Steady development of economic growth, strong growth of mainland autos

In 2014, the global economy continued to recover with a large probability, and the fluctuations were stronger. In recent years, China's macroeconomic growth has driven the rapid growth of the Chinese auto industry. According to the data of Beijing Huatongren Commercial Information Co., Ltd., an independent market research and consulting agency (hereinafter referred to as “Huatong”), the sales volume of passenger vehicles in China has increased from 10.3 million in 2009 to 17.9 million in 2013, a compound growth. The rate is 14.8%. Compared to 8.6% in the United States and 4.6% in Japan, China is currently the world's largest passenger car market. This high growth power comes from the rapid growth of the economy and disposable income, the acceleration of the urbanization process, and the increase in infrastructure investment in transportation facilities. Although the current passenger car market in China is the largest in the world, the proportion of passenger car ownership relative to the population (passenger car penetration rate) is still relatively low, with only 7.2% in 2013. Compared with other developed countries, such as 59.5% in Australia, 56.6% in Germany, 48.2% in Asia and Japan, and 31.2% in Korea, the future of China's passenger car market is huge.

According to Huatong Data, as of 2013, the sales volume of passenger vehicles in China ranked in order: Shanghai Automotive Industry Corporation (Group) Corporation, (referred to as: SAIC), China FAW Group Corporation (abbreviation: FAW), Dongfeng Motor Group (Dongfeng), Changan Automobile Group (Changan) and Beijing Automotive Group Co., Ltd. (Beijing Automotive Group). From 2011 to 2013, the five major auto groups accounted for approximately 68.2% of the total passenger vehicle sales in China.

China luxury passenger car market overview

According to Huatong, from 2009 to 2013, the compound annual growth rate of sales of luxury passenger cars in China reached 38.3%, which is much higher than the annual compound annual growth rate of China's overall passenger car market (including imported passenger cars) during the same period. 15.5%. The proportion of China's luxury passenger vehicles in the total market (including imports of passenger cars) increased from 3.1% in 2006 to 8.0% in 2013, and is forecast to increase from 8.6% in 2014 to 9.2% in 2015. Meanwhile, the market share of luxury cars in Germany, the United Kingdom, and the United States was 28.5%, 24.6%, and 11.7%. The main reasons for the outperformance in the Chinese market are the increasing number of high-income Chinese and wealthy households and the preference of Chinese consumers for luxury international brands.

In the joint-venture luxury passenger vehicle brand, the top three brands of luxury brands produced by the joint venture company in China are Audi, BMW, and Mercedes-Benz.

As of 2013, in the distribution ratio of China's joint venture luxury passenger vehicle market, FAW Audi, BMW Brilliance, and Beijing Benz ranked the top three with 54.2%, 27.4%, and 15.3% respectively, almost monopolizing the entire market in this area. Taking Beijing Benz as an example, the brand has continued to expand its capacity in recent years. The designed annual capacity of its Beijing plant will increase from the current 120,000 vehicles to 420,000 by the end of 2015. Daimler has been planning to increase sales of passenger cars produced by Beijing Benz in China, and is expected to increase from 30% in 2010 to 67% in 2015. This will undoubtedly further increase the sales performance of Beijing Benz. At the same time, it will also enable the automaker Beijing Auto Co., Ltd. (hereinafter referred to as Beiqi) to support the further localization of more models, reduce costs and increase profitability.

China's joint venture high-end brand passenger car market

The joint venture high-end brand passenger car market accounts for the largest share of the Chinese passenger car market. According to Huatong, the major manufacturers of joint-venture high-end brand passenger cars include Beijing Hyundai, Shanghai General Motors, Shanghai Volkswagen, Dongfeng Nissan, FAW-Volkswagen, Changan Ford, Guangzhou Automobile Honda and GAC Toyota. The joint venture mid- to high-end brand passenger vehicles mainly include medium- and high-end cars, mid- to high-end SUVs, and mid- to high-end MPVs. The largest categories of mid- to high-end cars are compact sedans and mid-size cars. In 2013, these two types of sales accounted for the overall joint venture high-end sedan. 61.3% and 22.9%. In terms of sales volume in 2013, the Hyundai Elantra, Ford Focus, and Volkswagen LaVida were among the top three in the mid- to high-end brand compact sedan models, with 8.5%, 8.3%, and 7.7%.

