On February 18th, Dongfeng became popular with the new Jingyi S50. "The Chinese car market is now a 'single show', how can it be like a SUV, 'a hundred flowers bloom, a hundred schools contend?'" Yao Liwen, deputy general manager of Dongfeng Liuzhou Automobile Co., Ltd., raised this question in an interview.
According to the statistics of China Association of Automobile Manufacturers, the sales volume of self-owned brand passenger cars in 2016 was 10.529 million units, a year-on-year increase of 20.5%. Among them, the sales volume of self-owned brand cars was 2.34 million units, down 3.7% year-on-year, and the market share was 19.3%. The sales volume of self-owned brand SUVs was 5.268 million units, a year-on-year increase of 57.6%, and the market share was 58.2%.
Although the market share of self-owned brand passenger cars has maintained a growth trend for two consecutive years, the two segments of SUV and sedan have shown significant differentiation. The self-owned brand SUV "preemptive strike", sales and word of mouth double harvest. As the most competitive market segment in the automotive industry, cars have become the shortcomings of their own brands.
Whether the SUV can continue to float in 2017 and how its own brands can achieve longer-term breakthroughs will affect the strategic layout of the three sub-markets of SUV, car and MPV.
SUV continues to float red?
"In view of the development of the Chinese auto market in recent years, an SUV may save a company and promote the popularity of the company." Yao Liwen said.
On February 18th, Liu Ming, Director of the Information Resource Development Department and the Automotive Industry Information Department of the National Information Center, said at the 2017 China Automotive Development Forum that in recent years, SUVs’ good-looking and practical shapes and consumer spending upgrades have increased consumer preferences. . In addition, low-cost supply and falling oil prices have contributed to the rapid development of SUVs.
In January 2017, the sales of self-owned brand passenger cars reached 977,000, a year-on-year decrease of 4.4%. Compared with the same period of last year, the sales of other models have continued to grow, with independent brand SUVs still growing, with sales of 543,000 vehicles, an increase of 15.2% year-on-year and a market share of 61.7%. The sales of self-owned brand cars reached 201,000, a year-on-year decrease of 13.9%, and the market share was 18.6%.
In January, the SUV still maintained a growth of 15.2% in the case of a decline in the overall sales of self-owned brand passenger vehicles. Based on the 2016 data, people can't help asking questions. Can the self-owned brand SUV continue to float in 2017?
"At present, apart from Geely and Changan, the Great Wall, Jianghuai, Guangzhou Automobile, Beiqi, etc. are all mainly SUVs. It is expected that the SUV will continue to 'slow the wind', which is the basis for the continued growth of self-owned brand passenger cars in 2017." China Anqing Heng, director of the Automotive Industry Advisory Committee, said in an interview with the 21st Century Business Herald.
However, there are also experts in the industry who have raised questions. “Independent brands are the biggest beneficiaries of SUVs, but any market segment has ceilings, and growth always has an inflection point,” said Xu Xiangyang, a professor at Beijing University of Aeronautics and Astronautics and executive deputy director of the National Passenger Vehicle Automatic Transmission Engineering Technology Research Center.
According to Liu Ming's analysis, due to the weakening of consumption preferences, low-price supply and oil prices, the SUV's heat will decline this year, and ultra-high-speed growth will end, but still higher than the overall passenger car growth rate.
How to make up for the short board of the car?
Compared with the growth trend of SUVs, car experts are generally not optimistic about whether cars can achieve higher growth and reoccupy the market. As the most competitive market segment in the automotive industry, the performance of self-owned brands is not satisfactory. The self-owned brand SUV is preemptive and outstanding. "SUVs drive growth, cars are short boards" has become a prominent feature of the current independent brands.
"From the data display point of view, the traditional car segment of Chinese brand cars has a market share of less than 30%, and it shows a downward trend. At the same time, in terms of the proportion of various market segments and their products, Chinese brands have been concentrated at low levels. In the low-end market, the MPV and SUV markets have developed relatively fast. At present, some products are also launched, but the overall upward trend still faces many bottlenecks.” On February 18, Li Wei, vice president of Changan Automobile Said in the 2017 China Automotive Development Forum.
In 2016, Great Wall Motor sold more than one million yuan for the first time, with a cumulative sales of 1,074,500 units, of which Haval SUV sales accounted for 90%, a year-on-year increase of 42%. Compared with the growth of SUV sales, the sales volume of cars was only 30,800 units, down 43.09% year-on-year.
"Focus is Harvard's core strategy. SUVs are not the world's number one, and they will never be a car!" On February 19, Wei Jianjun, chairman of Great Wall Motor Co., Ltd., said in a high-profile manner after Harvard sales exceeded one million. In terms of cars, Wei Jianjun admits that cars are a major embarrassment for the Great Wall to sell millions and build brands. Obviously, after weighing the pros and cons of SUVs and cars, Great Wall chose a "focus" strategy.
In contrast, Dongfeng is popular in choosing a “balanced” strategy. In 2017, Dongfeng became popular in the 2.0 era. In this regard, Yao Liwen explained that "the products of the 2.0 era are balanced and have characteristics, rather than grasping a market opportunity to start."
In 2017, Dongfeng became popular with the goal of “must reach 350,000 and challenge 400,000”. It is reported that from 2010 to 2015, Dongfeng's popular sales in five years has increased five-fold, and its growth has been stable in the past three years. If this goal is achieved, the 2017 Dongfeng will achieve a high growth rate of 35%-54%. Yao Liwen said that although the overall auto market in China may increase by 3%-5% in 2017, the slight increase in the big environment does not mean that individual companies cannot achieve double growth. The key lies in how to do well.
Previously, Roewe RX5 gained certain recognition in the market, but Roewe's second Internet car chose a car. “The launch of the sedan model is a must for SAIC and all its own brands. If the self-owned brand does not open the sedan market, and the future joint venture brand will enter the SUV field in a big way, the unique pattern of the independent brand SUV will definitely change. At that time, the single product Line companies will definitely be restricted." On February 17, Wang Xiaoqiu, vice president of SAIC Group and general manager of passenger car company, said.
Whether it is focusing on a certain segment of the field, to achieve "outstanding", or a balanced development, each model "hundred flowers", this is a problem that car companies must consider in the current market situation.
It is worth noting that some people in the industry believe that one of the criteria for measuring whether a self-owned brand is stronger is whether the car can do well. “Self-branded auto companies should use the competitiveness gained in the SUV market as soon as possible to boost other models.” Xu Xiangyang suggested.

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