China’s auto market is undergoing deep changes, and the core driving force of this change is the choice of technical routes, the iteration of intelligent experience, and of course, the accurate grasp of user needs, and those companies that rely on brand halo but are slow to act are being accelerated to the edge of the market.
In the domestic SUV market, such changes in the industrial pattern are also quite obvious, and the entire market is undergoing a deep reconstruction from “fuel dominance” to “multi-energy parallelism”, from “brand premium” to “technical equality”. Independent brands rely onNew energyThe overwhelming advantage of technology is launching a “war of annihilation” against joint venture fuel vehicles, and relying on extended-range hybrid and innovative intelligent technology to redefine the new connotation of luxury.
Judging from the best-selling list of the SUV market in June, the head effect continues to intensify, the differentiation of energy routes is also continuing to accelerate, and independent brands are reconstructing the new territory of power in the SUV market with an unprecedented offensive. BYD’s “multi-brand + all-power” strategy has been a great success, forming a closed loop of scale and technical advantages. While stabilizing the basic market of the fuel vehicle market, Geely has also achieved a comprehensive breakthrough in the new energy market thanks to a series of careful layouts. Chery’s situation is similar, not only the big winner in the traditional fuel SUV market, but also the layout in the field of new energy has also been comprehensively accelerated, realizing fuel vehicles andNew energy vehiclesof two-wheel drive development. In addition, Ideal and Huawei’s deeply empowered brands such as Wenjie have also shown huge market appeal in the mid-to-high-end SUV field with their intelligence and first-class product definition capabilities. On the other hand, the joint venture SUV market continues to seek the possibility of breakthrough in market anxiety.
Small SUV market:The persistence and crisis of fuel cars
In the list of the top 20 models sold in the domestic SUV market in June, only Geely Binyue and Tiggo 5X were on the list in the A0-class market.
As a representative of A0-class fuel cars, Tiggo 5X delivered monthly sales of more than 20,000 units in June, and it is not difficult to find the reason why it can stand out in the market segment, and the outstanding cost-effective advantage is the key.
Binyue’s performance is also good, mainly due to its product reputation accumulated over the years, the powertrain is mature and stable, the styling design is dynamic and fashionable, coupled with the interior part to create a good sense of technology and sports atmosphere, which accurately captures the preferences of young consumer groups, especially first-time car buyers. For some young people with relatively limited budgets, Binyue not only has a people-friendly price, but also has quite good practicality, making it a cost-effective choice.
Image source: Geely Automobile
However, in the current domestic automobile market, where new energy consumption is gradually becoming the mainstream, the “overlords” of independent fuel vehicles in the A0-class market will definitely face severe market challenges. At present, in the domestic A0-class market, in fact, many new energy products have been laid out, and the market penetration rate of small pure electric SUVs is rising rapidly. For example, BYD’s Yuan UP, SAIC-GM-Wuling’s Binguo and other models continue to squeeze the market share of traditional fuel cars by virtue of their low cost of use, flexible and convenient practicality in urban commuting, and policy advantages in some regions.
In the future, with the further enhancement of consumers’ awareness of environmental protection and the continuous improvement of the acceptance of new energy technology, the transformation of the domestic A0-class small SUV market to electrification will definitely be an important development trend. On the whole, in the small SUV segment, the confrontation between “new and old forces” in a short period of time is definitely indispensable, and the key to success or failure depends on whether all forces can keep up with the pace of market changes in time.
Compact SUV market: “battlefield strangulation” of autonomous models
The A-class SUV market has always been a battleground, and in June, it was domesticSUV salesIn the top 20 list, A-class cars account for half of the share, and the size of the market segment and the degree of fierce market competition can be imagined. At present, in the domestic compact SUV market, independent brands have shown strong comprehensive competitiveness by virtue of their new energy technology advantages and high cost performance in the fuel vehicle market, and have basically formed a “strangulation” trend for joint venture brands.
In the compact SUV market, BYD’s “two-car strategy” has been a great success. With a market performance of more than 30,000 units, Song PLUS firmly sits on the A-class SUV market sales championship, and also ranks second in the overall SUV monthly sales list. The Song Pro also performed well, selling more than 15,000 units in June.
The two models, Song Pro and Song PLUS, have formed a good complementary relationship in the market segment. Song Pro has more advantages in price, focusing on cost performance, which can attract consumer groups with relatively limited budgets, but want to own a new energy SUV, in terms of configuration and space, Song Pro can also meet daily household needs well. Song PLUS is slightly positioned higher, and is more inclined to consumers with higher requirements for quality in terms of configuration, space and performance. The two cars cooperate with each other to jointly build a strong line of defense for the Song family SUV, covering a wider consumer market, and have become a typical representative of BYD’s technical strength and market layout capabilities in the field of new energy SUVs.
