Latest data shows that domestic passenger vehicles sell 21.68m units in this year, increasing 15.57% with the same period of last year. Self-independent brands sell 9.25m units, increasing 20.18% and accounting for 42.68% of total passenger vehicle sales. It’s quite noticeable that leading auto companies including Chana, GWM and Geely all sell more than 100,000 units in November, serving as strong competitors of joint-venture brands.
German, Japanese, American and French brands account for 19.06%, 15.69%, 12.17% and 2.57% of total passenger vehicle sales respectively, far lagging behind from self-independent brands’ more than 40% shares. Benefited from SUV models’ launching and high sales, self-independent brands face a growth larger than 30% in both production and sales volumes in November, greater than joint-venture brands. Apart from sales and market shares, self-independent brands have also made breakthroughs in qualities and prices. Aggressive brands set unit prices at RMB 150,000, or even RMB 200,000 and higher.
Self-independent brands also make astonishing profits. For example, self-independent brands winning the greatest profit among GAC and SAIC groups, apart from their high sales and high profit growths. “Self-independent brands are welcoming a best opportunity for their developments, contributed by market demands, model qualities and experience accumulation.” Zhu Huarong, Vice President of Chana Auto once said.
But the overdraft of purchasing tax policy becomes the greatest worry for self-independent brands’ recent growth. The half purchasing tax policy will come to end this year, stimulating market demand ahead of time. Worries come that the auto market will show weak performance in Q1, 2017.
