Half Year Test Of Independent Brand

Under the impact of the new crown pneumonia epidemic, China's own brand cars are facing unprecedented pressure. At present, China's automobile industry is in a new period of reform. With the help of intelligent network connection and electrification, it is becoming more and more difficult for China's automobile industry to realize "changing lanes first".

On July 10, the data released by China Automobile Industry Association showed that in June this year, the sales volume of self owned brand passenger cars was 590000, a year-on-year decrease of 11.6%, and the market share was only 33.5%. This is the worst record since the date was released by the China Automobile Association in 2009. In the first half of the year, the sales volume of independent brand passenger cars was 2.854 million, a year-on-year decrease of 29%, and the market share decreased by 3.4 percentage points to 36.3%.

Independent brands not only lost 40% of the "red line of the market", but also continue to explore the bottom. However, on July 10, Xu Haidong, deputy chief engineer of the China Automobile Association, said in an interview with the reporter of the 21st century economic report that with the release of the restrained demand of the middle and low-end customers who buy their own brands, the market share of the independent brands has the opportunity to stop falling in the second half of the year. But from the current market environment, the situation is quite grim.

"Traditional cars and new energy vehicles of independent brands are in danger. The epidemic situation should not be a elimination competition. Only by surviving can the fittest survive in the competition. However, it is really difficult for independent brands to be understood by the society, and strong policy support is still needed in the future. " Cui Dongshu, Secretary General of the national passenger car market information association, said.

1、 The gap between the two echelons is widening

From the perspective of the first and third echelons, the gap between the first echelon and the third echelon is expanding.

In the first half of the year, the cumulative sales volume of passenger cars dropped by 22.4% to 7.873 million, according to the data of CAAC. However, among the top 10 Chinese brands of passenger car sales, only Chang'an and FAW achieved positive growth independently. Geely's decline was slightly better than the overall level of the market, and the decline rate of other enterprises was more than 20%. Among them, in the first half of this year, Geely Automobile, Chang'an Automobile and great wall motor, the top three brands of passenger cars, respectively achieved wholesale sales of 530000, 396000 and 299000, with year-on-year growth of - 18.9%, 1.9% and - 30.2%.

It is worth noting that under the overall market situation, the sales volume of enterprises in the second echelon of independent brands still showed negative growth in June. According to the production and sales express released by listed companies, the sales volume of SAIC passenger cars in June was 48000, down 3.5% year-on-year; GAC only sold 26600 passenger cars in June, down 39.74% year-on-year; BYD's sales volume in June was 33700, down 12.9% year-on-year. In the first half of the year, the sales of the three auto companies were 241500, 138000 and 158600, respectively, down 22.52%, 26.2% and 30.45% respectively.

Overall, the gap between the first and second echelons is widening, while the survival of the third echelon is more difficult. The market shows a trend of concentration to the head.

Judging from the market situation of Geely in the first half of the year, Geely has been able to expand its market share against the trend. First, the layout of cars and SUVs is more complete, and the second is the breakthrough of leading brand in the middle and high-end market.

In recent years, the trend of automobile consumption in China is very obvious. According to the data of the national passenger Federation, the market below 80000 yuan has been shrinking, and its proportion in the passenger car market has dropped from 28% in 2017 to 16% in the first half of this year. And this is the main market for Chinese brands.

Xu Haidong believes that the impact of the epidemic on low-income people is greater, which is an important reason for the suppression of China's brand market. With China's overall economic situation improving, the market share of independent brands should stop falling or even rise slightly.

However, on the other hand, judging from the development history of China's independent brands, the huge dividend brought by the upsurge of SUV has made great wall, GAC motor and other brands rise. The trend of SUV market this year is obviously better than that of sedan. At present, the sales volume of SUV has surpassed that of sedan, while the market share of Chinese brands is declining.

There is a certain gap between foreign-funded enterprises and independent brands. In the past two years, the pace of joint venture's launch of SUV models has been significantly accelerated, which has brought great pressure to independent brands. " Some people in the automobile industry said.

With the fierce market competition, it is difficult to sustain the development of SUV only by low price. For independent brands, the greater pressure lies in the constant downward pressure of the car market price system, which intensifies the price war.

"The internal friction among independent brands is very fierce. In fact, the quality and positioning of each enterprise's cars are similar, and the prices are also very similar. Everyone grabs the same group of consumers. So the competition is more fierce, and this part of the population is very sensitive to the price. In many cases, the same level of cars, consumers will naturally choose a cheaper car. " On July 13, a car dealer told reporters.

Independent new energy vehicles in trouble

The continuous downturn of China's new energy vehicle market has brought severe test to local new energy enterprises. Under the superimposed influence of declining subsidies and the epidemic situation of new crown pneumonia, the pattern of market segments and enterprises are changing.

On the one hand, BYD and BAIC new energy, which have led China's new energy vehicle market in the past few years, have seen a serious decline in sales. In the first half of the year, sales of BYD and BAIC new energy were 61000 and 26000 respectively, down 58.34% and 77.44% respectively. On the other hand, new forces represented by Tesla, Weilai and ideal are speeding up the cultivation of their own market; joint venture vehicle enterprises rely on plug-in hybrid models to launch a counter attack step by step.

Overall, the trend of high-end electric vehicles is more obvious. In the first half of this year, the sales of A00, A0 and A-class pure electric vehicles fell by 58%, 63% and 52% respectively, but the sales volume of B-class pure electric vehicles increased by 876%. In June this year, the market share of A00 pure electric passenger cars was only 13%.

Specifically, the decline in sales of new energy vehicles such as taxis and online car hailing in the first half of the year is the main reason for the decline in the A-class car market. In the second half of the year, the rental network car Hailing market is expected to resume increment, but the rising market share of C-end vehicles also makes the core of electric vehicle competition shift from price to product differentiation.

Due to the introduction of the "double points" new policy, joint venture vehicle enterprises accelerate the launch of new energy vehicles in China, which is expected to further promote the market recovery in the second half of the year. However, it needs to be pointed out that with the entry of joint ventures, the market share of local new energy vehicle enterprises may be further eroded. In particular, the traditional main engine plants represented by BAIC and BYD need to readjust their enterprise strategies, participate in competition and speed up their efforts to get rid of the dependence on subsidies.

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