Wang Xia: The overall "upward" of Chinese brands still faces many challenges such as the gradual retreat of SUV dividends.

The latest data shows that in the first half of this year, the sales volume of Chinese brand passenger cars reached 5,101,100 units, a year-on-year increase of 3.43%, accounting for 43.39% of the total sales of passenger cars. Among them, the car increased by 12.2% year-on-year, the SUV increased by 10.9%, and the MPV fell by 20.1%.

For the above data, at the 2018 (3rd) China Brand Auto Market Summit held on July 29, Wang Xia, president of the China International Trade Promotion Council Automotive Industry Branch, pointed out that “there are two numbers that are exciting: The proportion of Chinese brands has risen steadily, and the second is that car growth exceeds SUV for the first time. However, for the future of Chinese brands, it is still full of challenges and more uncertainties.

Pictured: Wang Xia, President of the Automotive Industry Branch of the China Council for the Promotion of International Trade

China's automobile brand comprehensive competitiveness

First of all, for Chinese auto brands, the comprehensive competitiveness has been fully improved in recent years, which is not only reflected in the sales and market share, but also in the upward shift in prices and the enhancement of international competitiveness.

In the international market, Chinese brands have ended a long period of downturn and embarrassment, and began a strong recovery. In the first half of this year, the export volume of Chinese automakers reached 512,000 units, a year-on-year increase of 29.4%. Among them, passenger cars exported 374,000 units, a year-on-year increase of 37%. "This time, the export growth, based on the reflection and summary of the previous export strategy, should be more sustainable than the first wave of export offensive." Wang Xia said.

In addition, it pointed out that in the context of the large-scale integration adjustment period of the entire industry, the stronger the effect of the strong is already very obvious. For example, Geely Automobile's sales growth has far exceeded that of the traditional strong Volkswagen and General Motors; SAIC passenger cars have also accumulated a large amount of sales, with sales up 53.67% year-on-year; at the same time, Changan, Jianghuai, Guangzhou Automobile, Great Wall, Beiqi and other companies have also maintained A relatively stable development trend. Chinese brands are competing with joint venture brands in a cluster.

In terms of new energy, Chinese brands also showed strong growth momentum. In the first half of 2018, China's new energy vehicles sold a total of 412,000 vehicles, of which pure electric vehicles accounted for 76%, and plug-in hybrid vehicles accounted for 24%. Among them, Chinese brands still occupy an absolute advantage in quantity, and the growth is gratifying. For example, BYD New Energy's cumulative sales in the first half of the year reached 71,270 units, a year-on-year increase of 106%. In the first half of the year, BAIC New Energy sold nearly 53,598 units, a year-on-year increase of 78.5%.

“Behind these results is the breakthrough of Chinese brands in R&D investment, modeling design, consumer demand insight, platform construction, product experience and marketing innovation. In addition, some car companies are in emerging technologies and A new growth point has been found in the business model revolution brought about by mobile travel," said Wang Xia.

However, even so, for Chinese brand car companies, they still face many challenges and tests.

The SUV's dividend period is about to pass. The auto market is showing more uncertainty.

Wang Xia pointed out that "For Chinese brands, the dividend period of SUV is about to pass, and the competition with the full range of products of joint venture vehicles has begun." According to relevant data, the overall growth rate of SUVs in the first half of the year was only 6.3%, compared with 16.8 in the same period last year. The growth rate of % has fallen a lot, and before that, the SUV market has maintained a growth rate of more than 20% for many years.

In addition, with the ever-changing global and Chinese automotive landscapes, the auto market is also showing more uncertainties, such as Geely's acquisition of Daimler shares, Jianghuai Volkswagen joint venture, Baoneng's acquisition of Guanzhi Holdings, and Beiqi New Energy's backdoor SST forward. Approved, Chery's equity transfer resolution was passed, and Great Wall BMW cooperated to obtain substantive breakthroughs.

It is also worth mentioning that after the high point of the policy stimulus cycle, the Chinese auto market is gradually entering a period of stable and low growth in a long period. Market increments are overdrawn by policies, and competition among manufacturers is more intense. Misalignment of product cycles and mistakes in marketing strategies may cause car companies to fall out of the competition queue.

In a pattern of change and more brutal competition, how can we not be eliminated by the last position? How to look at the direction of the change of the wind, seize the opportunity? These are all questions that Chinese brands are thinking about. However, although the challenge is still there, then the end of the break, the increasingly full-fledged self-owned brands will become more tough after the wind and sand, and wait for Dapeng to rise with the wind, and skyrocketing 90,000 miles!