This newspaper (chinatimesnet.CN) reporters Niu Xiaoou and Yu Jianping report from Beijing.
With the release of the overall sales data of major car companies in 2023, the reporter noticed that ultra-luxury car brands have suffered a decline in sales in the Chinese market. These include well-known car brands such as Lamborghini, Bentley, Porsche, and Ferrari.
This has also aroused the industry's attention and thinking about the prospects of the ultra-luxury car market. Under the opportunity of intelligent electric vehicles, the order of the century-old automobile industry has been reshaped. In the transition period, how can the ultra-luxury brand that once dominated the era of internal combustion engines transform and develop in order to defend its inherent pattern?
Sales performance in China collective cold
2023 has been a relatively difficult year for ultra-luxury car brands, with many brands experiencing double-digit sales declines.
Gu Yantao, an auto industry analyst, told the China Times: "The sales performance of ultra-luxury cars in China in 2023 shows that the rise of domestic brands has put pressure on ultra-luxury car brands to a certain extent, and Chinese consumers' demand for cars is also changing." They pay more attention to practicality and cost-effectiveness, while the positioning and product characteristics of ultra-luxury car brands deviate from market demand to a certain extent. ”
In such an environment, the pressure is obvious, which is the biggest feeling of Porsche, which once developed smoothly in China, in 2023.
According to the data, Porsche's global sales in 2023 will be 32020,000 units, a year-on-year increase of 3%, of which the total delivery volume in the Chinese market was 7930,000 units, down 15% year-on-year, making it the only declining market in the world. In fact, after entering 2022, the pressure on Porsche has begun to increase. In 2022, Porsche's global sales volume was 30990,000 units, a year-on-year increase of 26%, but the total delivery volume in the Chinese market is 9330,000 units, down 25%, making it the only market in the world where Porsche declined, and it was also the first decline in sales since Porsche entered the Chinese market in 2001.
Porsche was hoping to make a comeback in 2023, but the decline in 2023 has widened by 125%, which also indicates that Porsche's development in China is becoming weaker.
The reason for this is that the first-class war in China's auto market in 2023 has had an impact on the market share of luxury cars. President and CEO of Porsche China, Ke Shimai, once bluntly said that the main reasons for Porsche's cold in China include the replacement of the Cayenne, the most popular model in this market segment, and the extremely fierce battle.
Under the impact of the war, although the executive board member of Porsche AG in charge of sales and marketing, von Peder, once emphasized: "I believe that China's positive growth should not be based on the first war. The war will only hurt the customer's confidence in the product and the brand, this move is not a long-term solution, and Porsche has never wanted to participate in the war, let alone be affected by any quantitative goals, we have always regarded development as a long-term value. But in the face of the overall trend of the automobile market, Porsche has no choice but to compromise.
According to the survey, Porsche's popular models in 2023 have all seen price cuts. The Porsche 911 can be discounted by up to 4%, the Panamera can be reduced by more than 10%, and the Macan can even give more than 20% of the concession.
Porsche's "Waterloo" in China in 2023 is not an isolated case of ultra-luxury car brands.
Even more stressful than Porsche is Bentley. According to the data, Bentley will deliver 3,006 vehicles in China in 2023, a year-on-year decrease of 18%. Bentley's sales in China have not only stalled, but its global sales have also declined. In 2023, Bentley delivered about 1 new car to customers worldwide360,000 units, down 11% year-on-year, and it is worth mentioning that Bentley's sales in the Americas, the world's largest market, as well as the United Kingdom and Europe, also shrank significantly.
Although Lamborghini's global car sales in 2023 will reach a new high, it will cross the "10,000 unit threshold" for the first time, which is 1010,000 units, but the annual sales in the Chinese market were 845 units, a year-on-year decrease of 17%; Ferrari's new car sales in 2023 are 1370,000 units, up 3% y/y, but it also fell 5% y/y in China.
Relying on the hybrid track to play "roundabout tactics".
