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Domestic brands' SUV sales surge
2015-04-20 0
Chinese automakers' targeted approach pays off with rising
Chinese brands saw a sudden surge in sales in the first two months of 2015 in the passenger vehicle, or PV, segment, which IHS Automotive said included sedans, sport utility vehicles, or SUVs, and multi-purpose vehicles, or MPVs only.
Sales of local Chinese brands rose by 41.71 percent in the PV segment in the first two months of the year to 972,833 units. The top brand was Changan, followed by Haval from Great Wall Motors.
Sales of Changan, the in-house brand at Changan Auto, soared 102.69 percent year-on-year, in the first two months. Haval, Great Wall's SUV brand, witnessed an even higher growth rate of 131.50 percent year-on-year.
The models that predominantly pushed up sales of domestic players in the first couple of months of the year were SUVs.
Some Chinese consumers consider SUVs to be family vehicles and rate them as safe and spacious; therefore, the SUV segment continues to see double-digit growth in China.
Sales of SUVs produced by local brands in China rose 52.17 percent year-on-year to 424,770 units in the year-to-date period in February.
Great Wall's Haval brand was the top-volume seller in the SUV segment with a 56.8 percent year-on-year hike to 99,102 units in the first two months of 2015.
Haval has more SUVs on offer this year. The Hover H1, H2 and H9 are all new SUV models boosting sales for the brand.
Changan followed as second-best seller, with the CS35 and the new CS75 SUV models boosting sales. The brand sold 61,318 SUVs in the first two months of the year, up 71.2 percent year-on-year.
The third-highest SUV-selling local brand was Jianghuai from automaker Anhui Jianghuai Automobile Company, or JAC. The brand added the Refine S3 to the Refine S5 SUV, which helped SUV sales grow by 78.44 percent year-on-year to 40,231 units in the two-month period.
Beijing Auto, the in-house brand of Beijing Automotive Industry Group Co, or BAIC, witnessed an SUV sales jump of 96.63 percent year-on-year in the two-month period, with 36,397 units of its eight SUVs sold.
BYD's SUV sales rose 10.49 percent in the January-February period, with 22,479 units sold following the addition of the S7 SUV to the existing S6.
In the first two months of 2015, FAW's SUV sales were up 31.92 percent year-on-year, Zotye's were up 81.43 percent, Haima's were up 61.87 percent, Dongfeng's rose 99.38 percent and Geely's increased 51.58 percent. These brands all added SUVs to boost sales.
Outlook and implications
In 2014, final sales data showed that most Chinese brands suffered a difficult year.
The situation today is a stark contrast as local Chinese brands are suddenly witnessing sales growth rates often in double digits.
The reason is that local brands raised their in-house technical standards, partnered with international suppliers and built better-quality models. More importantly, they have begun to target the highgrowth segment of SUVs.
Brands that reported low single-digit sales increases at the end of 2014 are now seeing double-digit growth, while those with negative growth are reporting positive numbers.
The focus of these Chinese automakers has shifted from producing many different models to targeting sales of models in growth segments and catering to specific target consumer groups.
The sheer volume increase in sales of local-brand SUVs shows that 2015 is the beginning of a targeting exercise from local brands, bringing better-quality products tailored for specific segments of the Chinese consumer market.
In the first two months of 2014, Chinese brands sold 203,136 SUVs. This rose by 52.18 percent to 424,770 units in the first two months of 2015.
The question is whether this growth of Chinese SUV sales will continue, and whether overall Chinese brands will continue to see growth in their local domestic market?
In the January-February period, Chinese Original Equipment Manufacturers, or OEMs, managed to increase their market share in PV sales, excluding imports and exports, to 32 percent from 26 percent in the same period last year. Meanwhile, Japanese OEMs seemed to lose momentum again in PV sales as their market share decreased to 15 percent from 17 percent in January-February 2014.
The strong rebound in domestic OEMs' performance is attributable, in particular, to the positive reception of their SUV products, especially those of Great Wall, Changan and JAC.
With more SUV products from Chinese OEMs to be launched this year, we expect domestic OEMs to at least increase their market share from 27 percent in 2014 to 28.8 percent in 2015.
International brands witnessed a rapid slowdown in sales growth rates of locally produced PVs in China, with a number of brands in negative territory.
Volkswagen's sales were up 4.1 percent year-on-year during the first two months this year with 543,896 locally produced PVs sold in the two-month period.
Hyundai's sales were down 6.3 percent year-on-year, Buick's were down 6.1 percent year-on-year, Ford's were up 16.8 percent year-on-year, Chevrolet's were down 1.2 percent year-on-year, Toyota's down 11.4 percent year-on-year, Kia's down 2.7 percent year-on-year, Honda's down 2.3 percent year-on-year and Nissan's down 13.6 percent year-on-year.
This is in stark contrast to the sudden jump in growth rates of local brands in China.
