Mini Car Sales Decline Almost 10%, Companies Need Transition

In 2013, Chinese automobile industry has experience double-digital growth after 2 years tiny growth. However, mini car segment sales have not realized fast growth, but even decline. In 2013, Chinese mini car segment sales are accumulated 1.59 million, which has declined 9.6% over 1.76 million sales of 2012.

Because of low price and low fuel consume, besides benefit from purchase tax half cut policy which implemented from 2009 to 2010 for 1.6L and under displacement vehicle, and “Automobile Countryside”active, mini car has been welcomed in fifth and sixth tier cities. However, with tax cut and “Automobile Countryside” activity end, 1.6L and under displacement has no advantage against others.

ZHANG Zhiyong, automobile marketing expert, tells report that mini car advantage is low price, which is closer to fifthand sixth tier cities customer purchaseability. However, with urbanization moving forwards, more and more automobile companies step into those cities. It is hard to tell price advantage of mini car. Facing thousands Yuan more, or even same price level passenger car, more customers prefers the late, which is more comfortable and graceful.

Mini car segment decline more and more obviously. In 2013, mini car has sold accumulated to 1.59 million in China, which has declined 9.6% over 1.76 million sales in 2012.

CAI Chengjun, general manager of Pangda Automobile Trade Jiabao region tells reporter “mini car sales have declined 5%- 10% each year since 2012.”

JIA Xinguang, individual automobile analyst points out that last year, Wuling Hongguan, Changan Honor are counted by narrow sense passenger car, which dramatically narrows mini car market volume. However, if Wuling Hongguan and Changan Honor still are counted by mini car, the segment still achieves 2.9% slight growth.

ZHANG Zhiyong says that mini car manufacturer 2013 market performance is another reason for mini car segment decline as a whole. In 2013, mini car segment top 10 sales are SAIC-GM-Wuling, Changan Automobile, Dongfeng well-off, Beijing Automotive, Jilin Automobile, Lifan Automobile, Chery Automobile, Haima cars, Gonow Auto and Hafei Auto.

Among the ten companies, BeijingAutomobile, Lifan Automobile, Gonow and Chery have realized sales growth. Benefited from new cars sales, top 3 companies sales growth are more than 100%. The best Beijing Automobile sales exceed 100 thousand to 109.5 thousand. Chery mini car sales grow 20 percent.However, other six company’s sales all decline. Hafei Auto has dropped 63.6%. Haima follows up, with 48% decline.