The production and sales of automobile are over 24.5 million in 2015, which updates the global record for the first time and ranks first in the world in seven consecutive years. Through the analysis of the data in 2015, it can be seen that although the total volume of retail sales is in decline, the occupation of automobile is increasing, which indicates that China’s automobile market remains a relatively large space and rigid demand. The analysis on the prospects of China’s automobile industry are as follows.
2015 is undoubtedly a watershed for China's auto market. This year, China's auto market has ended up 15 years of rapid growth in history, which marks the end of a booming sales record from time to time. However, this year, we embrace the development of new energy vehicles ushered in an unprecedented new opportunities, an in the year after, we have witnessed the rapid development of customer service and automotive interconnection.
According to Forbes's official website reported in 2015, China sold 24.6 million automobiles, including passenger cars, trucks and buses. This shows a 4.7% year-on-year growth. Among them, passenger cars gained an increase of 7.3% , trucks and buses were slipping by 9%. In 24.6 million sales volume, passenger cars accounted for 86%, and the annual sales of 21.2 million far exceeds the market share of trucks and buses in the late 1990s. This shows that a genuine car culture has been firmly tied to the land of china.
Take the reverse into consideration of China's auto market in 2015, the price is a definitely hot theme of the year. Under the pressure of international car prices and local car prices, major companies have to adopt the price reduction strategy. By mid 2015, the average price of automobile fell by 2.7%. Meanwhile, the increasing sensitivity to the price of China's auto market has spawned the rapid development of cheap SUV. This low price SUV are mostly produced by the Chinese local enterprises. In the last year, this car has reached a staggering 53% sales increase. Although the public hopes China to become a “small vehicle” country, but large vehicles have accounted for more than 40% of the market share.
Not only that, the fourth quarter of 2015 automobile sales continues to the first quarter of this year, along with the popularity of SUV. Chinese total sales volume of automobile has gained a year-on-year growth of 7.7%, which in January passenger car increased by 9%. It has been predicted that the next five years, China's auto industry will usher in an annual growth of 6% to 7%, and automobile production and sales will also break the year of 30 million. For more information on the latest development of the automotive industry, please refer to the report published by the China report hall, "2016-2021 China automotive industry market operation and industrial development trends report".
Since the future growth is optimistic, the Chinese market has also emerged an interesting phenomenon: the boom of new energy vehicles. In order to promote the sale of new energy vehicles, the Chinese government has issued a series of laws and regulations, including tax cuts, car subsidies and government procurement, hoping to save energy and reduce environmental pollution. As a result of the original small sales base, the new energy electric vehicles in China reached 343% growth rate in 2015, selling about 330 thousand vehicles which are popular in the tier two or tier three cities of China. This growth continues to this year, just in January, new energy vehicle sales soared 144% year on year, reaching $16.1 thousand.
Another interesting phenomenon is the development and growth of China's aftermarket. According to statistics, about 172 million vehicles are in China’s roads. With the growth of car ownership, it is expected that in the next five years, the demanding for aftermarket parts and services will grow significantly. In order to meet the growing demand, 440 thousand China auto repair shop and 250 thousand parts suppliers need to be more efficient and reliable. Compared to the United States with 200 large auto chain brands (such as NAPA, AutoZone) in the United States, only about 100 chain brands in China has fully equipped with the opportunity to develop aftermarket. In addition, just in 2015, China has also emerged in the vicinity of thousands of home maintenance, second-hand car trading, auxiliary parking and car rental services such as O2O enterprises, which enables the access to a huge profit.
Finally, the Chinese Internet giant entering the automotive industry will also be another trend in the development of China's auto industry in 2016. These Internet giants rely on their own excellent Internet technology to develop the automotive Internet field. Recently LETV invested in Faraday Future, an electric car start-up company in the United States, in Las Vegas International Consumer Electronics Show and this is a vivid example.