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Prior to the opening of the market in China for the past 30 years, the integrity of the automobile industry has activated the cells of the automobile industry, forming the atmospheric field and pattern of the world's largest market today. Since last year, the decline in the share of self-owned brands has become the focus of attention in the industry, and this trend has not improved or even worsened this year.
Many industry experts believe that this is the pain that must be experienced by independent brands. Only by doing their best to break through can we have a future.
<br> <br> adjustment and transformation is the norm in the transition process, the number of domestic name was on several independent brands, including Chery, BYD and Great Wall, all have experienced the ebb and flow of the market. It is the Great Wall Motor that is currently suffering.
The Great Wall Motors, which had sang all the way in previous years, has been having a bad year since the beginning of this year. The first high-end strategic model, the Haval H8, delayed its listing due to product issues, which in turn caused share prices to falter. In recent days, Great Wall Motor has reported three marketing executives resigning, including Kang Guowang, general manager of Great Wall Motor Sales Co., Xing Wenlin, vice president of international export business, and Liang Xinyi, general manager of aftermarket parts business. From products, networks, and personnel, several major independent brand “transitional normals†seem to fall into the same cycle.
Although Great Wall Motor will interpret this personnel adjustment as a normal internal rotation. But the outside world still associates it with the decline in sales.
In May of this year, Great Wall Motor's overall automobile sales were 51,837, a year-on-year decrease of 16% and a year-on-year drop of 13%. This has reversed the previous high growth trend.
On the SUV side, the market focused on sales of 24,402 Haval H6 vehicles, an increase of 55.75% year-on-year, a drop of 7.46%. The decline in sales of cars was particularly serious. In May, a total of 4,643 cars were sold, a decrease of 73.51% year-on-year and a decrease of 44.27% from the previous month. Among them, the Great Wall C30 sales fell 68.62% year-on-year, a drop of 38.63%; Great Wall C50 sales fell 77.50% year-on-year, a drop of 55.93%.
Great Wall Motors has also experienced twists and turns since it has grown rapidly and has become an industry champion. This situation Chery, BYD had also encountered before. Every brand with a good name seems to have escaped this robbery.
In contrast, the Great Wall's current adjustment is not the most intense, thanks to its brand focus strategy. In the previous development, Great Wall Motors has established a competitive advantage in the SUV market and also seized market opportunities for low-end SUVs. Now that the competition has intensified, the good days for the Great Wall are almost over. In the sedan market, the Great Wall also succeeded in obtaining sales through focusing on entry-level furniture, but the overall competitiveness was not strong.
In fact, for self-owned brands, this adjustment will be the norm under market shocks. Since the beginning of this year, the market share of self-owned brand cars has accelerated, and BYD, which had previously been adjusted for a long time, has once again experienced a market decline, and the general trend is still not optimistic.
The only way to connect or become a breakthrough is to become the hottest and most exposed automobile conceptual term in the industry. In addition to the familiar Toyota G-book, GM OnStar and SAIC Inkanet, it seems overnight that many independent brands such as the Great Wall, Chery, BYD, and Changan have sprung up and launched their own car networking systems. It should be said that when many consumers are still unfamiliar with the car networking, a land grab for car networking, and the installation of on-board intelligence systems in the dark, has been surging in many car companies, becoming a trend.
According to the forecast of the Analysys think-tank, the scale of China's car networking market will exceed 150 billion yuan in 2015, and the vast market development prospects are self-evident because of the temptation of joint ventures, autonomy, and import car dealers.
Although a domestic survey shows that 77% of consumers are still unfamiliar with car networking, they will remain on the sidelines, but this has not prevented the enthusiasm and pace of car companies competing to enter the car network. It should be said that self-owned brands have continuously increased their investment in the field of car networking in recent years, and have the courage to compete positively with the joint venture brands. It is precisely the immeasurable market prospects for the future.
