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Affected by the epidemic situation of COVID-19 and the stock of the market in 2020, the competition in the domestic new car market is becoming more and more fierce, further accelerating the change of the pattern of manufacturers. In many brand dealers, there is even a monthly sales of 0 orders, resulting in many brands "off the net."

A few days ago, some media conducted data statistics, the number of dealers withdrawing from the network across the country reached 3098, far higher than the 2263 new outlets. From the perspective of domestic dealers of major brand categories, the market pattern has changed significantly. As consumers pay more and more attention to the advantages of brand image and product reputation, automobile consumption also tends to be more rational, and the market concentration is increasing, which makes the "Matthew effect" in the car market more and more obvious.

In terms of the proportion of dealers of various brands, the self-owned brands with the largest market share account for more than half of the total, with mainstream independent brands accounting for 32%, while other independent brands account for 19%; joint venture brands account for 37%. Among them, mainstream joint ventures are higher than inexpensive joint venture brands, accounting for 20% and 17%, respectively, while luxury brands account for the smallest of all categories, only 13%.

However, it is important to know that although the luxury brand accounts for the smallest share, it is the best category in 2020, not only to outperform the industry, but also to achieve the latest sales performance. Figures show that passenger car sales in 2020 were 20.178 million, down 6 per cent from a year earlier, but the luxury car market bucked the trend by 10 per cent.

Under this environment, dealers of luxury brands achieved the largest increase in 2020, with a total of 112 new stores and 89 withdrawing from the net. this is also because the general luxury brands achieved growth in sales and profits in 2020, prompting many dealers to choose to expand their outlets. And for the withdrawal of luxury brands are also many marginal luxury brands, after all, this part of the dealers in the 2020 luxury market as a whole in the growth environment, still showing a decline in sales and profits.

In terms of joint venture brands, some strong brands have achieved rapid recovery under the control of the epidemic, and even some brands have reversed the trend. It can be seen that some mainstream joint venture brands, the market competition still maintains a strong advantage, favored by consumers, resulting in new outlets and withdrawal network in the same level, becoming a category following the positive growth of luxury brands.

As for inexpensive joint venture brands, there was a substantial withdrawal in 2020, with 977 outlets, more than three times the number of new outlets. This also reflects that the marginal joint venture brands have gradually lost their advantages in the environment of stronger and stronger competitiveness of their own brands, resulting in weaker and weaker market performance, especially in some Korean and legal brands.

After all, with the development of domestic independent brands getting better and better, it is more and more recognized by consumers. In terms of the proportion of dealer network growth, it is also basically flat, with 651 new outlets and 688 withdrawing from the network, slightly higher than the former.

In contrast, the living space of some weak independent brands in China has been infinitely squeezed, almost facing the choice of life and death. So far, the number of dealers withdrawing from the network has become the largest of all categories, reaching 1046, while the number of outlets has increased by 481, far lower than that of mainstream brand dealers.

It is worth mentioning that in 2020, the outlets of new energy brands increased significantly, and the new outlets became the largest of all categories, with six times the number of exits. It can be seen that the new energy vehicle market is gradually entering the role. Some data show that the retail sales of new energy vehicles will be 1.109 million in 2020, an increase of 9.8% over the same period last year.

Cui Dongshu, secretary-general of the Federation of passengers, has said that for the whole of 2021, the cumulative sales of domestic new energy passenger vehicles will reach about 2 million, an increase of nearly 70 per cent from 1.17 million in 2020. And this also reflects one of the reasons for the sudden increase in the network of new energy brands.

On the whole, excellence is the rule of all industries, and the choice of off-net dealers is also a helpless move caused by the decline in the competitiveness of brand manufacturers. For the future market, the competition will continue, whether dealers or automakers can have the last laugh, or through their own core competitiveness to win market recognition.

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