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Only when the tide falls, do you know who is nude.
In the past two years after all the preferential measures for the purchase of cars, such as cars going to the countryside, trade-in replacements, purchase tax reductions, etc., have all withdrawn, the new micro-vehicle companies represented by the seahorse have tasted the bitter consequences of blind expansion.
Recently, media reports said that 90% of hippocampus mini-vehicle dealers complained about the decline in sales volume since last year and struggled at the profit level. Among them, 12 dealers retired, accounting for more than 10% of their total number of dealers. "I don't know." Townsville Vice President Townstem negotiablely declined an interview with reporters. As of press time, he still did not receive his reply.
Seamaster Foster Micro
However, this is only the tip of the iceberg. “The micro-vehicle market has been fixed for a long time. SAIC-GM-Wuling, Chang’an, and Dongfeng have formed a stable triangle. New companies relying on policies that flow into the mini-vehicle market will be short-lived and will gradually withdraw from the market in the future.†Senior automotive industry analysts said to reporters.
Into the city
At first, not many companies were optimistic about micro-cars, but 2009 was a turning point.
In that year, the government introduced the "cars to the countryside" policy that stimulates domestic demand, followed by trade-in policies, purchase tax reductions, and other policies that have led to soaring demand for minibuses. Enterprises are flocking to the future and wondering if it is necessary to enter the micro-vehicle area and whether they are competitive enough to gain a foothold in the mini-vehicle market.
The "car to the countryside" policy provides one-time financial subsidies for farmers to buy micro-vehicles with a displacement of less than 1.3 liters. This policy led to a significant increase in sales of domestic mini-vehicle market in 2009 by 38.3% to 1.95 million vehicles.
The rapidly expanding market has seen some companies see opportunities. “Micro-vehicle technology threshold is relatively low, and it is relatively easy to enter. Some automakers of the original brand were only in order to increase the scale of the Group’s auto sales and were not demanding long-term profitability of micro-vehicles.†The above senior person told reporters.
The original micro-car market of only 6 companies quickly expanded to nearly 20 companies. A group of car-based car companies such as Haima, Chery, and Beiqi began to attack cities in the mini vehicle market.
Unfortunately, it is not easy for new entrants represented by the seahorses to get a share of the micro-car market. According to public statistics, no matter how the policy changes since 2010, 90% of the mini-vehicle market is still dominated by SAIC-GM-Wuling, Changan, and Dongfeng, leaving the newcomers with a market share of less than 10%.
"The brand newly entering the mini-vehicle market will certainly be able to eat up part of the mini-vehicle market, but it is unlikely that we would like to shake up the micro-vehicle market." Peng Jing, research manager of marketing management at Xinhuaxin Automotive, said in an interview: "Since micro The scale advantages of the car manufacturing industry are particularly important, and the industry leaders have a clear channel advantage in long-term operations. The top three networks have a very wide distribution, which makes it difficult for newcomers to pose an effective threat to the industry leaders.
Cruel reality came one after another. In 2011, following the cancellation of preferential policies such as national purchase tax concessions and automobile to the countryside, the rapid growth of the mini-vehicle market came to an abrupt end, and the overall trend of weak growth has continued to this day.
Coincidentally, at the end of 2012, the “Twelfth Five-Year Plan†released by Haima Motors focused on “a brand, a product plan, a research and development center, a sales network, and two production bases†and launched new models one after another. A, B-class cars, SUVs, MPVs and other series, each series of different levels of models in both bases have plans, Haikou and Zhengzhou base production capacity will reach 500,000. But among them, there is no figure for microcars.
Way out
With the changes in the market environment and consumption upgrades, the mini-vehicle market has begun to enter the "adjustment period."
“Including SAIC-GM-Wuling, the overall development speed of the mini vehicle market has declined. This is mainly due to the demand for future auto overruns in the previous three years.†Zhang Zhiyong, a senior analyst in the automotive industry, told reporters, “ When the overall market declines, small-scale small businesses will be the first to suffer."
Public data shows that in recent years, Changan Automobile's share in the mini-vehicle market has continued to shrink. The market share of Changan mini-vehicles fell from 37.9% in 2010 to 27.1% in 2012. This lost market was basically eaten by SAIC-GM-Wuling. The market share of SAIC-GM-Wuling increased from 43.6% in 2010 to 56.1% in 2012.
Facts have proved that the new micro-car companies represented by the seahorse are less competitive in the market because of their brand influence and limited scale. In order to maintain market share, SAIC-GM-Wuling and Changan Automobile started the price war. In this context, the new entrants represented by the hippocampus mini-vehicles have a more rugged living environment.
Regardless of the initial intentions of the micro-vehicle industry, after the preferential policies were withdrawn, it was a realistic issue for the survival of the new micro-vehicle. In Peng Jing's view, these micro-car companies need to work hard on products and marketing.
In recent years, micro-vehicles have seen a trend of lighter customers, MPVs, and micro-fabrication. Peng Jing believes that no matter what kind of micro-car products, in order to break the traditional micro-passenger market, we must meet two prerequisites: First, the product performance must meet the traditional micro-customer's power performance needs, and second, the price must meet Traditional micro-consumer price expectations. “From the results of the market inspection of the above three models, Wuling Hongguang, which is currently MPV-enabled, has achieved widespread consumer acceptance. The excellent sales performance indicates that its replacement for traditional micro-customers is more obvious.â€
It is still very difficult for newly-entered mini-vehicle companies to work hard only on products and try to gain more market share. “The key to the profitability of the mini vehicle industry lies in its scale. In the case of limited scale, insisting on expanding the sales network will inevitably affect the profits of dealers.†Peng Jing analysis, to solve this problem, can be reduced through the combination of product lines. Marketing difficulty. "For example, Chery has business vehicles, light trucks and other categories, through the combination of light trucks and micro-vehicles, to reduce the speed of network construction, requiring dealers to sell micro-cars while selling light trucks."
Obviously, relying on policy-stimulated market prosperity, lack of continuity. How to survive in the market when the policy exits, and even to grow, will become a long-term task for the new micro-vehicles.