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In the past year, the domestic automobile market has been in a downward trend. Since the annual production and sales data has not been released yet, in the first 11 months, the cumulative production and sales of the domestic automobile market have declined by 9% and 9.1% respectively compared with 2018. However, in the face of such a market, luxury brands have shown a rising trend against the trend, whether it is first-tier BBA or second-tier luxury, generally rising performance.

According to Cui Dongshu, secretary general of the National Passenger Car Joint Association, in 2019, China's replacement users have exceeded the newly purchased or purchased consumer groups, of which the replacement groups account for 60%, and the newly purchased or purchased groups account for 40%, which means that the current new car market in China has changed from the past increment to the stock replacement dominant.

Different from previous years, in many people's eyes luxury brands are hundreds of thousands of millions, so that many consumers feel far away, but in recent years, with the realization of localization of luxury brands, as well as fierce competition market, so that most luxury brand prices continue to explore, even with many joint venture brand prices parallel, for example, the first-line luxury brand BBA entry-level models are down to less than 200,000.

Take the high-end models announced by the association as an example. Among the first-tier brands BBA, Audi A6 has recently received the highest discount of 117,100 yuan, equivalent to 8.2% off, and the terminal discount of entry-level naked cars has reached 338,100 yuan. It is also the case that Audi A6 has become the model with the largest discount in BBA and the first sales volume of high-end models in November.

Second-tier luxury brand terminal discount is as high as 7.5%, for example Volvo S90 highest discount to 122,900 yuan, there has been news that the terminal price of this model has entered 300,000 yuan, as a medium and large luxury model, its price has approached the price of medium-sized luxury cars.

At the beginning of December last year, Kaida Research Institute once released "October 2019 China luxury car market pulse report" report shows, In the first October, Luxury car naked car transaction price as a whole showed a downward trend, Single car naked car transaction price for 384,000 yuan, Luxury car market price even appeared upside down phenomenon, That is to say retail selling price is lower than wholesale purchase price.

Although some insiders believe that price inversion will hurt profits, analysts believe that prices will naturally fall as the global auto market situation changes and tariffs and other policies change. The continuous downward price exploration is naturally favored by more consumers, further promoting the promotion of terminal sales in the luxury market.

According to the data of the Association, the cumulative sales volume of luxury cars in November 2019 was 2,003,077, an increase of 11.5% year-on-year, and the market share of the segment reached 10.8%. Some insiders believe that 2019 will exceed 3 million vehicles, and the market share will also exceed 10% for the first time in the whole year, realizing double increase in sales volume and proportion.

Most of the newly purchased or purchased consumers are consumers in third-tier and fourth-tier cities, while the models purchased for the first time are concentrated in middle and low-grade products, but now the proportion of replacement users has exceeded that of newly purchased users. According to the 5-8 year replacement period of passenger cars, China has entered the large-scale replacement period.

With the upgrading of consumption demand of domestic consumers, automobile products are gradually shifting from low-end homogeneous products to medium-and high-end personalized products, from product consumption to product and service consumption. Therefore, luxury brands with higher quality will be more favored by consumers at the same price.

For the forecast of automobile market in 2020, many institutions think that it will still show a downward trend, but in the view of Guanghui Automobile Secretary,"the brand power and competitiveness of luxury market this year and the performance of operation ability are particularly outstanding, I believe that the luxury market in 2020 will have better performance."

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