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In the past, the joint venture brand was recognized by domestic consumers with its civilian price and good brand image, and occupied most of the domestic car market. However, in recent years, with the improvement of the strength of independent brands, the gap between their brand image and independent brands is gradually decreasing; on the other hand, with the sharp decline in the price of foreign high-end brands, the market of joint venture brands is also being eroded gradually. At present, joint venture brands are suffering from independent brands and foreign brands, and are in an awkward position.

Joint venture brands reduce dimensionality and fight against failure

At present, Chinese people's concept of car consumption is becoming more and more rational. For ordinary people whose family status accounts for the majority, about 100000 is still the preferred price range, and the low-end market still accounts for a large proportion of China's auto market. For this market, joint venture brands mainly reduce dimensionality and attack independent brands in the form of a third brand, such as Qichen launched by Dongfeng Honda and the concept launched by Guangzhou Automobile Honda. However, for the third brand launched by the joint venture brand, in order to reduce costs, the backward platform and technology of the parent company are often adopted, and some models are sold by changing the face of the old car model of the parent factory. it is difficult to be recognized in the current market where consumers have higher and higher requirements for car configuration. In the past few years, the strength of the independent brand has grown rapidly, the product quality and vehicle configuration have been greatly improved, the image of the independent brand has also been significantly improved, and the gap between the independent brand and the joint venture brand has gradually narrowed. As a result, the share of the joint venture brand in the low-end market began to be lost and gradually eroded by the independent brand.

It is difficult to upgrade the brand.

In the face of the failure in the low-end market, the mainstream joint venture brands have begun to take the road of brand promotion, through the introduction of high-quality models to improve their brand image, and gradually dilute the low-end market. However, in terms of sales in the first half of this year, among the high-quality models mainly promoted by independent brands, the sales of Changan Ford Taurus and Dongfeng Citroen C6 were 1333 and 929 respectively, while the sales of Dongfeng Nissan Simar were only 4. Compared with the sales of high-end Cadillac XTS in the first six months, the performance of the joint venture brand in the C-class market is extremely dismal, which shows the gap between the joint venture brand and the high-end brand in the C-class market. The purpose of the joint venture brand to launch high-quality models, on the one hand, is to grab market share, on the other hand, to improve its brand image, but from its embarrassing sales, it is difficult to achieve this goal.

Faced with a sandwiched attack, the joint venture brand is in a dilemma.

In recent years, the strength of independent brands has grown rapidly, and the trend of going up is becoming more and more obvious. Geely's Lecker, Great Wall's WEY and SAIC's Roewe have all cut into the price range of mainstream joint venture brands, and their rich configurations and more competitive prices have strangled the medium-and low-end models of mainstream joint venture brands. On the other hand, high-end brands have also begun to sink in terms of product and price, and Mercedes-Benz's A-Class, BMW's 1-Series and Audi's A1 have all begun to erode the market of joint venture brands, making it extremely difficult for joint venture brands to launch high-quality models to seize the market. The decline of the price of high-end brands and the upward attack of independent brands make the joint venture brands in a dilemma of sandwiched up and down, which is difficult to break through for a while.

In the face of the up-and-down attack of independent brands and high-end brands, joint venture brands on the one hand want to attack independent brands by launching a third brand to reduce dimensionality, on the other hand, they want to launch high-quality models to seize the market, in an attempt to take a share in the spring tide of consumer upgrading, but the market does not develop in accordance with the scenario expected by the joint venture car companies. For joint venture brands, how to play well in the second half of 2019 is a big problem that every car company needs to face.

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