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Another joint venture, Dongfeng Renault, is dissolved and delisted, while SAIC makes an evaluation of the industry pattern that "the concentration of the market is constantly increasing, and weak brands are facing elimination". Major changes will take place in China's automobile market affected by the epidemic in 2020. The continuous decline of the auto market has made the industry even worse. According to industry insiders, China's auto market has entered a phase of elimination of the fittest.

According to the latest report of the Federation of passengers, passenger car sales in China fell 41% in the first quarter of this year compared with the same period last year. The decline in the market will further narrow in April, but the decline is also expected to reach 8%. Prior to this, the Federation of passengers has made a forecast adjustment on the trend of the car market for the whole year, and is expected to decline by 8% in 2020 compared with the same period last year. As a result, the continued decline in the auto market will lead to accelerated setbacks in the industry.

The Federation said that consumer demand declined seriously in the first quarter, and the upstream and downstream of the automobile industry chain faced tremendous pressure. Statistics show that passenger car sales in the first quarter were 3.01 million, down 41% from the same period last year, setting a record low for the same period in recent years. Of these, retail sales were 1.71 million in January, down 21 per cent from the same period last year; affected by the epidemic, retail sales were only 250000, down 80 per cent from the same period last year; and consumer incentive policies were introduced one after another in March, and the market slowly recovered to 1.04 million vehicles, but still fell by 40 per cent compared with the same period last year.

According to the analysis of the weekly trend of the passenger car market, the federation forecasts that retail sales of passenger cars in April will be about 1.39 million, down about 8% from the same period last year, continuing the downward trend. Although the car market is expected to continue to recover in April, it still faces more uncertainty. For example, the recent rebound in the market is largely due to the release of pre-accumulated orders, the real car demand is difficult to fully recover in the short term.

Based on the situation of the car market this year, the association predicts that if there is no strong stimulus policy at the national level, the negative growth rate of the car market may further increase in 2020, and retail sales are forecast to decline by 8% in 2020 compared with the same period last year. At present, the car market needs more national tax and fee reduction measures to accelerate the recovery of the car market.

Since 2018, China's auto market has declined for two consecutive years, the knockout stages of the auto market have intensified, and some car companies have been knocked out. The normal survival of the fittest in the market, the structural adjustment of the automobile market, and moving towards the road of high-quality development is the law of the industry, but the sudden attack of the epidemic has accelerated the reshuffle of the automobile industry.

On April 14, 2020, Dongfeng Renault announced its dissolution and delisting, becoming the first joint venture car company to collapse this year. According to the announcement, Renault transferred its 50% stake in Dongfeng Renault to Dongfeng Automobile Group, and Dongfeng Renault stopped the business activities related to the Renault brand.

The joint venture is only six years old, and Dongfeng Renault is officially delisted. The after-sales service of 300000 domestic Renault owners will be maintained in the existing dealer network and Dongfeng Nissan dealer network; after Dongfeng Automobile Group completely acquired Dongfeng Renault, it upgraded the Dongfeng Renault plant and turned it into a Dongfeng intelligent manufacturing and production base.

"Renault's withdrawal from the Chinese (fuel passenger car) market reflects that China's automobile market has entered a phase of elimination of the fittest, warning other joint venture brands to make greater product localization investment and technological innovation," said Cui Dongshu, secretary-general of the Federation of passengers' Association. at the same time, we also want our own brands to strive to become bigger and stronger to promote the stronger development of the automobile industry. "

In the analysis of industry pattern and trend, SAIC believes that with the economic downturn and the gradual slowdown of market increment, China's automobile market is entering a new stage of stock competition. Due to the influence of COVID-19 's epidemic situation, China's macro-economy and automobile market will face severe tests in stages this year. From the perspective of the industry pattern, the concentration of the market is increasing, and weak brands are facing elimination.

Finally, the ranking of car companies' sales in the first quarter of 2020 is attached. Under the shrinking market, the industry will concentrate on the head car enterprises in the future, and the weak brands at the bottom of the list may face elimination.

(data ride association, tabulation daily car)

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