Independent Autonomous Region can not escape negative growth in the first half

For the self-owned brand car enterprises that plan and transform their collective plans, they have been struggling in the low-speed growth market environment. Adding to this is the fact that some cities have restrictions on purchases and restrictions, pushing their own brand cars to the edge of the market.




“In the first half of the year, the entire automobile market grew at a low rate, and the market environment was even worse than in 2008. The low-end and mid-end economic vehicle markets are the most affected. The market's decline rate is much faster than the decline rate of the entire auto market. Negative growth is a foregone conclusion.” Li Lei, Minister of Marketing of Tianjin FAW Automobile Sales Co., Ltd., told the reporter frankly.

The decline in self-owned brands in major domestic markets is a common trend. However, Qinghai Province in the northwest region may be a special case, benefiting from the local government's strong subsidy policy for energy-saving and small-displacement vehicles, the market share of self-owned brands has been steadily rising, and sales have grown. This may also mean that in the current harsh market environment, the independent brands urgently need to provide help.

The market continued to be sluggish. “From the visit of the central region, the entire auto market is in a state of depression. Not only independent brands, including joint venture brands, but also the same market pressure.” Li Lei told reporters.

It is intended to focus on tapping the consumption potential of the central market in the next stage. Li Lei's team specifically visited Henan regional distributors, but after the market visits of central cities such as Zhengzhou were ended, the market information brought back was hardly optimistic. After all, the central markets such as Henan and Hubei have been regarded as having a huge market potential for growth.

“This year's off-season and peak season distinctions are not so obvious. The holiday season like the May Day holiday is not very effective for the auto market,” Li Lei said. “Whether it's a storefront or a regional gathering Marketing, the effect of boosting sales is very limited."

Statistics also prove that the growth of the passenger vehicle market has just turned negative in May, but the continued decline in the sales volume of self-owned brand auto makers has caused widespread concern in the industry. An analysis by the China Association of Automobile Manufacturers pointed out that the market competition pressure of self-owned brand passenger cars is gradually increasing.

According to public information, Chery, Geely, and BYD have all declined in the top ten brands of self-owned brand cars. Compared with the mainstream joint-venture car companies that have basically completed more than 40% of their annual plans in May, the percentage of sales completed by the self-owned brands in the first five months is basically below 40%. In the case of Geely, which has a relatively high proportion of semi-annual sales, Geely’s sales target for this year is 460,000 units. In the first five months, 182,700 units were completed, and the percentage of completion was close to 40%.

Data show that from January to May of this year, self-owned brand car companies sold 2,652,400 passenger cars, accounting for 41.90% of total sales, and the occupancy rate decreased by 3.25 percentage points year-on-year; among them, the decline in self-owned brand cars was even more pronounced. The cumulative sales for the month were 1,193,300 units, down 8.3% year-on-year, accounting for 27.5% of the total sales of cars, and the occupancy rate was down 3.9 percentage points year-on-year.

In the subsidy policy of the beneficiary region, after entering the middle of the year, sales in the central region will remain basically the same as last year, and sales in the three northeastern provinces will increase by even 1%. Li Lei told reporters. In the predicament of the market, car manufacturers have been particularly happy with the 1% growth. However, surprisingly, in the northwestern market, the sales boom continues.

“In Qinghai, it is now the best sales momentum.” Liu Yi, head of Tianjin FAW Automobile Sales Co., Ltd. in charge of the Qinghai market, told reporters. “Qinghai's subsidy for energy-saving and low-emission vehicles of 1.6 liters or less is 10%. This is very suitable for the marketing policies of Xiali and Weizhi.”

In October 2010, the Qinghai Provincial Government promulgated the "Opinions on Promoting Consumption Upgrading and Promoting Economic Development" and proposed to include "subsidies of RMB 5,000 to RMB 10,000 per vehicle on the basis of the central government subsidy," and "small-displacement cars. Including the scope of subsidy for car-to-country subsidies, and the policy of “purchasing tax on small-displacement passenger cars of 1.6 liters and below by 7.5%, extended to the end of 2012” and other policies.

Six months later, in April this year, the Department of Commerce of Qinghai Province once again implemented a one-year auto subsidy program for small-displacement cars of 1.6 liters or less. It was announced that before December 31, 2012, farmers and herders in the province would purchase 1.6 liters or less. Small-displacement cars shall be subsidized at a price of 10% of the sales price, and those with small-displacement cars with a price of 1.6 liters or less shall be purchased for more than 50,000 yuan each, and a fixed-rate allowance shall be applied for 5,000 yuan per vehicle. Farmers and herdsmen purchase 1 vehicle per household, and the necessary subsidy funds are borne by the provincial finance.

Statistics from the Department of Commerce of Qinghai Province also showed that in the first five months of this year, sales of small-displacement cars of 1.6 liters or less in Qinghai Province amounted to 970 million yuan, subsidizing 17,144 small-displacement cars, and fulfilling financial subsidies 7753 Ten thousand yuan. Among them, 2,228 vehicles were sold in May, up by 12.6% from the previous period and up by 11.5% year-on-year.

"For consumers who buy a car with a price range of 40,000 to 50,000 yuan, they can get a subsidy of 4,000 to 5,000 yuan, which is very attractive." Li Lei thinks.

It is thanks to this powerful type of subsidy policy that the sales volume of self-owned branded auto makers such as Tianjin FAW in Qinghai Province continues to increase. “In the Qinghai market, Tianjin FAW’s market share has reached 47% on the economy car market of 70,000 yuan or less.” A person in charge of sales in the Western District of Tianjin FAW Sales Company told the reporter.

Six billion yuan subsidy is expected "for the second half of the auto market, that can not be optimistic, do not be too pessimistic." Li Lei said. He believes that despite the pressure from joint venture brands and joint-venture brands, there are competing brands within the company, and the upgrading of products is still the top priority for Tianjin FAW, and the market policies that favor energy-saving and small-displacement cars in the second half of the year can also be expected. .

A clear signal is that the government has recently introduced measures to stimulate the market, including 6 billion yuan to support small-displacement and energy-saving vehicle measures, automobile trade-in policy, and may be introduced again in the relevant rules for the auto market. Industry analysts believe that because the government is also worried that policy incentives will hinder the self-adjustment rhythm of the auto market, so the policy stimulus will be much smaller than in 2009, while the introduction of the policy is more inclined to the direction of industrial transformation and upgrading.

On the other side of the market, the joint-venture brand models including Dongfeng Nissan Kaichen and SAIC-GM-Wuling Baojun have also pulled prices down to the market range of 60,000 yuan. This has made the market situation of the independent brands originally stuck to low-end economic vehicles more complex.

In this context, the self-redemption of self-owned brand companies is particularly important. This year, the trend of centralized upgrading of self-owned brand models is obvious, and many new models such as Changan Yidong, Fengshen A60, and FAW Oulang have been listed successively during the year.

"Weizhi V5 is a replacement model of Weizhi products and will soon contribute sales to Weizhi models." Li Lei said. Weizhi V5's sales target for this year is 50,000 vehicles, accounting for more than 60% of Weizhi's annual sales target. In addition to the Wei Zhi V5, the new Xiali N3 model will also be on the market, and the new cross-border model codenamed R008 will also be on stage at the end of the year. "At the end of next year, new CUVs targeting urban SUVs are also planned to go public," said Li Lei.

"Regardless of how policies are promulgated, they need to be sustained and stable, so as to avoid market ups and downs." Industry insiders suggest that, "because of the impact of Guangzhou purchase restrictions, this year's 3rd quarter may be the second bottom of the growth rate of cars, which in turn will continue to It has brought instability to the Chinese economy."