Vehicle market declined for 11 consecutive months: independent share innovation, low new energy growth brake

category:Finance
 Vehicle market declined for 11 consecutive months: independent share innovation, low new energy growth brake


According to the data released by the China Auto Association, the cumulative output of domestic automobiles in May was 184.83 million, down 21.2% compared with the same period last year, an increase of 6.7% compared with the same period last month; the cumulative sales of domestic automobiles in May were 1913,000, a decrease of 16.4% compared with the same period last year, an increase of 1.8% compared with the same period last month, and the decline of production and sales has expanded. From January to May, the domestic automobile market completed 10.237 million vehicles and 10.266 million vehicles respectively. The production and sales volume decreased by 13% compared with the same period last year, and the decline rate increased by 2 percentage points and 0.8 percentage points compared with January to April, respectively.

According to the data released by the China Automobile Association, the decline of passenger car market is still greater than that of the overall automobile market. In May, the production and sales of passenger cars in the market were 1.491 million and 1.561 million respectively, down 10.2% and 0.9% respectively, compared with the same period last year, down 23.7% and 17.4% respectively. From January to May 2019, the cumulative production and sales of passenger cars were 8.379 million and 8.399 million respectively, down 15.6% and 15.2% compared with the same period last year.

From the perspective of production and sales of passenger car market, in January-May, the production and sales of car segment market decreased by 13.1% and 13.4% respectively compared with the same period last year; the production and sales of SUV decreased by 17.9% and 15.7% respectively compared with the same period last year; the production and sales of MPV decreased by 21.1% and 23.9% compared with the same period last year; and the production and sales of cross-passenger car decreased by 0.1% and 13.1% respectively compared with the same period last year.

Cui Dongshu, secretary-general of the National Passenger Vehicle Market Information Association, said, Most consumers are in a wait-and-see state because of the switching between the Fifth and Sixth National Congresses. Even though the promotion activities of automobile companies are varied, they have not achieved the corresponding expected results, and potential consumers have become more cautious.

Continuous failure of market share of self-owned brand

So far, 12 auto companies have released May production and sales data. From the sales situation of various automobile enterprises, only Jianghuai automobile has achieved 11.46% comparative growth, with sales of 391,000 vehicles in May. Sales of the remaining 11 automobile enterprises, such as SAIC, Guangzhou Automobile Group, Changan Automobile, Geely Automobile and Beiqi New Energy, are in a downward trend in May.

In the joint venture sector, except for Japanese joint venture brands, the other joint venture brands are showing a downward trend. Among them, the French joint venture brand declined by a large margin, with the sales of Shenlong Automobile in May only 8698, down 67% from the same period last year. The sales of Dongfeng Renault in May dropped to 1088. Japanese brands Zhongfeng Honda, Guangzhou Automobile Honda, Guangzhou Automobile Toyota and FAW Toyota achieved year-on-year growth in May. Although Dongfeng Nissan did not achieve year-on-year growth in May, but the decline was low, only 0.84%.

In the luxury car market, the sales of second-tier luxury car brands are booming. Lexus, Cadillac, Volvo and other brands have achieved positive growth. Lexus sales surged 150% to 17,000 in May. But there were also luxury car brands that saw sales decline, with Audi in the BBA camp falling by 7.4% in May.

In addition, according to the performance of the independent brand in May, its market share continued to fail, reaching a new low in three years. According to the CAAC data, the cumulative sales of self-brand cars in May were 565,000, down 28.1% from the same period last year, with a market share of 36.2%, down 5.4% from the same period last year. In the first five months, the cumulative sales of self-owned brands were 33.335 million vehicles, down 23.4% from the same period last year, and the market share was 39.7%, down 4.2% from the same period last year.

Cui Dongshu said, When the domestic automotive market environment is good, the performance of independent brands will follow; but when the automotive market goes down, the quality and core competitiveness of automotive enterprises are competing, and the shortcomings of independent brands are exposed.

New Energy Vehicle Sales Growth Slow

In May, the overall domestic automotive market declined in the environment, new energy vehicles are still showing negative growth. According to CAAC data, the production and sales of new energy vehicles were 112,000 and 104,000, respectively, up 16.9% and 1.8% over the same period of last year; from January to May 2019, the production and sales of new energy vehicles were 480,000 and 464,000, respectively, up 46.0% and 41.5% over the same period of last year.

Shi Jianhua, deputy secretary-general of the China Automobile Association, said, On the one hand, the policy reasons are that the decline of subsidies has led consumers to concentrate their purchasing power in the first few months. With the decline of subsidies, some models have risen in price, which has affected consumerspurchasing decision-making. On the other hand, in the current transition period of five countries and six countries, in order to clear inventory, automobile companies and distributors promote the five models. As a result, the price of Guowu model has gone down, and some consumers who want to buy new energy vehicles have turned to Guowu model.

Not only that, but also insiders believe that the slowdown in sales growth of new energy vehicles in May is also related to the decline in sales of new energy commercial vehicles. As subsidies decline, sales are released ahead of schedule, resulting in lower sales in May.

Stimulus policy, the second half of the fatigue is expected to ease

According to industry analysis, some provinces and cities will begin to implement G6 emission standards from July 1. In June, the domestic automobile market will be in a period of deep adjustment. Automobile companies and dealers will accelerate the release of G5 inventory pressure. Under this environment, the automobile market sales in June may recover somewhat.

Not only that, in order to save the automobile market, the national level has also introduced corresponding stimulus policies. In February, the NDRC joined 10 ministries and commissions to restart the policy of automobile going to the countryside to promote the consumption upgrading of the rural automobile market. However, at present, due to the relative saturation of the 100,000-yuan market in the township market, the effect of automobile going to the countryside is limited.

At the beginning of June, Guangzhou and Shenzhen simultaneously issued the notice of increasing the car license limit. From June 2019 to December 2020, Guangzhou and Shenzhen added 100,000 and 80,000 cars respectively. On June 6, the Development and Reform Commission and other three ministries and commissions issued the Implementation Plan for Promoting the Renewal and Upgrading of Key Consumer Goods and Unobstructed Recycling of Resources (2019-2020). They demanded that barriers to passenger car consumption be removed, that new regulations on car purchase restrictions be strictly prohibited in all parts of the country, that no more restricted cities be added, and that new energy vehicles be restricted and restricted in all parts of the country. The implementation should be abolished, which will bring a relatively positive effect to the passenger car market and further promote the growth of production and marketing of new energy vehicles. Industry analysts said that the introduction of the national stimulus policy may change the declining trend of the automobile market, but the recovery still needs a period of time. Source: Wang Xiaowu_NF, Responsible Editor of Beijing Newspaper

At the beginning of June, Guangzhou and Shenzhen simultaneously issued the notice of increasing the car license limit. From June 2019 to December 2020, Guangzhou and Shenzhen added 100,000 and 80,000 cars respectively. On June 6, the Development and Reform Commission and other three ministries and commissions issued the Implementation Plan for Promoting the Renewal and Upgrading of Key Consumer Goods and Unobstructed Recycling of Resources (2019-2020). They demanded that barriers to passenger car consumption be removed, that new regulations on car purchase restrictions be strictly prohibited in all parts of the country, that no more restricted cities be added, and that new energy vehicles be restricted and restricted in all parts of the country. The implementation should be abolished, which will bring a relatively positive effect to the passenger car market and further promote the growth of production and marketing of new energy vehicles.

Industry analysts said that the introduction of the national stimulus policy may change the declining trend of the automobile market, but the recovery still needs a period of time.