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There are obvious signs of recovery in the car market in May. FAW-Volkswagen surpassed SAIC by 260000 vehicles.

2024-11-17 Update From: AutoBeta autobeta NAV: AutoBeta > News >

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AutoBeta(AutoBeta.net)06/05 Report--

Under the influence of the epidemic for several months, the domestic automobile market finally rebounded significantly in May this year, which means that most mainstream brands will achieve the growth trend. However, in this environment, SAIC-Volkswagen brand, once the best-selling brand in China, is still in a downward trend of nearly 20%. On the contrary, FAW-Volkswagen brand has achieved a growth rate of more than 20%, and the differentiation between the two is becoming more and more obvious.

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According to the production and marketing KuaiBao released by SAIC today, SAIC Volkswagen, which has always been the best seller, lagged behind its SAIC GM brand in May, with cumulative sales of only 131000 vehicles, down 14.9% from last year's 153992 vehicles and an increase of 9.1% over the previous month.

Although SAIC-Volkswagen also achieved some growth compared with the previous month with the overall market trend upward in May this year, it is worth noting that according to the news released by the China Association of Automobile Manufacturers a few days ago, according to KuaiBao's sales to key enterprises, China's automobile industry is expected to complete 2.136 million vehicles in May, an increase of 3.2% from the previous month and 11.7% from the same period last year. It means that in the environment of double-digit growth in domestic car sales in May and growth in the vast majority of mainstream products, SAIC-Volkswagen has experienced a double-digit decline and has undoubtedly become a drag on the market in May.

As a contrast, FAW-Volkswagen, which has been on a par with SAIC-Volkswagen, has opened a great gap with SAIC-Volkswagen with the development of the past year. According to the data, FAW-Volkswagen sold 186800 vehicles in May, up 22% from a year earlier and 12.7% from a month earlier. This also makes FAW-Volkswagen once again win the championship of terminal sales in China's passenger car market this month.

Although there are relevant data on the performance of SAIC-Volkswagen's specific models in May this year, but from the overall performance decline, it must be due to the decline of its main selling models. On the contrary, the three major brands of FAW-Volkswagen all supported the growth of the brand, including Volkswagen's cumulative sales of 106368 vehicles, up 1.1% from the same period last year; Audi brand sales of 65008 vehicles, up 36% from the same period last year; and Jetta brand sales of 15401 vehicles, up 14% from the previous month.

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It can be said that the reputation won by SAIC-Volkswagen Passat and Tuguan L in the China Insurance Research Test last year had a great impact on SAIC-Volkswagen, making consumers consider whether or not to choose SAIC-Volkswagen models under public opinion. In contrast, FAW-Volkswagen, which is also a Volkswagen brand, is slightly better under safety issues.

And for Volkswagen's current positioning of the two major domestic channels, the gap between the two has gradually widened. After all, compared with SAIC-Volkswagen, the Audi brand owned by FAW-Volkswagen has made FAW-Volkswagen take advantage of the trend of luxury brand market under the transformation of the domestic automobile market from increment to stock in the past two years. Secondly, the new Jetta brand of FAW-Volkswagen last year also deepens the competition in the domestic low-end market, thus achieving an increase in sales. And SAIC-Volkswagen Skoda brand due to its own Volkswagen brand positioning, price confusion, so that the competitiveness is extremely reduced to rely on price reduction to support.

In addition, the difference in customer positioning between FAW-Volkswagen and SAIC-Volkswagen also makes it change obviously. after all, SAIC-Volkswagen's positioning is more business and practical, while FAW-Volkswagen is more inclined to focus on youth sports. In this regard, with the acceleration of the domestic young consumer market, consumers who choose FAW-Volkswagen also achieve growth, and in the economic downturn market, the more cost-effective FAW-Volkswagen may attract more consumers' favor.

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Although SAIC-Volkswagen has more advantages than FAW-Volkswagen in experience and technology and Chinese demand, it is found from the performance in recent years that the gap between the two has become more obvious, and consumers who choose Volkswagen headquarters are also more inclined to FAW-Volkswagen. As a result, the monthly sales gap between SAIC-Volkswagen and FAW-Volkswagen has widened from 45600 vehicles in April to 54800 vehicles in May, while the cumulative annual sales have expanded to 255500 vehicles, even more than a quarter's sales.

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