The performance of self-owned brand cars in the Chinese market is getting better and better, according to the latest data of the China Association, the penetration rate of self-owned brand cars in the Chinese market has reached an astonishing compared with the trough of the year, the market share of independent brands has increased by one percentage point, with an average annual growth rate of more than . At the same time, the market share of joint venture vehicles has declined from the peak of the previous period to the current number of companies, and it is on a downward trend.
In recent years, joint venture car companies have relied on substantial discounts to "exchange price for volume", resulting in many dealers operating losses, and even some leading joint venture brand dealers said that they "no longer take cars", just to reduce losses. With the gradual reduction of dealerships, the market share of joint venture vehicles has been impacted. It is estimated that the above joint venture car companies may withdraw from the Chinese market in the future, leaving only a few brands, mainly luxury brands such as Mercedes-Benz and BMW or star brands such as Volkswagen and Toyota.
So is this a good thing or a bad thing for the Chinese market? The rise of domestic brands is the main reason for the difficulties of joint venture car companies. This phenomenon has been experienced in the Korean and Japanese markets. For example, the proportion of Korean cars in the Korean domestic market has reached that of Japan, and the proportion of joint ventures has been too reliant on bringing overseas models into China for sales over the past years, and they have not been able to adapt to the rapidly changing needs of the Chinese market. The rise of the new energy market has caused traditional joint ventures to lose their competitiveness in areas with traditional advantages such as engines, transmissions and chassis. In the field of new energy, China has an absolute leading advantage, especially in the field of electricity.
There are different views on whether the exit of joint ventures from the Chinese market is a good thing or a bad thing. Some people believe that it will lead to the lack of competitors of independent brands, which may lead to the reduction of product quality and so on. But in fact, other industries such as home appliances, photovoltaics, communications, etc. have been monopolized by Chinese companies, and the competition is still fierce, and consumers can still buy more cost-effective products. The key point is that the withdrawal of joint venture automakers from the Chinese market will stimulate fierce competition among domestic brands, and the competition between automakers will not be reduced. At present, some independent brands such as BYD, Changan, Geely, Chery, Great Wall, etc. have performed strongly in the market, and consumers still have a variety of choices.
In addition, some luxury brands are also filling the gap in the market through imports. Overall, the exit of joint ventures from the Chinese market is a normal evolution of the market economy, and Chinese consumers still have a wide range of choices. More importantly, after the joint venture car companies withdraw from the Chinese market, Chinese car companies will compete more fiercely on a global scale and push China's leading companies to a higher level.