Xibo City reflects the ups and downs of the automobile market like a mirror. On the one hand, leading luxury brands are making great progress, and on the other hand, fringe independent brands and new forces are struggling. The auto market in the post-epidemic era is becoming "polarized."

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As the first A-class auto show in 2020, July in Chengdu has its own halo.

When the gray curtain suddenly opened, the huge double-kidney grille became the most attractive attribute of the BMW 4 Series. In the interplay of flashes and shutter sounds, BMW once again brought a scream to the automobile market. Even in 2020.

Similarly, Mercedes-Benz is not "low-key" either. In order to reflect the weight of the three "points" in its hand, Mercedes-Benz even rearranged a venue outside the booth and created its own head territory with explosive music and enthusiastic DJs.

Not everyone has the confidence supported by products and markets. According to official statistics, the number of car brands participating in the 2020 Chengdu Auto Show has dropped from more than 130 last year to more than 120.

Among them, more than ten car brands including Brilliance China, Southeast Motor, Dongfeng Fengxing, Dongfeng Fengshen, DS, Renault, Tianji Motors, and Qiantu Motor, which participated in the exhibition last year, were absent.

When the leading luxury brands flexed their muscles at the Chengdu Auto Show, many once-famous brands could not even hold a corner in Chengdu Xibo City.

Polarization is a hidden thread buried in the automobile market in the post-epidemic era.

One stage, two worlds

The Chedu Auto Show provides a stage for the automobile industry, but after all, there are two situations under the sky of Xibo City.

Some people put on heavy makeup and swaggered wildly on the stage. At the same time, some people tried their best and failed to knock on the door of Chengdu again.

With the impact of the epidemic and the downturn in the auto market, 2020 is destined to be a difficult year for auto companies.

According to official statistics, the number of car brands participating in the 2020 Chengdu Auto Show dropped from more than 130 last year to more than 120. Among them, more than ten car brands including Brilliance China, Southeast Motor, Dongfeng Fengxing, Dongfeng Fengshen, DS, Renault, Tianji Motors, and Qiantu Motor, which participated in the exhibition last year, were absent.

This absence can largely be understood as a forced departure. Judging from the recent development of the above-mentioned absentee car companies, sluggish sales and sluggish performance are the best footnotes for their delays.

Of course, the author does not mean any criticism. On the contrary, I admire this kind of "flexible and adaptable character."

Taking Brilliance China as an example, its current models on sale are only Of the four models, Brilliance China sold only 3,186 units in the first half of this year.

Similarly, for Southeast Motors, the cumulative sales in the first half of this year were only 6,317 units, while the sales of Dongfeng Fengshen and Dongfeng Fengxing were 29,459 respectively. and 41,104 vehicles.

Also in decline, there are new car-making forces.

Through comparison, it was found that there were 8 new car-making forces participating in the exhibition last year. , including NIO, WM Motor, Tianji, AIWAYS, Qiantu, Xpeng and Thalys, etc. This year, Tianji Automobile and Qiantu Automobile were both absent.

In the first half of 2020, the sales volume ranked in the bottom 40. In the list of car companies, independent brands Zotye Automobile, Brilliance Automobile, Southeast Automobile, and Haima Automobile, joint venture brands Dongfeng Renault and DS, and car-making brands Hezhong, Leapmotor, Yundu, AIWAYS, and Dianka are all listed.

Once a trend-setter in the capital market, today the market has brought it back to its original shape.

Looking at the favorable situation of leading luxury brands represented by BBA at this time, it is like a world of ice and fire. .

Polarization of the automobile market

Behind the ups and downs of Xibo City is the polarization of the automobile market.

According to the latest statistics from the Passenger Car Association. , the domestic narrow passenger car market sales in June were 1.661 million units, with sales rebounding further from May. However, in terms of segmentation, the market differentiation has further intensified.

The performance of the luxury car market is outstanding. In June, the retail sales of the luxury car market increased by 27% year-on-year, and the market share reached a record high of 14.9%.

In comparison, independent brands are under greater overall pressure. Sales in June fell by 16% year-on-year and were the same as in May, and their market share fell to 32%, a new low in recent years.

Looking back, the market share of independent brands’ annual sales in 2016 was 42.6, and the market shares from 2017 to 2019 were 42.7, 40.1, and 37.9 respectively, which has been declining for two consecutive years. The performance of the independent brand market continues to decline in 2020, and this year may further fall below the historical record and return to the bottom.

Of course, when independent brands are further subdivided, differences also exist.

The leading independent brands have recovered significantly and maintained their market share. For example, Geely Automobile’s domestic passenger car sales in June were 106,000 units, a year-on-year increase of 25.3%, and its market share was 6.4%. The Changan Automobile brand sold 81,000 vehicles in June, a year-on-year increase of 29.3%.

The living environment of weak independent brands has also become harsh.

Statistical data shows that in the first five months of this year, there are 30 independent car companies whose sales dropped by more than 50%, including Brilliance Automobile, BAIC New Energy, Southeast Automobile, Changhe Automobile, Qoros Automobile, Han Teng Motors, Borgward Motors, BAIC Yinxiang, Bisu Motors, Dongfeng Yulon, Lifan Motors, Huatai Motors, etc.

It is an objective fact that leading luxury brands are making rapid progress while marginal independent brands are treading on thin ice.

Product power is market power

“Independent brand traditional cars and new energy crisis, the epidemic should not be a knockout, only by surviving can we survive the competition, but independent brands are really important. It’s difficult. The difficulty of independent brands should be understood by society, and strong policy support will still be needed in the future!”

Some people say this.

But we also need to see the fact:

Under the epidemic, not all car companies have been eliminated;. It is indeed a difficult environment, but not all independent brands can survive. Geely, Great Wall, etc. are doing well; in the automobile market where everyone relies on their ability to make a living, the market value of some automobile companies that do not rely on policy support can also double again and again. .

In the final analysis, product power is the fundamental "way" to determine market power.

Summary

The market always speaks based on true ability.

On the one hand, the leading luxury brands are making great progress, and on the other hand, the fringe independent brands and new forces are struggling. The auto market in the post-epidemic era is becoming "polarized."

In the final analysis, product power is the fundamental "way" to determine market power. The polarized market is both an accident and an inevitable necessity of the times.

This article comes from the author of Autohome Chejiahao and does not represent the views and positions of Autohome.