Cheap cars are not always bad
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It is a pity that, so far, local auto brands have lacked a clear competitive advantage in addition to prices. Over the past 10 years, local brands have seized the opportunity of the low-end passenger car market in China's auto market at the initial stage of popularization. They have rapidly expanded their market share and emerged a number of local automobile brands such as Geely, BYD, Chery, and Great Wall. .
However, after the rapid development of the past few years, the development of local brands has been frustrated in the past two years. BYD is the most ambitious and fastest-growing local brand, but its performance has fallen sharply last year, and the profit of automobile business has fallen by nearly 50% ( See the car world 4 edition).
China's auto market has two major characteristics. One is high-speed growth and the second is rapid upgrade. In the past 10 years, we were at the stage of the initial popularity of automobiles, and high-speed growth was the main factor. However, as the initial penetration rate of automobiles increased, the use of automobiles increased (there are expensive parking spaces and high oil prices), and the use environment deteriorated (traffic jams, restrictions). (card), the growth rate will be significantly slower, and rapid upgrade will become the main feature of the Chinese auto market. In the future, whether it can provide more attractive products, rather than cheaper products, will become the key to competition. In view of this, the current situation of Chinese domestic car brands is worrying.
Guangzhou Daily Motors launched the exclusive test and evaluation system, the Pleasure Index, two years ago. In the past two years, even after fully considering the price factors, the scores of local brands remained low overall.
Local brands that have undergone rapid development are now generally compared - how to say it, good point, there is ambition, ugly point, I do not know the heights. A brand that has just been established calls out to be the world’s best; after just 400,000 vehicles per year, it is unnerving, and it claims to be China’s Toyota; if it sells less than 100,000 cars, it will produce 2 million cars. 2/3 above the majestic goal of exports!
However, what do you rely on? As for the product itself, the ability to be reflected in a car is, in a nutshell, nothing less than the three major blocks of design capability, technological R&D capability, and manufacturing technology level. Compared with its own, local brands certainly make great progress, but horizontal and horizontal The proportion of others is still significant. In terms of design, many local brands have been plagiarizing and imitating. Strange shapes and pictures of tiger dogs have continued to emerge in an endless stream; our local brands have not even made automatic transmissions for technical research and development, and the gap between engines and chassis technology has increased; The level, at a glance on the product - of course, you will say that the price is not the same, this is back to the beginning of the problem.
The current situation facing local brands is very serious. It is impossible to break through, and there is not enough accumulation. The technical threshold is there; while the name of the joint venture brand is “independenceâ€, it has begun to suppress it with great pressure. The best-selling products in the sunshine, london and sail are attractive. More joint venture companies cut into the base of local brands - the low-end market.
What local brands need to do now is to effectively improve the design, R&D, and manufacturing levels, and to increase the attractiveness of products as soon as possible. Instead of experiencing price problems, the first thing that comes to mind is price cuts, and then pressure is the cost. If the cost cannot be reduced, the standard will be lowered. . This is not a solution. This is an endless loop. Happily, many local brands have already begun to change their thinking. For example, Geely began a strategic transformation in 2007. Since then, the imperial brand launched by the Emgrand brand has made amazing progress in product appeal. Chery has also begun to take a small and sophisticated approach to product development. the way.
In a word, the current auto market environment has undergone a great transformation. In the period of rapid consumption upgrade, black and white TV will not be cheaper. Of course, local brands are not encouraged to call Mercedes-Benz. However, at least you have to be able to accept the challenges of sunshine and loftiness. 