Gu Yantao pointed out that China's auto market is undergoing a series of changes, including policy adjustments, changes in the economic environment and changes in consumer trends, all of which have had an impact on the ultra-luxury car market. Secondly, with the rapid development of the new energy vehicle market, the development of traditional ultra-luxury car brands in the field of electric vehicles is relatively lagging behind, resulting in a decline in competitiveness in the market.
Nowadays, the development of electrification has become a common goal of global car companies, and even as the king of the internal combustion engine era, ultra-luxury electrification brands cannot resist the torrent of reform. According to Oliver Wyman's report "Luxury Cars Entering the Smart Acceleration Lane – Global Luxury Car Market Outlook" (the "Report"), the penetration rate of electric vehicles in the ultra-luxury car market priced in the $300,000 to $500,000** range is expected to reach about 60% by 2031. Ultra-luxury cars priced at more than $500,000 will be electrified at a relatively slow pace, with electric car penetration expected to be only 40% by 2031. This is also in line with the electrification transformation goals announced by a number of ultra-luxury brands.
Aston Martin plans to launch a fully electrified sports car and SUV portfolio by 2030; By 2030, Porsche aims to have more than 80 percent of its new cars sold with all-electric models. Maserati plans to electrify all of its models by 2025 and fully electrify by 2030. Ferrari aims to be carbon neutral by 2030; Bentley plans to make all its models ......fully electric by 2030
As stated in the report, ultra-luxury car brands still leave a certain transition period for the transformation, and at the same time, the choice of technical routes focuses more on relying on the advantages of internal combustion engines to develop hybrid technology, rather than radical comprehensive transformation.
Aston Martin expects to begin deliveries of its first plug-in hybrid electric vehicle (PHEV), the Valhalla, in 2024; Ferrari says that by 2026, about 60% of its sales will be all-electric and hybrid.
Everis, Executive General Manager of Bentley Motors Chinese mainland, Hong Kong and Macau, also unveiled Bentley Motors' latest electrification transition timeline. Before all models become fully electric in 2030, Bentley will take two steps: by 2024, Bentley Motors plans to introduce plug-in hybrid options for all models; By 2026, all models will be plug-in hybrid or fully electric.
In 2023, Lamborghini has launched its first high-performance hybrid supercar, the Revuelto, and officially started the hybrid phase. According to the plan, in 2024 Lamborghini will continue to launch the first hybrid model of the super SUV Urus, as well as the second HPEV model in the Lamborghini model range to replace the Huracán, and plans to achieve hybridization of all product lines.
Tian Li, an analyst in the automotive industry, told the China Times: Although the electric vehicle market is developing rapidly, the transformation is not an overnight achievement. As an industry leader, traditional ultra-luxury electric vehicle brands should be more cautious about market changes rather than blindly following trends. In order to ensure their own sustainable development, these brands need to carry out reasonable development planning according to their own brand positioning and market demand. Traditional ultra-luxury car brands have accumulated a wealth of experience and strengths in internal combustion engine technology, so it is wise to take advantage of this advantage to gradually transition from hybrid technology and ultimately to electrification. This approach to transformation ensures that the brand's competitive advantage continues. ”
Stephen Wincormann, chairman and CEO of Automobili Lamborghini, believes that the Chinese market has indeed seen some volatility in 2023. What is clear is that China, as the world's largest automotive market, has maintained a continuous growth trend. As far as the supercar market is concerned, the Chinese market still has a lot of room for development compared to other markets, so there is a lot of potential.
It can be seen that there are still huge business opportunities in China's auto market. "Ultra-luxury car brands must always maintain a leading position in product quality and brand image, pay close attention to the uniqueness and future trends of the Chinese market, and update technology and design to meet consumer needs. In this way, these brands are better able to meet the needs and preferences of consumers, thereby consolidating and further expanding their market share in China. Tian Li said.
Editor-in-charge: Li Yanan Editor-in-chief: Yu Jianping.