Imports of Premium cars in China in 2016
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Imports of Premium cars in China in 2016
- Sales of Premium cars now account for nearly 10% of the Chinese market (23% in Europe, 12% in USA),
ie 1,537 million vehicles in the first 9 months of 2016 out of a total of 16,685 million vehicles of all makes.
ie 1,537 million vehicles in the first 9 months of 2016 out of a total of 16,685 million vehicles of all makes.
- Premium car sales increased by 11% in the first nine months of 2016 compared to the first nine months of 2015, while the Chinese market as a whole increased by 15% over the same period. This difference is explained by the fact that the Chinese market was boosted in 2016 by the reduction of taxes on small models, which gave more advantage to Chinese brands than Premium brands that sell quite a few small models.
- As for the premium car sales in China in 2016, it may be observed that:
§75% Premium vehicles come from the German brands Audi, BMW and Mercedes (this proportion was 74.5% in 2015).
§Mercedes increased its sales by 21% in 2016, while Audi increased its sales by 9% and BMW by 6%.
§65% are produced in China (mainly Audi, BMW and Mercedes) and 35% are imported from abroad.
§Imports in China of Mercedes and BMW continue to increase (+ 20% for each of the two brands) while Audi continues to reduce them (-30%). Only part of their range is currently produced in China.
§Imports of premium cars in China have decreased overall by 5% in 2016 compared to 2015.
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GM and Ford gradually deserted Britain as producers
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GM and Ford gradually deserted Britain as producers
- The American groups GM and Ford, established in Great Britain since the 1920s, gradually deserted Great Britain as producers from the years 2000.
From 30% of British production in the early 1950s, they had progressed to capture 40% of British production in the early 1960s, reaching a peak production in 1987 by realizing 50% of British production.
Then the GM and Ford groups decided to gradually relocate their production to the European continent, mainly in Germany and Belgium.
From 30% of British production in the early 1950s, they had progressed to capture 40% of British production in the early 1960s, reaching a peak production in 1987 by realizing 50% of British production.
Then the GM and Ford groups decided to gradually relocate their production to the European continent, mainly in Germany and Belgium.
- Ford ceased its British production in 2002 (the Dagenham plant was converted into an engine assembly plant, the Halewood plant was sold to Land Rover), while GM reduced its production capacity by half, Now sold on the local market. In the 2000s, production by the two American groups fell to less than 10% of British production. And the closure of the GM plants is scheduled for the early 2020s. The two American groups will have completely deserted Britain as producers, although the UK market still accounts for 25% of their shipments in Europe.
- It was mainly Japanese manufacturers that compensated for the departure of US manufacturers in Great Britain: they accounted for almost 50% of British production in 2016, compared with 35% in 2000.
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Great Wall Launches New Brand in China: WEY
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Great Wall Launches New Brand in China: WEY
- On the occasion of the Guangzhou Motor Show, Chinese manufacturer Great Wall announced the creation of a new automobile brand within it, called WEY. This brand will be the high-end division of Great Wall, like Lexus for Toyota, Infiniti for Nissan or Genesis for Hyundai.
- The Great Wall Group now consists of the Haval division dedicated to SUVs, the Great Wall division dedicated to sedans and the Wingle division dedicated to pick-up trucks. It should also be remembered that the Great Wall division is down sharply
(-50% of sales in 2015) and that the manufacturer believes that a rise in range would both reduce competition with other car brands and increase the average price of its models, therefore profit.
(-50% of sales in 2015) and that the manufacturer believes that a rise in range would both reduce competition with other car brands and increase the average price of its models, therefore profit.
- The creation of the WEY brand by Great Wall is part of a package of initiatives by Chinese carmakers aiming to gradually establish themselves on the Premium market, which is 99% occupied in China by foreign manufacturers.
- BAIC has created Borgward, a former German resuscitated brand, which he wants to launch against Mercedes, BMW and Audi. Geely created Lynk & Co from Volvo components. Other initiatives of this kind are expected.
