AutoBeta(AutoBeta.net)06/02 Report--

As an important factor for consumers to consider when buying a car, the preservation rate of car value not only allows car owners to suffer less losses when buying a car, but also reflects the market recognition of the car to a certain extent. On June 2, the China Automobile Circulation Association released a report entitled "Research on the preservation rate of automobile in China in May 2021", which shows that the preservation rate of most domestic automobile brands has increased.

Porsche ranks first among luxury brands with a preservation rate of 85.6 per cent, up slightly from 92.8 per cent in April. Lexus ranked second with a preservation rate of 86.6%, while Mercedes-Benz ranked third with a preservation rate of 74.9%. Porsche, Lexus and Mercedes-Benz all achieved growth, in addition to these three major brands, such as Audi, Infiniti, Volvo and Land Rover. It is worth mentioning that under the background of the increase in the preservation rate of many luxury brands, Tesla has become the only brand on the list to decline, with the preservation rate of 66.2% in April and falling to 65.0% in May. It is speculated that the decline in Tesla's preservation rate has something to do with its recent social events.

In the ranking of the preservation rate of overseas brands, Japanese brands rank high, with Toyota, Honda, Mitsubishi, Mazda and Nissan ranking first to fifth respectively, with Toyota and Honda in the first echelon, with three-year preservation rates of more than 70%, 78.8% and 76.5%, respectively. In addition, the preservation rates of Mitsubishi, Mazda, Nissan, Volkswagen, Hyundai and Kia all showed an upward trend in May. The association said, "the overall rise of joint venture brands shows that when the prices of luxury brands fall, the prices of independent brands remain firm. Compared with the recovery in the past, it is also related to the fluctuation of the overall market."

The ranking of the value preservation rate of independent brands has also changed. Wuling is the only brand that has reached 70%. Why is the preservation rate of Wuling brand so high? Mainly related to products, Wuling's products are generally the main cost-effective route, whether it is Wuling Hongguang or Wuling Hongguang MINI. In other words, the configuration of the car that is cheaper than it is not necessarily good, and the price of the car with higher configuration is relatively higher, which is also the main reason for the greater demand of Wuling Automobile in the market.

In second place is the Lecker brand, which has the largest increase among independent brands with a value preservation rate of 66.1% this month. From the value preservation rate data, Geely's high-end strategy for the Lecker brand has played a certain effect, so it can be recognized by the majority of consumers in the second-hand car market. In addition to the excellent strength of its own products, Lecker's reasonable pricing strategy is also the guarantee of its high value preservation rate.

Chuanqi, WEY, Baojun, Changan, Qichen and Harvard ranked 3-8 respectively, with a value preservation rate of more than 60%, showing the gradual rise of independent brands to a certain extent. In addition, Geely, Mingjue, Red Flag and other brands have shown an increase in value preservation rate, while Pentium is the only brand on the list that has declined.

The preservation rate has increasingly become an important index for consumers to consider, and it is the embodiment of the comprehensive level of automobiles. The advantage of models with high preservation rate is to make consumers bear less economic losses caused by product devaluation, and it is also the embodiment of brand premium and product value. Therefore, the 3-year value preservation rate of different models has a high reference value for consumers to purchase new cars. However, since March and April after the Spring Festival are traditionally off-season, it is not surprising that most brands were able to increase their preservation rates in May. However, in May, eight of the independent brands maintained more than 60% of their value, which also means that domestic first-tier independent brands are constantly developing upward, narrowing the gap with joint venture brands. Of course, under the background of increasing market concentration and strengthening brand competitiveness, marginal brands such as Zhongtai, brilliance, seahorse, southeast, and other brands have gradually faded out of sight.

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