The hottest independent brand in the new year buck

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The independent brand new year's high-volume parts industry chain ushered in spring against the trend

Abstract: multiple reasons have driven the substantial growth of the performance of these auto parts enterprises, some of which benefited from the overall growth of the domestic auto market last year

HK $99.9 billion. A few days ago, Geely motor approached the market value of HK $100 billion with the highest intraday price of HK $11.24; This share price has risen more than 300% from its "starting price" in mid February last year. Behind the soaring share price is the accelerated rise of domestic independent brand passenger cars represented by Geely

in January this year, when the sales volume of domestic passenger car market fell slightly year-on-year, the sales volume of Geely Automobile increased by more than 70% year-on-year, while the sales growth rate of self owned brands of SAIC and GAC was also around 60%. In this regard, an executive of an independent brand auto enterprise pointed out that compared with imported and joint-venture brands, independent brands are more "understanding" domestic consumers and can respond more quickly to market changes, and have entered the stage of winning with "product price ratio" (quality price ratio). With the expansion of independent brands, the competition pattern of the entire automotive industry chain is also changing, and engine, dashboard and other parts manufacturers will therefore gain greater room for growth

New Year's volume of independent brands against the trend

in January this year, although the domestic car market slowed down its growth rate, the sales volume of several leading independent brands still showed high growth. The sales volume of Geely Automobile in January was about 102653, with a year-on-year increase of about 71%; The monthly sales volume of GAC passenger car company, an independent brand platform of GAC, was 46273, with a year-on-year increase of 58.66%; The monthly sales volume of SAIC passenger car company was 46268, with a year-on-year increase of 71.02%. In contrast, the latest data from the China Association of automobile manufacturers showed that domestic car sales in January were 2.52 million, a slight increase of 0.2% year-on-year; Among them, the monthly sales volume of passenger cars was 2.218 million, a slight decrease of 1.1% year-on-year

although the outside world has only recently paid close attention to the amazing rise of domestic self owned brand cars, in fact, as early as 2016, self owned brand cars have entered the "fast lane", and phenomena such as explosion of models and short supply that once appeared in the field of imported luxury cars have also emerged in self owned brand car enterprises. Such as SAIC's own brand passenger car Roewe rx5, Geely's Borui, etc., have been labeled "red car". As a result, self owned brand car companies have been fighting a turnaround in succession, and plan to continue to "work hard and fast" in 2017

Lin Jie, vice president of Geely Automobile Group and general manager of sales company, told Shanghai Securities News: "Geely Automobile hopes to enter the club with annual sales of one million vehicles this year, and plans to sell one million vehicles throughout the year, an increase of more than 30% In 2016, Geely's annual cumulative sales exceeded 760000 vehicles, an increase of 50%, exceeding the annual sales target of 700000 vehicles after two increases. According to Geely Automobile's previous announcement, the net profit of Geely Automobile will increase by more than 100% in 2016. In 2015, the net profit of Geely Automobile was 2.26 billion yuan

similarly, an executive of GAC passenger car company also said to that nine new cars will be launched in 2017, challenging the goal of production and marketing 5. Please re tension the tensioning wheel to 0 million vehicles. In 2016, the cumulative sales volume of GAC passenger car company was 370000, a significant increase of 90.66%. It was learned that since 2016, the contribution of GAC passenger car company to the performance of GAC group has been higher than that of joint venture pintai GAC Toyota, GAC Honda, etc

as another leader, SAIC passenger car company also achieved its first profit since its establishment in 2016. According to the exclusive information, in 2017, SAIC passenger car company's sales target is "guarantee 500000 for 600000". At the beginning of 2016, SAIC passenger car company originally planned to sell 240000 vehicles, which was significantly exceeded, and the annual sales volume was as high as 320000 vehicles

for the slightly "radical" goal this year, the outside world is worried that under the background of the overall slowdown of the domestic car market, SAIC passenger car company may not be able to do so. However, yujingmin, deputy general manager of SAIC passenger car company, is full of confidence: "the domestic auto market has entered a period of stable growth. If you want to achieve high growth, you must find and seize the incremental market. This is the 'secret' of SAIC passenger car company. In the second half of last year, SAIC passenger car company launched a new category - the connected Roewe rx5, which has captured young consumers." It is reported that in 2017, SAIC passenger car company hopes to replicate the success of Roewe rx5 on Mg brand. Yesterday, mingjue ZS pre-sale also launched the slogan of "the first Internet SUV standard for young people"

Yu Jingmin said, "after the success of Roewe rx5 in 2016, the annual sales volume of Roewe brand increased from 100000 vehicles in 2015 to 240000 vehicles." According to the internal plan, the brand plans to sell 200000 vehicles in 2017, an increase of 2.4 to 2.5 times (in 2016, the sales volume of the brand was about 80000 vehicles). In addition, SAIC passenger car company will seize the opportunity of the new energy vehicle market this year and plan to sell 80000 to 100000 new energy vehicles

welcome the era of 3.0 with "product price ratio"

after the domestic independent brand car enterprises achieved high sales growth, the outside world was excited and worried, "when the joint venture car enterprises reacted, can the independent brand still maintain the current high growth?" In this regard, Yu Jingmin said that he was optimistic about the strength of independent brands. "Since the second half of 2016, independent brands have entered the '3.0 era'. That is, the era of 'product price ratio' (quality price ratio) that focuses on consumer experience." He explained that in the 1.0 era of independent brands, Great Wall Motors and Chang'an motors, as representatives, rely more on absolute price advantages. In the era of 2.0, car companies pay more attention to cost performance, that is, price advantage and configuration advantage. Compared with joint venture brands, independent brands respond faster to the market and are more willing to meet the needs of consumers in terms of shape, configuration and price, so they quickly attract some economical or entry-level consumers. After entering the era of independent brand 3.0, car companies are no longer simply competing for cost performance, but for "product price ratio". They have entered a new stage of "doing faster, better and innovative" from fast market response, no one has it, and no one has it cheap

