"Semi-Annual Examination" of Automobile Market
Matthew effect intensifies the rise of independent brands
"The epidemic has pressed the acceleration key for the survival of the fittest in automobile companies." Recently, the judgment of Wang Xia, chairman of the China Council for the Promotion of International Trade and the chairman of the China Chamber of International Commerce, once again reminded everyone that the second half of 2020 Market competition will be more intense.
Statistics show that the market concentration of the top 10 auto companies in sales in May was 61.8%, and their respective market share exceeded 11%. Therefore, for major auto companies, this year's "semi-annual test" is particularly severe. From January to May this year, automobile production and sales were 7.787 million and 7.957 million, down 24.1% and 22.6% year-on-year. Although the overall data for the first half of the year has not yet been released, the sharp decline in automobile production and sales is a foregone conclusion.
Recently, at the China Automotive Industry Development Seminar held by the China Association of Automobile Manufacturers, Wu Wei, Director of the Industrial Development Department of the National Development and Reform Commission, said that the auto market this year has shown increased differentiation of market players, increased uncertainty, and continuous decline in capacity utilization. Features.
"At the same time, the international market is volatile, and the automotive industry system is facing challenges. Under the influence of complex international relations and the epidemic situation, the market situation is still uncertain." Wu Wei said.
Among them, the challenges faced by independent brands continued to increase in the first half of this year. According to Xu Haidong, deputy chief engineer of the China Association of Automobile Manufacturers, Chinese brand passenger cars sold 2.264 million units from January to May, a year-on-year decrease of 32.5%, and a market share of 37.1%, a year-on-year decrease of 2.8 percentage points.
Behind the shrinkage of independent brand positions is the change in market demand brought about by a new round of consumption upgrades. According to the reporter, in May this year, domestic luxury car sales increased by more than 20% year-on-year, while demand for models below 80,000 yuan was sluggish.
"This shows from one side that people's pursuit of health, safety, and quality of life is directly reflected in automobile consumption. It can be said that the epidemic has pressed the conversion button for consumption upgrade, which has opened new space for product quality and brand upgrade." In Wang Xia's view, it is imperative for independent brands to go up and break the price ceiling.
At the 2020 China Automobile Chongqing Forum held recently, Changan Automobile Party Committee Secretary and Chairman Zhu Huarong said that there is a new trend in industry competition, more than 1,000 dealers are facing shutdown and transfer, and some independent brands may have difficulty recovering, but independent Brand head companies are growing rapidly.
"In the future, many new technology applications will change the global business model. The automotive industry has withstood the short-term pain and embraced this round of new technological changes." Zhu Huarong said bluntly.
You Zheng, Member of the Standing Committee of the Party Committee and Deputy General Manager of Dongfeng Group Co., Ltd., believes that China's auto industry still has the potential for development, and will enter a new stage from scale growth to high-quality development. The new coronary pneumonia epidemic has accelerated the speed of digitalization, which has become New opportunities for high-end breakthroughs of Chinese brands.
"The automobile industry is currently showing the integrated development of'five-in-one', one-vehicle and'four-network'." You Zheng further said that based on digital technology, it has made lightweight, electrified, intelligent, and networked. Integration and sharing are all combined in one car, and the road network, energy network, information network and financial network are also connected through this car. During the epidemic, new automotive retailing has also quietly developed in the bud.
In You Zheng's view, accelerating the upgrade of traditional vehicles to new ecological vehicles and strengthening brand upgrades will be a breakthrough for Chinese independent brands to break through from low-end to high-end.
Previously, the Automobile Industry Association had predicted that if the overseas epidemic situation was effectively controlled in the second quarter of this year, it is expected that China's auto market sales in 2020 might decline by 15% year-on-year; if the overseas epidemic situation cannot be effectively contained, it will affect the third quarter or more. It is expected that China's auto market sales will decline by 25% year-on-year in 2020.
"In the post-epidemic era, Autobots will face more uncertain factors and issues. The restoration and reconstruction of the supply chain and the remodeling of consumer information have increased the difficulty of the challenge. This will be a huge one. Stress test, let auto people re-understand themselves and the market." Wang Xia said.
China Youth Daily · China Youth Network reporter Cheng Honghe Source: China Youth Daily