Gasgoo.com (Shanghai, June 3) – Market share of small size automobile has reduced since year 2009. It reduces to 12.5% bottom from 16.2% peak. Compared with others’ two figures growth, small size automobile market performance is opposite against automobile companies’ passion.
As it known, placement ratio and sales of new cars are stunned in Chinese market with “purchase tax subsidy” and “automobile goes town” background of year 2008. Fit, Vios and Polo take “10 thousands sales per month” list sometimes at that moment. However, there are only Polo remains 10 thousands sales per month in year 2013, and still far away from market performance before.
As we known, research lead time of small size automobile is similar with large size costs, but profit is lower. Automobile companies will face loss if sales cannot reach certain degree. Take Benz Smart for an example, accumulated sales already mount to 1.4 million, but still only reach 54% of its 200 thousands sales per month goal. Besides, original price 12 thousand euros is cut to 9 thousand as well Benz has lost 3.35 billion euros for Smart operation for years, which becomes the worst loss example as a European automobile company.
Forced by reality and cost saving, Smart has cooperated with Renault Twingo with research and manufacture. Other international automobile companies have stepped into joint research way just like Benz and Renault. For example, Ford has cooperated with Fiat for small size automobile research since year 2005; Cooperation between Toyota and Citroen- Peugeot initials since year 2002, which has introduced Toyota Aygo, Citroen C1 and Peugeot 108 already.
VW planned to introduce Budgetcar into emerging market this April, but force to stop because of cost issues. A manager of automobile company says directly that small size automobile does not preferable in China. If the company focuses on the segment, it will face huge pressure.
Therefore, why companies invest into the segment if the small size automobile segment is small, costly and limited profit?
Firstly, it is getting closer to 6.9L/ kWh limitation of passenger car industry average. Automobile companies do not willing but have to invest into the segment. Besides, automobile market capacity in the first tier and second tier close to upper limit, but the third even fourth tier cities have released their purchase power. The third reason is that automobile companies need to remain its completed value chain.
