Seven car companies die out in one year? What happened to Chinese brands

The market share of its own brand has declined for three consecutive years, and last year it dropped to the lowest position in history. Moreover, at least seven Chinese auto brands have died within a year. What's wrong with independent brands? Is it the most dangerous time?

1. Does the market share fall to the bottom?

According to data from the China Automobile Association, my country's auto sales in 2020 were 2017.8 million, a year-on-year decrease of 6%, mainly due to the dual impact of the cold winter in the auto market and the black swans of the epidemic. Among them, the sales of self-owned brands were 7.749 million vehicles, a year-on-year decrease of 8.1%, and the decline was significantly greater than the industry level. Moreover, the market share of independent brands fell by 0.8 percentage points year-on-year. Although the decline was not significant, it has fallen to the lowest position in the past 20 years. In fact, starting from the cold winter of the auto market in 2018, the market share of independent brands has been falling.

2. Seven auto companies will die within one year?

Behind the decline in the market share of independent brands is that many car companies have failed to survive the life and death mark and will die in 2020. In November 2020, Brilliance, which was exploded with a foreign debt of up to 50 billion, declared bankruptcy, was ruled by the court for bankruptcy and reorganization, and was also investigated by the Securities Regulatory Commission. The "cottage king" Zotye couldn't hold it anymore. declared bankruptcy due to serious insolvency. Ying Jianren, the actual controller, reportedly cashed out 75 billion yuan; there are also Leopard Motors and Lifan Motors , both unable to survive due to long-term low sales. Finally, Li Shufu reached out. These two brands were taken over and integrated into the Geely Group.

In addition to the mass demise of traditional car companies,New power car companies are even more dead. In 2018, the popular brand LOG, a new power brand in the automobile industry, will be deleted one by one in 2020. For example, the car, which was built for four years, was "suddenly killed" within 100 days because its chairman Wang Xiaolin was reported to be suspected of false technology funding and suspected of embezzling huge amounts of state-owned assets; three years, 8.4 billion Byton cars have gradually died out and lost their sense of existence; and Bojun Automobile, which has been established for four years, has not escaped the fate of "death" even though it has joined hands with FAW Xiali.

3. When is the most dangerous time for independent brands?

The market share is the lowest in history, and the entire car company goes bankrupt. Is the most dangerous time for independent brands? I don't think it is necessarily, but this is a good phenomenon. First of all, the market share of independent brands has continued to decline in recent years, mainly due to the demise of weaker brands. There are more than one hundred auto brands in my country, which are really too many and far exceed the normal needs of my country's auto market. The big waves scoured the sand and eliminated the rear auto companies. This is the industry law for the automotive industry to develop towards high quality. There are only 4 car brands in the United States, 6 in Germany, and 9 in Japan.

Secondly, will consumers sympathize with the eliminated car companies? not at all. Those car companies that are eliminated are copycats, shoddy, and abandoned by consumers. For example, Zotye Automobile was ridiculed as the "taper department", which is a copycat imitation of the famous automobile industry, making all luxury car brands "fearful"; Brilliance, holding BMW's thighs, relying on the "blood transfusion" of joint venture brands to survive, And lose the enterprising spirit in the independent brand. What other new forces are rushing to build cars, and how many of them are really building cars? Many of them are for defrauding state subsidies, and they should have gone bankrupt long ago.

In the end, the self-owned brands showed a situation of "the strong will remain strong and the weak will be eliminated", which is a good thing for Chinese cars. In fact, leading auto companies such as Geely , Great Wall, and Changan all showed sales growth last year and outperformed the market as a whole. Moreover, their market share has increased year-on-year. If Chinese cars want to compete with joint ventures and imported brands, they can only rely on these well-established leading auto companies. The survival of the fittest in the auto market, structural adjustment and optimization, are conducive to the sound development of Chinese brands and are the blessings of independent brands.