From January to September, the sales of SUVs totaled up to 5.9992 million units, increasing by over 40% year-on-year stably. Along with the high growth rate, the competition has also entered the stage of strongest part. The layout of SUV market has evolved from traditional ones to compact ones, then to medium and large ones. With the emergence of more niche products, fiercer and fiercer competition is not far away.
Strong Vitality of Independent Brands
Among the SUV sales in September, the independent brands accounted for 520,000, a year-on-year increase of as high as 73%, occupying an absolute dominant position in the SUV market. In the market share level, independent brands also occupy a portion up to 59%.
Several reasons attribute to the strong growth of the independent brands, such as low price, a better understanding of Chinese consumers’ psychology, and their flexibility which meets Chinese market demand, rather than the result of powerful technology. However, independent brands of automobile enterprises should also have a sense of crisis in order to seek the long-term sustainable competitiveness and anti-risk ability when faced with market volatility.
Gradual Growth of Medium and Large SUVs
With no evidence of decline in SUV market, automobile companies begin to seize the share in all kinds of niche markets. Still remember that in 2015 when the compact SUV market was booming, various enterprises continued to introduce new products of compact SUVs. However, in the second half of this year, a reverse emerged in medium and large SUVs. With the launch of Avancier, Peugeot 4008, and other medium and large SUVs, a confrontation against Highlander gradually form. The transform from "small" to "large" has taken place.
Data shows that Chinese SUVs' share in the passenger car market has soared from 25% in January 2015 to 40% in September 2016. Specifically speaking, compact SUV has always maintained a 57% market share, while the small SUV and medium-sized SUV show an obvious change in their market share. In January 2015, the proportion of small SUV and medium-sized SUV in niche market were 12% and 33% respectively, and in September 2016, 24% and 18% respectively.
