As far as the current auto market is concerned, the situation of second-tier joint venture brands is not a good one. Brands like Beijing Hyundai, Skoda, Peugeot, Citroen, Ford, Chevrolet, etc. are very bad. For example, Beijing Hyundai, with annual sales of 382,000 vehicles in 2021, a year-on-year decline of 23%, is still not very optimistic about the situation of Beijing Hyundai this year. Skoda, too, sold only 71,000 units last year, down 58.8 percent year-on-year.
Can they take a turn for the better this year? The answer, of course, is that the hope is slim, and it will even get harder and harder. First of all, they have to face the strength of their own brands, according to the market share, last year's independent brands reached 44.4%. With more and more independent brands in the model product strength is stronger, brand image power gradually improved, the market share of independent brands will only grow. At this time, it will naturally squeeze out the market share of some second-tier joint venture brands. After all, the cake is so big, independent brands account for more, joint venture brands will account for less.
Secondly, another dilemma is that the current life of the next-line joint venture brand is not good. What if it's too bad? A downward price of the model can solve the urgent need. Now the price of many first-tier joint venture brands has completely dropped to a price range with second-tier joint venture brands. For example, Nissan and Buick, they are not small in price range, and even Toyota, which has always been known for its firm price, cannot stop the price loosening on the main model. For example, Camry, in the past, the discount was only a few thousand, and now it is 15,000-20,000.
Finally, the current market environment, on the one hand, the economic situation caused by the epidemic is not very good, the consumer's interest in buying a car is not high, and it is more difficult for the terminal to promote orders. There is also that now new energy vehicles are in full swing, and the joint venture brand is not outstanding in the new energy model, many second-tier joint venture brands do not even have a new energy model layout, in this environment, how to break through the second-line joint venture brand? It's a real headache.
In any case, with the transformation of the domestic automobile market, it must be admitted that there will always be brand exits, and there will always be brand breakthroughs. Second-tier joint venture brands are so difficult, but brands like BYD and Tesla are making a lot of money.