AutoBeta(AutoBeta.net)11/08 Report--

The luxury car market continues to grow rapidly, and the sales of many brands have risen sharply and ushered in historical highs, which has become a major breakthrough in the automobile market this year. Luxury car retail sales rose 33% year-on-year in September, double-digit growth for many months in a row, and market share remained at around 15%, according to the federation of passengers. The demand for high-end cars brought about by consumer upgrading, as well as the increasing competition for luxury cars, have led to a continuous decline in prices, further expanding the consumer market covered by luxury cars.

Under such circumstances, the luxury car market continued to prosper in October, with mainstream luxury brands rising sharply collectively. In the past October, second-tier luxury brands increased more significantly, including Cadillac, Lincoln and other brands, also achieved the biggest growth this year.

Cadillac stopped falling

The momentum trend at the end of the year is strong, and the Cadillac brand has surpassed Lexus in sales for two months in a row, reviving the battle for the second-tier luxury title. Official figures show that Cadillac sold 25316 vehicles in October, up 81% from a year earlier and the biggest increase of the year. At the same time, Cadillac sold 178176 vehicles from January to October, roughly the same as the same period last year, ending the decline.

With the in-depth adjustment and upgrading of the product line, Cadillac products have been further improved and the market positioning has become clearer, thus helping to increase brand sales. On the other hand, the sales strategy of Cadillac terminal price reduction for volume is also an important way for the brand to continue to obtain sales. Sales of 26000 vehicles in September and 25300 in October are the highest of the year, and the trend of Cadillac impulse at the end of the year is obvious.

Cadillac is under a lot of pressure from Lexus. In October, Lexus sold 23600 vehicles in China, up 44.4% from a year earlier. From January to October, Lexus sold 182000 vehicles, still ahead of Cadillac and temporarily ranked first in second-tier luxury. Lexus brand value marketing and product characteristics, resulting in its high loyalty, is also an important reason for its steady growth.

In 2020, the focus of second-tier luxury is on Cadillac and Lexus. If Cadillac continues to maintain the trend of rapid growth, it is not impossible for Cadillac to overtake Lexus at the top of the second-tier luxury car by the end of the year. On the other hand, if Lexus finally wins the championship, it will also be a moment to witness history.

Red Flag surpasses Volvo again.

Red Flag, an independent luxury brand, has sold more than 20,000 units for three months in a row and squeezed out Volvo to enter the second-tier luxury top three formation. Red Flag brand sold 23000 units in October, up 93 per cent from a year earlier, according to official figures, with cumulative sales of 153000 units from January to October, up 103 per cent from a year earlier. Red Flag has set a sales target of 200000 units this year, and has now achieved 76.5% of the target. In the remaining two months, Red Flag is hopeful to achieve the goal as long as it continues to maintain a good momentum.

With the sinking of positioning, the gradual enrichment of products and the continuous development of marketing, the sales volume of Red Flag brand has ushered in high growth. At present, Red Flag product line includes H5, H7, H9 cars, as well as HS5, HS7, E-HS3 three SUV models. Officials say the Red Flag brand will expand to 30 products in the next 10 years, covering more market segments.

Volvo's growth has slowed compared with other brands. Volvo sold 16688 cars in China in October, up 19 per cent from a year earlier, the lowest increase in the list, while cumulative sales from January to October were 130000, up 5.3 per cent from a year earlier, to be overtaken by the Red Flag brand.

Volvo's development path in China is also somewhat "partial". At present, Volvo has four domestic models: XC40, XC60, S60 and S90. affected by brand and market competition, Volvo terminal price is obviously "out of control". For example, the general market discount rate of S90 reaches 80, 000 yuan. It is also a major tone of the Volvo brand to maintain sales with price cuts.

Lin Kenwei has a strong growth.

Although the sales volume is not large, but Lincoln and NIO have a good momentum of development, sales growth is strong. Of these, Lincoln sold 7300 vehicles in October, up 103 per cent from a year earlier. Lulai, an independent high-end new energy brand, sold 5055 vehicles in October, up 100 per cent from a year earlier.

Since the launch of two domestic models, adventurer and pilot, Lincoln's sales in China have reached a new high. The continued prosperity of the luxury car market has also created conditions for the revival of the Lincoln brand. Officials say Lincoln's strategy is to stick to the "differentiated" competition of brand value, American luxury and service.

As a new power brand NIO, even if it has not yet gained a foothold, it can be said that it has passed the dangerous period. NIO's earlier development was not smooth, vehicle failure and spontaneous combustion problems affected market performance, the stock price plummeted to more than 1: 00 US dollars, huge capital consumption, huge losses, layoffs and so on. With the implementation of a number of financing projects and the credit of banks, the financial pressure should be greatly alleviated.

Core services such as brand stories and power exchange modes shaped by huge amounts of money are important reasons for continuing to attract consumers.

In the luxury car market, the first-tier luxury market occupied by BBA is mature and stable, while the second-and third-tier luxury market competition is fierce, the two-tier differentiation is obvious, the head brand growth is obvious, and some brands also usher in opportunities for recovery, but some brands have also been in the doldrums for a long time, including Infiniti and Acura.

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