The Losers Behind the 2016 Car Market

This year's auto market can be described as "good weather and favorable harvests". Although many manufacturers suffered in the first half of the year, stimulated by favorable factors such as the policy of halving the purchase tax for models below 1.6L, the auto market has been on an upward trend in the second half of the year. Many auto companies knew in October that they could complete their annual tasks.

Of course, the prosperity does not mean that all car companies have found a path to healthy development. In the past development, some car companies have accumulated many contradictions and problems. They are simply obscured by the prosperity and have not disappeared because of the upward market.

FAW Audi encounters SAIC Audi's mistress

FAW and Audi have been cooperating for many years. Unexpectedly, Audi actually signed a cooperation agreement with SAIC at the end of this year. As a result, the dealers of FAW Audi were of course not happy. Life was already difficult enough, and SAIC was snatching their business for no reason. After many days of brewing and fermentation, FAW Audi dealers prevented Audi from marrying SAIC. The dealers issued an ultimatum that if Audi did not respond before December 1, the dealers would stop picking up cars from the manufacturer and demanded Audi to pay tens of billions of RMB in compensation to make up for the loss of new car sales in recent years. Subsequently, Audi of Germany implemented its usual strategy of "breaking down each one separately" against the dealers, but it did not work. On the evening of November 30, Audi finally chose to compromise with the dealers and shelved the cooperation project with SAIC. As for the fate of SAIC Audi, we will have to wait until the end of March next year to see the outcome.

Comment: The SAIC Audi incident is not over yet. "Suspension" does not mean "termination". For Audi dealers, this is only a temporary victory. But no matter what, the fact that dealers have taken the lead in this round of cooperation is enough to prove that the voice of FAW Audi dealers has been greatly improved. At least they are no longer in a completely dominated position as before.

Changan Suzuki is completely marginalized

Once upon a time, Changan Suzuki became the synonym of Chinese cars entering families. However, looking at this year's sales, the brand, which once had a good life, is being completely marginalized. In the first half of 2016, sales fell by 16% year-on-year, and the monthly sales of the main models were less than 2,000 units, which has been squeezed out of the mainstream market. The continuous shrinkage of the domestic small car and micro car market has become one of the main reasons why Changan Suzuki, which focuses on small cars, has been marginalized in China. In June, Changan Suzuki's sales stopped falling and rebounded, with sales of 8,065 units that month, an increase of 3.5% year-on-year. In July, the year-on-year growth rate of 7,081 units was increased to 13.8%. However, in September this year, the sales of all models under Changan Suzuki once again fell by 9.7% year-on-year. Judging from the current sales situation, it is far from the company's goal. However, in terms of new products, Changan Suzuki will continue to make efforts this year and plans to launch two new models, the Alto and the new Tianyu. With the purchase tax policy that will last until the end of the year, combined with the new marketing strategy of the "2016 Young Plan", it hopes to achieve a continuous recovery in sales.

Comment: For Changan Suzuki, which has been marginalized in terms of sales, it is difficult to launch a single product.

FAW Hongqi cannot be saved

On the evening of November 18, FAW Car officially released the "Announcement on Asset Transfer and Related Transactions", proposing to transfer the manufacturing-related assets of its Hongqi automobile to FAW Group Co., Ltd. at a transaction price of RMB 428 million. On the 24th, the Shenzhen Stock Exchange issued a letter of concern, requiring FAW Car to provide additional information on the historical operation of Hongqi's product business, revenue and profits in the most recent year, etc. This undoubtedly made the embarrassing current situation of Hongqi automobile public.

As the first independent brand in China's automobile industry, it has experienced the transfer of high-quality assets and the collective resignation of senior executives in recent years. In the first half of 2016, FAW Car reported the worst semi-annual report since its listing. The unclear positioning and inaccurate market grasp made the entire product image of Hongqi H7 inconsistent with its high price, and Hongqi was eventually ignored by the market.

Comment: "Hongqi" was once an inevitable "knot" in China's automobile industry and a "disaster" for FAW Group. Back then, a Hongqi carried all the dreams of China's automobile industry. Ten years ago, FAW spent 50 billion to revive Hongqi, but the result of the high-profile campaign was that Hongqi still had no interest and eventually became a negative asset.

Mitsubishi Motors is losing ground

Mitsubishi Motors entered China earlier than most foreign automakers and supported a number of domestic brands. However, it did not take the initiative to "land on the beach". Instead, it was defeated by the booming Chinese auto market and became a "marginal player".

It started exporting models to my country in the 1970s. In the 1980s, Liuzhou Wuling was established, cooperating with Liuzhou Mini Car Factory to produce light trucks. In 1996, Mitsubishi Technology acquired a stake in Changfeng Group. In 2006, Mitsubishi acquired Dongnan Motors, and Mitsubishi Lancer, Lancer, and Galant were successively launched. In 2012, GAC Mitsubishi was established, producing ASX, Pajero, and ASX. In the second half of this year, it launched the domestically produced Outlander, taking away the trump card of imported Mitsubishi.

It can be said that Wuling, Southeast, and Changfeng have all benefited from the help of Mitsubishi Motors in their growth. Especially in the field of engines, almost all mainstream domestic brands have been equipped with Mitsubishi engines. However, as domestic brands gradually abandon them, the Mitsubishi engines, which were once the main force, have gradually faded from the public's sight.

Comment: Mitsubishi, which has been a sideline company in China for 20 years, missed the best period for its own brand development and spent another 10 years just playing a supporting role. In recent years, it has been plagued by car quality problems and fuel consumption fraud scandals. It is unknown whether Mitsubishi can successfully regain its glory after being acquired by Nissan.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.