How local brands break through

Slowing growth slows down profits. Joint ventures block up and down. BYD is a banner of local auto brands. It sets the ambitious goal of “2015 first in China, first in the world in 2025” and is also the single largest domestic sales brand with the largest sales volume. . More importantly, it has strong cost control. In 2009, it had a handsome margin of 14.11%. However, this halo was also shattered when the financial report was announced in 2010. Not only did the growth rate of production and sales drop sharply, but even profits It dropped by half.

The shattering of BYD’s high-growth, high-profit model is also a true portrayal of local car brands. Even the Great Wall and Chery, the two car companies that are against the domestic flag, are negotiating joint ventures with Land Rover and Subaru, and will no longer go purely local. Way.

The big gap in progress is also big BYD (1211. hk) The latest 2010 annual report shows that due to the substantial increase in costs, car sales continue to be bleak, the company last year, net profit fell 33.5% year-on-year to 25.2 billion yuan, of which, from the automotive business profits It also fell from 3.5 billion yuan in 2009 to 1.74 billion yuan in 2010. The decline rate is close to 50%. This means that the company's aggressive promotion at the end of last year will not help improve profitability.

Objectively speaking, local auto companies have made great progress in the past two years, but these progresses are only reflected in static indicators. Dynamic performance indicators still have a big gap with joint ventures, such as manual transmission shift schedule, shift smoothness It is generally poor, and the matching of the automatic transmission with the engine and the vehicle is generally poor.

Xu Xiangyang, vice president of the School of Transportation Science and Engineering at Beijing University of Aeronautics and Astronautics, believes that dynamic performance indicators are the best indicators of the technical level and quality of an automobile. They must rely on technology, relying on experience and a large number of experimental tests to match. This widening of the gap indicates that the lack of domestic experience in car repair also reflects the impetuousness of car repair.

Li Shufu, chairman of Geely Group, said frankly during the “two sessions”: “The crisis is very strong. The joint venture's own brands are under pressure, and local brands are killing each other.” Zuo Yan’an, chairman of Jianghuai Automobile, also stated that the development of China’s own-brand vehicles has come. A very critical moment.

Qi Xuezhong, General Manager of GAC Gonow, said in an interview with the newspaper that the gap between local brands and joint ventures is also shrinking, and some models have surpassed joint ventures, but there is still a big gap between reputation and reputation compared with joint ventures. "It is not that the Chinese do not have a good car, but that time is not enough." He said, "China's auto industry has a history of 50 years, but the local car is only 10 years old. The history of foreign car development has exceeded 100 years. It should be After 10 years of looking at it, it will definitely be different."

The unfavorable share of performance policies is declining. Significant progress has been made in local automobile brands in the past two years, and favorable policies are the key. However, as a policy of policy and policy of failure, the lack of competitiveness of local brands was exposed immediately after the end of policies such as vehicle purchase tax concessions and automobile to the countryside. According to the statistics from the China Automobile Association, in the first two months of this year, the domestic brands of passenger cars sold a total of 1.16 million units, an increase of 3.17% year-on-year, accounting for 46.49% of the total sales of passenger cars, and the share dropped by 3.31%. The huge scale was eliminated. After micro-offers, market share will further decline.

Not only is the market share falling, but also the gap between local brands and joint ventures is widening in terms of profitability.

Challenging low-end unstoppable, mid-to-high end unbreakable For mid-to-high-end markets where local brands have always tried to break through, except for the Roewe 550 and Guangzhou Automobile Co., it seems that they have not yet seen which model will succeed, and the joint-venture brand is still firmly established. Take control of this market. As the saying goes, it's easy to get up and down, and the joint ventures continue to push down the product line. New Sail, Sunshine, and Rena grab a lot of market in a short time. Guangben concept, Dongfeng Nissan Kai Chen, SAIC-GM-Wuling Baojun and other "joint auto" models are still eyeing behind.

What's even more frightening is that after the Beijing restricted license, the Subaru Forester has surpassed the F3 to become the best-selling vehicle in the region. Cadillac Brand Minister Chen Weixu also frankly stated that the Beijing limit license outweighs the disadvantages of the luxury brand. Some people also say that local brands have a vast area of ​​use in the second, third, and fourth-tier markets, and even the township market. However, according to the survey, even if there are only 100,000 yuan for consumers, they will want to buy a big brand. A class car, not a local brand.

Measures to improve core competitiveness rather than staking up local auto companies are also continuing efforts, including Chery, Geely, Great Wall and other car companies in R & D investment, accounting for almost 10% of sales, in the engine, transmission and other core technologies New breakthroughs have been made and the shape has become more and more international. The large-scale national auto group adopts a full set of imported technologies and develops innovative methods based on digestion and absorption, and has achieved very good results. FAW Pentium, SAIC Roewe, Guangzhou Automobile Chuanqi, Beiqi passenger cars are out of this way.

However, more local car companies are keen on large-scale staking events. When the production and sales scale is only 300,000 units, they are thinking about the production and sales target of 2 million vehicles in 2015. The production bases are all over the country. The number of local models may not even be able to count the number of sales company CEOs. There may not be a monthly sales of over 10,000.

The three major “killer” models of local brands did not expect to sell so well. It has been the best-selling model for more than a few months. VW standard + good shape + low price, is invincible, not popular brand appeal is too strong, but poor local brand appeal. Volkswagen has already publicly stated that it will also build a “self-owned brand” model of RMB 78 million. Will the local brand be even more tragic?

The new Sailo New Sail model designed for the Pan-Asian Center, only linked to the Chevrolet standard, monthly sales continued over 10,000, becoming the market segment NO. 1, the lowest price dropped to 49,900 yuan, which also shows that cost control is no longer the exclusive advantage of local brands.

The price of the new sunlight, a price of RMB 82,800, was announced. Some local brand models were dumbfounded. In the original site of the local brand, the new sun did not disappoint Nissan, and the first month of sales was broken. No one has ever ruled that well water cannot commit river water. Where can local brands go?

Three "powerful" domestic models Roewe 550

Shanghai Automotive repeatedly told reporters not to write Roewe as an independent brand but as an international brand. Roewe 550 modeling and market performance is very "international range of children", the price is not lower than the joint venture car, but in the crisis of high-end A-class car market to kill a blood, 1.8T sales market first.

Imperial EC7

The first time I saw the hatchback emgrand EC7, my heart froze for a long time, not such a small Cadillac! A closer look, the original is Geely emgrand. In addition to similar marks, EC7 models do not see traces of plagiarism, completely subverting Geely's original low-cost, low-standard image. The level of modeling can compete with the joint venture models, and the 46.8-point crash results in the creation of the highest domestic brands. Minute.

Guangqi Chuanqi was widely praised by GAC General Manager Zeng Qinghong as the “born son” of GAC Buster. It did not live up to everyone’s expectations and it was hard to find a car in Guangzhou. This again shows that consumers are not “cold” to the high-end cars in the country. The key is to come up with excellent products. The Chuanqi that was developed from the Romeo platform has had a good starting point, coupled with a strong marketing approach of RMB 129,800 for the pro-people price.