China's domestic sales of overseas Qiao independent brands overseas increase 20%

"It's really surprising." Recently, an independent brand organized a group of domestic distributors to make a special trip to Egypt. After returning, a 4S shop manager in Hangzhou shouted "Unexpected". "Originally, our Chinese brand can be sold abroad so well."

Domestic sales decreased year-on-year, and the number of exports increased significantly, leaving many auto brands to lose their reputation. On the one hand, this year's sales target in the domestic market will be lowered. On the one hand, the export quantity target will be raised. This is what many independent brands have been doing recently.

Foreign sales, independent brands increase sales

The Chinese car is selling well in China. According to the personal experience of the Hangzhou 4S store manager, “When we arrived in Egypt, we were very surprised. The original Chinese car brand could have such a high status in foreign countries. The mayor personally received and accompanied the whole journey; A car show, our exhibition area, and many international famous car brands together..."

Another independent brand, this year's flagship market in South America. “In Brazil, our car basically enters a city and is robbed of one. Like many imported hot cars in China, we have adopted the order-based sales strategy in Brazil. It is also common practice to increase prices. When the fare increase is high, the 15,000-dollar car can sell 18,000 U.S. dollars, and the rate of increase can reach 20%."

The selling of independent brands in foreign markets is also reflected in the profit rate. “This year, the competition in the domestic market is particularly fierce. Our distributors in China are basically cheap sales and even lose sales. But the overseas market is different. When sold well, the price is very strong, and sometimes the guide price is increased. Once in and out, prices can vary by about 30%. Even if you remove tariffs and other expenses, the same car can be sold at a price that is up to 20% higher in China than in the country."

Sales target "inside drop"

According to statistics from the China Automobile Association, China's vehicle manufacturers exported 381,000 vehicles in the first half of this year, an increase of nearly 57% year-on-year, of which Chery, JAC, and Great Wall performed well on passenger car exports. In June, China exported 82,400 vehicles, which has already created the highest value since 2008.

The overseas performance of Chinese independent brands does indeed differ greatly from their performance in the local market. Statistics from the China Automobile Association show that in July, passenger vehicles sold 365,000 units of their own brands, a decrease of 18% from the previous month and a year-on-year decrease of 3%. Their market share has dropped to 36%, which has dropped to the lowest level in recent years. Many leading brands of independent brands did not complete their expected goals in the first half of this year.

Therefore, reducing domestic goals and increasing export targets have become the direction of adjustment for many brands. Recently, two independent brand car companies announced that they lowered their 2011 sales targets. On the contrary, the person in charge of another independent brand sales company told the reporter that due to the fact that the tasks for export in the first half of the year have been more than half completed, the company is prepared to increase its export target this year by 20%. "According to the current situation, completion should not be a problem."

With the rapid growth of export business, major car companies are also considering expanding overseas expansion. Chery Automobile disclosed that the foundation of the Chery Automobile’s wholly-owned factory in Brazil has already started and will be completed and put into operation in September 2013. JAC plans to invest 600 million U.S. dollars in the construction of a factory in Brazil, and Lifan Motors will officially start its factory in Iraq. It is one of the largest car distribution companies in Iraq and covers more than 60% of Iraq's car sales.

Overseas breakthrough may be a good way

In the first half of this year, compared with the dismal sales in the domestic market, the export situation of Chinese cars is in full swing. Order queuing and price increase sales are the “treatment” that can be enjoyed by a few brands and models in China. We did not expect to step out of the country and we can do it.

This is a bit of a pity, the independent brand has spent so much effort in the local market, investing so much financial resources and material resources, the effect is not obvious. It touches the foreign market's inadvertentness, but it bears fruitful results. Can you change your mind to think that international luxury brands do not have the same situation? Markets in Europe and the United States are sluggish. Instead, they are located in “overseas” China and compare their own “locality”. On the extent of the "flowers on the wall outside the wall", they are more than worth it.

So I think that this year's huge increase in export sales is a good thing for many domestic brands. As a result, new profit growth points have been found and the pressure on the domestic market has been shared. Second, car companies are also required to cultivate overseas markets. Because no one can guarantee that the car market in a country or an area can always maintain high growth. Instead of hanging in a tree, it's better to put eggs in different baskets.

However, since last year, China's auto companies have set off a wave of overseas mergers and acquisitions, but the end result is less profit. From this point of view, the experience of many international car companies can be referenced. Many European and American countries entered China in the 1990s and it took more than a decade to have today. I think this is also a lot of Chinese auto brands should learn and learn from.