AutoBeta(AutoBeta.net)06/25 Report--

Although few people pay attention to the automobile value preservation rate as the hidden data of the automobile, it really affects the later price of the automobile. Recently, the latest hedge rate report in May was released. From the relevant report, we can see that DS ranks last in terms of the preservation rate of luxury brands with a preservation rate of 38% in three years.

Judging from the models currently on sale by DS and the latest preservation rate, 300000 of the cars can only be sold for more than 100,000 yuan after three years of driving. It costs 100 thousand yuan a year. Is this price expensive? In this regard, some netizens said: French cars love to play romantic, and romance is very expensive. Based on the DS9 model, the new car bought in 300000 is only worth more than 100000 after three years, and the price has dropped by about 200000 yuan. From the relevant used car websites, we can also see that the prices of DS used cars with a certain number of years are generally around 60, 000 to 80, 000.

According to relevant data, the cumulative sales of the DS brand in China in 2019 was 2110 vehicles, down 46.6 per cent from the same period last year. Sales in 2020 were 425, down another 79.90% from 2019. Although sales of the DS brand are low, it says it will not withdraw from the Chinese market. It is understood that the DS brand held a press conference in July 2020 that it will not withdraw from China and will continue to dig deep into the Chinese market. In August last year, the DS brand introduced its flagship model, the DS9, in an attempt to revive DS's influence in China.

DS is a luxury brand of Peugeot Citroen. In 2011, PSA Group and Changan Group established Changan Peugeot Citroen Co., Ltd., the DS brand officially entered China in 2012, and then launched its first model, the DS5, in 2013. However, at the end of 2019, as Changan Peugeot Citroen was sold off by PSA Group and Changan Automobile Group, the two sides listed their 50 per cent stake to Shenzhen Baoneng, and the joint venture was forced to be dissolved after eight years of establishment. The main reason for the dissolution of the joint venture company is related to long-term losses. According to relevant data, Changan PSA lost 1.63 billion yuan in 2016, 1.1 billion yuan in 2017, 874 million yuan in 2018 and 2.233 billion yuan from January to September 2019. In the past four years, the cumulative loss exceeded 5.8 billion yuan.

In August 2020, DS9, a new domestic car under the DS brand, was officially released and started pre-sale. As a flagship model launched by the DS brand in recent years, the DS9 is made in China and supplied around the world. It is worth noting that the products launched by the DS brand in China have launched a total of seven models from 2012 to 2020, but none of them has become a popular style. Facts have proved that what the DS brand lacks is not a lot of products, but products that are competitive enough, and even the newly launched DS9 has not become a popular model of the DS brand. At present, although the DS brand has repeatedly stressed that it will not withdraw from China, it is difficult for it to have a large space for development, and it is still facing great pressure of survival in the future.

French cars have always been popular in the Chinese market, and as a French luxury brand, DS sold only 425 cars in the Chinese market last year. At present, the legal brands on sale in China are Peugeot, Citroen and DS. The first two brands, relying on Dongfeng Motor, are more common in China, while DS, as a luxury brand of PS Group, has a lower and lower sense of existence in the domestic market. The share of French brands shrank further in 2020, from 0.6% in 2019 to 0.3% in 2020, reflecting the impact of elimination of legal brands in the domestic market. Last year, the French brand Dongfeng Renault announced its withdrawal from the domestic fuel passenger car market because of its poor market performance, which is another reason why French brands have shrunk again.

Because there is a certain relationship between the holding rate and the quantity, because the quantity of French cars does not occupy a dominant position in China, the demand and trading volume of second-hand cars are not high, the circulation rate is low, and the trading process of second-hand car dealers is elongated. This also leads to many car dealers are unwilling to trade French cars, which also leads to the low value preservation rate of French cars.

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