Luxury car brand into China to speed up the market structure into the remodeling period

On September 9, 2012, data released by the National Bureau of Statistics of China showed that industrial production continued to slow in August, an increase of 8.9% year-on-year. Since this is the lowest increase since May 2009, this again reflects in one aspect the pressure on the Chinese economy. In the August data, the automobile manufacturing industry increased by 9.7% year-on-year. Among them, the increase of cars was 10.8%. The Chinese auto industry is getting farther and farther from the era of blowout.

The competition in the Chinese auto industry is becoming increasingly fierce. The entire market holds a more pessimistic attitude towards the industry's prospects. However, the luxury car market is in stark contrast to this. As of August 2012, a number of luxury car brands have announced they will enter China or China. Including the American Ford Motor’s Lincoln brand, Volvo acquired by China’s Geely, the British luxury brands Jaguar and Land Rover owned by the Indian Tata Group, and Nissan’s Infiniti’s Infiniti.

In the past three years, luxury car brands headed by Audi, BMW and Mercedes have sang songs in the Chinese market with an average compound annual growth rate of more than 40%. Some of the smaller niche luxury cars and sports cars are also growing at an equally rapid rate. Porsche, Ferrari, Bentley and Rolls-Royce all recorded sales growth of more than 60% in China last year. Since the beginning of this year, the tide of price cuts initiated by the luxury car brands has not yet retreated. The topic of whether the good days of luxury cars have come to an end is still hot. However, this apparently did not allow luxury car makers to slow down their plans for expansion or expansion.

What is the growth space for the luxury car market in China? How will the pattern of this market segment change? In response to such topics, the newspaper Automotive Research Institute and Gasgoo.com conducted a joint investigation. The survey was conducted from September 3 to September 9, 2012, with 1,621 people participating in the survey.

The survey concluded that the luxury car market is still a hot spot. However, strategic adjustments between brands will further accelerate.

Millions of new markets

According to the statistics of LMC Automotive, the sales of high-end vehicles in the Chinese market in 2011 exceeded 97 million, accounting for approximately 7% of the total passenger car market. According to the development experience of developed markets in Europe and America, the market share of luxury cars generally exceeds 10%, and some countries, such as Germany, can reach 30%. From this point of view, with the continued development of the passenger vehicle market in China, there is still great room for growth for luxury cars. From the perspective of the growth expectation of the rich class in China, we can also find reasons for support. The "Global Wealth Report" released by Credit Suisse at the end of 2011 shows that the number of millionaires (in dollars) exceeds one million. It is expected that the number of millionaires will double in five years. These newcomers need to use high quality and high grades. Cars to demonstrate identity and success. These surveys show that the luxury car market has great growth potential.

The results of this survey also show this trend. Most insiders are still optimistic about the future growth prospects for luxury cars. About 58% believe that “high growth will continue in the next 3-5 years.” It is expected that the "saturation will reach saturation" in the next three years will account for 25% of the votes, while the number of people who believe that China's luxury car market is saturated is only 9%.

In addition, according to major international consulting companies, the growth opportunities for China's future luxury cars are also very optimistic. LMC Automotive expects this year's luxury car sales to increase from the 970,000 last year to more than 1.1 million (10 years ago, China's high-end car sales could not reach 30,000); by 2015, it will have doubled to 1.95 million. IHS Automotive also predicts that the sales growth of high-end passenger car market will reach three-digit growth from 2010 to 2015. By 2015, China’s high-end car sales are expected to increase by 139.5% over 2010 to over 1.7 million vehicles.

However, there are different views in the market. Some people think that such a forecast may not be achieved. There is instability in the macroeconomic development of the Chinese market, and it is not ruled out that the central government will impose restrictions on the consumption of large-displacement cars due to energy and environmental protection pressures. At the same time, due to the relatively weak maturity of the Chinese market, whether luxury car manufacturers can quickly establish a localized decision-making mechanism, and can well grasp the consumer demand in the local market, and change it also becomes a test for these new companies. problem.

In the face of various disputes, major manufacturers have chosen a new round of layout.

Advanced latecomers who VS. <br> <br> since it is considered China's luxury car market, a large room for future growth, the brand began to adjust its strategy. Has entered the establishment of local chemical plant brands, have increased investment in production expansion. Latecomers have accelerated the establishment of production plants in China by integrating all resources.

On May 24, 2012, BMW started production of its second plant in China. The new plant will initially double BMW's capacity in China to 200,000 vehicles per year. Prior to this, the Audi brand announced that it will introduce Audi's full range of models to China before 2015. Earlier this year, Cadillac reformed its domestic plan and will build a new factory in China. It will also produce cars that are more suitable for Chinese consumers. After voluntary ownership in China Geely, Volvo also formulated a grand domestic plan.

On May 28th, 2012, Dongfeng Limited officially confirmed Infiniti's domestic production and production facilities settled in Xiangyang, Hubei. It is expected that it will be officially put into production in 2014 and two new models will be initially established.

In August 2012, Ford Motor’s Lincoln brand redefined its strategy for the Chinese market and plans to export to China in 2014. According to media reports, the Lincoln brand may establish an independent production facility in China in 2015. In addition, Chery's joint venture with Jaguar and Land Rover is also progressing.

The Chinese luxury car market at this stage has always been dominated by German brands. Compared to other brands, German luxury cars have been domestically produced earlier and have greater advantages. They have occupied more than 80% of the market share. As more luxury car makers enter China, whether the original situation will change or not, how will the new entrants' opportunities in the future become the focus of attention in the industry?

According to the survey, about 43% of the people think that the new entrants have a small chance, because the three leading German luxury manufacturers have too many first-mover advantages. 31% of people believe that the growth potential of China's luxury car market is huge, the competitive landscape is uncertain, all competitors have the opportunity to grow; 26% of participants believe that the new entry into the enterprise positioning and competitiveness vary greatly, depending on the size of the opportunity And set.

Among the luxury car brands that have successively announced their entry into the Chinese market, Volvo and Land Rover have received 33% and 26% of the votes respectively; Infiniti and Jaguar have also obtained double-digit votes, while Ford Lincoln is in the industry. It seems that the chance of success is small.