Shanghai 1st Aug. 2017 Gasgoo-The newly-released semi-annual reports show that self-independent brands keep high growths in the first half of year, with Geely, SAIC and Chery all growing more than 50%. In contrast, joint-venture brands face general sales declines. German brands, European brands, American brands and Korean brands all show declining sales volume. Beijing Hyundai has the largest decline of 42.4%.
“Self-independent brands are a threat to joint-venture companies.” Cui Dongshu, General Secretary of CPCA told media.
The growths of self-independent brands are mainly brought by SUV, with self-independent SUV sales volume accounting for 60% of the total. The sales declines of joint-venture companies are also resulted by the invasion of self-independent brands in A-class and A0-class car markets.
“More and more independent brands are launching SUV models with prices ranging RMB 70,000 to 150,000. Their fashionable images, spacious room and upgrading performances are persuading customers to give up A-class and A0-class cars and turn to self-independent brands instead.” Cui said.
Besides, the relatively high prices for joint-venture SUV models also leave room for self-independent brands’ developments. “In the short term, joint-venture brands would not cut prices to compete with self-independent brands. Self-independent brands would continue to keep strengths.”
But cars continue to be the weak points of self-independent brands. Cui believes that, self-independent brands would make breakthroughs in alternative energy car markets, rather than the traditional car markets, which would pave a road for self-independent brands to seize the car market.
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