A reporter from the times weekly newspaper interviewed at the auto show in recent days found that around 150000 people could buy Audi A3, a luxury car brand, and 160000 people could also win the BMW 1 series.
Behind the downward price is the continuous sinking of luxury and joint venture brands in Chinas market strategy, which continues to squeeze the market share of independent brands.
On November 30, Cao he, Secretary General of the auto chamber of Commerce of the all China Federation of industry and commerce, told the times weekly that the trend of joint venture brands downward pressure in the past two years is very clear, and the share of independent brands has continued to decline, and many manufacturers may collapse simply in response to the price war.
Under the powerful hunting, the differentiation of independent brands is more obvious. How to break through the price blockade and achieve brand upward is a problem that all Chinese automobile enterprises need to think about.
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Do you buy an Audi of 146900?
On November 28, when a reporter from time weekly visited the Audi booth as a consumer at the Guangzhou auto show to inquire about the price of buying Audi A3, the Audi sales consultant said that the lowest price of the A3 naked car was 146900 yuan, 22% less than usual. The price of luxury brands is also explored by BMW, and 160000 yuan can be won for the first series and third car. For consumers pursuing BBA, this is an opportunity that cannot be missed.
Many joint venture brands participating in the exhibition also follow up the price reduction. Dongfeng Yueda Kia aopao, listed in Guangzhou auto show, announced a low price of 108000 yuan. Li Mingqing, a salesman of the brand, said that at present, almost all the existing cars in Guangzhou 4S stores have been booked.
Li Guangsheng, a sales consultant at Skodas booth, told the times weekly that the executives asked them to give the highest discount and not report it if it was less than 60000 yuan. Asked about the reason, Li Guangsheng said that he had to sell more than other 4S stores, not only in quantity.
The price of luxury car brands is down to 150000 yuan. The joint venture brands have launched various combos of discounts and gift packages. A price war is staged at Guangzhou auto show 2019.
In the cold current of the automobile market, price reduction and promotion is one of the competitive means, but it also has a negative impact on the whole automobile industry. According to the statistics of the National Bureau of statistics, from January to October, the profit of the automobile manufacturing industry decreased by 14.7% year on year, 1.9 percentage points lower than that from January to September.
Behind the price war
Whether to buy a BMW with 160000 yuan or Geely is a dilemma for car buyers. As of the end of October, Audi A3 and domestic BMW 1 series had sold 70674 and 36781 vehicles respectively, according to the latest sales data of China Federation of passenger cars. It can be seen that the price war of luxury cars is quite devastating.
In recent years, luxury and joint venture brands have also seized the mainstream market share of their own brands through brand sinking strategy.
Time weekly reporter saw on the spot that Jetta brand exhibited various models and set up independent stands. As a popular model of FAW Volkswagen for 18 years in the past, it was upgraded into an independent sub brand in March this year, covering a market segment with a price range of 70000-120000 yuan, and started a positive competition with its own brand.
Jettas independence has released an important signal that the joint venture brand cannot shake the dominant position of luxury brand in the high-end market upward, so it aims at the independent brand downward.
Under the siege of luxury and joint-venture brands, the strength and weakness of independent brands have intensified, and their advantages are highly concentrated in the head enterprises. According to the report of McKinsey 2019 automotive consumer insight, in 2016, the market concentration of Chinas independent head brands was 64%, and by may 2019, the number increased to 79%, up 15%.
During the Guangzhou auto show, Zhu Huarong, President of Changan Automobile Co., Ltd., also said that three years ago, he predicted that its not news for enterprises to close and transfer within three or five years. In the next three years, there will be more enterprises to close and transfer. At last, there will be only five or six Chinese automobile enterprises.
In fact, there are many car companies absent from this auto show. According to the statistics of times weekly, more than 10 auto show regular visitors including Dongfeng Renault, Citroen, DS, brilliance Zhonghua, sway and nachijie did not participate in the exhibition. The sales volume of Zhongtai, Lifan and Huatai fell sharply this year. Affected by the adverse factors such as losses and liabilities, they moved to the edge of the market.
Break up independently
In the situation that domestic auto consumption has not improved significantly, even the independent car companies in the top camp are hard to say that the future is optimistic.
According to the latest data of China Automobile Association, in October, the sales of Chinas brand passenger vehicles totaled 770000, down 9.6% year-on-year. The sales of self owned brand passenger vehicles accounted for 39.9% of the total sales of passenger vehicles, down 1.7% year-on-year. This is the 16th consecutive month that the sales of self owned brand passenger vehicles dropped year-on-year. Since this year, the proportion of sales volume of independent brands has repeatedly fallen below the red line of 40%.
The impact is directly reflected in the financial statements.
According to a survey of the third quarter financial statements of a number of large domestic listed car companies by time weekly, including GAC group (601238. SH), BYD (002594. SZ) and Changan group (000625. SZ), the net profit decreased. In the first three quarters of this year, Changan Automobile lost 2.4 billion to 2.8 billion yuan, down 306.35% - 340.74%.
The arrival of the new four modernizations of automobile adds more uncertainty to the automobile industry.
In this new track, no matter luxury brand, joint-venture brand, independent brand or new power of car building just entering the game, they have not occupied absolute advantage. At this time, for independent brands, it is a good recipe to stick to the research and development of their own technology and promote the brand upward.
On December 1, Jia Xinguang, a senior auto industry analyst, told the times weekly that the brand can not be simply defined as high-end, so we should take the initiative to adapt to the changes. Now the arrival of the new four modernizations is an opportunity to seize the industry outlets such as intelligence and networking, and at the same time, we should increase the technical content and enhance the brand effect.
As a successful attempt of independent brand upward, independent high-end brand linker and wey present another different scenery. In Guangzhou auto show, the two brands stand around to ask a lot of consumers.
In the past, it was unimaginable that LinkedIn and wey both broke through the ceiling of 200000 yuan of independent brand price and could be recognized by the market. In October this year, the 300000 vehicles of wey brand officially went offline in Xushui plant. It took wey only three years to complete this milestone.
He Xiaopeng, founder and CEO of Xiaopeng automobile, has firm confidence in self-determination. On November 22, he Xiaopeng, the founder and CEO of Xiaopeng automobile, told the times weekly that in the next five years, you will see more mid tier brands similar to Volkswagen and Toyota, as well as mid - and high-end or high-end brands one level higher than Volkswagen and Toyota. I think there will be several coming out, even going global.
Source: time weekly Author: Yi Yang editor in charge: Wang Xiaowu Gu NF