It may not be excessive to call the “2005 Year of Independent Branding†of China’s autos just in the past. In this year, the domestic auto brands of China’s auto companies are more competitive in terms of production and sales, service and technology. There has been a very large increase in the past. With this momentum, the self-owned brand car has begun to show its momentum of “collective madness†at the beginning of 2006.
The amazing rise of 2005
Despite the fact that 2005's "Don't Want Your Own Brand" saliva was very lively, the national auto brand of China National Automobile Co., Ltd., under the influence of the joint venture brand, blew the clarion call of the offense and handed over a satisfactory answer in the dark. Exploring its own brand saw a glimmer of light.
According to the statistics of the National Passenger Vehicle Market Information Association, in the first 11 months of last year, the sales volume of China's own-brand cars exceeded 600,000, and the market share has reached 25%, an increase of 20% from the previous year. This change is gradual, but it is also far-reaching. In the field of passenger cars with comparatively weak strength, the independent brands have begun to emerge and have demonstrated their competitiveness.
Last year, Chery, Geely, Dongfeng, Guangzhou Automobile Group and Jianghuai Automobile were among the Top 5 companies in the top five, and their own brands accounted for three seats. Among them, Chery’s cars are impressive, with 185,000 vehicles sold throughout the year, an increase of 118% compared to the previous year, and the sales growth rate is the first in the country. It is also the first company in the history of the Chinese car industry to have a net increase of more than 100,000 vehicles per year; Chery’s annual sales volume of QQ exceeded 100,000 units, an increase of 129.8% year-on-year, making it the No. 1 single-brand sales nationwide and ranking first in sales of Chinese hatchback vehicles for 12 consecutive months.
None of the other nine major automobile groups in the country can exceed the growth rate of 50%. Geely has sold more than 10,000 yuan for four consecutive months. Shanghai Huapu's growth rate has reached 150% year-on-year, and it has also become one of the fastest growing domestic automobile sales. Tianjin FAW sold more than 200,000 vehicles last year based on sales of Xiali. In 2004, the sales volume of Tianjin FAW Car was only 120,000. At present, the car market share of Xiali Auto in the sub-60,000 yuan level has increased from 24.9% in 2004 to 36.8% in 2005.
It is not difficult to find that self-owned brands are chasing joint ventures at an alarming rate, and the growth rate of self-owned brands that exceeds the number of joint ventures proves that independent brands have reached unprecedented levels in terms of quality, service, price, and brand strength.
At the same time, independent brands also began to “go global†in an all-round way. After 2005, no one doubted the overseas expansion capabilities of Chinese automobiles. Statistics show that from January to October last year, the number of cars exported exceeded the number of imported cars by 7,000, and exports exceeded imports for the first time, among which the self-owned brand products accounted for the majority. Changan and Great Wall Motors have exported more than 10,000 vehicles, and Geely, China and other car exports have also experienced breakthrough growth. Geely and Great Wall Motor also successively participated in the Frankfurt Motor Show and the Italian Auto Show, which made it possible for Chinese cars to compete with European and American cars on the same stage. Geely in Malaysia, Great Wall Motor in Russia, BYD in Malaysia, etc. are all brewing investment and construction.
Dongfeng Force 2006
The glory of 2005 gave full confidence to the national independent brands. Since 2006, independent brands have shown a trend of “collective madnessâ€. In the “Eleventh Five-Year Planâ€, the independent innovation capability aimed at improving the technical strength of the national brand is taken as the key development target, and the support of the policy has given the independent brand a “collective rush†to the east. Both the independent brands such as Chery and Geely, which are currently dominated by the market, and major auto groups such as FAW Group, SAIC, and Chang'an Group, have all put forward their own innovation plans.
In China's auto market, the price of self-owned brand cars has been hovering within 100,000 yuan for a long time, always giving people a low-end image. However, starting last year, independent brands began to pay attention to the mid-level car market of more than 100,000 yuan. The sons of Oriental, Harvard, CUV, Brilliance, Chery, Tiger, Dawning, Shuanghuan, Geely, 1.8L, CK-1, and Huapuhaishang 305, BYD F3 etc. successively went on the market, and the models with self-owned brands of more than 100,000 yuan showed rapid growth. From the new models that will be put on the market this year, this process is accelerating.
Many models of self-owned brands and even new models that were originally planned to be available at the end of the year are already "all things are ready to be left alone" -- waiting for an opportunity to take the initiative. The manufacturers represented by Brilliance, Geely, Maple, Chery, Tianjin FAW, and Lifan have Junjie, Geely FC-1, Geely GL-1, Huapu Haishang 206, Chery A520, Xiali C1, D1, and Lifan 520. Such as fist products, mature models ready to compete against the market with the joint venture brands. The development of the new generation of red flag is entering a critical period this year and will be put on the market; Chery will also have five or six new cars during the year, and the independently developed engines will also be put on the market this year; Geely's new generation of engines and gearboxes have also been developed. This year, there will be a new mid-size car...
From these new actions, we can see that, in their efforts to bid farewell to the past history of making a difference only in the low-end market, the self-owned brand companies have extended their product chains to the high-end, technologically refined, and modern in appearance.
In addition, the wave of private capital entering the auto manufacturing industry is re-emerging. Take Zhejiang alone as an example. In addition to Geely Automobile, a private company called UFO Automobile Co., Ltd. has also developed a small SUV that resembles the Toyota RAV4; there is also a Zotye Motor Company that recently introduced a new model called "Zhongtai 2008." "New car. For the time being not to mention whether their joining is a hot-headed, but objectively expanded the camp of independent brands.
Although there has been a significant increase in sales of self-owned brands, we should also see that self-owned brands still have the problem of improving brand image and improving product competitiveness. The price reduction, low price, and increase in market share cannot simply be seen as an improvement of the brand image. This is a systematic project that requires a lot of work.
At the same time, the development of product levels, cost control capabilities, and enterprise product quality assurance will also be a test of the competitiveness of independent brand companies. The overseas expansion of national cars cannot be easy. Last year, Landwind's “crash door†incident in Europe reflected the need for independent brands to master more rules of international competition when they went out.
While we are delighted to see our own brand “ran wild in 2006,†we also hope that our own brands will truly mature in prosperity and build a true core competitiveness – strong technology and product clearance, or else the outcome of this “runaway†It can only be a short-lived "stretch." (Liu Zhaohui)
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