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The past year 2006 was a year of rapid development of China's auto industry. Its rapid growth rate has undoubtedly become a miracle in the history of the development of the world's auto industry. China's auto industry, which is standing on 7 million production and sales platforms, has also made significant progress in the development of self-owned brands. According to statistics from the China Association of Automobile Manufacturers just released, sales of passenger cars in China exceeded 5 million for the first time in 2006, reaching 5.18 million vehicles. Among them, the sales volume of cars reached 3.83 million, accounting for 74% of the total sales of passenger cars; the sales of own-brand cars totaled 980,000, accounting for 26% of the total sales of cars. The sales of nearly 1 million cars of self-owned brands really deserve our applause. However, it is also obvious that the gap between China's auto industry, which is at a turning point from big to strong, and the world’s automobile powers is also obvious.
From the perspective of 2006, this year is indeed a year in which China's self-owned brand car companies have accumulated a lot and have strongly challenged foreign brands. Among the top ten car brands sold in 2006, three brands, Xiali, QQ and Qiyun, together accounted for one-third of the sedan market. Among them, Chery Automobile and Geely Automobile ranked among the top ten car sales companies with sales of 270,000 and 200,000 vehicles respectively; FAW Xiali also achieved sales of more than 160,000 vehicles.
In addition, Hafei Motors, BYD Autos and other automakers have annual sales of about 60,000 cars, and Huachen Motors has annual sales of more than 50,000 vehicles; sales of FAW Hongqi, Jiangnan Auto and other small self-owned car manufacturers are also only 1 10,000 vehicles squatted. In contrast, the top ten foreign brands, such as Jetta, Excelle, Elantra, Santana, Accord, and Lingyu, have annual sales of more than 100,000 cars. In addition, although the total amount of refitted cars or new cars launched by China's own brands in 2006 has exceeded the total number of new vehicles for joint venture brands and imported brand cars, only the Chery A520 has 26,000 units. Sales volume became the tenth of new car sales.
Another undeniable fact is that China's self-owned brand products are still concentrated in the low-end market, with more than 85% of sales bicycles priced below 100,000 yuan. Although it is unique in the mini-vehicle market, in the mid-level car market, self-owned brands have not been accepted by consumers. The overwhelming majority of the market share of self-owned brand cars is concentrated in the A00-class and A0-class sedan markets with a displacement of less than 1.6L, with a market share of less than 10% in the A-class and above, and a share in the mid- to high-class car and luxury car market. It is even less. The distribution of market share is seriously imbalanced, and this layout will greatly affect the profitability of self-owned brand cars. Although low-margin products occupy the market as an effective means of increasing the market share of self-owned brands, this strategy may eventually lead to low profitability of companies, failure to ensure good sustainable development, and weak risk resistance.
For those joint ventures that appear to be brilliant, it is unclear how much profit the Chinese company ultimately earns. Because joint-venture car brands pay high royalties to foreign companies, this is a well-known fact, but the specific costs are often considered as trade secrets. As the saying goes, “Wool is on the sheep.†This expensive sum of money is of course to be paid by Chinese consumers.
The rising market share, the dominant position in China's auto exports, and the significant increase in technical level are all obvious features of the development of China's own-brand auto enterprises. However, in terms of economies of scale, compared with foreign mature car companies, Chinese car companies still have a large number but limited scale. In 2006, China's automobile production and sales volume exceeded 1 million. There are two automobile groups, FAW and SAIC. Their car sales statistics cover all models, including commercial vehicles and passenger cars, and sales of most car companies are minimal. .
In contrast, the performance of the international auto giants is staggering. In 2006, GM sold 4.1 million vehicles in the North American market. Industry insiders expect that sales of its eight brands in the world will be around 9.2 million vehicles, still ranking first in the world. Volkswagen Group recently announced that it had sold 5.73 million vehicles worldwide in 2006; among them, the actual retail sales in the Chinese market (including Hong Kong and Macau) was 711,000. In the Chinese market, Toyota Motor also made remarkable achievements last year. FAW Toyota's sales reached 223,000 units, an increase of more than 40% year-on-year; Guangzhou Toyota's sales of only six months have reached 60,000 units. In 2007, Guangzhou Toyota had planned to sell 150,000 cars by only one model of Camry. - This figure will have a strong impact on China's mid-level car market, and it will also make China's self-owned brand cars face challenges in entering the mid-level car market.
The "Eleventh Five-Year Plan" of China's auto industry, which has been receiving much attention in the industry, has mentioned that by the end of the "Eleventh Five-Year Plan" period, auto brands will occupy 60% of the market. Therefore, China's own brand passenger cars also need to put more effort.
However, on the whole, China's own brand cars are also facing better opportunities for development. China Association of Automobile Manufacturers predicts that in 2007 China's auto production and sales are expected to reach 8.5 million. Such a huge market still provides opportunities and favorable conditions for the rapid growth of automakers of their own brands, because the market positioning and product characteristics of self-owned brand cars are more in line with China’s national conditions; at the same time, since there is no restriction on foreign partners, independent brand companies can Fully enjoy overseas markets and expand exports. However, judging from the development trend of the automotive industry, large-scale and cluster-type production has become the mainstream of the world's auto industry. China's own-brand auto companies will also face the test of asset restructuring and survival of the fittest.