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

On November 8th, the FIFA released its latest report. Data show that passenger car sales in October 2023 were 2.033 million, up 10.2 per cent from a year earlier and 0.7 per cent month-on-month.

Specifically, the retail market of independent brands was 1.13 million, up 20% from the same period last year, with a domestic share of 55.6% in the same month; retail sales of mainstream joint venture brands were 680000, down 2% from the same period last year, and the domestic share was 33.4% in the same month, including 18.1% for German brands, 17.7% for Japanese brands and 6.1% for American brands. Retail sales of luxury cars in October were 220000, an increase of 8% over the same period last year.

The Federation said that retail sales in the car market strengthened month-on-month in October, forming a strong trend of "silver, nine and gold ten", which is also a common trend in recent years, because the growth driving force of new energy vehicles is stronger than the previous month, but the sustained wave of price cuts has increased the wait-and-see mood of end consumers, reduced the marginal benefits of terminal promotion, and also reflected the phenomenon of waiting and seeing "double 11" in late October.

According to the list of retail sales of domestic automobile enterprises published by the Federation of passengers, the performance of independent brands and joint venture brands is equal, but the differentiation between the two levels is very obvious. Most of the top 10 car companies can achieve double-digit growth. BYD is still growing the fastest, reaching 25.4%, while Guangzhou Auto Toyota, SAIC GM and SAIC GM Wuling all declined, of which SAIC GM fell 16.4%. In the past, the best-selling Japanese manufacturers such as Dongfeng Nissan and FAW Toyota all fell out of the top ten.

As the only fully electric brand, BYD car (including BYD / Teng Teng / equation Leopard) retail 258000 vehicles, up 25.4% year-on-year, is still the biggest increase in the brand. However, as competition in the new energy vehicle market intensifies, BYD's growth has slowed and has begun to get more attention from consumers through price cuts. On November 1, BYD launched the "millions of Ocean Thanksgiving courtesy" campaign. Consumers can enjoy substantial discounts when purchasing BYD Ocean net-related models from November 1 to November 30, including destroyer 07, frigate 05 champion version, dolphin and seal champion version, and Song PLUS champion version, of which frigate 07 can enjoy 2000 yuan to 20000 yuan, equivalent to a price reduction of 18000 yuan in disguise.

Official figures show that BYD sold 2.3115 million cars from January to October 2023, up 70.36% from a year earlier. According to the annual sales target of 3 million vehicles, the completion rate of BYD's sales target in the first 10 months is 79.38%, meaning that BYD needs to complete 618500 vehicles in the next two months to meet its target, with an average monthly sales of 309300 vehicles. In other words, if BYD needs to maintain 300000 vehicles per month in the next two months, it is likely to meet its annual sales target, and the price reduction is undoubtedly to ensure that the sales target is met.

In addition to BYD, other independent-brand car companies also achieved high growth, including Geely up 13.4%, Changan up 11.2%, Chery 38.2% and Great Wall 16.9%. Since the beginning of this year, Great Wall Motor has launched a series of new energy products such as Harvard fierce Dragon / fierce Dragon Max, Wei Brand Blue Mountain / Gaoshan, Tank 400 Hi4-T/500 Hi4-T and other new energy products to accelerate the transformation of new energy. Industry insiders believe that to make up for the shortcomings of new energy is a required course for Great Wall Motor. In the current market environment where terminal sales are slowing down and the "price war" is becoming increasingly fierce, it is like sailing against the current. From the perspective of market reaction, the transformation of Great Wall Automobile Xing Energy has gradually emerged.

In contrast, the market differentiation of joint venture brands is extremely serious, and the competition between brands is obvious. Take North and South Volkswagen as an example, FAW-Volkswagen (including Volkswagen / Audi / Jetta) sold 154000 vehicles, an increase of 12.3% over the same period last year, while SAIC Volkswagen (including Volkswagen / Audi / Skoda) fell to fifth, down 2.3% from a year earlier. SAIC GM (including Buick / Chevrolet / Cadillac), which is headquartered in Shanghai, is even worse. Its October sales fell 16.4% from a year earlier to 73000 vehicles, the biggest decline in the top 10.

Japanese car companies are even more bleak, with only one joint venture in the top 10, including Dongfeng Nissan, FAW Toyota, Guangzhou Automobile Honda and Dongfeng Honda, which all fell out of the top 10, while Guangzhou Auto Toyota also had a hard time. Its sales fell 5.4% year-on-year to 84000 vehicles, but better than other Japanese brands, such as Dongfeng's daily sales of 70000, down 18.66% from the same period last year. It has to be admitted that the current joint venture brand models are becoming more and more difficult to be recognized by Chinese consumers. With the formation of technical barriers to the electrification and intelligence of independent brands, consumers begin to turn their attention to more economical domestic cars.

Generally speaking, October is the peak sales season for the automobile industry, and it is not surprising that car sales have increased. Car companies have done everything they can to seize the market, and even BYD has begun to cut prices. At present, the new energy vehicle industry has shown steady growth, and enterprises with the layout of electric vehicles have the potential for growth, making the life of traditional joint ventures more and more difficult. The collective decline of Japanese brands is a typical example.

Since the beginning of the year, the automobile market is facing unprecedented fierce competition. In the second half of the year, with the implementation of the sixth national emission policy and the price impact of inventory cars, the price trend of fuel vehicles will return to normal in the second half of the year. As the demand for fuel vehicles picks up in the autumn, it may show a trend of "stabilizing first and then recycling".

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