AutoBeta(AutoBeta.net)11/07 Report--

With the improvement of residents' income level, the purchasing power of ordinary consumers in China is gradually increasing, the traditional concept of "cars bought by the rich" is being subverted, and private purchase has become a trend. In this context, China's automobile industry is growing rapidly, until 2018, China's car sales experienced the first decline in 28 years.

On November 7th, at the second Import Expo "China Automobile Industry Development Forum". Hu Jianping, deputy director of the Market Construction Department of the Ministry of Commerce, said that due to the superimposed influence of multiple factors, such as increasing downward pressure on the macro-economy, the slowdown in the growth of residents' income, the strengthening of resources and environmental constraints brought about by the sustained growth of car ownership, and changes in the concept of automobile consumption, the rapid popularization of cars in China has basically ended, and the new car market has entered a new normal of slow growth.

He said that the growth rate of car sales in the global market has slowed since 2015, while the growth of Chinese cars has also been sluggish after more than 20 years of development, with the number of cars in China reaching 250 million. According to the data, new car sales fell 2.8% to 28.081 million in 2018 and 18.371 million from January to September 2019, down 10.3% from a year earlier. It means that the rapid popularization of cars in China is basically over, the new car market has entered a new normal of low-speed growth, and China's automobile market already has the basis and conditions to speed up the realization of high-quality development.

Judging from the downward trend of the market in recent years, luxury brands can grow against the trend, which also shows that consumers are upgrading their automobile consumption demand, and are gradually shifting from low-end homogenized products to middle-and high-end personalized products. from product consumption to equal emphasis on product and service consumption.

According to relevant data, retail sales at 20 luxury brand dealers in the first nine months of this year were 2.308 million vehicles, up 10.6 per cent from a year earlier. In the view of people in the industry, compared with N years ago, when luxury cars encountered "a lot of stupid money here" in China, the increase in the number of rational consumers and the price of domestic cars can experience the enjoyment of luxury cars.

In addition, under the pressure of the economic downturn, the performance of the used car market is obviously stronger than that of the new car market, which has become a new driving force for automobile consumption. As of September, the cumulative trading volume of used cars nationwide this year was 10.585 million, up 4.32% from the same period last year, while the used car market in September reached a new monthly high, with trading volume reaching 1.3118 million, an increase of 7.47% over the same period last year and 9.44% from the previous month.

This is not to say that the volume of China's auto market can no longer grow, but the era of rapid growth has passed and will enter a low growth rate. At present, in terms of car ownership, the total consumption of new cars in China is more than 28 million, ranking first in the world. The number of cars per 100 households in cities and towns rose to 40 from 21.5 in 2013. According to the comparable caliber, the number of thousands of cars in China is 170 in 2018. Developed countries, such as the United States, can reach about 800 vehicles, such as Europe, Japan and other developed countries in 500 to 600 vehicles. Compared with developed countries, the demand space for automobile consumption is still very large. For example, according to the growth rate of 9%, it is still in the growth range and the trend is improving.

At the same time, in the trend of economic downturn, consumers' consumption concept has also become more rational, for more cost-effective models and more advantageous products will be chosen by consumers, such as "spend the price of domestic cars and buy imported products." for those car companies that do not have their own core values and quality, they will also be eliminated one by one.

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