AutoBeta(AutoBeta.net)06/13 Report--

According to the latest data from the Federation of passengers, sales in the domestic narrow passenger car market reached 1.626 million in May, up 1.1 per cent from a year earlier and down 1.2 per cent from a month earlier. A total of 8.366 million vehicles were sold from January to May, an increase of 38.2% over the same period last year.

The performance of China's passenger car market in May was not optimistic, resulting in varying degrees of decline in sales throughout the year, passenger car growth pressure increased significantly, sales showed a slight decline. According to the data, the cumulative sales of independent brands from January to May were 3.1678 million vehicles, with a market share of 37.9%. The cumulative sales of mainstream joint venture brands are 3.968 million, with a market share of 47.4%, while those of luxury brands are 1.2303 million, with a market share of 14.7%.

The market share of mainstream joint venture brands is constantly declining. According to the data, the market share of joint venture brands from 2018 to 2020 is 50.2%, 51.4% and 51.1% respectively, which is basically maintained at more than 50%, up from 47.4% in the first five months of this year. According to the FIFA data, the market share of German, Japanese and Korean systems all declined in the first five months of this year, to 25.1%, 22.9% and 2.9% respectively, while French brands remained at 0.3%, while American brands remained at 9.7%, an increase of 0.3% over 2020, unable to have a substantial impact on the market.

In contrast, independent brands have a market share of 37.9% from January to May of 2021, an increase of 2.1% compared with 2020. Although the growth rate is not much, the decline of mainstream joint ventures is obviously in sharp contrast to the growth of independent brands, reflecting that independent brands are constantly eroding the market of joint venture brands.

The improvement of Chinese brand passenger car market share is inseparable from the positive contribution of independent head car companies. According to the Chinese brand passenger car sales ranking released by the China Automobile Association, automakers such as SAIC, Changan, Geely, Great Wall and BYD entered the top 10, with their performance well above the market level.

Independent head car companies can achieve sales growth, which has a lot to do with the improvement of products and technology. For example, Geely currently has four architectures: BMA, CMA, SPA and SEA. Xingrui, which is based on CMA platform, has become Geely's benchmark model, and the third CMA model, Xingyue L, is expected to be launched in the third quarter. Changan Automobile is mainly the update of products and power system. In the past two years, the renewal of CS series and the addition of UNI series have made the brand more in line with the needs of consumers. Changan Automobile also released the Blue Whale iDD hybrid system at the Chongqing Auto Show. Great Wall Motor focuses on multi-point layout, and currently owns mainstream SUV brand Harvard, new energy brand Euler, high-end brand WEY, off-road brand tanks. In recent years, in addition to strengthening the launch of the third generation Harvard H6, Harvard Dog, Harvard first Love and other models, it has also launched major off-road tank brands. In addition, the performance of independent brands such as BYD and FAW in the market is obvious to all.

It has to be admitted that some of the technologies of independent brands have surpassed those of joint venture brands, and the rebound in market share is the best proof. At present, some joint venture products have a lot of preferential space in the terminal market, and the reason for this situation is not only the intensification of competition among brands, but also the reverse pressure of independent brands.

At present, new energy vehicles have gradually become the development trend of the market, and the main reason for the decline in market share is that the sales growth of new energy vehicles of mainstream joint venture brands is not as fast as that of independent brands. Judging from the current market, the domestic new energy market mainly comes from SAIC GM Wuling, BYD, Tesla, SAIC Group, Great Wall Automobile and new car-building brands such as Lai, ideal, Xiaopeng and other brands. the sales of new energy vehicles, including FAW-Volkswagen, SAIC-Volkswagen, Dongfeng Nissan, Dongfeng Honda, FAW-Toyota and other joint venture brands, do not have the advantage to occupy the market.

Take the Volkswagen brand as an example, in the first half of this year, FAW-Volkswagen and SAIC-Volkswagen respectively delivered ID.4CROZZ, ID.4X, two new pure electric SUV, Volkswagen has high hopes for the two models. This year, SAIC-Volkswagen has set a sales target of 50-60, 000 vehicles for the ID.4X, which means it will sell at least 5000 vehicles a month, although figures show that 519 ID.4 CROZZ and 1008 ID.4X vehicles were sold in May, suggesting that the chip may have affected the car.

In addition, Changan Ford's first pure electric model, MustangMach-E, was officially launched in April with a price of 26.5-379900 yuan. Changan Mazda will launch the Mazda CX-30EV this year, while GAC-Mitsubishi will launch its first new energy model, the GAC-Mitsubishi Artuco, a new energy model jointly developed by GAC Ean and GAC-Mitsubishi, based on AionV.

Generally speaking, the growth of the market share of independent brands and the decline of mainstream joint venture brands reflects that consumers are beginning to accept Chinese brands. In some technologies, independent brands can really shine before people's eyes, which also lays a solid foundation for the sustained and sound development of Chinese brands. In the current market environment, brand differentiation is becoming more and more obvious, market concentration is also increasing, leaving weak brands few opportunities to change the situation.

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