Chines domestic automakers sales surge but market share remains low

Gasgoo.com (Shanghai September 21) - Hot sales doesn’t amount to equal profits, which has always been known to the directors of Chinese domestic automobile brands. In the first eight months, Chinese domestic auto brands enterprises reported that passenger vehicle sales of 5.2372 million units, accounting for 41 per cent of total passenger car sales if the overall passenger vehicle sales decrease 12.2 percent compared with the same period of last year. The account has increased 3.5 percentage points from a year earlier, according to the statistics of China Association of Automobile Manufacturers.

But, on the other hand, the market share of Chinese domestic automakers decreased on a year-on-year basis, especially in June, July and August three off-season months. A wide pricing range is common problem shared with both Chinese domestic automakers and join-ventures. For example, in compact size vehicles, the pricing rang of Chinese brands and joint-ventures brands could reach up to 57%. This indicated that Chinese domestic automakers have been being devoid of anti-adventure capacity and high competitiveness.

In most cases, Chinese domestic automakers locate most market within the domain while other renowned multinational automobile manufactures enjoyed ten times more sales on a single model compared with that of Chinese firms because they expanded the market to all the corners of the world. Additionally, multinational automobile manufactures enjoyed less cost because of development fee share.

Domestic manufactures still need a large amount of research investment. Changan Auto, who put 5 percent annual revenue into research and development is one of the automakers who paid much attention on research. And the automaker’s effort paid off since the enterprise has finished 84.0 percent of annual sales target in August.