Car to the countryside - independent brands will be anchored


Whether it is the introduction of fuel tax, or the "national five" revitalization plan, or "car to the countryside", has two purposes: First, to promote the sales of small-displacement vehicles, especially mini-vehicles, adjust the industrial structure, realize the automotive industry Energy-saving emission reduction; the second is to create a good environment for their own brand cars, and promote the development of independent brand cars. “Cars go to the countryside” enriches the border cities and rural markets and is an important force for the revitalization of the domestic automobile market. Together with other measures to increase rural consumption, it has provided guarantees for stimulating domestic consumption and stimulating economic growth.

The Ministry of Finance and other seven ministries jointly published the “Implementation Plan for Auto and Motorcycles to the Countryside”, specifying that farmers dispose of three-wheeled vehicles or low-speed trucks and redeploy light trucks, as well as purchase mini-buses, and sell them as light-duty trucks or minivans. A subsidy of 10% of the price will be given. If the unit price is more than 50,000 yuan, the subsidy for each vehicle will be 5,000 yuan. At the same time, a fixed subsidy of 2,000 yuan is levied for each scrapped three-wheeled vehicle, and a 3,000 yuan subsidy for each low-speed truck is revoked. The sub-subsidies allowed for this policy are mainly minivans and light trucks. From a production point of view, the manufacturers of these two models are mostly self-owned brand enterprises; from the perspective of consumption, the rural market has always been entrenched by self-owned brand cars. This is destined to own brands will be the biggest beneficiaries of this policy.

One such thing: General Motors of the United States purchased a microcar in China. It has been studied in the United States for a long time and it has not been able to achieve low-cost production. A small story can fully prove the unparalleled cost advantage of China's self-owned brand cars. However, the general economy of China's rural market is underdeveloped. The reason why independent brands can take root in rural areas is because they are close to rural markets and marketable products. The "car to the countryside" policy will certainly provide China's own brand with a huge market space and development potential. Independent brands should be guided by policies, based on existing technologies, develop new products, and develop a path of independent innovation with Chinese characteristics.

Passenger car independent brand micro customer first

Judging from the current distribution pattern of domestic auto manufacturers, in the areas of minibuses, pickup trucks, light trucks, and low-end SUVs, independent brand manufacturers have the absolute advantage and potential to occupy the majority of the rural auto market. The passenger cars with the largest proportion of passenger cars and the fastest-growing SUV models are not included in the scope of this policy adjustment. In a sense, micro-passengers have become the vanguard of the passenger car industry in rural markets.

At present, there are 9 minibus companies in China, of which Shanghai GM Wuling is the only joint venture brand enterprise. The other eight self-owned brand minibus manufacturers are Changan Automobile, Dongfeng Junan, Hafei Motor, Nanjing Chang'an, Changhe, FAW Jilin, BAIC and Southeast Auto. In 2008, the sales volume of minivans in China was 1.06 million. The market shares of Shanghai GM Wuling, Chongqing Chang'an, Hafei, Dongfeng, Nanjing Chang'an and Jiangxi Changhe were 51%, 21%, 10%, 7%, 4 respectively. % and 4%. In terms of products, the self-owned brand products have obvious advantages due to their low market price.

With the temptation of RMB 5 billion and possibly tens of billions of “big cakes” thereafter, almost all the manufacturers involved in the policy are rejoiced. Most mini-car manufacturers have stated that they will increase sales targets. The self-owned brand companies have already begun to lay out their channels early in the construction and services. It can be seen that the self-owned brand companies attach great importance to the opportunities brought about by this policy.

Commercial vehicle own brand low-end light trucks benefit the most

According to statistics, in 2008 China's sales volume of light trucks was 1.08 million. The top light truck companies were Futian, Jianghuai, Dongfeng, Shandong Kaima and Jiangling. The total market share of the five companies was 60%, of which Beiqi Foton Market occupied. The rate reached 30.52%. The market share of the top ten light truck companies reached 79.62%, and the remaining market share of the small and medium-sized enterprises was 20.38%. Judging from the degree of corporate benefits, 35 light-card companies are actually independent brand manufacturers that can benefit from the automobile to the countryside. However, the companies that will benefit the most in the future will be Futian Automobile, Dongfeng and JAC.