As a compact SUV that was launched relatively late, the BYD Hiace 05 has been a sudden rise in market performance after the introduction of pure electric models, handing over monthly sales of nearly 20,000 units in June, quickly gaining a firm foothold in the A-class SUV market. Thanks to the empowerment of the e-platform 3.0 Evo, the Hiace 05EV takes the new generation of CTB vehicle safety architecture as the cornerstone, coupled with the new marine aesthetic design, which has successfully attracted many young family users and has become another key chess piece laid by BYD in the A-class SUV market.
Image source: BYD
In addition to the independent new energy products represented by BYD’s products, there are also many cost-effective independent fuel products in the domestic compact SUV market. Geely Xingyue L was the highest-selling fuel SUV in June, with monthly sales exceeding 20,000 units. The hot sales of this model fully proves that even in the current environment of new energy vehicle consumption, fuel vehicles with excellent product strength still have a fairly good market foundation. Xingyue L is based on Geely CMA architecture, with an atmospheric appearance, leapfrog body size and interior space, rich configuration, coupled with the power combination of 2.0T engine with 8AT gearbox, I have to say that Xingyue L’s product strength is indeed “top-notch” in the same level of market.
Chery’s Tiggo 7 is also a strong player in the compact fuel SUV camp. Tiggo 7 handed over a monthly sales result of nearly 18,000 units, and it has to be said that with the advantages of affordable price, rich configuration and channel sinking, Chery Tiggo 7 fully demonstrates the cost-effective lethality of independent fuel vehicles. If there are hidden worries, there is also, under the market offensive of new energy products, it is definitely not only joint venture oil vehicles that are affected, but also independent fuel products have to face increasing market impacts. Boyue L is also facing a similar situation, under the market impact of new energy competitors of the same level, it needs to accelerate the pace of product upgrading and transformation, and enhance its product competitiveness in intelligence and other aspects.
The monthly sales of Jet Traveler are also more than 15,000 units. The positioning of travelers is more personalized, focusing on hardcore style, with unique appearance design, good passability, etc., to meet the needs of some consumers for outdoor off-road and personalization. The success of models such as the Jet Traveler can be called a successful example of the current Chery Group’s multi-brand strategy, which meets the needs of different consumers through differentiated positioning, and further expands the market share of Chery Automobile.
Let’s take a look at the recent market performance of the traditional powerhouse in the market segment, the Japanese and German compact SUVs. Japanese and German models, which were once popular in the A-class SUV market, are now facing a difficult defensive situation. Toyota RAV4 is the highest-selling joint venture SUV in June, with a total of 20,800 cars sold, which is not bad just looking at the data, but such market results are inseparable from a large market concession. In addition, it is worth mentioning that under the market impact of independent new energy SUVs, the premium advantage of the hybrid system that Japanese products were once proud of has been seriously weakened, and in June, the hybrid version of RAV4 only sold more than 1,000 units.
Obviously, the current independent plug-in hybrid models of the same level are not only more competitive in price, but also have better performance in terms of fuel consumption, performance and configuration, and consumers are increasingly inclined to choose independent plug-in hybrid models when buying cars, rather than Japanese brands such as Toyota and other gasoline-electric hybrid models. The Corolla Ruifang, which sold nearly 20,000 units in June, is similar to the RAV4, of course, relatively speaking, its hybrid version has a higher market acceptance (mainly because the price is much lower), but the market pressure it faces continues to increase.
Volkswagen Tuyue sold more than 15,000 cars in June. In the face of market competition brought about by new energy models, Volkswagen and other once popular joint venture brands in the domestic market are also a little uncomfortable in the face of young consumers’ increasingly strong demand for product technology. For Volkswagen, although it has strong technical strength in the field of traditional fuel vehicles, in the new energy era, it also needs to further accelerate the research and development and application of electrification platforms to improve the electrification performance and intelligence level of products.
On the whole, the Japanese and German compact SUVs, which have long relied on brand reputation and machinery manufacturing technology to gain a foothold in the market, have opened up a big gap with their own brand new energy models in the current competitive environment of technological innovation ability and cost performance.
Mid-size SUV market: Model Y dominates, fuel vehicles do their best to maintain stability
The competitive landscape of the B-segment SUV market presents a special “polarization” trend. In this market segment, Tesla Model Y is riding the dust in sales with its own brand and product strength, while many models in the fuel vehicle camp are struggling to resist and try to maintain their market share. At the same time, independent new energy brands are also making continuous efforts, among which BYD Hiace 07 has made a good market breakthrough, showing the huge potential of independent new energy brands in the B-class SUV market.
Tesla Model Y sold more than 50,000 units in June, winning the overall SUV sales championship with an absolute advantage, and is in an absolute dominant position in the B-class SUV market, with monthly sales far exceeding other models of the same class. Tesla’s refreshed version of Model Y has been upgraded in terms of appearance, cockpit, battery life, etc., with dozens of configuration additions and upgrades, and after the official start of delivery in March this year, the market performance of the new car has indeed ushered in a continuous improvement.
