【Zhongyang Auto Review】Where does the growth momentum of the high-end car market come from?

Although the national automobile production and sales in January have not yet been finally released, it is not difficult to predict from the comprehensive major brand data express that the luxury car market is expected to continue to increase higher than the overall growth rate of the automobile market. Last year, the mainland luxury car retail market sold 3.573 million units, up 5.6% year-on-year. Some public opinion believes that if it is not a shortage of chips, this growth rate can be completely maintained at double digits, and the growth momentum of the luxury car market is still abundant.

The sudden outbreak of new crown pneumonia has disrupted the original production rhythm of enterprises, and has also profoundly affected the development of the industry and social life. In the face of the incessant voices around them complaining about the economic pressure and selling anxiety, many people wonder why luxury cars are getting better and better to sell? This may be an alternative self-deprecation of self-raising standards, but it is an indisputable fact that domestic luxury cars are better sold than ordinary cars.

The reason why luxury cars are more favored by consumers is first of all that the consumption structure of the mainland car market is changing, and it has entered the stage of consumption upgrading led by exchange. Generally speaking, the general consumer buys a car for the first time, mainly to solve the demand for travel tools, and buying a car is more important to pay attention to the quality, price and durability of the car. Switching is different, many consumers are beginning to pay attention to enjoyment, more emphasis on the car brand, comfort and service experience. Luxury cars that can better meet the core demands of the latter have naturally become the first choice for purchase. Especially in first- and second-tier cities, due to the purchase restrictions of motor vehicles, license plates are scarce, and the price of a license plate even exceeds that of ordinary cars themselves, which prompts consumers to prefer luxury cars.

Secondly, the pace of localization of luxury brands has accelerated, and product prices have continued to decline and become more close to the people, which has activated the purchase potential of consumers to varying degrees. Taking Audi A4L as an example, when it was listed in the early years, the supply was in short supply, and many 4S stores even sold at a higher price; now many stores offer more than 60,000 yuan, and consumers can win about 300,000 yuan. As for Mercedes-Benz A-class, Audi A3, BMW 1 series, the entry-level models of these luxury brands, the starting price is around 200,000 yuan, it can be said that it has fully entered the market range of ordinary joint venture brands, and the consumption threshold is not high. The BMW Brilliance X5 L will be released at the opening ceremony of the Beijing International Auto Show in April this year, and the news that the starting price is 558,000 yuan has already set off countless discussions on the Internet. As a BMW X5 domestic model, due to the price is more than 100,000 yuan cheaper than the imported version, many consumers are eager to try. This shows that the shrinking market demand is only relative, and the key lies in how to activate.

In addition, the new car-making forces represented by Tesla, Weilai and Ideal have become increasingly rich in product supply driven by technological innovation, meeting and creating a new demand for high-end new energy vehicles in the market. At present, WEILAI Automobile has 3 models on sale, with an average price of more than 400,000 yuan, which is known as the benchmark of high-end Chinese automobile brands. Ideal has created an ideal ONE with monthly sales of more than 10,000 vehicles and a price of more than 300,000 yuan, which is known as a phenomenon-level product. With the Model 3 and Model Y, Tesla is constantly changing people's perception of smart electric vehicles and raising the status of smart electric vehicles.

Compared with the market share of luxury brands in developed countries of 25% to 30%, the current market share of luxury brands in the mainland automobile market is only 13.6%. This also means that the market share of luxury brands in the mainland automobile market still has a lot of room for improvement. It is believed that with the economic and social development, the increase of residents' wealth, and the further decline in prices caused by consumption upgrades and market competition brought about by exchanges, the luxury car market in the mainland will maintain a higher growth rate than the overall car market for a long time in the future.

However, it is even more important to see that in this process of improvement and growth, the electrification and intelligent transformation of the automobile industry are superimposed, the product pattern and brand class formed in the era of traditional fuel vehicles are being broken, and luxury cars and brands will also be redefined. For Chinese car companies, this is undoubtedly a strategic opportunity to achieve a brand breakthrough and go to the world. (Source of this article: Economic Daily Author: Yang Zhongyang)