On a recent earnings call, Wang Chuanfu, BYD’s chairman, pointed the finger at the joint venture brand, saying that the share of the joint venture brand would fall from 40 per cent to 10 per cent in the next three to five years.
In the first quarter of this year, the share of Chinese brands continued to soar, and joint venture brands have begun to struggle to maintain 40% of the share.
Wang Chuanfu’s prediction began to come true little by little.
According to the China Automobile Association, the share of Chinese brands reached 59.
6% in the first quarter, up 7.
4% from a year earlier.
In March, the market share of German, Japanese and American all declined to varying degrees.
In March, the retail share of German brands was 20.
4%, down 1.
5 percentage points from the same period last year, while the retail share of Japanese brands was 13.
8%, down 2.
2 percentage points from the same period last year, and the retail share of American brands reached 8.
2%, down 1.
8 percentage points from the same period last year, according to the Federation of passengers.
Among them, the Japanese system not only failed to reverse the continuous decline, the decline is also the largest among joint venture brands.
The sharp decline in Japanese car sales is reflected in the performance of Japanese joint venture brands in the first quarter.
In the first quarter of this year, GAC GROUP, which owns Guangzhou Automobile Toyota and Guangzhou Automobile Honda, saw its sales fall 24.
11 per cent from a year earlier, making it the only car company with a decline of more than 20 per cent.
The joint venture brand will soon be unable to hold the 40% share line, with the share of the Japanese system declining most obviously.
Why did Japanese cars, which once had the same market share as Germany, lose in the first place? Japanese, which is synonymous with economical cars in China, is economical and durable, which makes Japanese cars have a deep-rooted position in the entry-level market.
Nissan Xuanyi, Class B top three, and being able to sell hybrids at a high premium are all room for Japanese cars to survive in the Chinese market for a long time.
However, the once solid market space for Japanese brands has been continuously compressed over the past two years.
In the past three years, the market share of Japanese brands has dropped from 22.
6% in 2021 to 20% in 2022, continued to decline to 17% in 2023, and has now reached 15%, according to the Federation.
Japanese brands have become the fastest declining joint venture brands.
Among them, Honda is currently the fastest declining Japanese brand.
Honda’s two joint venture brands in China fell sharply in March compared with the same period last year.
Guangzhou Auto Honda sold 30, 000 vehicles in March, compared with 86000 in the same period last year, while Dongfeng Honda sold 28000 vehicles in March, down more than half from 65000 in the same period last year.
Japanese brands are also significantly reducing production capacity in the Chinese market.
In March, the Nippon Keizai Shimbun reported that Nissan was considering cutting production capacity in China by 30%, or about 500000 vehicles, from 1.
6 million to 1.
1 million vehicles, while Honda planned to cut 20%.
About 300000, from 1.
5 million to 1.
2 million.
The pressure at the market level is even more tiring for Japanese cars to fight.
Under the pressure of the price war in the Chinese auto market, Japanese cars have also begun to cut prices in China.
In March, the ninth generation Camry went public, directly pulling the threshold of the B-class hybrid sedan to 170000 yuan.
But in the B-class market, Camry still hasn’t won a place for itself.
The status of Xuan Yi, a car myth, has long been replaced by BYD Qin PLUS, and this magic car is even continuing to explore the market.
The launch of Qin PLUS Honor Edition has lowered the threshold of A-class cars to less than 80, 000 yuan.
The living space left for Japanese brands will become smaller and smaller.
Recently, Wang Chuanfu revealed at the 2023 financial report investor communication meeting that BYD plans to switch to the fifth generation DM system in May, in which the engine efficiency increases to 46% from 43% of the fourth generation, the fuel consumption of the theoretical 100 km feed is as low as 2.
94L, and the battery can last 2000km when full of fuel.
This means that the fuel consumption of BYD’s plug-in hybrid system has entered the 2 era, and the battery life with full fuel has also created a new benchmark.
The economy of Japanese brands is even less worth mentioning in front of BYD’s new generation of mixing system.
BYD has entered a scale-technology-market dividend period, relying on iterative plug-in hybrid system to harvest the fuel vehicle and joint venture brand market is also announcing the arrival of an era.
In the A-class sedan market alone, last year BYD sold 430000 cars a year, with one car accounting for 10% of the total passenger car A-class sedan market, and the new energy A-class sedan market share of 50%.
It has not only promoted the change of the entire market structure, but also accelerated the improvement of the market penetration of new energy vehicles.
The accelerated penetration in the mainstream market is an important step for BYD to subvert the market.
A series of price cuts by BYD this year are aimed at raising the awareness of the market that “electricity is lower than oil”.
With persuasive technical indicators and cost control capabilities brought about by large-scale, BYD gradually replaced the previous Japanese mixed myth.
Today, BYD’s DM hybrid system is in its fifth generation, and when BYD launched the first generation of DM hybrid system development, Toyota’s first hybrid model has been on the market for seven years.
When the department established the voice of hybrid technology, BYD began to seek new technological innovation, which itself was a risky attempt.
On the one hand, the Japanese system has set up technical barriers in hybrid systems, and on the other hand, BYD, which started from battery technology, also wants to rely on new energy vehicles to try technological innovation.
BYD’s success in the field of plug-in technology has also promoted the progress of Chinese brand plug-in technology, so that China’s automobile market has really ushered in a key stage of relying on core technology to reverse the market pattern.
Whether in the Chinese market or in the global market, the Japanese system is an important competitor to Chinese brands.
Today, Chinese car brands are in full swing.
Chinese new energy vehicles are accelerating their penetration into the international market, and Japan is also the biggest competitor.
For example, in Southeast Asia, the primary task of China’s new energy vehicles is to kill the Japanese brands that have occupied the Southeast Asian market for many years.
Therefore, from a further point of view, BYD’s impact on the Japanese system can also enhance the international awareness of plug-in.
Of course, the premise is to stabilize the Chinese market first.
As the world’s largest automobile market, China promotes the transformation of new energy, which is of far-reaching significance to the global automobile industry.
Over the years, with the maturity of technology and supply chain system, plug-in hybrid has entered a stage with stronger cost control ability, market dip ability and stronger scale effect.
In March, SAIC GM decided to push the plug-in hybrid system that GM once abandoned back to China, and claimed to launch a counterattack.
SAIC GM’s ace model, the GL8, will also launch a plug-in version.
This strategic adjustment also meansHowever, joint venture car companies have begun to integrate into the rules of the game in the Chinese auto market.
, the scale effect of the Chinese market is also the confidence for Chinese brands to fully promote new energy going out to sea.
BYD’s technical verification in the Chinese market has also given it the confidence to use new energy to break the global market.
Therefore, BYD is the first to occupy Japanese shares in the Chinese market, which will also be the beginning of Chinese technology’s introduction to the world.
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