Although accompanied by the development of China’s economy, China’s car sales continued to be high and it became the world’s number one in 2009. However, it is not easy to stand out from China's more than 10,000 auto manufacturers. Cooperating with a world-class automobile manufacturing company will undoubtedly greatly increase its own strength. It is worth mentioning that Beijing Hyundai is the only passenger car joint venture company in China with its Hyundai Motor brand, and it is also a passenger car brand for cooperation between BAIC Motor and world-class auto companies. Thanks to cooperation with Beiqi, Beijing Hyundai has achieved rapid growth in China. From 2008 to 2013, the annual average compound sales growth reached 28.4%. Beijing Hyundai was the second largest joint venture in 2013 in terms of individual brand sales. Passenger car brand.

Independent brand passenger car market

The scale of China's own-brand passenger vehicle market increased from 2.2 million units in 2006 to 7.3 million units in 2013. In 2013, China's own brand accounted for 40.7% of the total passenger vehicle market. Due to the process of urbanization in China, the economic growth in inland provinces, the increase in the quality and popularity of local brands, and the first-time car sales growth in third and fourth-tier cities, it is expected that the market will continue to grow.

The self-owned brand mid- to high-end cars are an important category in this category. Major manufacturers include FAW, SAIC and BAIC.

Shenbao D70, Nazhijie 5, and Pentium B90 ranked the top 3 market share in 2013 with 23.3%, 22.0%, and 19.5%, respectively. Among them, the Shenbao D70 is a new product launched by BAIC in May 2013. Its sales volume in the year of listing exceeded 10,000 units. It ranked first in the mid- to high-end passenger car of the same period in the same period, and was the largest in the same-duty category. Best-selling models.

Haobao series is one of the independent brands of BAIC, and technological innovation is an important factor leading the innovation and development of independent brands. After BAIC successfully acquired the core intellectual property of SAAB's derivative technology in 2009, based on SABIC's own-brand sedan, the company introduced Saab's experience in building cars into the R&D system and supplier management system for complete vehicles and core components. In the production and manufacturing systems and quality control systems, new models have been introduced to meet the different needs of the market. Beiqi Co., Ltd. has three brands, namely Bao, Beijing and Weiwang. In addition to the Saab series using Saab, the company launched another brand in 2011 - Weiwang, which focuses on crossover passenger vehicles and MPV products. The sales volume of this product increased rapidly from 10,016 units in 2011 to 130,274 units in 2013, with a compound annual growth rate of 260.7%. The Beijing brand E-series sedan was launched in March 2012, and its sales volume exceeded 20,000 units in the year of listing. And in 2013 it has grown dramatically to more than 60,000 vehicles (one of China's two best-selling small independent brand models). In 2011, 2012 and 2013, the sales of self-owned brands of passenger vehicles by BAIC reached 24,415 vehicles, 77,561 vehicles and 202,280 vehicles, respectively, which is an alarming growth rate.

To sum up, under the stimulation of rapid economic and disposable income growth, the accelerated pace of urbanization, and the increase in transportation infrastructure investment, China's passenger vehicle industry has a strong growth momentum. The industry's low penetration rate indicates that there is a huge potential for long-term development. R values ​​(see note) drop to promote further market growth. Midwestern provinces have low penetration rate, high sales growth rate, and SUV sales growth rate is higher than the overall market sales growth rate. Wait for important features.

Note: R value: According to the international passenger vehicle market experience, R value is a key factor in determining the long-term development of the national passenger car market. The R value is equal to the passenger car price divided by the per capita GDP. The mature passenger car market has proven that when the R value is between 2 and 3, the penetration rate of passenger cars will increase significantly. From 2009 to 2012, China's R value decreased from 4.1 to 3.1, indicating that China's passenger vehicle industry has great potential for growth. The average R value of the middle and western provinces of China is higher than that of the eastern coastal provinces.