2015-04-20 0
Chinese automakers' targeted approach pays off with rising
Chinese brands saw a sudden surge in sales in the first two months of 2015 in the passenger vehicle, or PV, segment, which IHS Automotive said included sedans, sport utility vehicles, or SUVs, and multi-purpose vehicles, or MPVs only.
Sales of local Chinese brands rose by 41.71 percent in the PV segment in the first two months of the year to 972,833 units. The top brand was Changan, followed by Haval from Great Wall Motors.
Sales of Changan, the in-house brand at Changan Auto, soared 102.69 percent year-on-year, in the first two months. Haval, Great Wall's SUV brand, witnessed an even higher growth rate of 131.50 percent year-on-year.
The models that predominantly pushed up sales of domestic players in the first couple of months of the year were SUVs.
Some Chinese consumers consider SUVs to be family vehicles and rate them as safe and spacious; therefore, the SUV segment continues to see double-digit growth in China.
Sales of SUVs produced by local brands in China rose 52.17 percent year-on-year to 424,770 units in the year-to-date period in February.
Great Wall's Haval brand was the top-volume seller in the SUV segment with a 56.8 percent year-on-year hike to 99,102 units in the first two months of 2015.
Haval has more SUVs on offer this year. The Hover H1, H2 and H9 are all new SUV models boosting sales for the brand.
Changan followed as second-best seller, with the CS35 and the new CS75 SUV models boosting sales. The brand sold 61,318 SUVs in the first two months of the year, up 71.2 percent year-on-year.
The third-highest SUV-selling local brand was Jianghuai from automaker Anhui Jianghuai Automobile Company, or JAC. The brand added the Refine S3 to the Refine S5 SUV, which helped SUV sales grow by 78.44 percent year-on-year to 40,231 units in the two-month period.
Beijing Auto, the in-house brand of Beijing Automotive Industry Group Co, or BAIC, witnessed an SUV sales jump of 96.63 percent year-on-year in the two-month period, with 36,397 units of its eight SUVs sold.
BYD's SUV sales rose 10.49 percent in the January-February period, with 22,479 units sold following the addition of the S7 SUV to the existing S6.
In the first two months of 2015, FAW's SUV sales were up 31.92 percent year-on-year, Zotye's were up 81.43 percent, Haima's were up 61.87 percent, Dongfeng's rose 99.38 percent and Geely's increased 51.58 percent. These brands all added SUVs to boost sales.
Outlook and implications
In 2014, final sales data showed that most Chinese brands suffered a difficult year.
The situation today is a stark contrast as local Chinese brands are suddenly witnessing sales growth rates often in double digits.
The reason is that local brands raised their in-house technical standards, partnered with international suppliers and built better-quality models. More importantly, they have begun to target the highgrowth segment of SUVs.
Brands that reported low single-digit sales increases at the end of 2014 are now seeing double-digit growth, while those with negative growth are reporting positive numbers.
The focus of these Chinese automakers has shifted from producing many different models to targeting sales of models in growth segments and catering to specific target consumer groups.
The sheer volume increase in sales of local-brand SUVs shows that 2015 is the beginning of a targeting exercise from local brands, bringing better-quality products tailored for specific segments of the Chinese consumer market.
In the first two months of 2014, Chinese brands sold 203,136 SUVs. This rose by 52.18 percent to 424,770 units in the first two months of 2015.
The question is whether this growth of Chinese SUV sales will continue, and whether overall Chinese brands will continue to see growth in their local domestic market?
In the January-February period, Chinese Original Equipment Manufacturers, or OEMs, managed to increase their market share in PV sales, excluding imports and exports, to 32 percent from 26 percent in the same period last year. Meanwhile, Japanese OEMs seemed to lose momentum again in PV sales as their market share decreased to 15 percent from 17 percent in January-February 2014.
The strong rebound in domestic OEMs' performance is attributable, in particular, to the positive reception of their SUV products, especially those of Great Wall, Changan and JAC.
With more SUV products from Chinese OEMs to be launched this year, we expect domestic OEMs to at least increase their market share from 27 percent in 2014 to 28.8 percent in 2015.
International brands witnessed a rapid slowdown in sales growth rates of locally produced PVs in China, with a number of brands in negative territory.
Volkswagen's sales were up 4.1 percent year-on-year during the first two months this year with 543,896 locally produced PVs sold in the two-month period.
Hyundai's sales were down 6.3 percent year-on-year, Buick's were down 6.1 percent year-on-year, Ford's were up 16.8 percent year-on-year, Chevrolet's were down 1.2 percent year-on-year, Toyota's down 11.4 percent year-on-year, Kia's down 2.7 percent year-on-year, Honda's down 2.3 percent year-on-year and Nissan's down 13.6 percent year-on-year.
This is in stark contrast to the sudden jump in growth rates of local brands in China.
