Chinese vehicle brands are reporting rising popularity among local customers, primarily driven by their quick response to market demands and their leading position in the new energy vehicle (NEV) segment. Last month, sales of sedans, SUVs and MPVs from Chinese carmakers totaled 551,000 units. Despite a 23.3% fall from the same month in 2021, which was the result of recent Covid-19 outbreaks, their market share moved up to 57%, 8.5 percentage points more from March and 14.9 percentage points more than in April 2021, according to the China Association of Automobile Manufacturers (CAAM). Local carmakers have seen fewer disruptions to production than major international brands including Volkswagen and Toyota, which have plants in hard-hit cities including Shanghai and Changchun, Jilin province.
But Chinese brands had already seen a rise in their market share in the first four months of this year. They delivered 3.1 million units from January to April, accounting for 47.6% of the Chinese vehicle market, up 6 percentage points from the same period last year. The rising trend was more apparent in the SUV segment. Of the top 10 best-selling SUVs in April, nine were from local Chinese brands ranging from BYD and Great Wall Motors to Geely and Chery. The only international brand that made it into the top 10 was the Wildlander from GAC Toyota. Its sales stood at 8,274 units, ranking No 9, lagging far behind BYD’s Song Plus, whose deliveries reached 25,108 for the month.
Edward Wang, Managing Director of syndicated research at J.D. Power China, said over the past few years, local Chinese brands are responding faster to market demands in terms of electric vehicles and smart functions. “Such innovation is injecting momentum into Chinese brands in a rapid, effective and continuous way,” said Wang. A J.D. Power survey showed that 53% of respondents would choose Chinese brands, and 67% of those who currently drive Chinese vehicles said they would choose Chinese brands again. The poll was conducted in March in 70 major cities among 11,340 respondents who said they would like to purchase vehicles in the next six months. The survey also found that those born after 1995 were more inclined to choose Chinese brands as they have more confidence and pride in their country. In terms of vehicles, they give top priority to smart functions and beautiful designs. Of the major elements that affect their vehicle purchase decision, the top one was “whether the car is good-looking”, said J.D. Power.
Also, the popularity of NEVs is helping expand the share of local Chinese brands. A total of 312,000 NEVs were produced and 299,000 were sold in April, up 43.9% and 44.6% year-on-year, respectively, although the overall market went down more than 46% from the same month last year. Currently, the absolute majority of NEV models available in the market are from Chinese carmakers. Chinese NEV maker BYD sold 105,475 units in April, up 136.5% year-on-year. It was the only carmaker to see growth in the Chinese market last month, the China Daily reports.
