Challenge and create opportunities. Who is the winner of the auto market in 2018?

  [XCAR Deep Observation Original]

  In 2018, the automobile market was full of words such as "market winter" and "cliff-like decline", which was quite different from the mood of watching the automobile market rise in previous years. According to the data released by China Association of Automobile Manufacturers (hereinafter referred to as China Automobile Association), in 2018, there were 28.081 million vehicles sold in the automobile market and 23.2571 million vehicles sold in passenger cars, both of which were down compared with last year, but they still ranked first in the global automobile market for the tenth consecutive year. Despite the decline in market sales, China remains the largest automobile market in the world.Under the market background of the decline in sales in the automobile market in 2018, what challenges and opportunities will be brought to the automobile enterprises, and this issue will be interpreted in depth. (Source: China Automobile Industry Association/Aika Digital Intelligence Laboratory)

Challenge and create opportunities. Who is the winner of the auto market in 2018?

  ▼ In 2018, the sales volume of passenger car market fell for the first time in 29 years.

  Since 1990, the sales volume of China automobile market has been singing all the way, but the continuous growth was broken in 2018. Sales data show that the market maintained a double-digit growth at the beginning of 2018, but the growth rate declined rapidly from April, and finally the sales volume began to decline year-on-year in July, and the decline rate gradually increased. The decline rate of sales in the fourth quarter remained above double digits. From the overall market point of view, cars, SUVs, MPVs and crossover commercial vehicles all showed different degrees of decline.

In-depth Analysis of Automobile Market Sales in 2018

  When forecasting the sales volume at the end of 2017, the China Automobile Association predicted that the automobile market would eventually grow by 2%-3% in 2018. However, under the influence of the complex macroeconomic background, the actual situation of the automobile market was quite different from the forecast. In the end, the sales of passenger cars in 2018 were 23.2571 million, down 4.08% year-on-year.

High-end dialogue Huatai Securities Xie Zhicai interprets the automobile market

  In 2018, under the complex macroeconomic background, the sales volume of the automobile market declined, which was not unrelated to the policy and the psychology of consumers buying cars. After April, China’s economy entered the stage of deleveraging, which will affect the source of funds for consumers to buy cars with loans to a certain extent, which is also an important reason for the weakening of the automobile industry in the second half of the year. After April 4, 2018, the Sino-US trade dispute became more intense. Although this only increased to the tariff on imported American-made vehicles, it had little impact on the automobile industry. However, with the intensification of the dispute, people’s confidence in the future economy was insufficient, and their expectations for future income also declined. Several factors combined, many people chose to postpone the car purchase plan.

  ▼ With the increase of the number of brands, the survival of marginal brand products becomes more and more difficult.

  In recent years, the sales volume of the automobile market in China has continued to grow, and many brand-new automobile brands have emerged one after another. In 2018, in the face of the decline in the overall sales volume of the automobile market, the "Matthew effect" of the strong Hengqiang has become more and more obvious, and the market has concentrated on more advantageous brands and products. With the increase in the number of domestic automobile brands, it has become increasingly difficult for "marginalized" automobile brands to survive due to product strength and other reasons.

  Changan Suzuki is one of the representatives of the brand that has been gradually marginalized. After Changan Suzuki reached the historical peak of 220,000 vehicles in 2011, its sales volume continued to decline, which eventually led Suzuki to choose to withdraw from China. On September 4, 2018, Changan Automobile issued a statement in official website. Chongqing Changan Automobile Co., Ltd. and Suzuki Co., Ltd. reached an agreement on the acquisition of equity of Chongqing Changan Suzuki Automobile Co., Ltd., and Changan Automobile acquired 50% equity of Changan Suzuki held by Suzuki. After the completion of the acquisition, Changan Automobile holds 100% equity of Changan Suzuki, and Suzuki Automobile has officially withdrawn from the China market.

Market analysis in 2018

  Suzuki’s withdrawal from the China market is worth pondering. Changan Suzuki was founded in May 1993. As the first Japanese company to enter China to produce cars, Suzuki was the fourth Japanese car company in sales in China before 2014. With the upgrading of consumption and the increasingly fierce competition in the China market, Changan Suzuki brand has been gradually marginalized due to the slow introduction of new models and other factors. Since the sales volume of Changan Suzuki reached the historical peak of 220,000 vehicles in 2011, the sales volume of Changan Suzuki has been in a state of decline. Changan Suzuki, who has been deeply involved in the China market for more than 20 years, finally chose to withdraw from the China market.

  ▼ Cars are consumer goods that are difficult to drive by the star effect.

  Before the official launch of 2018 fifa world cup, WEY signed a contract with cristiano ronaldo (C Ronaldo for short) and invited C Ronaldo to be the first spokesperson of WEY brand. During the World Cup, C Ronaldo, the world footballer, spoke for WEY, which caused a sensation and attracted a lot of attention. For WEY brand, signing C Ronaldo endorsement is an important step forward in marketing communication.

Market analysis in 2018

  However, with the gradual dilution of the World Cup fever and the passage of time, C Ronaldo’s endorsement of WEY has gradually been forgotten by everyone. Previously, many first-line stars spoke for car companies, Jackie Chan spoke for Mitsubishi, and Jay Chou spoke for Na Zhijie. The coffee spots of the stars were not weak, and they all ended in "bleak". The main reason is that cars, as an industrial-intensive, technology-intensive and labor-intensive asset-oriented commodity, are difficult to achieve sales growth by relying solely on marketing.

