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The following is the Analysis report on market competitiveness of Geely 2021 From E-Car Research Institute recommended by recordtrend.com. And this article belongs to the classification: Automobile industry, research report.
At the beginning of 2018, Li Shufu, chairman of Geely Automobile, first proposed the strategic proposition of competing for the stock car market. However, by the end of 2020, Geely Automobile did not seize the opportunity, instead, it fell into a passive situation of continuous decline in sales.
Why does Geely’s competition for stock car market backfire? Why can’t the “blue Geely” strategy, which focuses on new energy, help Geely compete in the stock car market? What kind of market is the stock car market? How to handle, adjust and play for automobile enterprises
Geely’s case has aroused the curiosity of e-Car research institute about the stock car market. At present, there are more and more car companies competing for the stock car market, but they generally have a bad start, and there is no ready-made effective way to play, which further stimulates the power of e-Car Research Institute to study the stock car market.
From 2014 to 2018, 3.0 products helped Geely’s terminal sales (excluding exports) in China soar from less than 400000 to nearly 1.4 million, becoming a new leader of Chinese brands at one stroke;
In the face of the background of the increasing share of replacement purchase, on the eve of the two sessions in 2018, Li Shufu, chairman of Geely Automobile, judged the situation and put forward a new strategic proposition of competing for the stock car market;
By the end of 2020, Geely’s sales volume of additional replacement accounted for only 20%, which was significantly lower than the market level, and the market sales volume declined continuously. In 2018, Geely was forced to give up the sales target of 1 million 500 thousand cars. In 2019, it gave up 1 million 410 thousand targets again. In 2020, COVID-19 suddenly appeared, the pressure of Geely Automobile doubled, and the domestic terminal sales volume was only 1 million 200 thousand vehicles (excluding exports).
“Blue Geely” has become an armchair, 4.0 architecture is deeply in the platform / architecture tide, and Geely has no absolute advantage in competing for the stock car market
At the end of 2015, Geely issued the “blue Geely action”, proposing to achieve the specific goals of more than 90% of new energy / energy-saving vehicle sales and more than 1 million new energy production and sales by 2020. At the beginning of 2018, with Geely’s strategic proposition of competing for the stock car market, “blue Geely” strategy has also entered the peak period of vehicle launch, but the market sales are poor, and Geely’s new energy sales will be less than 30000 in 2020;
In June 2020, Geely put forward the new idea of “from the era of 3.0 boutique cars to the era of 4.0 architecture”, focusing on the CMA platform, hoping to compete in the stock car market again. However, compared with MQB of Volkswagen and tnga of Toyota, Geely 4.0 architecture concept has no comparative advantage. Great wall, Chang’an, etc. are constantly enriching their architectural thinking, and their related products are continuously increasing in quantity, which makes it more difficult for Geely to compete for stock
With the active layout of image’s competitive products, the post joint venture era is coming, and it’s time for Geely to fight again
Since 2017, VW has rapidly promoted the SUV strategy in China, seizing the new opportunity of the rapid transfer of re purchase users from cars to SUVs; in 2020, new cars such as changchengpao, model 3 and Hongguang Mini EV will seize the new opportunity of the rise of cross-country, high-end electric, step-by-step electric and other new segment car market with increasing purchase as the main purpose;
From 2021 to 2022, there will be more competitive products to strengthen the stock competition: Great Wall will continue to increase the number of new cars such as tank 600 and tank 900; Toyota will launch a number of new cars such as medium and high-end SUVs / MPVS;
In 2022, China’s auto market will fully liberalize the restrictions on foreign equity ratio, help overseas brands greatly improve their operation efficiency in China, and strengthen the competition for stock auto market
With the arrival of the stock era, the layout of Geely is becoming more and more passive, and the main competitive products are operating step by step, so it is urgent for Geely to optimize its “stock strategy”
From the industry perspective, China will enter the “stock era” and “post joint venture era” in 2021~2026, and 2021 will be the final adjustment period of Geely.
From the perspective of competitive products, from 2021 to 2022, Chang’an, Volkswagen, great wall, Toyota, etc. will strengthen the stock competition, leaving Geely with the task of “competing for the stock market” instead of “seizing the stock opportunity”;
From Geely’s point of view, although chairman Li Shufu was the first to put forward the idea of competing for the stock, Geely did not seize the opportunity by the end of 2020, and “blue Geely” has become an armchair on paper
From 2021 to 2026, the stock competition will dominate China’s passenger car market
The proportion of first purchase in China’s passenger car market has declined from 65% in 2014 to 40% in 2020, which has led to a sharp decline in sales of first purchase models such as compact cars;
From 2021 to 2026, the proportion of first purchase will continue to shrink, and Geely Automobile, North and South Volkswagen and other automobile enterprises that still focus on the sales of first purchase models will continue to be under pressure;
In the narrow sense, the stock dispute refers to striving for the replacement and additional users, while in the broad sense, it also includes the first purchase. The stock dispute in this report is a broad concept, that is, to strive for more and more customers and to give effective consideration to the first customers
Geely, with its first purchase as the main part, is in a inferior position in the stock dispute, but it is out of the competition
In 2014, the proportion of first purchase of Geely Automobile was as high as 93%, which was significantly higher than the level of 65% of the market. In that year, Geely released the “one Geely” strategy. From 2015 to 2017, it launched large-scale 3.0 products such as new Borui, Dihao GS, boyue, Yuanjing SUV, etc., which had significantly increased prices, and rapidly increased their volume. In 2020, the proportion of Geely’s first purchase will drop to 80%, but it is still significantly higher than the market level in the same period;
The proportion of the first purchase of passenger cars in China will drop to 20% in 2026, and it is urgent for Geely to reduce the proportion of the first purchase;
In 2020, linker’s first purchase accounts for 50%, which is better than Geely’s and close to the market. From 2021 to 2026, linker is also facing the challenge of increasing the proportion of exchange purchase
The core trend of the stock dispute: China’s passenger car market accelerates the aging and urbanization
In 2014, the proportion of young people under 35 years old in China’s passenger car market was as high as 70%, and the vast majority of car companies have launched the strategy of rejuvenation. In 2020, the proportion of young people will drop to 55%, and many auto companies are facing challenges in their strategy of rejuvenating. As the post-80s, Post-70s and post-60s with a large population are over 40, 50 and 60, the proportion of young people will shrink to 30% in 2026;
In 2014, the proportion of car purchase in small cities was as high as 60%, and the vast majority of car enterprises launched sinking strategy one after another. In 2020, the proportion of small cities will drop to 50%, and many auto companies will face the challenge of sinking and lack of strength. With more and more college graduates and Internet migrant workers staying in and pouring into big cities, the proportion of car purchase in small cities will shrink to 40% in 2026;
From 2021 to 2026, the middle-aged and urbanization is the new core trend of China’s auto stock market, and is the new core topic of Geely and other auto enterprises
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