According to the US Forbes biweekly website reported on July 25, the high-end cars in the United States have flourished in China, because having a high-end car there can greatly enhance social status. According to the data provided by the China Association of Automobile Manufacturers and the company report, the high-end car sales industry is full of vitality. In the first five months of this year, sales of Buick, Cadillac, Tesla and Lincoln have increased significantly.
However, the "excellent value for money" American car felt the pressure, Chevrolet, Fiat and Chrysler sales in the first five months of this year fell a lot or slightly increased. The sales performance of major auto manufacturers in the United States is different, what is the reason behind it?
The report said that there is a clear quality gap between Chinese auto companies and foreign well-known auto companies, but at present, this gap is narrowing. This is a crucial trend. During my first 25 years in China, everyone in the office understood that someone bought a domestic car because he could not afford a foreign brand.
This stigma is quickly dissipating. As far as Chinese car companies are concerned, such as Great Wall, Geely and Roewe, the interior, exterior and vehicle fit are greatly improved, and the technology is also advancing with the times.
Today, Chinese consumers feel that some self-owned brands have been able to compete with foreign brands and sell at lower prices. Not only do Americans feel this pressure – sales of Hyundai, Citroen and Kia have all fallen.
Sport utility vehicles (SUVs) are the most prosperous in China, while Chinese brands have shown their highest level on SUVs. This year, China's own brand SUV sales will exceed foreign brands for the first time. SUV sales accounted for 35% of total passenger car sales.
Which Chinese auto companies are leading the way? The sales of Changan Automobile, which is based in Chongqing, is expected to exceed 1 million units this year. Great Wall Motor ranked second, the SUV "professional households" will set a sales target of 900,000 this year. Geely, which is listed in Hong Kong, ranks third among Chinese brands, and the company is working hard to achieve its annual sales target of 600,000 units this year (the revitalized Volvo car is also owned by Geely).
According to reports, Chinese brands are also in a leading position in the sale of pure electric vehicles. The BYD car invested by Buffett is the leader in this hot field, and its sales volume is expected to double this year to 600,000 units. Last week, Samsung invested 449 million US dollars in BYD, and like Buffett and Bill Gates, became a high-profile global shareholder.
For GM and Ford executives, getting a boom in the Chinese market has always been a top priority. This year, China’s car sales will reach 24 million units, compared with 17 million units in the United States. Detroit is sure to be overjoyed by the significant increase in sales and profits of famous brands such as Jeep, Buick and Lincoln. But there is no doubt that other brands will make them more uneasy.
According to the report, Chinese consumers' enthusiasm for brands should not be misinterpreted as brand loyalty. They are advancing with the times.
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