Previously, people who had personally tested and experienced a number of joint-venture brands and their own brands, the Inkanet 3.0 vehicle-mounted 3G intelligent network driving system of the Roewe 350, also enjoyed the unique charm of the Great Wall Car Voice System at the Great Wall Festival of Technology. Think of the brand-new Mercedes-Benz S-class Intelligentdrive intelligent driving system.
In recent days, iVokaMINIX, released by Shanghai Botai P, a domestic car networking company, has emerged from numerous car networking products with its unique plug-and-play innovative model. Its biggest bright spot lies in subverting the concept that the traditional on-board system is pre-installed in the automotive electronic system module. Using the "wearable devices" of vehicles, the interconnection of cars and data terminals can be realized quickly and easily. Currently it can support more than 100 mainstream brands including more than 20 brands including BMW, Benz, Volkswagen, Volvo, Toyota, Ford, Mazda, Roewe, Chang'an, Great Wall, Geely, JAC, etc.
As a new technology direction, Vehicular Networking has the gap between self-owned brands and multinational companies is not large compared with traditional mechanical technologies, and the overall performance is not inferior to even some joint-venture branded car networking systems. In terms of car networking technology and market applications, it is not impossible for local brands to become bigger and stronger and eventually achieve overtaking.
Breakout is no shortcut <br> <br> for its own brand car, remodeling the low-end cars, as well as competitiveness is particularly true in the SUV, MPV and other fields. In fact, Changan Automobile, which performed well in recent years, first consolidated its competitiveness in the midsize sedan market, and subsequently increased its sales volume through SUV products.
Zhang Baolin, president of Changan Automobile, believes that Chinese brand cars are currently undergoing a period of adjustment, facing fierce competition under pressure from joint ventures, and pressure from regulations. "But so far I have also firmly believed that there is room for development in the future of Chinese brands. The key is how you develop."
To achieve "product is king" requires a thorough reform of the entire system. Judging from the current practice of major car companies, it is necessary to establish an overall positive development system in accordance with international standards. Otherwise, the desire will not be achieved.
Zhang Baolin introduced that Chang'an's current achievements are primarily based on the strategic orientation of adhering to market orientation and forming a closed-loop “from customer needs to customer satisfactionâ€. Secondly, Changan spends more than 5% of its sales revenue on R&D each year. The previous five-year plan may have invested more than 16 billion yuan, and the next step will be at least two to three billion yuan. "We are also engaged in research and development while we tighten our belts." In addition, Chang'an also strictly abides by the law of R&D, and insists on completing the product's positive development through a large number of tests.
"According to the law of research and development" is an old saying, but it can make different realms and products. A new example is Guanzhi Automobile, which has achieved close to the international brand R&D level through intensive global excellent resources, including continuous access to the highest five-star safety evaluation in Europe, and is also highly rated in design.
Guo Qian, chairman of Guanzhi Automobile, believes that Guanzhi believes from the beginning that as long as it complies with international standards and laws, it can make good products. At the same time, another problem is that building a brand must also follow the rules. It's just that a new brand can't get rich overnight.
Chen Hong, chairman of SAIC, believes: “How to attract talents, retain talents, and rapidly train talents is a problem that we need to solve. After all, the challenge we face is to rely on people to solve. We have fully realized that innovation Not enough, so incentive fund programs are being implemented, linking the interests of the managers and employees with the company's performance more closely, providing more continuous driving force for the company's development."
It is worth mentioning that SAIC is expected to become the first Chinese car company to establish a venture capital company in the Silicon Valley.
Chen Hong said that this will help SAIC to grasp the latest global technology and business forms in a timely manner, apply wind-powered investment methods, and use capital as a link to accelerate the application of new technologies to SAIC. Having a clear line of sustainable development and innovative thinking, being good at adapting to changes in market segments, and even mastering effective means of responding to joint venture brands, and bringing returns to investors, is only a matter of time.