The future of China's auto market is infinite, but in 2019, it is still life and death.

Abstract Perhaps 2018 will be recorded in the history of the domestic auto market. The first sales decline in the auto market in 28 years, we have to face up to the seriousness of the situation. The arrival of Ling Xiao’s winter has made car companies, including dealers and upstream supply chain companies, have to face pressure from all sides: possible...

Perhaps, in 2018, for the domestic auto market, it will be recorded in history. The first sales decline in the auto market in 28 years, we have to face up to the seriousness of the situation. The arrival of Lingxiao's cold winter has forced automakers, including dealers and upstream supply chain companies, to face pressure from all parties: in addition to the most direct reduction in orders, how to reduce costs, industry competition brought about by new technologies such as electrification and intelligence Other issues will also be highlighted.

Time to enter 2019, the sales data in January-February still has no confidence (in January-February 2019, the production and sales of automobiles were 3.776 million and 3.852 million respectively, and the production and sales decreased by 14.1% and 14.9% respectively over the same period of the previous year. ). Although the data is constantly pouring cold water, the situation at this stage is not optimistic, but the car industry talks that the future of China's auto market is still worthy of being optimistic.

The development of the car market is not optimistic and may be affected by the following factors

Since the beginning of the 21st century, China's auto market has experienced several stages before and after its development. It has accumulated a high base in the early stage, and it seems that it is only one step away from the ceiling of 30 million sales. But the cyclical nature of the economy affects the development of the automotive industry. After 10 years of growth, the global economy has slowed down and has had a certain impact on the entire auto market. Some analysts pointed out that the rise in US interest rates has slowed down the development of auto finance business; European auto companies have been affected by the new emission standards system; China's relevant subsidy policies have declined, and the external environment facing China and the implementation of China's six countries are all domestic. The car market has an impact...

The future is infinite, but 2019 is a year of intense competition and a wonderful year for the knockout.

In the short term, the auto market is not optimistic, but in the long run, the potential is still there.

The data shows that in 2018, the number of motor vehicles in China was 327 million, of which 240 million were car ownership. With a total population of about 1.4 billion, the number of cars in China was about 170 in 2018.

Compared with mature car markets such as the United States and Japan, the Chinese auto market has great potential. In 2018, the total population of the United States is about 320 million, the number of cars is 250 million, and the number of cars for thousands of people is about 780. The total population of Japan is 126 million, the number of cars is 74 million, and the number of thousand people exceeds 590.

Of course, in the future, the automobile market is experiencing pains and competition will continue to strengthen. From Suzuki's withdrawal from the Chinese market, to the luxury car market's sales growth of 9% against the trend in 2018, it can be seen that China's consumption structure is changing, and the consumption upgrade signal is obvious and sustained. In this process, products that are relatively low-end and do not meet consumer demand will inevitably face the risk of being eliminated. In 2019, or the survival of many companies.

The car going to the countryside and the VAT reduction is a buffer. At this stage, the development of car companies may be stable.

Experts interpret that in 2019, the auto market will bear a lot of pressure, and consumption growth may still slow down further. However, in the car industry talks, with the release of the car to the countryside and the VAT reduction policy, with a new round of stimulation and guidance, the car market may restore a certain vitality. And this exciting point of energy is in the third to fourth tier cities.

At the same time, according to McKinsey's forecast, the cumulative proportion of China's middle class and affluent class will reach 81% in 2022, and third- and fourth-tier cities will contribute major increases. Reflected in the car companies, for some of the more mature car companies, in the slow growth of the market, opportunities are reduced, in the process of competing for stocks, seeking stability or will evade certain risks. In the new incremental market, the local environment is different, the original product layout and marketing model may not work, and need to be adjusted accordingly. How to change is the key to developing third- and fourth-tier cities.

In general, 2019 is a year in which opportunities and challenges coexist. Of course, for most companies, the challenge will outweigh the opportunities.

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