- Initially, these new brands are marketed in China, but are expected to be marketed in other parts of the world at the beginning of the next decade.
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SAIC will assemble Audi vehicles in China from 2018
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SAIC will assemble Audi vehicles in China from 2018
- The Volkswagen Group has assembled vehicles in China since the early 1990s, on the one hand with the SAIC group (Volkswagen and Skoda models) and on the other hand with the FAW group (Volkswagen and Audi models).
- In 2015, SAIC manufactured 2 million Volkswagen and Skoda vehicles and the FAW group manufactured 1.5 million Volkswagen and Audi vehicles.
A total of 3.5 million Volkswagen, Skoda and Audi models were produced in China in 2015, the vast majority for local market.
A total of 3.5 million Volkswagen, Skoda and Audi models were produced in China in 2015, the vast majority for local market.
- However, there remains 120 000 additional imports from Europe (62 000 Audi and 58 000 Porsche).
To limit the number of these imports and increase the market share of the Audi brand, the Volkswagen Group decided to produce at SAIC new Audi models that are not manufactured at FAW, ie different from the A3, A4, A6, Q3, Q5. The first models will come out of the Shanghai plants in 2018. They could be not only models different from those manufactured by FAW, but also brand new Audi models, not manufactured in Europe or other parts of the world. It might be an Audi variant of the recent Volkswagen Atlas (SUV-E segment) that could be named Q8 or Q9, and an Audi model positioned between the A6 and the A8.
To limit the number of these imports and increase the market share of the Audi brand, the Volkswagen Group decided to produce at SAIC new Audi models that are not manufactured at FAW, ie different from the A3, A4, A6, Q3, Q5. The first models will come out of the Shanghai plants in 2018. They could be not only models different from those manufactured by FAW, but also brand new Audi models, not manufactured in Europe or other parts of the world. It might be an Audi variant of the recent Volkswagen Atlas (SUV-E segment) that could be named Q8 or Q9, and an Audi model positioned between the A6 and the A8.
- SAIC had always claimed that it would not manufacture Audi models because of their high price, it seems that the Chinese manufacturer has changed its mind.
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Evolution of the segmentation of the European market 2000-2016
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Evolution of the segmentation of the European market 2000-2016
- The segmentation analysis of the European car market since 2000 highlights a considerable development of SUVs, a category of vehicles which has risen from 2.5% of the European market in 2000 to 23.5% in 2016. This is the only vehicle category to display such a growth as even the MPVs, which had risen at the beginning of the decade, from 7.5% of the European market in 2000 to 15% in 2005, dropped down to 8% in 2016. The sedans suffered from the growth of MPVs and SUVs.
They represent now only 67.5% of the market in 2016, compared to 76% in 2010 and 83.5% in 2000.
They represent now only 67.5% of the market in 2016, compared to 76% in 2010 and 83.5% in 2000.
- By segment, it can be seen that the C-segment vehicles remain the most sold and this C-segment market share is continuously increasing (to reach close to 40% of the European market in 2016), notably thanks to the C-SUV segment vehicles which represent now close to one in two SUVs. Sales of B-segment vehicles have increased since 2013 (to reach 32% of the European market in 2016), thanks to the development of B-SUV segment vehicles which account for nearly one in three SUV sales.
D-segment and E-segment are continuously declining (20% of the European market together), notably because the SUVs belonging to these segments are few in number, accounting for less than one in four SUVs. Sales of segment A-segment and F-segment vehicles remain stable (nearly 10% of the European market for the former and less than 1% for the second), as these market segments are very rarely represented by SUVs.
D-segment and E-segment are continuously declining (20% of the European market together), notably because the SUVs belonging to these segments are few in number, accounting for less than one in four SUVs. Sales of segment A-segment and F-segment vehicles remain stable (nearly 10% of the European market for the former and less than 1% for the second), as these market segments are very rarely represented by SUVs.
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