At the Guangzhou Auto Show, which kicked off yesterday, Shanghai GM made a strong presence, signaling its commitment to the event. However, the company isn’t aiming to dominate the southern market just yet. Instead, it plans to unveil a new model before the end of this year, with nearly 200% of the models in its lineup—spanning over 20 vehicles—being new or updated. Industry experts predict that 2006 could be another model-heavy year, with major automakers shifting their focus from launching niche products to adopting more strategic approaches to capture market share.
The auto industry in China has seen explosive growth in recent years, with both sales and the number of models increasing rapidly. However, when analyzing the performance of top joint-venture automakers, only four manufacturers have sold over 100,000 units annually, and among them, only one model has exceeded 100,000 sales. Most other models struggle to reach 60,000 units per year. As competition intensifies, the number of models at each price level is expected to grow faster than overall market sales, leading to a decline in average sales per model.
Since 2001, the micro and small car segment has outperformed the growth in model numbers, resulting in higher average sales per model. In contrast, the compact, mid-size, and large car segments show the opposite trend. Looking ahead, major manufacturers plan to introduce numerous models. For example, Volkswagen has indicated it may bring all its models to China, including several that have already achieved over 100,000 annual sales. However, many models will likely fall into the 30,000–60,000 range, making it increasingly difficult for any single model to achieve high volume on its own.
Some models like Xiali, Santana, Jetta, Elantra, and Accord have consistently sold over 100,000 units. However, the first four are primarily used in taxi fleets, and the rental market relies on a limited number of models. In 2004, Jetta alone accounted for over 30,000 new taxis nationwide. These models are likely to maintain high sales in the coming years, but for most models, achieving such figures may remain a distant goal.
With more products on the market, each model’s target audience becomes narrower, leading to lower individual sales. However, this strategy allows manufacturers to better cater to diverse consumer preferences, making each product more appealing to specific market segments.
Whether based on foreign experience or consumer demand analysis, once basic needs are met, buyers begin to prioritize personal identity and brand image. Major automakers are responding by launching multiple models with distinct identities—such as a family sedan, a sporty hatchback for young urbanites, or a stylish vehicle for fashion-conscious buyers.
In China, no single model or manufacturer can dominate the market anymore. While the country may have missed the "national car" era, today’s market reflects a multi-layered, multicultural society with varied consumer demands. The automotive industry now offers a wide range of options to suit different tastes and lifestyles. (Lin Lei)
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