seating can also showcase its high-end attributes, but all third rows are somewhat makeshift. For example, the Volvo XC90 must have a third row, and the Mercedes-Benz GL is the same, while BMW and Audi initially did not have three-row seating at all. In the United States, the Grand Cherokee was also a five-seater version for a long time.

Then, a few years ago, a wave of European and American car manufacturers introduced three-row seating in compact SUVs, such as the Tiguan, X-Trail, CR-V, 5008, and Trailblazer. Even the Tesla Model X had to have a third row. Although these cars seem to sell averagely in China, they have brought additional sales in overseas markets, where the third-row demand is just temporarily sufficient.

However, in the past three years, the Chinese market has been very competitive with three-row mid-to-large SUVs, mainly because the Ideal ONE opened up a blue ocean market, and suddenly the demand for second-child families has emerged.Due to the difference in family structure between China and Western countries, in addition to the common couple with two children, there is usually one set of parents living with the family as well. At this point, a six-seater becomes a necessity. However, the traditional 2+3+2 configuration popular in Western countries does not fare well in China, mainly because it is not suitable for parents. The inconvenience of folding the second-row seats for entry and exit, coupled with the cramped space in the third row, makes it a difficult choice for buyers.

Because of the layout issues with mid-to-large SUVs, it is not possible to fit three seats with adequate width in the third row, so setting it up as two seats is somewhat a forced choice. Therefore, when Li Auto introduced the ONE model, it offered a choice between 2+3+2 and 2+2+2 configurations based on the Highlander, and almost all Li Auto consumers chose the 2+2+2 layout, which can be said to be a vote with their feet.

Thanks to the second-row entry method that mimics the independent seats of an MPV, the convenience is greatly improved. Moreover, the 2+2 configuration is suitable for families with three members or those with a second child, making it very appropriate from a demand perspective. Although the functionality of the third row is somewhat weaker, and the space in the early 2+2+2 layout's third row is not as large as imagined, it doesn't really matter since the third row is used temporarily anyway.

It can be said that, for now, the sudden popularity of six-seater mid-to-large SUVs and products with spacious third-row space in China is due to the needs of the national situation. The demand for the third row in the Chinese market is no longer just for emergency use, but should at least become a long-term requirement. At this time, the demand is not just about adequacy, but about quality and thoughtfulness, raising the emotional value.

For example, third-row passengers may include the elderly at home or the older child. Whether it is respecting the elderly or caring for the young, it is hard to bear to let them sit in the third row, and it is also a grievance to sit in the third row oneself. Therefore, it is most suitable to buy a model where all six seats are of similar size. Moreover, the independent design of the middle-row seats may also be a demand for face.

Now, with more and more three-row SUVs over 5 meters, products like the Li Auto L8 face a specific problem: while space is available, the development cost is high, and the price cannot be reduced, making the consumer market capacity very limited. Li Auto's solution for this is to create a five-seat version based on the L8, which led to the development of the Li Auto L7, but the cost remains high. Moreover, from the current consumer demand perspective, the six-seat version of the Li Auto L8 indeed sells less than the five-seat L7, and the L7 sells less than the cheaper L6.

Some domestic car manufacturers are now considering whether it is cost-effective to specialize in large-sized three-row SUVs, and whether it is possible to return to the idea of creating six-seat versions from five-seat products?

The Zero Run C16 is a new example. This car is a product that has been enlarged based on the Zero Run C10, equivalent to transforming a five-seat SUV into a six-seat version, by completely redesigning the second-row seats, rather than forcibly adding a third row as was done with the C-RV and X-Trail in the past. This ensures the dignity of each seat in the rear, with only a compromise on space, but it significantly reduces the development cost.The reason why Zero Run is creating a six-seater version based on the C10 is that the company has discovered that consumers in China's lower-tier markets actually have more two-child and three-child families. These groups have a greater demand for three-row seating, but previously, there were virtually no legitimate six-seater SUVs available for purchase at 150,000 yuan, which is why sales were suppressed.

Now, with the Zero Run C16 directly pulling the price down to the 150,000 yuan level, the experience and configuration can be maximized, albeit with slightly less space. This could also be a blue ocean market, and potentially even broader than the Li Auto L8.

It can be said that when it comes to understanding the needs of Chinese consumers for the use of the third row, it is still the Chinese car manufacturers who are best suited to do so.