Thanks to the good incentives such as the advance of the Spring Festival and the one-time financial subsidy for farmers scrapping three-wheeled vehicles and low-speed trucks redeeming light trucks, commercial vehicles have been especially eye-catching since sweeping away from the second half of last year. In general, the peak sales season for commercial vehicles is March and April of each year. In March, it is generally the peak sales of dealerships throughout the year. However, this year's peak season for the commercial vehicle market came early. Since the beginning of the Spring Festival, sales began to increase. The sales volume in the first two months increased by about 30% compared with last year, of which the sales momentum of light trucks was particularly noticeable.

China's light truck market rose significantly in February. Taking the JAC light truck as an example, the company sold nearly 11,000 light trucks in February. In addition, JAC Motor also harvested 5,900 vehicles for bookings in March. Fukuda's light trucks mainly consist of low-end light trucks, which is the product of choice for peasant consumers in the countryside. Its sales volume in the first two months of this year has achieved positive growth year-on-year. Driven by the automobile-to-country policy, micro-car sales growth in 2009 may be between 25% and 30%, and sales growth of light trucks will be 20%-25%. Both growth rates may be much higher than the industry average.

In light of the rapid growth in sales volume of the light truck industry, several large-scale light truck companies are more optimistic about the township market. Foton Motor will continue to be a leader in the light truck industry in terms of service network construction at the three-tier point of sale. Futian Automobile currently has more than 2,000 service outlets and 300 star service stations nationwide. Its service radius has been reduced to less than 50 kilometers. Jianghuai completed the adjustment of its light truck product structure last year, and also extended its marketing network to deepen the development of the second and third tier markets. The volume of sales in February was reflected by the comprehensive planning and integrated marketing of JAC light trucks in advance.

The introduction of the rules for the introduction of cars to the countryside has undoubtedly brought more confidence to commercial vehicle companies. From the perspective of subsidy, the replacement of light trucks involves two levels of subsidy. The subsidy rate is larger than that of minivans, and the light trucks have stronger production data attributes. Therefore, the low-end light trucks will be the biggest beneficiaries of this car to the countryside.

The value of the automobile-to-country policy is not to encourage rural residents and small and medium-sized town residents to enjoy consumption-type consumption. The benefits brought by the use of policies make it essential for the family to become rich as soon as possible. Therefore, affordable, durable vehicles can be more welcomed by the rural and urban markets and become the mainstay of the “cars going to the countryside” policy. The upgrade of the car models is the most intuitive reflection.

For the light truck companies, the benefits brought by the “automobile to the countryside” policy will not be in the interests of both parties, but the opportunities and challenges will coexist, and the overall strength will be tested. Therefore, while all car dealers are laying out the second and third tier markets, they must upgrade their own product quality and send quality products to the countryside. They must also send quality services to the countryside so that users can buy them easily and they can use it with confidence. This is what will last forever. Road.

For self-owned brand enterprises, “cars go to the countryside” is the touchstone for independent brands. In this competition, the opportunities and challenges of independent brands coexist. Independent brand enterprises who can develop low-quality, high-quality trolleys suitable for the rural market in the shortest possible time, supplemented by convenient sales networks and after-sales services, will be able to occupy the rural market to the greatest extent possible, and thus win a great opportunity for development and growth. opportunity. From an industry perspective, the automobile to the countryside will further change the situation in which automobiles are not widely used as luxury goods in the country. The automobile “fly into the homes of ordinary people” is a fundamental innovation in the concept of consumption and will bring about the entire automobile industry. profound influence. This year is not only the first year of the car to the countryside, but also a sign of China's drive to the automobile era. It is an inevitable step. Although China's auto industry still needs a long period of growth, the shift in consumption has made it a big step toward its goal.


View related topics: "new trade-in" stimulates the development of commercial vehicle market