Another new energy model that made it to the top 20 SUV sales list in June was BYD’s new car Hiace 07, which sold nearly 15,000 units in June. The Hiace 07 is the first model of BYD’s new Hiace IP, which launched a pure electric version in May last year, and a plug-in hybrid version this year, and quickly emerged in the domestic B-class SUV market. The emergence of Hiace 07 represents BYD’s technical strength and determination to impact the mid-to-high-end market, and also represents an active attempt by independent new energy to seek brand upward and differentiated breakthroughs in the B-level market. At present, the results of Hiace 07 are good, and it is worth continuing to pay attention to whether the subsequent market results will go further.
Image source: BYD
Under the strong offensive of Tesla Model Y and independent new energy products, the fuel vehicle camp did not sit still in the B-class SUV market, but struggled to hold on and continue to launch a counterattack.
Chery Automobile is also very strong in the current domestic B-class SUV market, with a total of 2 models selling more than 15,000 units per month in June, and both are fuel products. Tiggo sold 22,400 units in August, becoming the monthly sales champion in the B-segment fuel SUV market. Tiggo 8 has significant features such as large space, high configuration, and affordable price, which can meet family travel and some cargo needs, and for consumers who pay attention to practicality and cost performance, Tiggo 8 is indeed a good choice in the same level of market. Chery Jietu X70 also successfully broke through in the B-segment SUV market, selling more than 15,000 cars in June. The product characteristics of the Jietu X70 and the Tiggo 8 are similar, focusing on home cost performance, with rich configuration, spacious space and affordable price, attracting consumers who pay attention to family practicality.
In terms of joint venture oil vehicles, Volkswagen is still the leader. Volkswagen Tiguan L sold nearly 20,000 cars in June, as a benchmark model of German SUVs, Tiguan L with a deep user base, balanced product performance, and of course, considerable terminal concessions, it has still held its own market position. The Audi Q5, a “star-level” product in the traditional luxury car market, also performed well in June, with monthly sales of 16,900 units. As a representative of luxury brand fuel SUVs, the Audi Q5 currently mainly relies on brand premiums and terminal discounts to maintain market share.
Medium and large SUV market: high-end breakthrough of independent range extension
In the domestic C-class high-end SUV market in June, it showed a completely different competitive pattern from other levels, two independent extended-range hybrid models Wenjie M8 and Ideal L6, becoming the absolute leader in the market segment, the two models with their own unique advantages, successfully broke the monopoly position of traditional luxury brands in this field, showed the breakthrough and rise of independent brands in the field of high-end cars, and redefined the new standard of high-end SUVs.
The M8 was officially launched in April this year, bringing three versions equipped with an extended-range hybrid system in the early stage, with a starting price of 359,800 yuan, which is a flagship SUV product positioned as a family type under the Wenjie brand. The vehicle is equipped with 30 high-precision sensors including overhead lidar and rearward lidar, 4D millimeter-wave radar, etc., which well meets the pursuit of scientific and technological elites and smart travel. In the future, the M8 will also launch a pure electric version of the model, and the overall sales of the car series should be higher.
The ideal L6 is also a product positioned for family users, attracting the attention of many multi-child families and high-end users with its vehicle comfort and innovative space layout. Officially launched in April last year, the ideal L6 is the smallest in the ideal family, but also the most affordable model, and now it is the most popular model under the ideal car, on July 22 this year, the ideal car has announced that the cumulative delivery volume of the L6 model has exceeded 300,000 units.
It is foreseeable that in the future domestic C-class SUV market, independent brands will likely further expand their market share and compete more fiercely with traditional luxury brands by virtue of their technical advantages in the field of new energy and intelligence. Of course, traditional luxury brands will also be more active in seeking change, accelerating the pace of electrification and intelligent transformation, and continuing to launch a “new war” to regain market dominance. On the whole, in the wave of reshaping the high-end car market pattern, car companies that can continue to innovate and accurately grasp consumer needs will successfully break through in the future competition in the C-class SUV market and continue to lead the new direction of market development.
Brief summary:
The domestic SUV market in June can be described as changing, and each market segment has shown a unique competitive situation and development trend. With technological innovation and accurate grasp of the market, independent brands have fully blossomed in different market segments, showing strong competitiveness and forming a strong impact on joint venture brands. Of course, joint venture brands and traditional luxury car brands will not sit idly by and watch the loss of market share, and they are also more actively looking for new market force points to reserve strength for subsequent market competition.
All in all, in the future market battle, those brands that rely on brand aura but act slowly will definitely be gradually eliminated by the market. Only by continuously innovating, continuously improving the technical level, creating a better intelligent experience, deeply understanding the needs of Chinese users, and building a brand with solid barriers in the core technology field can we win the final seat in the more brutal “all-out war”. It can be said that Chinese consumers are reshaping a new era of Chinese cars with real money votes.
