The iconic Red Flag flagship, once a star of car exhibitions, is no longer a top performer in the market. Known as the "national car" and a symbol of Chinese automotive pride, the Red Flag sedan now faces significant challenges due to new fuel consumption regulations. According to recently released standards, domestic luxury cars like the Red Flag will be banned from sale starting next July if they exceed the required fuel efficiency limits. The Red Flag, which has been a household name for decades, cannot simply disappear from the market due to its historical and national significance.
Internal reports reveal that FAW Group has secretly formed a large Red Flag project team six months ago, aiming to develop a new flagship model set to launch in 2006. A sales company employee acknowledged that the current Red Flag models do not meet the new fuel standards, and the company is considering possible solutions. On October 28, AQSIQ and the National Standards Supervision Commission announced a new standard limiting fuel consumption for passenger vehicles. This regulation applies to nearly 10% of cars sold in China, with imported luxury vehicles being the primary target. However, the most affected domestic models are the Red Flag flagship and its variants.
Under the new rules, the maximum allowable fuel consumption is 16.4 liters per 100 km. The original Red Flag flagship, introduced in 2000, consumes over 20 liters per 100 km—far exceeding the limit. Despite this, the Red Flag remains a symbol of prestige and national pride. With a price tag of over 1.1 million yuan for the extended version and 680,000 yuan for the regular one, it's one of the most luxurious domestically produced cars. At every major auto show, the Red Flag draws crowds, representing the honor of Chinese automobiles.
Since 1958, when FAW built the first Red Flag car, it has held a special status as the "national car." In the 1960s, it became the official vehicle for high-level state visits. The phrase “see Chairman Mao, stay at Diaoyutai, ride the Red Flag†was a sign of the highest diplomatic respect. Over time, the Red Flag became synonymous with Chinese cars. In 1998, FAW collaborated with Ford to develop a Red Flag model based on Lincoln’s platform. By 2000, the new Red Flag flagship was launched, but sales were disappointing, with only about 100 units sold annually.
FAW Car Company reported that sales of the Red Flag have remained flat, with most units reserved for auto shows or government use. Although the company’s sales target for this year is 50,000 units, the Red Flag flagship contributes minimally. Even if production stops, the impact on overall sales would be limited. However, the Red Flag carries more than just commercial value—it represents the legacy and responsibility of China’s national car brand.
Despite the challenges, FAW is investing 1.8 billion yuan to build a new Red Flag production platform, including a dedicated line for the flagship. R&D for the new Red Flag flagship has been underway for several months, with the project team operating under a code name. The new model will likely be smaller, with a 4.0-liter engine and a body length around 5.7 meters, compared to the current 6.83-meter-long flagship. The new mid-level Red Flag (Class C) is expected to launch by the end of next year, while the D-level flagship will follow in 2006.
FAW is determined to keep the Red Flag alive, not just as a product, but as a symbol of China’s automotive heritage and national pride.
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