from the specific data, the sales growth of independent brands in 2016 benefited from two markets. In addition to the rural consumption upgrading market, cities have also become a "new battlefield" for some independent brand car enterprises. After years of hardships and technological accumulation, Geely, SAIC passenger car company and other independent brand car companies have been in a positive confrontation with Korean and Japanese enterprises. Lin Jie said, "when Geely boyue delivered the first batch of cars in Tianjin, it was found that about 33% of car buyers had previously bought joint venture brand cars. In addition, from the analysis of consumer groups, white-collar workers and civil servants accounted for 40%." Lin Jie also revealed: "in 2016, with the listing of Geely boyue, Dihao EV, vision SUV and other models, Geely's monthly sales in Beijing, Shanghai and Guangzhou exceeded 1000, and there was an unprecedented growth in the first and second tier cities."

acquiring overseas mature brands and improving consumer confidence through after-sales are also the strategies of independent brands to "overtake in corners". The substantial improvement of Geely's competitiveness is closely related to its parent company Geely Group's acquisition of Swedish car company Volvo. Geely builds new models on the highly modular CMA architecture, so that Volvo and Geely brands can fully share resources. On this platform, Geely will launch new products including class a cars, class B cars and SUVs; Among them, the planned monthly sales volume of compact SUVs is 10000, and the competitors are Japanese and Korean models of the same level

the same is true of baowo automobile under BAIC Foton. BAIC Foton acquired baowo, a German luxury car brand, and launched its domestic baowo bx720 in 2016. In 2016, it achieved sales of about 30000 vehicles relying on only one model of bx7. In November last year, the "lifelong free warranty policy" launched by baowo automobile attracted many consumers. The warranty policy stipulates that "the first bx7 owner can enjoy lifelong free warranty service, and can also enjoy three years of free roadside assistance service within the warranty period of the whole vehicle." In 2017, baowo automobile plans to sell about 150000 vehicles

the parts industry chain ushered in more opportunities

with the rise of independent brands, related parts enterprises also ushered in the spring. According to statistics, at least 11 A-share auto parts listed companies have issued performance pre increase announcements. Among them, Changchun Yidong estimated that the net profit growth rate last year was about 1053%; Dong'an power predicts that the net profit in 2016 will increase by 198.69% to 284.03%, amounting to 70million to 90million yuan; The net profit of top group is expected to increase by 50% to 60% in 2016, while its net profit in 2015 has reached 400million yuan

multiple reasons have driven the substantial growth of the performance of these auto parts enterprises, some of which benefited from the overall growth of the domestic auto market last year. For example, Changchun Yidong announced that "the main reason for the performance growth is that the overall automobile market is stable and rising, and the company implements comprehensive lean management, with better cost control."

and more parts enterprises mainly benefit from the rise of independent brands, among which the first is the core auto parts suppliers such as engines and transmissions. Previously, due to high investment costs and insufficient R & D strength, most independent brand car companies were unwilling or unable to produce core components such as engines and gearboxes. It is understood that the cost of building an engine factory is sometimes higher than that of building a complete vehicle assembly plant, and the time cycle is longer. Take Geely Automobile as an example. Last September, Geely announced that it would start an engine project in Taizhou, with an annual planned capacity of 400000 units and a total investment of about 5.12 billion yuan. It is expected that it will not be completed and put into operation until 2020. Those suppliers that have entered the supporting system, such as Dong'an power, are sought after by their own brands due to cost and scale advantages. It was learned from several independent brand car companies that although a large number of orders for small displacement passenger cars were received, the orders could not be quickly converted to actual sales due to the supply bottleneck of core components such as engines and transmissions. As a domestic engine supplier producing small displacement engines, Dong'an power was hard to find in 2016. Dong'an power once announced, "in 2016, the production and sales of our company's engines increased significantly, with an increase of 91.48% and 101.32% respectively compared with 2015." The announcement shows that in 2016, Dong'an headquarters sold 309800 engines, an increase of 101.32%; Dong'an Mitsubishi sold 452666 units, with a growth rate of 28.85%. Among them, Dong'an headquarters is Chang'an Auchan (an independent brand of Chang'an Automobile) and BAIC Weiwang (an independent brand of BAIC) supply, which is defined as ldquo; Small cracks rdquo;; When the crack length reaches the microstructure of the material and is not enough to affect its expansion, the average monthly sales volume of the engine is 20000 to 30000, which is basically full load production. The industry has organized and planned the China (Ningbo) international new material technology and Industry Exhibition. With the continuous development of independent brands, Dong'an power is expected to continue to achieve high growth in 2017

in addition, under the same quality, it is easier and shorter to become a supplier of self owned brand models than to enter the joint venture brand supply chain, which improves the market penetration of domestic auto parts enterprises

the large sales of self owned brand models also boosted the market demand in the automotive electronics field. Compared with joint-venture brands, self owned brands have a better understanding of the needs of young domestic consumers for electronic products, and can meet this demand faster. Among independent brands, the body stability system ESP has basically become a standard configuration in SUVs, and the penetration rate of electronic configurations such as constant speed cruise, panoramic sunroof, LCD instrument panel, rearview mirror heating and 360 degree look around is also increasing rapidly

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