At the Guangzhou Auto Show, which kicked off yesterday, Shanghai GM confirmed its strong participation in the event. Contrary to expectations of a southern market push, the company plans to unveil a new model before the end of this year. Among the nearly 20 models on display—out of more than 20 vehicles—nearly half are new or refreshed models. Industry experts predict that 2006 could be another model-heavy year, with major automakers shifting their focus from launching niche models to adopting more strategic approaches to capture market share.
This shift reflects a broader trend: as China’s auto market continues to grow rapidly, both sales volumes and the number of models have surged. However, despite this growth, only a handful of joint ventures manage to sell over 100,000 units annually. Even among these, just one model per manufacturer typically exceeds that threshold, while most others struggle to reach 60,000 units. With competition intensifying, the number of models at each market level is expected to rise even faster than overall sales, leading to lower average sales per model.
In the micro and small car segment, sales growth has outpaced model proliferation, resulting in higher average sales per model. But in the compact, mid-size, and full-size segments, the opposite is true. Looking ahead, major manufacturers plan to introduce a wide range of models. For example, Volkswagen has hinted at bringing all its global models into the Chinese market. While some models—like the Xiali, Santana, Jetta, Elantra, and Accord—have sold over 100,000 units annually, many of these are still dominant in specific markets like taxis. In 2004, for instance, Jetta alone accounted for over 30,000 new taxis nationwide.
As manufacturers expand their product lines, individual models may see lower sales, but the overall strategy is to target different consumer segments more effectively. This approach allows for more tailored offerings that better meet diverse preferences. Consumers today are no longer satisfied with just functional cars; they seek vehicles that reflect their identity and personal style. Major automakers are responding by launching multiple models with distinct images—ranging from family sedans to sporty hatchbacks—to appeal to various groups.
The Chinese auto market is no longer dominated by a single model or brand. While China may have missed the era of mass-produced “national cars,†it now faces a multi-layered, multicultural consumer landscape. Automakers must now cater to a wide array of needs, offering a variety of products to stay competitive. (Lin Lei)
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