The official price cuts for the joint venture brand in the auto market environment in April this year did not give them expected sales growth. On the contrary, the lower prices are exerting enormous pressure on the independent brands that will become the biggest winners in the entire automotive market in the second half of the year.

Take the price reduction of Great Wall Haval, the best-selling Chinese SUV in recent days as an example. Great Wall Motor official news that consumers buy Harvard H6 Sports Edition and H2 brand new models, can receive 6,000 yuan and 5000 yuan discount. At the same time, consumers will also enjoy an additional replacement subsidy of RMB 1,000/unit when replacing these two models. Beijing's Great Wall Motor dealers stated that the official price cuts of Great Wall Hough had been the first time. Prior to this, the Harvard models had almost no concessions. Although the two models had a 2,000-yuan discount, they were all dealers. Shortly after the above price reduction information came out, the high-end SUVs Hafu H8 and H9 also issued news of disguised price cuts. The warranty period for the above two vehicles was extended from the original 3 or 100,000 kilometers to 6 or 200,000 kilometers, and the replacement users can also enjoy a subsidy of 5,000 yuan/car.

The Great Wall Haval H6 and H2 are the best-selling models of the Great Wall. In May of this year, H6 sold 30032 units, ranking the top spot in SUV sales rankings. H6 is also an evergreen tree in the SUV market. It has so far won the 26 months sales championship in its segment market. Currently, the market has more than 800,000 vehicles. However, compared with SUVs, Great Wall Motor’s car sales have experienced a sharp decline, and the price reduction of Haval is also an inevitable move by Great Wall to make up for the decline in car sales. This is rare in the history of Great Wall Motor’s sales for many years, and it also shows that it is autonomous. The brand is currently under tremendous pressure.

In fact, before the Great Wall, SAIC became the first self-owned brand that announced price cuts after joint venture brands lowered prices. The entire family of cars under its two brands, Roewe and MG, has experienced an average decline of nearly 10,000 yuan, of which the Roewe 950 has been reduced by 20,000 yuan. According to a recent investigation by the Beijing Morning Post reporter in the auto market, although other independent brands did not announce official price cuts, the price cuts at the market terminal were not small. Some self-owned brands also started the sales model of order-based production to reduce the inventory pressure of dealers.

For the independent brands, the pressure in the second half of the year should be even greater. Although in the first five months of this year, with the layout of the two major market segments SUV and MPV, they continuously gained more market share from the joint venture brand, but the price reduction of joint venture brands made it difficult for independent brands that did not have brand premium ability. The long-term parrying, in the case of almost no price cuts, how independent brands will respond to joint venture brands' continuous price decline will be the biggest issue in testing the performance of independent brands in the second half of the year.

Judging from the current situation in the auto market, most car companies have not completed the set sales targets, and can judge that the auto market will still be the "down" word in the second half of the year. Whether it is a joint venture brand, an independent brand or an imported car company, it is also facing tremendous pressure. Who can identify the direction in the turmoil, who will become the biggest winner of the auto market this year.