Finally, the Chinese automobile market ushered in a "good time" in 2017.
According to data provided by the CLUCC Secretary-General Cui Dongshu, the retail sales of the auto market in the first three weeks of July increased by 6.2% year-on-year, and wholesale sales rose by 15%. Does the independent brand also usher in the good news along with the broader market?
Geely, Great Wall and GAC Passenger Vehicles, the three leading automakers that released the data every month, are the top students, and this is confirmed by numbers. Sales volume of Geely and Chuanqi surged by 87.8% and 28.3% year-on-year respectively. While the Great Wall has grown by less than 1%, the Wei Wey brand has doubled in sales volume, exceeding the target of 5,000 vehicles.
Even if it is flat over the same period, Wei Jianjun's heart must have been relieved. In fact, the deep meaning is not just a change in numbers.
Falling back and forth in March, the annual championship became a mystery
According to the latest production and sales report issued by Great Wall Motors, in July 2017, its wholesale sales volume was 69,063 vehicles (excluding passenger vehicles, but also included commercial vehicle wind Jun pickup, and including export sales), a slight increase of 0.13% year-on-year.
Although this increase is extremely small, it is a signal to the Great Wall: The year-on-year decline since April of this year for three consecutive months has finally come to an end. Since 2017, Great Wall Motor sales performance has been relatively stable compared to some other independent brands, but it is hard to call ideal. January's slight increase of 0.7% year-on-year, a slight increase of 2.3% year-on-year in March, only February's year-on-year increase of 30.7% due to seasonal factors, followed by April and June were down 8.1%, 3.8% and 1.7% respectively.
In the first half of the year, the Great Wall’s unsatisfactory sales performance has multiple factors: the gradient of purchase tax preferential policies has led to an overdraft in demand and purchasing power in the fourth quarter of last year, resulting in a weak overall market for the auto market this year; the self-owned brands have entered a period of fatigue, and new vehicles have been replaced by neutral and price war damage. Performance...
Although there is still a gap between “Jin nine silver and ten†in July, it is the month when the price discount is concentrated. For the Chinese auto market, in July 2017, after adjusting for the first half of the year, a small burst broke out. In the context of the broader market also tends to pick up, the Great Wall’s sales in July ushered in a rebound. From January to July, the cumulative sales of the Great Wall increased by 2.0% year-on-year to 529,806 vehicles.
Since we mentioned the cumulative sales of the Great Wall, we cannot but mention the other car companies that may compete for their own brand sales laurel. In July, Geely's sales soared by 87.8% year-on-year to 91,104 units, continuing the momentum this year, more than 20,000 units higher than the Great Wall, and cumulative sales increased by 89.1% year-on-year to 621,731 units. As of this writing, Changan has not yet released its July sales.
Therefore, according to the current sales figures for the first half of the year, according to the statistics of the CCC, Geely is undoubtedly the highest, up 79.8% from the same period last year to 550,191 units; Chang'an is down 5.5% year-on-year to 532,763 units; Great Wall is up 1.4% year-on-year to 403,495 units.
There are some differences between the official figures of the auto enterprises and the statistical coverage of the CUCH. Since the listed companies do not count toward the sales of Global Hawk and Zhidou, the sales of the Geely official increased by 89.3% to 530,627 units in the first half of the year; the Great Wall includes pickups, which is a year-on-year increase. From 2.3% to 460,743 vehicles; Chang'an was down 4.5% year-on-year to 592,091 vehicles. This means that if you press the statistics of the joint conference, Geely's advantage is more obvious, but if you count according to the official habits of car manufacturers, the cumulative sales of Changan is still the highest, and the gap between the Great Wall and Geely is not as big as the data of the Federation.
Therefore, in 2017, who will eventually become the king of the annual sales volume of independent auto makers, statistical methods will be important in addition to the market performance in the coming months. In the way of the joint conference, Geely has a higher probability of dominating the company, but if the official figures of the car companies are concerned, because the Weavy Wey has yet to exert force behind the Great Wall, Changan has also shown signs of recovery after adjusting for inventory.
Changes in sales structure are more important than ups and downs
According to "One Word Review", although the growth of Great Wall Motors' sales in July 2017 was small, if the sales structure is still not satisfactory, it will give people a little cheer.
In July, the best-selling Harvard H6 of the Great Wall's models held the broad market. Although it was less than the same period of last year, the gap was not significant, and it still reached 37,305 vehicles. The biggest reduction came from the deepest drop in the Haval H1, which fell 61.69% year-on-year. The largest increase came from the Wey VV7. After reaching 3,166 in June, it climbed to 6,075 last month, exceeding the 5,000 target given by Wei Jianjun in a low profile.
