Selling 2 million units in 7 months, how much potential does the GM “occupy” third- and fourth-tier cities have?

From this year onwards, the overall auto market has shown a downturn, leaving most dealers and OEMs a bad life. Among the brands that set a target of millions of sales a year last year, there are only a few of them. Completed the set goals, at least from the perspective of sales in the first half of the year.

But at this time there are always one or two brands that seize the opportunity to stand up and shout, "I think the auto market is still very blue!"

Recently, SAIC GM announced its July sales:

Cadillac delivered a total of 1,2006 new vehicles in July, a year-on-year increase of 37%. This is Cadillac’s 17th month of double-digit growth year-on-year;

The Buick brand delivered a total of 93,347 new vehicles in July, an increase of 4.4% year-on-year, and the GL8 growth rate even reached 55%. Lacrosse achieved a 77% year-on-year increase.

Chevrolet delivered 37,501 new cars in July, and the Malibu series accounted for a quarter of Chevrolet's sales in China;

Baojun delivered 71,433 results in July, an increase of 61% year-on-year. Baojun sold 27,000 units in a single month and continued to lead the Baojun brand.

The Wuling brand has surrendered 73,294 cars and Wuling Hongguang delivered more than 30,000 vehicles in a single month.

At this point, in the first month of the second half of 2017, GM once again achieved a substantial increase in overall sales. The cumulative sales in the first seven months reached 2,053,409 vehicles. The Buick, Cadillac and Po Chun brands all achieved record sales in July, while Chevrolet brand sales rose 24% year-on-year.

To tell you the truth, from the beginning of this year, which brand is not "showing the results, standard sales," or as I like to say, "Each month, the earliest announcement of sales last month, sure to sell the better." After all, each Car media are waiting to see the good show of “Several happy couples” performed month by month.

This year, SAIC GM’s results are rarely mentioned, so even if the overall auto market is not good, selling 2 million units in 7 months does not attract too many people's attention.

SAIC GM 2 million, more than half from third-tier cities

Let's look at a wave of SAIC GM’s overall sales volume of 2 million. Buick, Cadillac, and Chevrolet’s joint venture brands contributed almost 976,000 units in the first 7 months, and the remaining one million yuan were all from Wuling Automobile. And baojun car.

Among them, Wuling Motors has been walking on the edge of the first and second tier cities since its birth. It has been working hard in the domestic third and fourth tier cities for a long period of time. It has occupied the top spot in the domestic sales charts for a long time. We are paying attention here to the overall auto market, not Market segments. Even if this year's sales began to fall, but the saying goes, "Thinned camel is better than Ma Da." Once sold more than 70,000 vehicles a month, if not what kind of cliff-type decline, it is also more than most models to It's good to sell.

Indeed, Wuling still fell in July and reached a 25% decline, but Wuling Hongguang still sold more than 30,000 units. The Wuling brand is still the best brand sold by SAIC-GM and accumulated sales for the first 7 months. The new car is 743,000 units. And in the near future, Wuling's first SUV will soon be on the market, and you may find that the SUV market in the third and fourth tier cities is once again held by Wuling.

Looking at the Baojun brand, since its launch in 2010, it has sold 2 million new cars for an average period of 7 years. The average annual data of 330,000 units is the number of brands that never dreamed about it. In the first 7 months of this year, Baojun has cumulatively sold approximately 470,000 new vehicles, of which Baojun 510 continues to lead the Baojun brand, while the newly-listed Baojun 310W also contributed 6,100 units in sales in July, which is only 400 units apart from Baojun 310. It can be expected that there will be a lot of room for improvement in the next sales volume.

Why can Baojun sell so well? In fact, the reason is simple, it is cheap! Po Chun 310 down payment than when the iphone7 just came out is also cheaper, Po Chun 310W is also the same, the starting price of 42800, you do not heart? Do not take the high-end line, do not love the history, do not say so many imaginary, give you a family price. This is the magic weapon that Bao Jun quickly occupied the third and fourth tier cities.

In fact, SAIC GM is not only developing Wuling and Baojun in third and fourth tier cities. Apart from the luxury brand Cadillac, Buick and Chevrolet also have a very clear positioning. Buick focuses on mid-level and high-level markets, while Chevrolet's positioning is even lower. Do you not find that SAIC-GM Buick already has no more than 100,000 vehicles in its model?

Chevrolet is different. The starting prices of Sail, Lefeng RV, Cruze, and Kowalz are all within 100,000 blocks. With the economic development of the third and fourth tier cities in China, there is sure to be consumption of more advanced models than Wuling and Baojun. However, Chevrolet can still grasp this part of the crowd.

In general, SAIC-GM's domestic sales are inseparable from the contributions of third and fourth-tier cities, and we must know that the potential of this market is still very large!

Why must we fight for a "high end"?

Perhaps this is also a kind of inertial thinking, like living in the countryside, always want to go to the town to buy a house, and then want to settle in a big city, and finally feel like living in the capital to have range of children, then a large part of people have emigrated .

The number of Chinese auto brands should be the largest in the world. To survive in such a fiercely competitive auto market, we must have our own one-and-a-half acres, so we can see that almost all brands are advertising how high they are. The one who is desperately apt to run to the top of the pyramid.

At the same time, many brands are also saying, "We need to achieve channel sinking and let sales come alive!" Did you do it? Still unknown, only knowing that at the same time when they said this, they still looked at the plump “5A beef” on the tip of the knife, but forgot that there was a large piece of domestic beef waiting for them to divide.

After the “high end”, the third or fourth tier cities are still blue seas

What are some of the first-tier cities in China? Beijing, Shanghai, Guangzhou... Ten fingers are also missing. How many second-tier cities are there? Not to mention three or four cities.

According to the latest statistics on the Internet, there are five first-tier cities in China, and there are 30 second-tier cities in the developed, medium, and weaker categories. The rest are all three-, four-, five-, and six-tier cities, while those in Chinese cities have how much? More than 600 are close to 700. This is the ratio. In the end, where is the Blue Ocean area for car consumption? It should be clear at a glance.

Although the high-end models are more profitable, it is important to know that affordable ones are still rare. For example, Mercedes-Benz V-Class sold 46,695 units in 2016. This is global data, and Wuling Hongguang is only sold in China. 2016 Years sold 650,018 units. In addition, the spending power of the third and fourth tier cities in China is still increasing year by year. It can be imagined that in the future they will drive much auto consumption.

Actually, this is not to say that the development of the brand to high-end is wrong, but for the Chinese car brand, if we want to have more room to play, we may refer to a wave of SAIC GM's approach to include the third and fourth-tier cities. Rather than blindly seeking the most high-end, you see the public of the bad light of the brand and Jianghuai joined forces to prepare to launch a "cheap car" yet?

If you now pay attention to the third and fourth tier cities, and wait for them to increase their spending power, perhaps there will be a comedy scene, "Do you love me today, ignore me tomorrow, I will let you climb high." Comedy scene?

Of course, in the end, we still need to wait for the next time.