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Polarization appears at the beginning of the year, and the development space of second tier high-end cars may be eroded

07:34, February 21, 2019 | Source: China Economic Network
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Original title: polarization appears at the beginning of the year; the development space of second tier high-end cars may be eroded

In January, Cadillac got off to a good start with sales of nearly 30000 vehicles, and continued to lead the second tier high-end car market. Compared with Cadillac last year, this achievement has improved significantly. Lexus, Volvo and Jaguar Land Rover, ranking second, third and fourth respectively, continue to maintain the monthly sales level of last year. The polarization of the second tier high-end car market was undoubtedly revealed in the first month of the new year.

Looking at the current environment of the car market, the "Matthew effect" of the strong is becoming more and more obvious. Compared with Audi, Mercedes Benz and BMW, which accounted for more than 70% of the high-end car market and once again pushed up the "ABB battle" at the level of 70000 in the first month, the future development space of second-line high-end car brands may be further eroded.  

In the first month of the year, Cadillac made a good start by selling nearly 30000 cars, and continued to lead the second tier high-end car market. Lexus, Volvo and Jaguar Land Rover continue to rank second, third and fourth, and the whole second tier high-end car market remains the same as before.

   Cadillac continues to lead Lexus in the "No. 1" list

Following last year's breakthrough in sales of 200000 vehicles, Cadillac delivered 26801 vehicles in January this year, an increase of 3.1% year on year, which is significantly higher than that of last year.

In terms of models, SUV is still the main sales source of Cadillac. XT5, XTS and XT4 sold 7329, 7185 and 6080 SUVs respectively in January, and the sum of the three SUVs accounted for more than 70% of Cadillac's sales in that month. In terms of cars, the ATS-L sold 5561 cars in January, and the new generation CT6 launched in November last year reaped 646 cars.

It is reported that Cadillac will continue to improve its product lineup this year. The new medium and large SUV XT6, which was unveiled at the beginning of this year, will be officially domestically launched in July. Later this year, Cadillac will also launch a new car product.

In terms of Lexus, it sold 14403 vehicles in January, up 5.3% year on year, and continued to rank the second tier high-end "No. 1".

In the past year, thanks to the tariff reduction policy, Lexus sales in China exceeded 160000 vehicles for the first time. Data released by the Automobile Circulation Association also shows that among the top ten brands in terms of import volume in 2018, Lexus increased significantly, ranking second only to Mercedes Benz; Among the top ten models, Lexus ES ranked first, and its NX and RX also joined the list.

At the end of January, the new Lexus UX was officially launched, which also indicates that Lexus will launch a new round of competition in the compact SUV market. However, on the day of its launch, a Lexus dealer communicated with the reporter of China Economic Daily - China Economic Network that the launch of the new car might divide some markets of Lexus CT and UX. How will the arrival of the new UX change the market performance of Lexus this year? It is still to be observed in the future.

   Volvo is still "Buddha like" Jaguar Land Rover launches "Revival Plan"

In 2019, Volvo is still "Buddha like", with sales of 11957 vehicles in January, continuing to hover at the level of 10000 vehicles. Recently, when visiting the market, the reporter from Economic Daily - China Economic Network learned that the main sales force of Volvo XC60 and S90 still maintained a large terminal discount, with the discount of XC60 reaching about 80000 yuan and S90 reaching about 120000 yuan.

Last year, Volvo announced its future oriented development strategy and set up specific implementation paths, including "fully promoting commercial delivery capabilities including sales volume and other related projects". But at present, Volvo's sales volume has not changed significantly.

The sales of Jaguar Land Rover in January continued to show a significant year-on-year decline, but the sales level seemed to be stable, maintaining nearly 9000 vehicles for the second consecutive month. Even so, the decline since July last year has undoubtedly been revealed in its financial report.

Tata, the parent company of Jaguar Land Rover, recently released the third quarterly report of last year, which showed that Jaguar Land Rover's revenue was 8.06 billion dollars, and its loss was 4.06 billion dollars. As a result, Tata even made the biggest loss in the history of Indian enterprises.

More importantly, the UK is scheduled to formally "Brexit" on March 29, but the "Brexit" agreement reached between the government and the EU has been blocked in the UK. Once "Brexit without agreement" finally emerges, it will have a great impact on automobile manufacturing enterprises in the UK in terms of production, sales, transportation and other aspects. As a British local car manufacturer, Jaguar Land Rover will surely bear the brunt.

Due to internal and external troubles, Jaguar Land Rover launched the "Recovery Plan" and took a series of measures, including layoffs and factory shutdowns, to revitalize related businesses. It is hoped that with this plan, Jaguar Land Rover can extricate itself from the current quagmire.

In contrast, Porsche's "preventive measures" for "Brexit" are more direct, that is, to ask British consumers to sign terms and agree that Porsche will impose an additional 10% fee on the vehicles delivered after "Brexit" in the UK.

On the whole, in the second tier high-end car market, only Cadillac's sales volume increased significantly in January among the four major brands except Porsche, while the other three brands remained at the monthly sales level last year. The polarization of the second tier high-end car market was undoubtedly revealed in the first month of the new year.

Last year, the overall sales volume of the high-end car market exceeded 2.8 million, with Audi, Mercedes Benz and BMW accounting for more than 70%. At the beginning of this year, three ABB companies achieved a "good start" with a monthly sales level of 70000 vehicles, once again pushing up the "ABB battle", which can not help worrying that the future development space of second tier high-end brands may be further eroded.

Looking at the current environment of the car market, the "Matthew effect" of the strong is becoming more and more obvious. In this regard, Miao Wei, the minister of the Ministry of Industry and Information Technology, once said, "The survival of the fittest will be achieved through the market mechanism, resources and production and sales will further concentrate on advantageous enterprises, and industrial concentration will be greatly increased..." In this context, if no fundamental change is made, it is bound to gradually move to the edge in the competition. (Economic Daily - China Economic Network reporter Guo Tao)

(Editor in charge: Yan Feng, Wu Xiaoqin)

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