China Automobile Co., Ltd. Reduces Expected Independent Brands for Three Years or Half of Their Death

With the major car companies announced the first half sales data, the Chinese automobile market is filled with "cold" air. In the first half of this year, China's auto sales have hit the lowest record in 14 years. The China Association of Automobile Manufacturers lowered its annual sales forecast, which has increased from 8% to 5%. The market share of self-owned brand cars slipped below 30%. Dong Yang, secretary general of the China Association of Automobile Manufacturers, said that it would be difficult for the independent brand to change in the second half of the year or even in the next two to three years, and perhaps half of the self-owned brand cars could not survive.

The Chinese auto market has slammed on the brakes. Statistics from the China Association of Automobile Manufacturers show that in the first half of this year, China's auto sales were about 9,598,100, an increase of 2.93% year-on-year. Among them, passenger cars performed better than commercial vehicles, with cumulative sales of 7,613,500 passenger cars, a year-on-year increase of 7.08%; commercial vehicle sales reached 1,984,600, a year-on-year decrease of 10.40%. According to the statistics of the reporter, the Chinese automobile industry hit a record low growth rate after 1998. In the first half of 1998, China's automobile sales increased by 0.69% year-on-year.

"In fact, the Chinese auto market has already "reversed". The situation is far worse than the data shows." Insiders pointed out that if you consider that a large number of vehicle companies press dealers, then the actual sales to consumers will be in the hands of the car. Great discount. China Association of Automobile Manufacturers began to lower its annual sales forecast. Sure enough, a few days ago, Dong Yang said: "In 2012, China's auto sales will increase by 5% to 8%." At the beginning of this year, Dong Yang forecast that China's auto sales will increase by about 8%.

In the weak situation, major car companies have different results. Statistics from the China Association of Automobile Manufacturers show that of the top 10 auto manufacturers, Changan Automobile, Chery Automobile, and JAC Automobile have seen a significant drop, while the remaining seven companies have maintained growth. Great Wall Motor and GAC Group have seen the most significant growth. In the first half of this year, the top ten were SAIC, Dongfeng, FAW, Chang'an, BAIC, GAC, Brilliance, Chery, Great Wall, and Jianghuai. Their sales were 2,221,630, 1,634,300, 1,331,100, 1,005,200, and 78.84 respectively. 10,000, 368,100, 298,800, 283,200, 279,900 and 24,400.

In the segment market, there is still a clear differentiation of strengths and weaknesses. In the first half of the year, the top ten passenger car sales companies were SAIC-GM-Wuling, Shanghai General Motors, Shanghai Volkswagen, FAW-Volkswagen, Dongfeng Nissan, Beijing Hyundai, Chongqing Chang'an, FAW Toyota, Chery and Geely. They sold 688,700 units respectively. 655,100, 663,700, 618,100, 454,800, 372,800, 293,200, 287,700, 276,700 and 232,200.

In the winter of the auto market this year, self-owned brand cars have become the hardest hit areas. It is understood that the growth rate of the top 5 companies is higher than the industry average, and the 8th-ranked FAW Toyota’s sales have increased by an alarming 40%, but Chery’s vehicles have apparently declined. Chery Automobile ranked sixth in sales in the first half of 2011 and has now dropped to No. 9; its first-half sales fell 12% year-on-year.

Most of the independent brands represented by Chery Automobile are in trouble. In the first half of the year, the monthly sales volume of self-owned brand passenger cars is showing a clear downward trend, hitting a new low in June. In the first half of this year, the self-owned brand of passenger cars sold a total of 3,151,100 vehicles, a year-on-year decrease of 0.16%, accounting for 41.39% of the total sales of passenger cars, and the occupancy rate decreased by 3% year-on-year. Among them, a total of 1,423,300 self-owned brand cars were sold, a year-on-year decrease of 6.78%, accounting for 27.21% of the total sales of cars, and the occupancy rate decreased by 3.60 percentage points from the same period of last year. Dong Yang said that in the future, about half of the autonomous brand cars will be eliminated.

When talking about the predicament of own-brand cars, Dong Yang attributed some of the reasons to misdirection. He does not agree with the idea of ​​independent brands starting from the high end. In fact, many car companies have already lost in the challenge of the Catfish Jumping Dragon Gate. Those auto brands that want to build high-end products have experienced various levels of setbacks. Even if the joint-venture brand in the middle of the original positioning hits the mid-to-high end, it must endure the pain of consumers not buying it.