(Image source: Photo.com)
Recently, "Camry only sells 120,000" has been on the hot search on major platforms. According to Tencent News's "Prism", a sales staff of a GAC Toyota 4S store in Beijing revealed that the 2024 ninth-generation Toyota Camry now only needs more than 120,000 to drive away. The salesperson bluntly said, "The price is getting lower and lower month by month, and I have never sold at such a low price before." There is no way, you can't sell it without reducing the price. ”
The Toyota Camry is regarded as the "god car belief of middle-aged men", and has been the "king of cost performance" for many years, and has long occupied the first place in the sales list of B-class cars. The model has been on the market for more than 40 years and has sold more than 25 million units.
Behind the price reduction is the helpless reality that Camry's sales continue to decline. As the sales champion of the B-segment car market, the Camry has been far from meeting expectations since the release of the ninth-generation model in March this year, although the starting price has been set at a relatively affordable 171,800 yuan, which is also the lowest price in the history of the Camry. According to public data, in May 2024, the Camry's retail sales in China were only 8,681 units, a decline of more than 55% compared to the same period last year. The cumulative sales in the first four months were 39,500 units, which also showed a year-on-year decline of 32.7%. Faced with such a severe sales situation, Toyota Toyota had to lower its prices in order to revive sales.
Camry's predicament is actually a microcosm of the impact of new energy vehicles on the fuel vehicle market. With the rapid progress of new energy vehicle technology and the improvement of the level of intelligence, as well as the increasing price, consumers' interest in traditional fuel vehicles is gradually weakening. Under the impact of the new energy wave, Camry also had to put down its body and reduce prices in exchange for market sales. This is also a microcosm of Toyota's current market in China.
Industry insiders said that the price war in the Chinese market can be regarded as a knock-down on the price of joint venture cars.
At the same time, the performance of China's new energy vehicle market is exceptionally bright. Last month, the sales of BYD, Ideal, NIO and many other car companies soared collectively. BYD's sales of new energy vehicles reached 341,700 units in June, continuing to lead the market; Li Auto topped the list of new power brands with 47,774 deliveries, a year-on-year increase of 46.7%; NIO also performed well, delivering 21,209 new vehicles in June, up 98% year-on-year.
In contrast, the days of traditional joint venture brands, especially Japanese brands, are quite difficult. According to the data of the China Passenger Car Association, the retail sales of mainstream joint venture brands fell by 21% year-on-year in May, and the retail share of Japanese brands fell by 3.2% to 14.8% year-on-year. Behind the data is the rapid rise of domestic new energy vehicles.
Analysis of car buyers: Generation Z attaches more importance to green environmental protection and technological innovation
According to statistics from J.D. Power, a consumer insight and market research institution, in 2020, the post-90s (32%) car buyers surpassed the post-85s (30%), 80-84s (22%) and pre-80s (17%) for the first time, becoming the main car buyers. At the same time, according to the joint survey data of OPPO &J.D. Power, Generation Z pays more attention to green environmental protection and technological innovation when buying a car.
Policies support the development of the new energy vehicle industry
New energy vehicles in mainland China are developing at a rapid pace, injecting new momentum into the world economy. In October 2020, the State Council issued the "New Energy Vehicle Industry Development Plan (2021-2035)", which clearly stated that the development of new energy vehicles is the only way for the mainland to move from a large automobile country to an automobile power, and it is also a strategic measure to respond to climate change and promote green development. It is planned that by 2025, the competitiveness of the new energy vehicle market in mainland China will be significantly enhanced, and major breakthroughs will be made in key technologies such as power batteries, drive motors and vehicle operating systems, and the safety level will be comprehensively improved. At the same time, the average power consumption of pure electric passenger cars will be reduced to 12.0 kWh/100 km, new energy vehicle sales will account for about 20% of the total new car sales, highly autonomous vehicles will be commercialized in limited areas and specific scenarios, and the convenience of charging and swapping services will also be significantly improved.
From January to November 2023, China's new energy vehicle sales were 8.304 million units, a year-on-year increase of 36.7%
Driven by favorable factors such as policy-driven and improved consumer acceptance, the new energy market in mainland China has grown rapidly. According to statistics from the China Association of Automobile Manufacturers, from 2012 to 2022, China's new energy vehicle sales have experienced leapfrog development, from 12,800 units in 2012 to 6.887 million units in 2022. This shows that Chinese consumers' demand for new energy vehicles is increasing year by year. In 2022, China's new energy vehicle sales will be 6.887 million units, a year-on-year increase of 93.4%. From January to November 2023, China's new energy vehicle sales were 8.304 million units, a year-on-year increase of 36.7%, of which 1.026 million units were sold in November, a record high, a year-on-year increase of 30%.
It is understood that more than 40 auto companies have launched price reduction measures for more than 120 models, more than 60% of the total in 2023. Wang Xiaoqiu, president of SAIC, said that the fierce competition in the industry not only aggravated the wait-and-see mood of consumers, but also brought a great impact on the steady operation of car companies.
Cui Dongshu, secretary general of the Passenger Car Federation, pointed out that the background of the "price war" includes factors such as the decline in the price of raw materials for new energy vehicles, the rapid launch of new energy vehicles, and the penetration rate of new energy vehicles reaching more than 40%. Cui Dongshu said that the "price war" reflects the ability of the system and is an inevitable stage of the development of the industry. He pointed out that since May, the "price war" has shown a slowing trend. In the future, the domestic auto market is expected to return to the normal state of promotion, and it is unlikely that there will be a 20% price reduction at every turn.
Kang Bo, vice president of Cialis, believes that the development code of the automotive industry is to focus on long-term and unwavering innovation and enterprising under electrification, intelligence, digitalization and networking.
Prospective Economist APP Information Group
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