November 2019 No. 7, in the second session of imports Expo China Automotive Industry Development Forum, Deputy Director of the Department of Market Construction Department reports, 2019 to September 1, new car sales of 18.371 million, down 4.3 year percentage, according to sales data by the Federation, the first three quarters of the 78 major auto companies among that 70% saw a decline of sales, of which 32 enterprises sales fell more than 30 percentage, 17 companies fell by more than 50 percentage.
In fact, for China’s auto market, the current annual sales of around 28 million, is already the world’s largest automobile consumer market, much larger scale. From last year to this year, the automotive market sales decline is a normal thing. Because the car market can not unlimited growth. With the shrinking market, competition intensified. By restructuring and mergers will go bankrupt some of the strength is not strong small car company, or group them into a large car. Survival of the fittest, in the future be able to survive the auto companies will was very powerful, and the product is also very good, and this is a good thing for Chinese consumers.
joint venture brands polarization
through this list we can see to a joint venture automobile brand although the premise of market sales overall decline, is still able to maintain a relatively good sales performance, but there have been state of polarization, such as Volkswagen, Mercedes-Benz, Toyota, Honda, Nissan, these domestic first-line automobile joint venture brand sales largely unaffected market fluctuations. For example, Beijing Benz, Toyota, Guangzhou Automobile, Dongfeng Honda sales even more than the last year has been greatly increased. It appears that under the premise of a bad market environment, consumer demand for luxury brand is still very strong, and will select reliable quality and stable joint venture brand vehicles.
but it is not under pressure joint venture brands are strong, such as Changan Ford sales fell 50.5 percentage, Dongfeng Renault fell by 64.5 percentage . Peugeot snowCitroen, Jaguar Land Rover, Changan Suzuki. These have been selling well in the joint venture car brands in this year’s sales have suffered relatively large decline. But the thin dead camel than Ma, these short term joint venture brands still will not have much impact.
rely on pure electric car manufacturers myth subsidies developed shattered
developed in recent years to rely on subsidies to pure electric car brand is very large, such as electric vehicles know beans, Condi electric vehicles. With the country on the threshold of new energy car allowance to further enhance recent years. Rely on subsidies developed pure electric car brand ushered in a disaster, in January to September 2019, sales of electric vehicles know beans fell 84.5 percentage, cumulative sales of only about 2000, has been on the verge of bankruptcy.
strength is not strong independent brands will face bankruptcy
compared to the repairer of the new forces greater pressure strength is not strong independent brands facing companies. Such as automobile speed ratio, FAW hippocampus, Lifan cars, BAIC YINXIANG, Yulon east, southeast automobiles, cars cheetahs, Thailand, Haima cars, Tianjin FAW. These numerous independent brands is small, strength is not strong. In the past the market situation is fairly good premise may have some sales, but when the market decline, consumers will first abandon these brands. Opting instead for a big brand car sales.
and in the new energy tide comes, the strength is not strong independent brand in the new energy vehicle development and manufacturing are also a lot of pressure. He did not come up with highly competitive new energy automotive products. So among the future course of development, these strength is not strong independent brands is likely to be restructuring other powerful own brand or mergers and acquisitions.
and strength of the self-car prices will go overseas
from the current trends in the automotive industry, although the next five years, China will have a considerable amount of steamCar companies closed down or closed down. But the Chinese automobile market overall capacity would not have changed a lot. That is the current Chinese auto market capacity is 28 million, then the year after next year may be reduced to around 27 million, 26 million. China remains the world’s largest auto market, even if the market is shrinking slowly atrophy. So for the first-line joint venture brands and own-brand line, there is no need to worry. Because of their massive sales, a good market reputation, when consumers buy a car will still choose them. And in recent years we are able to find the Great Wall, Geely Automobile has been building plants overseas. So even if the domestic market declined, but sales in the international market will continue to grow. So powerful, well-funded, sales of large car manufacturers, will still be very strong growth.