On March 9, 2011, the latest data released by the China Association of Automobile Manufacturers showed that in January-February 2011, cumulative sales of crossover passenger cars totaled 461,900, a year-on-year decrease of 3.09%, which was the only subdivided model with year-on-year negative growth. This led to the mini vehicle sales leading the auto market for the first time. Since 2010, the micro-vehicle production expansion boom has brought about 7 million micro-vehicle production capacities planned for 2012. The downside of the market suffers from an increase in production capacity, and the mini-vehicle market is facing unprecedented cold weather.

The drop was obvious. The mini-car industry was struggling.

Statistics from the China Automobile Association show that in February 2011, a total of 190,000 crossover passenger cars (microcars) were sold in China's auto market, a year-on-year decrease of 11.30%. In January and February 2011, sales of crossover passenger cars were 46.19. Millions, a year-on-year decrease of 3.09%. Changan Automobile, which accounts for more than 70% of the country's mini vehicle market, and SAIC-GM-Wuling, both micro-vehicle companies, experienced negative growth in sales in February 2011. The statistical data from the Xi'an Vehicle Administration also confirmed this: Compared with January 2011, the number of mini-vehicles listed in Xi’an in February fell by around 20%.

In this regard, Xi'an local mini-vehicle dealers said that in March of last year, sales were the most popular months, and in 2011 not only sales did not increase, compared with the same period there has been a clear decline. SAIC-GM-Wuling 4S shop of Shaanxi Automobile Trade said that in 2011, Wuling's sales also showed a decline. The cancellation of the national automobile to the countryside and other policies did have a significant impact on the mini-vehicle market.

Dealing with New Cars and Promotions

The cold weather experienced by the market caused the hot supply and sales boom in December 2010 to disappear. In response, various manufacturers quickly introduced various preferential policies to stimulate the market. Chang'an has already introduced a number of preferential policies to subsidize consumers. Currently, the purchase of various models of SAIC-GM-Wuling can also enjoy preferential benefits such as giving away compulsory insurance. Dongfeng Xiaokang Shaanxi Shunxin 4S shop Dongfeng Xiaokang manufacturers are currently subsidizing consumers, coupled with the continued decline in the recent channels, Dongfeng Xiaokang not only sales did not decline, compared with the same period in 2010 is still very clear.

In addition to increasing promotional efforts and subsidizing consumers, Wuling and Changan have launched their own high-end models, and from the perspective of market performance, their growth exceeds market expectations. Wuling Hongguang, the main business line, has not only been affected by the market downturn, but the current car sources are still quite tight. Although Chang'an Taurus, which was listed at the end of 2010, had just arrived at the store, consumer response was not bad. Whether it is in the interior work or safety, Taurus has reached a new level of micro-car, especially in the quiet engine, Taurus star performance is quite good, can be said to be a suitable car IKEA models, I believe the future The market outlook will be quite good.

Overcapacity is a good thing for consumers

In 2009 and 2010, the micro-vehicle market continued to grow explosively, making various car companies enter the micro-car market one after another. In addition to Changan, Wuling and Dongfeng Xiaokang, which are the top three micro-vehicles, companies such as Haima, Chery, Lifan, Shaanxi Auto, FAW, Brilliance, Dongfeng, BYD, and GAC are also advancing into the mini-vehicle market. According to incomplete statistics, the mini vehicle production capacity planned by car makers in 2012 has reached 7 million vehicles. In the past 2010, the total sales volume of the mini-vehicle market was only 2.5 million vehicles. Even if the average growth rate of the industry was maintained at 10% to 15%, the sales volume of the mini-vehicle market was only 3.3 million units in 2012, which was far below 7 million capacity planning.

From the macroeconomic level, the long-term trend of China's economy has not changed, so the growth of the mini-vehicle market can be expected. Moreover, there are 800 million farmers in China and the largest demand in the vast rural market is micro-cars, so the market outlook is still very optimistic. From another perspective, if all are seller's markets, then there is no impetus for manufacturers to improve their products. At the end of 2010, farmers had to wait two months to pay for a microcar, and now the market has fallen. Not only is the car now adequate, but also offers. Therefore, excess capacity in the mini-vehicle market is still a good thing for consumers.

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