Why is the domestic X5 listed as a signal of the fierce changes in China's auto market?

March may be the most exciting month in the domestic auto market this year, because the biennial Beijing Auto Show is about to be held in April, so major car companies are also working hard to build momentum for their new cars in March.

In addition, the soaring domestic oil prices and the collective price increase of new energy vehicles have also pushed the new energy vehicle market to a new climax. And from the new car information declared by the Ministry of Industry and Information Technology, some fans have begun to ridicule that this year will be the first year of the "Beijing New Energy Auto Show", because traditional fuel vehicles can no longer be compared with new energy vehicles.

But in fact, now that March is nearing its end, if we look back at which car has the highest discussion and the largest traffic in this month, in the end it is still a traditional fuel vehicle - BMW X5, the reason is that everyone knows, because bmw X5, a benchmark model in the luxury medium and large SUV market, has been put into production (localization) at BMW Brilliance's factory, and plans to officially list it on March 31. As for why the domestic BMW X5 can affect the nerves of many car enthusiasts, what information is contained in it, and then we will explain them one by one.

In the general perception of our people, although the German luxury brands led by BBA have joint ventures in China, they will not introduce high-end models of the brand into domestic production before, such as Mercedes-Benz S-Class, Audi A8, BMW 7 Series, etc., but sell them in the country in an all-imported way, one is the high quality of pure imported models; the other is to maintain the brand's B grid, after all, the Chinese people are good at this mouth; the third is the high profit of high-end models. Therefore, BBA high-end models can only make a lot of money by importing, what motivation do they have to promote the localization process?

This is also why after the introduction of bmw X5 domestically, the Chinese people have turned their attention to it, because this is likely to indicate that the German luxury brands led by the BBA will accelerate the localization process of high-end models. But in fact, behind this is not the BBA executives pushing, but the changes in the Chinese auto market in recent years, so that they have to do so.

The first point is the rapid development of China's new energy vehicle market mentioned at the beginning of the article. As the core area of the electrification reform of the global automotive industry, China's auto market in the past two years can be described as wonderful, whether it is a joint venture brand or a luxury brand, the brand appeal in the field of new energy vehicles is almost gone, and the sales performance is overwhelmed by domestic independent car companies and new car-making forces.

Although BBA has been actively carrying out its own electrification strategy, but at present, the aggressive new car-making forces have used solid product strength to dig the corner of BBA at a price of more than 300,000 (traditional oil truck customers), if you wait until the BBA competitive new energy vehicle is born, the basic disk of fuel vehicles has been greatly threatened.

So to a certain extent, the BBA accelerates the localization process of high-end models, which we can understand as "cutting leeks" quickly. To know that the emission standards in Europe are becoming more stringent, so it will only be more difficult to sell more high-end large-displacement luxury cars in the local area, and the production line will be transferred to China, on the one hand, it can reduce costs and gain, on the other hand, it can continue the career cycle of its own high-end fuel vehicles, so that its fuel vehicle basic disk is not plundered by the new forces of car manufacturing, after all, now Gaohe's sales are rising, and it has run to the average transaction price of 700,000, so if China has another "Gaohe" and "Weilai"?

From my expression, as well as the sales results of new cars in reality, I wonder if you have subtly felt that domestic independent car companies and new car-making forces have been able to threaten luxury brands such as BBA in the high-end luxury car market? Although this sentence has exaggerated elements, it can also show that the mainland automobile industry has made great progress and can break the wrist with luxury brands such as BBA.

This leads to the second signal released by the domestic BMW X5: "Passenger car joint venture share ratio restrictions and partner restrictions, permanent cancellation." From January 1 this year, China no longer has a joint venture share ratio restriction, and BMW then announced on February 11 that it officially holds 75% of BMW Brilliance's shares.

This means that in the operation after BMW Brilliance, the German BMW Group will have the initiative, and the proportion of profits harvested from the joint venture will also be greater. Therefore, the introduction of high-end models such as bmw X5 into domestic production will only make more money than before. According to relevant statistics, bmw X5 will sell about 50,000 units in 2021, which is the top seller in the luxury medium and large SUV market. Quoting BMW Brilliance insiders, the planned annual production capacity of the domestic BMW X5 may exceed 120,000 vehicles.

Of course, it is not that the cancellation of the restrictions on the joint venture stock ratio means that foreign car companies can better cut Chinese consumers "leeks", after all, as young consumers become the mainstream of car purchases, they no longer blindly pursue brand power, but take into account the actual vehicle product strength and cost performance, for example, the price of this domestic BMW X5 network transmission (558,000 yuan for sale) is much cheaper than the imported version, and consumers do take advantage.

Finally, it is a symptom of the localization process of luxury car brands such as BBA, which is more concerned about the Chinese market, which we can see in their annual financial report conference, from which we can generally see some words about the "Chinese market" and "China strategy".

All in all, there is still a long way to go for independent brands and new car-making forces to defeat the BBA.