Local brands losing traction
Updated: 2014-07-28 07:25
By HAN TIANYANG (China Daily)
|
|||||||||
Domestic carmakers face yet another challenge as Sino-foreign joint ventures move into the low-priced segment with entirely new brands. ZHOU JIANPING/CHINA DAILY |
Share continues to shrink in the fierce low-priced market
As foreign brands build more low-priced models at their local joint ventures, Chinese carmakers are feeling the squeeze.
According to statistics from China Association of Automobile Manufacturers, the 3.63 million passenger cars sold by domestic brands in the first six months of the year represented 37.68 percent of the market, a decline of 3.48 percentage points from the same period last year.
If Chinese-brand SUVs, MPVs and minivans are excluded, their first-half sedan sales were just 1.37 million units, 22.24 percent of total sedan sales.
Compared with the same period last year, their market share in the segment fell by 5.41 percentage points.
In June, domestic-branded sedans had less than 21 percent of the total, a new monthly low in the past five years.
|
|
The majority of domestic-branded products are priced at less than 100,000 yuan ($16,000) and nearly 60 percent are no more than 50,000 yuan, said Zhang Yu, director of industry consulting firm AutoForesight (Shanghai) Co.
"With prices of some models like the Volkswagen Jetta and Toyota Corolla Ex now around 60,000 to 70,000 yuan, domestic products have no way to compete with them," Zhang said.
Nissan's local joint venture with Dongfeng Motor Corp recently launched a new model under its local brand Venucia with the startling starting price of 39,900 yuan.
Based on the Nissan March, the Venucia R30 microcar is the cheapest-ever car made by a mainstream Sino-foreign joint venture and mainly competes with the BYD F0, Chery QQ and Chang'an Benben domestic models.
The joint venture only built Nissan-branded models until 2012 when it introduced the new, local Venucia nameplate to tap the entry-level market in China. All products in the Venuica lineup are no more than 100,000 yuan.
According to media reports, Volkswagen also plans to introduce a new nameplate at its joint venture with FAW with a target price of around 50,000 yuan.
Chinese customers still have a big appetite for low-priced vehicles, especially in small cities, said Zhong Shi, an independent auto analyst in Beijing.
The separate brand strategy is good for foreign carmakers because they can enter the low-priced segment without affecting the position of their mainstream models, he said.
- The world in photos: July 21 - July 27
- Chinese naval vessels participate in RIMPAC drill
- Twin artists 'Os Gemeos' hold exhibition in Sao Paulo
- When did women begin to prefer slim look?
- Shaolin opens arms to Intl kung fu students
- Chery automobile plant nearing Brazilian launch
- Ceasefire collapsed, fighting in Gaza goes on
- 42 naval vessels conduct exercises near Hawaii
Most Viewed
Editor's Picks
Xi attends BRICS summit |
China helps fight international war on drugs |
Crackdown on terrorist attacks |
My China Story: Meeting the master |
Tongues tied around tatu-bola |
A market that's not such a hot property |
Today's Top News
A musical spoof of the Clinton years
Good times beckon for Latin American ties
Glitch delays visas for US-bound students
China set for 'increase' in US FDI
Chinese have a crush on Harvard?
iPhones' access to data face scrutiny
Scandal-hit China food firm withdraws products
Consulate condemns killing of student
US Weekly
Geared to go |
The place to be |