AutoBeta(AutoBeta.net)08/12 Report--

Car sales rose sharply in July, but the market share of Chinese-branded passenger cars fell again. According to the China Automobile Association, car sales in China in July were 2.112 million, up 16.4 per cent from a year earlier, of which passenger car sales accounted for 1.665 million, up 8.5 per cent from a year earlier.

In terms of market share of major car systems, Chinese brand passenger car sales still rank first, but market share continues to decline compared with the same period last year, while German and Japanese brands are on the rise.

In July, a total of 585000 Chinese brand passenger cars were sold, accounting for 35.1% of the total passenger car sales, down 1.3% from a year earlier, still at a low ebb. The share of Chinese brand passenger cars continues to decline, mainly due to the fact that weak brands have almost withdrawn from the market competition.

Chinese brands present a situation of "the strong are stable and the weak are eliminated". Specifically, the head of Chinese brands Geely Automobile, Great Wall Automobile, Changan Automobile and so on all achieved sales growth in July, while sales of passenger cars, BYD and GAC MOTOR recovered. However, the backward brands are in operational difficulties, and their sales have repeatedly dropped sharply or even stopped production, almost withdrawing from the market competition, further aggravating the decline of the market share of Chinese brand passenger cars.

China has nearly 100 independent automobile enterprises. in the process of moving from the incremental era to the stock era and high-quality development, some automobile enterprises have been marginalized by the market and entered the moment of life and death. at the same time, it has also accelerated the merger and reorganization of China's automobile industry. In the future, the concentration of the market to the head car companies will be further improved.

In addition, from January to July this year, the market share of Chinese-branded passenger cars fell to 36%, down 3.2 percentage points from the same period last year.

In the overall situation, German and Japanese brands maintain strong growth and market share continues to increase. Among them, the market share of German brands reached 25.1% from January to July, up 1.6 percentage points from the same period last year, still in second place. Japanese brands had a market share of 24.1% from January to July, an increase of 2.3 percentage points over the same period last year. The performance of Japanese brands in China is better than that of German brands, the sales volume is gradually approaching and the gap is further narrowing.

There is a view that the stable market performance of Japanese car companies is closely related to their brand marketing, technology investment and product strategy. In terms of sales, a number of Japanese car companies have returned to positive growth. FAW Toyota sold 79000 vehicles in July, up 40 per cent from January to July, up 0.8 per cent. Guangzhou Auto Toyota sold 74600 vehicles in July, up 20 per cent from January to July, up 6 per cent from January to July. Dongfeng Nissan, Guangzhou Auto Honda and Dongfeng Honda also grew in July, after double-digit declines in the previous month.

For other cars, American and Korean brands also declined slightly from the same period last year, with market shares reaching 9.3% and 4.0%, respectively. On the other hand, French brands have further hit rock bottom, with a cumulative market share of only 0.3% from January to July. Dongfeng Renault delisting has a greater impact, while Dongfeng Peugeot and Dongfeng Citroen sales remain depressed, further highlighting the survival of French brands in the Chinese market.

From the analysis of the market share of each department, we can also predict the market trend of each brand, and the brand differentiation is more obvious in the market environment of stock competition. From the perspective of the industry pattern, the concentration of the market is increasing, and weak brands are facing elimination.

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