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Local auto brands speed ahead of international counterparts

Updated: Jul 13, 2022 chinadaily.com.cn Print
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Great Wall Motors displays its new energy vehicle model, the Ora, at an auto show held in Guangzhou, Guangdong province. CHINA DAILY

Chinese vehicle marques are seeing rising popularity among local customers, primarily driven by their quick response to market demands and their leading position in the new energy vehicle segment.

Last month, sales of sedans, SUVs and MPVs from Chinese carmakers totaled 551,000 units. Despite a 23.3 percent fall from the same month in 2021, which was the result of recent COVID-19 outbreaks, their market share moved up to 57 percent.

That was 8.5 percentage points more from March and 14.9 percentage points more than April 2021, according to the China Association of Automobile Manufacturers.

This may have something to do with the fact that they had seen fewer disruptions to production than major international brands including Volkswagen and Toyota, which have plants in hard-hit cities including Shanghai and Changchun, Jilin province.

But Chinese marques had already seen a rise in their market share in the first four months of this year. They delivered 3.1 million units from January to April, accounting for 47.6 percent of the Chinese vehicle market, up 6 percentage points from the same period last year.

The rising trend was more apparent in the SUV segment. Of the top 10 best-selling SUVs in April, nine were from local Chinese brands ranging from BYD and Great Wall Motors to Geely and Chery.

The only international brand model that made it into the top 10 list was the Wildlander from GAC Toyota. Its sales stood at 8,274 units, ranking No 9, lagging far behind BYD's Song Plus, whose deliveries reached 25,108 for the month.

Edward Wang, managing director of syndicated research at J.D. Power China, said over the past few years, local Chinese brands are responding faster to market demands, as evidenced in terms of electric vehicles and smart functions.

"Such innovation is injecting momentum into Chinese brands in a rapid, effective and continuous way," said Wang.

Wang made the remarks when J.D.Power released findings last week that showed 53 percent of the respondents said they would choose Chinese marques, and 67 percent of those who currently drive Chinese vehicles said they would choose Chinese brands again.

The poll was conducted in March across 70 major cities in China, and the 11,340 respondents were those who would like to purchase vehicles in the next six months.

The survey also found that those born after 1995 were more inclined to choose Chinese brands as they have more confidence and pride in their country.

In terms of vehicles, they give top priority to smart functions and beautiful designs. Of the major elements that affect their vehicle purchase decision, the top one was "whether the car is good-looking", said J.D.Power.

Also, the popularity of NEVs is helping expand the share of local Chinese brands.

A total of 312,000 NEVs were produced and 299,000 were sold in April, up 43.9 percent and 44.6 percent year-on-year, respectively, although the overall market went down more than 46 percent from the same month last year, according to the China Association of Automobile Manufacturers.

Currently, the absolute majority of NEV models available in the market are from Chinese carmakers, as international volume brands including Volkswagen and Toyota have just started to make inroads into the booming segment.

Chinese NEV maker BYD sold 105,475 units in April, up 136.5 percent year-on-year. It was the only carmaker to see growth in the Chinese market last month.

The J.D. Power survey showed 27 percent of the respondents said they would like to choose an NEV this year.

The figure is even higher, at 33.6 percent, when it comes to the general acceptance of such vehicles. In comparison, the figure was 19.6 percent in the United States, said J.D.Power.

Cailian Press reported last week that China will start a campaign in June to promote NEV sales in the country's smaller cities and vast countryside.

Experts have called for government measures to help boost the vehicle market that was crippled over the past months.

The CAAM said the sector will reach the 5 percent growth goal, with NEVs as a driving force.

The association expects this year's NEV sales to reach 5 million, up from 3.5 million in 2021, despite headwinds including chip shortages and disruptions caused by COVID-19 to vehicle production.

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