The market share of models has risen from 4.7% in 2017 to 9.8% in the first half of 2020. This price range is firmly occupied by luxury brands, and few independent brands such as Hongqi and Weilai venture into this “minefield”.
In addition, the market share of 160,000-250,000 yuan increased from 15% to 20%, and the market share of 120,000-160,000 yuan increased from 11% to 16 %, these two price ranges are the main battlefield of joint venture brands. The market share of 80,000-120,000 yuan and below 80,000 yuan, which are the main targets of independent brands, has fallen to 34% and 16% respectively.
At the same time as the pattern changes, the price of joint venture brands is still dropping collectively. Korean brands, represented by Hyundai and Kia, have always seized the market with high cost performance, and have been in close contact with independent brands at the price level. In 2019, FAW-Volkswagen will operate the Jetta brand independently, focusing on the 100,000-level market, and obviously want to compete with its own brands. In April of this year, Skoda dropped the entire department, with a maximum drop of 24,500 yuan, lowering the starting price of entry-level models to 77,900 yuan, pointing directly to the hinterland of its own brand.
At the same time, the prices of some self-owned brands have been rising. According to data from the Travel Association, the average transaction price of new self-owned brands has increased from 80,000 yuan in 2017. 93,000 yuan by 2020. The self-owned brands that have lost their price advantage have noticeably weakened demand in the low-end and middle-end markets.
An insider of an independent brand told Future Auto Daily (ID: auto-time) that some peripheral independent brands lack core technology, and they can still seize it with market dividends in the early stage. Share, now the era of relying on cost performance to hit the market has passed, joint-venture brands have also begun to reduce dimensionality, and they “can no longer lie down and make money.”
Change lanes to new energy and seek brand improvement
Swamped by the torrent of the advancing of the times, the independent brand has to shift gears to speed up.
On July 15, the Ministry of Industry and Information Technology and other three departments issued the