SUV Market Analysis in the First Half of 2006

Statistics from the National Passenger Car Information Association show that the total sales volume of 19 SUV manufacturers that were included in the statistics of passenger car joints in June this year was 12,220, a decrease of 16.4% year-on-year from 14,610 units, a month earlier than the previous month of 14,234. The vehicles continued to decline; the cumulative sales volume in the first half of the year was 109,173 units, an increase of 68.7% year-on-year to 64,708 units.

I. Great Wall Motor leads the SUV, and the top five companies sell nearly 60% of their sales

In the first half of the year, the cumulative sales volume of Great Wall Motor SUV reached 18,088 units, which accounted for 16.6% of the market share of the entire SUV. In the same month, it sold 2,962 units with a market share of 24.2%, becoming the double crown for cumulative and current month sales. At this point, Great Wall Motor has maintained the SUV sales championship for three consecutive years.

Dongfeng Honda ranked second with cumulative sales of 13,200 units, which is nearly 5,000 cars from the Great Wall Motors ranked first. Ranked third, fourth and fifth respectively are Beijing Hyundai's 1.27 million units, Changfeng Cheetah's 12,300 units, and Beijing's Mercedes-Benz's 0.88 million units. The top five companies have accumulated sales of 65,100 vehicles, accounting for about 60% of total SUV sales. Chery Automobile followed closely, ranking sixth with 8,600 units.
Judging from the situation in the month of June, the top three teams were stable. Following the sales of the Great Wall, Beijing Hyundai Motor Co., Ltd. and Dongfeng Honda Motor Co., Ltd. have also demonstrated a very strong market foundation. After being ranked second and third in sales of 2198 units and 1635 units in May, it continued to maintain its ranking in June with 2134 units accounting for 17.5% of the market and 1683 units accounting for 13.8% of the market. However, in contrast to May, Chery Tiggo and Jiangling Landwind have sold more than a thousand units and they have withdrawn from the top 5, followed by 4th and 5th place replaced by Hebei Zhongxing and Changfeng Cheetah, with monthly sales of 811 units and 746 units respectively. Market share of 6.6% and 6.1%. The top five companies sold 8,336 vehicles this month, accounting for 60% of the total sales of SUVs, up to 68.20%. Chery's Ruihu sales this month were 487 units. The Jiangling Landwind reportedly affected the distributors' purchase volume due to the listing of the MPV fashion, so it dropped from 1,008 vehicles to 570 units.

Analysts believe that the self-owned brand Great Wall Motor will win the championship. Haval CUV's market performance has contributed. Since this year, this breed has always maintained its monthly sales championship in its own brand. In addition, the company known as the domestic SUV "originator" Sefar, after four years of market trials, this year's launch of the Saif F1, is based on the original Saifu after 11 improvements, so that this old brand has a new life The market performed well.

Second, the increase in consumption tax is not a positive way

The new excise tax implemented on April 1st embodies the policy intention of “bigger and larger,” and according to the new excise tax rate, the vehicle tax rate for vehicles with a displacement above 2.0 generally increases, with the largest increase of 4.0 liters (inclusive) or more. For cars, the tax rate increased from 8% to 20%. Due to the significant increase in the consumption tax, large-displacement vehicles have generally risen in price, especially imported vehicles. The sharp increase in prices has caused the market sales of these cars to cool off.

Under the influence of the new automobile consumption tax, all companies have seen a month-on-month decline. Even the Great Wall fell sharply from 4,602 units in April to 3,122 units in May, and continued to decline slightly in June. This fully confirms the previous industry experts' forecast of the SUV market trend: sales of all price-raising models have dropped significantly, while sales of models with unchanged prices have not changed much compared with normal months.