Achille Bianchi, director of DR Automobiles Spain: "Our Chinese cars have become equal in quality to European ones; there's even a perception that, in many cases, they're even better."
After four decades of successful existence in Italy, DR Automobiles Group presents DR International, the new company tasked with exporting its business. For now, it has unveiled its plans for Spain at Automobile Barcelona , the country it has chosen to launch its growth and internationalization strategy. We discussed all the details with Achille Bianchi, the company responsible for leading this endeavor.
Mr. Bianchi, could you explain the DR Automobiles Group's growth strategy in the Spanish market?
We are an Italian company that currently has five brands, with sales exceeding 30,000 cars annually. We believe now is the time to expand our operations to other markets, and to this end, we have created a new company called DR International. Spain is the first country where we operate, and we took advantage of a prestigious Automobile Barcelona event to announce our entry into the Spanish market.
Why did you choose Spain as your starting point?
We're considering expanding our operations to other countries, but Spain is an ideal place to start; it already has many similarities with the Italian market, especially in size. It's also a similar market in terms of customer profiles, and cars like ours are a good fit, where a reasonable price and comprehensive equipment are valued. In other words, it's not as important whether the chosen model costs €20,000 or €30,000, but it is important that it be considered a fair price.
The ICH-X K2 is here to satisfy 4x4 enthusiasts. It features low-range gears and electronic locking front and rear differentials.
EVO is a brand already sold in Spain. So, they're not starting from scratch…
It's true that our first foray into the Spanish market with EVO has allowed us to create the necessary foundation for the next step: launching the new brands we're introducing in Barcelona. We already have around 30 sales and after-sales points in the region, a number that continues to grow, and in the future we aim to reach close to 100 customer service points.
What's the assessment of the group's first steps in the Spanish market? Have the set objectives been met?
A year and a half ago, we started EVO, an activity that has allowed us to fine-tune several processes related to logistics, after-sales, spare parts, warranty management, etc. This will make it easier for other brands to enter the company.
There are five brands in total, how many models are we talking about?
Our philosophy is to be a leader among emerging automotive brands, producing cars with a comprehensive range of standard equipment at an affordable price, with a value that's well-matched to the vehicle's price. Our plan is to launch around twenty models, some existing and others new.
Our plan is to put around twenty models on the market, some already existing and others that are new.Achille Bianchi,Director of DR Automobiles Spain
Are the EVO and DR brands the starting point?
EVO pursues an aggressive pricing policy and offers a total of eight models. Among them, the EVO Spazio minivan and the Evo 7 Sport stand out. DR is also a volume brand, with highly competitive cars due to their price-performance ratio, especially the DR4 and DR5. Both the EVO and DR are well-equipped as standard.
One of the brands that has generated the most excitement is Sportequipe…
Sportequipe arrives to satisfy customers of premium brands. It is modern and focuses on sportiness and dynamism. The offering will consist of three SUV body styles. The Sportequipe 6 GT will have two engine options: a 185 hp gasoline engine and a 317 hp plug-in hybrid. The Sportequipe 7 GTW will be available with a 185 hp gasoline engine, and finally, the Sportequipe 8 will be a PHEV-only model.
Achille Bianchi, director of DR Automobiles Spain
In Tiger's case, what are his identifying features?
Tiger is a brand that's just getting started and is committed to elegance and sportiness. The models that will make up its range will be called Six, Seven, and Eight, in addition to a minivan-style station wagon.
And we have ICH-X left, the brand aimed at 4x4 lovers…
Indeed, ICH-X is the group's all-terrain brand par excellence, with two models available that stand out for their enormous capabilities off the road. The K3 has a 4.79 m track and is equipped with all-wheel drive, a DCT7 automatic transmission, and a 245 hp gasoline engine. The K2 has a 162 hp diesel engine and all-wheel drive with a reduction gear.
We would like to achieve results similar to those obtained in the Italian market, with a 2.5% share.”Achille Bianchi,Director of DR Automobiles Spain
Where does the technology for DR Group cars come from?
All DR Group models are manufactured in China. They are fully assembled in Italy, have been fitted with various useful improvements, and are available with the option of installing a factory-installed LPG fuel system, thus achieving the ECO label. We also have a design center where improvements are studied to make the product more suitable for European tastes and needs.
Will the sales and after-sales network be shared between the different brands? Are there any ambitious sales targets?
We are in the process of creating the network. They can be shared, but each brand will have its own image and space. The launch of new products will be gradual, but all models will be available by 2025. Regarding our goals, we would like to achieve results similar to those achieved in the Italian market, with a 2.5% market share.
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What added value do DR brands offer compared to such powerful Chinese competitors in the Spanish market as BYD or MG?
BYD is a Chinese giant capable of offering a complete electrified and electric range. This is undoubtedly a strong point in its favor, although we consider the quality of its products to be similar to other brands. Also in its favor is the strength it has invested in communication campaigns, such as sponsorship of the Euro 2024 football tournament. In the case of MG, they arrived very early and knew how to play well with their pricing policy, but we believe their level of technology and finishes are below average. We at DR Automobiles believe that with the new products on display at Automobile Barcelona, we have products with a quality comparable to the best.
What guarantees do you offer to convince customers regarding after-sales service and support?
Our entry into Spain with EVO over a year ago has helped us fine-tune our mechanisms and ensure the arrival of all brands has been organized in terms of logistics, spare parts, warranty management, and more. Our cars have a five-year, 100,000-km warranty, with the option of extending it to seven years. Currently, our cars have reached the same quality as European ones, and there's even a perception that, in many cases, they're even better.