Medium-sized SUV market competition intensifies pressure on independent brands

Although China's auto market is still growing, SUV has become the mainstay of market growth in the background of stagnant or even negative growth in the car market. However, in the SUV market, the development status and competitive situation of different segments are very different, especially in the fastest-growing medium-sized SUV market, the pressure faced by independent brands is particularly significant.

Medium-sized SUV market leading the incremental increase in the largest

From January to July 2017, the total sales volume of domestic SUV models has reached 5.25 million units, which is only about 1 million units from the 6.23 million cars. Considering that the sales growth rate of SUVs reached 17.45% over the same period, the sales volume of cars has shrunk by 2.9%. There is another SUV. Years can complete the overtaking of the car market.

As a result, car manufacturers have entered the SUV market, and regard the SUV market as the main or even the only development direction. However, market competition is always cruel. Although the SUV market is still growing rapidly, the opportunities for latecomers are gradually closing. At present, the medium-sized SUV market is currently one of the few fast-growing markets.

According to Gasgoo's sales statistics, although the overall SUV market is growing rapidly, the performance of different segments of the market is quite different. In particular, since 2017, the small SUV market has seen a significant shrinkage trend; although the total volume of the compact SUV market is huge but the growth has been stagnant; the medium-sized SUV has become the main force of growth in the SUV market, and the sales volume has surpassed that of the small SUV.

Specifically, from January to July 2017, cumulative sales of the small SUV market fell by 5.87%, sales of compact SUVs increased by 11.20%, and that of the medium-sized SUVs surged by 66.60%. From the perspective of absolute growth, the number of medium-sized SUVs is 500,000, which is much higher than that of the compact SUVs, which is 280,000.

New cars get together and list a few happy families.

The reason why the medium-sized SUV market has experienced such rapid growth is mainly due to the intensive listing of a number of new products in 2017.

According to Gasgoo's statistics, there are 21 models with sales data for January-July 2017 and zero data for the same period in 2016, which is almost half of all 50 medium-sized SUVs on the market. For example, joint venture brands such as Zhongguanguan L, Guandao, URV, and explorers, as well as independent brands Zhongxuan GS8, Siwei X7, Zhongtai SR9 and others.

From a more subdivided perspective, from January to July, the self-owned brand medium-sized SUV market achieved a remarkable growth rate of 111%, and the growth rate of joint venture brands was as high as 65%, while the luxury brand's sales growth was only about due to the lack of newly-listed models. twenty one%.

With a large number of new products entering the market, the competition in the medium SUV market has intensified. Of the 28 models that already existed in the first half of 2016, 12 models showed declines, 10 models underestimated the overall market segment, and only 6 models achieved market performance better than the overall market level. Among them, the Dongfeng scenery 580, Changan CX70, Cadillac XT5 three cars led the absolute increase in absolute value, BYD Tang, public Thai T600, BYD S7 led the three cars.

Intensified competition, increasing pressure on independent brands

In different market segments, the competitive impact of the new car listing is obviously different. In the self-owned brand medium-sized SUV market, 11 products were sold in the same period of 2016, and 12 new models with non-zero sales volume were increased from January to July 2017, an increase of 109%, which triggered 11 of the 11 original models. Sales volume of models decreased year-on-year, while 9 models of existing models in the joint venture market increased by 7 in 2017, an increase of 70%, and 6 models in the original brand increased year-on-year, and 3 models decreased. Luxury brands are up 2 down.

The self-owned brands have begun to face the obvious “worse little wolves” and the average monthly sales volume of each model has fallen from 4,500 units at the beginning of the year to 2,500 units in July, a drop of almost half. At the same time, the monthly sales of the average model of the joint venture brand have not been affected significantly by the increase of the model, and the luxury brand has remained stable. The data shows that the internal competition of the self-owned brand products has become more intense, and the overall demand for the joint venture market is still increasing.

It is worth noting that, even if the sales volume from January to July increased year-on-year, it may not be easy to worry about. For example, Biekeangkewei, although its sales volume reached 133,000 units, it only increased by 1,220 units compared to the same period of last year, and with the increase in the sales volume of newly-listed cars in 2017, Oncome has been selling for four consecutive months since April. In the same period of last year, there was a clear downward trend. According to this trend, the annual sales of Angkewei in 2017 may fall.

For such data, several car manufacturers are happy and happy, but consumers are the most benefited. With the increase in the number of models and the intensification of competition, more and more options are available to consumers. The problem of increasing the price of cars will gradually decrease. The medium-sized SUV market is gradually changing from the previous seller's market to the buyer's market.

For the self-owned brand, how to deal with the situation that the competition has brought about “the lack of wolf meat” and to avoid falling into the vicious circle of the sedan market to compete and fight for “fighting out and fighting for price” is worthy of attention and even vigilance.

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