Market analysis in 2018

  Haval H6 is the "evergreen tree" in the sales list of SUV models, which concentrates the sales risk on one model and forms two competition circles with other strong independent brands. At present, WEY’s biggest competitor in the competition is Lectra. Although the "Focus Strategy" was first introduced by Great Wall Motor, Geely Automobile is the car company that brought it into full play. At present, Geely (including Lexus and New Energy) sells more than 20 mainstream models. Geely exerts a balanced force in the car and SUV market, especially for the compact market. In the first 11 months of this year, the proportion of compact retail sales was 55.25%, which was significantly ahead of the market share of medium-sized and small-sized market segments.

Beautiful scenery attracts visitors to green water and green hills. Ecological vision becomes a beautiful life.

  CCTV News:The whole territory of Ningxia belongs to the Yellow River Basin, where it was born and prospered because of the Yellow River, and has the reputation of "being on the south of the Yangtze River". Since the 18th National Congress of the Communist Party of China, Ningxia has implemented the strategy of ecological priority, with the fundamental task of protecting the healthy An Lan of the Yellow River, and has continued to fight the tough battle of "zigzag bend" of the Yellow River. The water quality of Ningxia section of the main stream of the Yellow River has remained stable at Grade II for seven consecutive years.      

  In recent years, Ningxia has promoted the ecological protection and restoration of forests, grasslands, wetlands and deserts and the comprehensive management of saline-alkali land, and continued to promote the protection and restoration projects of Helan Mountain, Liupanshan Mountain and Luoshan Mountain. In 2023, 50,000 mu of mine geological environment restoration and comprehensive land improvement were completed, 1.25 million mu of forest was built, 900,000 mu of desertification land was controlled, and 282,000 mu of degraded grassland was controlled, and 10 mine restoration projects were implemented. At present, there are 3.1 million mu of wetlands in Ningxia, including 1.47 million mu of river wetlands, with the forest coverage rate of 11.35% and grassland comprehensive vegetation coverage rate of 56.8%.

  Nowadays, "being in the south of the Yangtze River" is becoming more and more beautiful, and the ecological vision of green water and green mountains has gradually become a beautiful life within reach.

  Green development, beautiful scenery and beautiful ecology attract visitors.

  Libo County, Guizhou Province has two world-class business cards, namely "Karst in South China" and "World Man and Biosphere Reserve", and is known as "Emerald of the Earth". Since the 18th National Congress of the Communist Party of China, Libo has vigorously implemented artificial afforestation, forest tending, transformation of inefficient forests, rocky desertification control and other projects in and around the heritage site. At the same time, master plans have been made for the protection of the heritage sites in Zhangjiang Scenic Area and Maolan National Nature Reserve. During this time, Libo, Guizhou entered the tourist season.

  During the tourist season, Seven Small Arches Scenic Area receives more than 35,000 tourists every day.

  Seven Small Arches Scenic Area is surrounded by mountains. This seven-hole ancient bridge across Xiangshui River was built in Daoguang period of Qing Dynasty. Walking on the ancient bridge, in the mountains and rivers, it seems to condense time and years.

  It is understood that the forest coverage rate of Seven Small Arches Scenic Area has reached 92%. The water here is deep or shallow blue-green, because it contains a lot of calcium and magnesium ions.

  Through the perspective of underwater drones, you can see groups of fish swimming in the water. In recent years, several new fish species have been discovered in Seven Small Arches. Surrounded by the jungle, the seven-hole ancient bridge is clearly reflected on the water, and the landscape bridge is integrated, which seems to silently tell the story of harmonious coexistence between man and nature.

  During this time, Libo, Guizhou entered the tourist season. Only Seven Small Arches Scenic Area receives more than 35,000 tourists every day on average, and the scenic area adopts the way of full-scale online real-name reservation to divert and limit the flow to increase the experience of tourists.

  Delineating ecological red line, zoning and hierarchical management

  The beauty here is closely related to people’s protection, in addition to the giving of nature. The area within the red line of ecological protection in Libo is over 1205 square kilometers, accounting for 49.91% of Libo’s land area.

  People protect the ecological environment like eyes and treat it like life. According to the nature of the reserve, the local area is divided, protected and controlled at different levels. The Maolan National Nature Reserve is divided into core area, buffer area and experimental area. Seven Small Arches Scenic Area belongs to Zhangjiang Scenic Area, which is divided into four levels of protected areas for protection.

  Grid management of tourism to increase people’s income

  In recent years, Seven Small Arches Scenic Area is exploring the transformation of ecological advantages into economic advantages. How to realize environmental protection while vigorously developing tourism? At present, the whole scenic spot has been managed by grid, with a total of more than 100 grids. In addition to the sanitation and cleaning in the area, the grid workers are also responsible for guiding and reminding tourists.

  Wolongtan is one of the grids. The grid worker here is a Yao people. His family used to be a poor household and became a grid worker through tourism. While cleaning up the lake area, he also performed folk dances for tourists to interact and become a landscape in people’s eyes. In Libo County, more than 10,000 people have lived a well-off life by getting rid of poverty and increasing their income through tourism.

  Develop in protection and protect in development.

  Development in protection and protection in development are also reflected in every detail. In the water forest of Yuanyang Lake, the ancient trees in the water are surrounded by small wooden sticks to prevent the cruise ship from hitting the ancient trees. Small sticks on the periphery of ancient trees are equivalent to "protective clothes" for them. In addition, the scenic spot is also in the section where ancient trees are concentrated, and a clearance area that can only be visited on foot is drawn.

  Now, standing at a new starting point, the local authorities focus on three elements: resources, customers and services to improve the management level, enrich the tourism format, strive to build a world-class tourist attraction, and let the beautiful landscape enter more people’s horizons.