AutoBeta(AutoBeta.net)05/30 Report--

China's auto market has declined for two years in a row and hit rock bottom by the epidemic in 2020. According to the report of the China Automobile Association, from January to April, China's automobile production and sales completed 5.596 million and 5.761 million respectively, with production and sales falling by 33.4% and 31.1% respectively compared with the same period last year.

Shen Jinjun, president of the China Automobile Circulation Association, believes that the transformation of enterprises is very painful, but it has reached the point that some unpopular brands and dealers with weak service ability are bound to withdraw from this market.

Shen Jinjun said that the 2019 auto market continued the downward trend of 2018, the automobile circulation industry is facing increasing pressure, and the industry's loss area is also expanding. At the same time, China's economy is in a period of transition, the outbreak of the epidemic will accelerate the process of transformation, and this process depends more on the forces of the market. Since the epidemic, the focus of the policies and measures introduced by the state is still structural adjustment. Under normal circumstances, the motivation or willingness of enterprises to take the initiative to transform is not strong. However, enterprises have reached the point where they have to turn around.

In Shen Jinjun's view, the automobile industry has experienced nearly 20 years of rapid growth. Today, there are so many automobile brands and secret sales and service outlets in China that they are unique in the world. Therefore, unpopular brands and dealers with weak service ability are bound to withdraw from this market, which is the market force or market law-survival of the fittest. This is also the price that must be paid in the process of China's automobile market from big to strong.

As a matter of fact, due to market factors, many voices have pointed out their worries about the living environment of enterprises.

Not long ago, Xu Heyi, party committee secretary and chairman of BAIC, said in an interview with the media, "the epidemic has accelerated the knockout stage of the industry, and the market share has been further concentrated to high-quality head car companies." Therefore, for the weak and backward car companies, they will face continuous challenges. Xu Heyi also believes that China's independent brands must continue the good situation of practicing their internal skills, focusing on innovation, and continuing to upgrade in recent years, and truly realize the qualitative change from big to strong with the improvement of their comprehensive competitiveness.

Tan Minqiang, deputy to the National people's Congress and deputy chief engineer of Dongfeng Company, said: "in a market of stock competition, there will be a situation in which the strong are always strong and the fittest survive. The arrival of this stage is a matter of time. In fact, China's auto market has shown an obvious trend of concentration, and the degree of concentration is getting higher and higher. "

Tan Minqiang believes that China's auto market has entered a state of stock competition. At present, the automobile markets in Europe, the United States and Japan have entered a state of stock competition and are relatively mature. Throughout the development history of the automobile market in Europe, the United States and Japan, after nearly a hundred years of development, there are only a small number of car manufacturers left. " Therefore, at present, there are more than 100 domestic automobile manufacturers, especially since the new energy vehicles entered the market, there has been a lot of increment. Under such circumstances, in order to achieve sustainable development, they will certainly go through the process of merger and reorganization.

Statistics show that the top 15 car companies in China account for 80.1% of the passenger car market, which has exceeded 80%. While the other more than 100 car companies, carve up less than 20% of the market share, the situation has reached a very serious point. "from the perspective of the industry pattern, the concentration of the market is increasing, and weak brands are facing elimination." Industry insiders think so.

Therefore, as people in the above-mentioned industry believe, some unpopular brands and dealers with weak service capacity are bound to withdraw from this market, and they really have to make a transition.

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