Except for the more special case of the Hover H7 (and the VV7's suspicion of having a fratricide), most of the higher-end models of the Great Wall Haver maintained a relatively fair performance last month. Haval H8 and H9 either did not increase or declined slightly. This is even more true in terms of cumulative sales (naturally, the cumulative growth in sales of Haval H7 was due to the late listing of the company last year).
Haval H6 also has a certain degree of particularity. The previous generation of Haval H6 will be transformed into M6, using downshift play to win a more cost-effective market segment. With the listing of the Haval M6, it is expected that the total sales volume of the Haval 6 series can still be maintained at the level of 40,000 units. If the statistics are combined, it is still the best-selling model in the Chinese market (Will Langyi and Wuling Hongguang complain about being unfair?).
Haval H2 sales in July turned positive, but in June there have been setbacks, combined with shrinking sales of Haval H1, this is due to Haval's small SUV product relative decline, competitors swarm. Baojun 510, MG ZS and Pentium X40 all joined the battlefield of small SUVs in the first quarter of 2017, and Baojun 510, in particular, quickly climbed into the championship for small SUV sales.
For the Great Wall, the most dazzling last month was the Wey VV7. According to the “One-point Comment†survey, VV7 is often the most popular S-top version with a price of 188,800 yuan in the dealership store. This proportion has even reached 90%, and many consumers eventually purchased additional suites. If such products account for a significant increase in sales, the sales of low-priced entry cars such as Haval H1 will shrink, and the profitability of the entire car maker will be greatly improved. Even if the sales figures do not change, the figures do not look good.
Therefore, we can say that although Great Wall Motor did not continue its rapid growth in previous years in 2017, this structural improvement is undoubtedly more conducive to the long-term growth of the company. While the public and the general public are awakened, and from scale-based to profitability, domestic independent car companies also need to develop rationally and follow the most sensible trend in the industry.
How far can Wey go?
Regarding the Wei Wey, Great Wall Motors placed great hopes on it. Although the cumulative sales of more than 9,000 vehicles, but as early as June this year, customer prepayment orders have exceeded 20,000.
"One Word Review" was informed when visiting East China dealerships that currently 20% of all VV7 orders are from Haval's original owners, 80% of consumers are first-time buyers of Great Wall Motors, including many of the original ones. It intends to purchase its own brand of local Shanghai consumers. "Understanding the psychological defense of Shanghai customers" is an unattainable goal for many independent brands, and VV7 has already been reached.
In terms of the distribution network of sales channels, Wey increased the exposure using the Huff Shop Store and Wanda Mall promotion model during the transition period, while the independent dedicated dealership stores were built according to the requirements of the luxury brand stores. At present, the brand has built about 20 independent stores, with about 150 stores in store. It is estimated that by the end of the year, 150 to 200 independent stores will form a complete network.
At present, two VV7 series production models, the VV7C and VV7S, are already on the market. The VV5 series is targeted for compact SUVs and will be an important product of the brand in the second half of 2017. As the Weipai brand positioning is relatively high-end and it has achieved certain market recognition, it is expected that the overall sales volume and average price of the Great Wall will be promoted with superior configuration products, and the Great Wall Motor’s product price range will be promoted upwards to increase its gross profit margin. Lead Great Wall Motor into new profit growth space.
However, the test we face in the future is also self-evident. The first is how to co-exist with Harvard brothers at the same door. At present, Haver dealers attribute the decline in sales of H7 to the rapid rise of VV7. In the future, VV5 may also have a certain crossover between pricing and Haval H7 and New Haver H6. According to "One Word Review", the Great Wall can use Haval H7 to cancel some unpractical configurations, reduce product costs, lower vehicle prices, and avoid conflicts with VV7; while the VV5 and Harvard models emphasize the tone of the brand, the former More emphasis on young people, the latter is suitable for the pursuit of larger consumers.
By the fourth quarter of 2017, Wey may usher in a strong opponent, Geely's lead. With the independent high-end brand, the lead sirens are driven by the advantages of Volvo's technology and Geely marketing. Since Wey has caused the Great Wall consumer market to switch more to the East China region, this is highly in line with the lead market for lead. Although there are differences in the degree of youthfulness of the target group, it is expected that the two brands will have fierce confrontations.
Of course, regardless of the final outcome, it would be a happy progress for China's own brands and be able to compete in a higher ring. This is in itself a recognition of the brand and even the entire Chinese automobile industry.
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