Geely Automobile has improved its product layout? TOP15 car prices annual sales analysis

The year 2017 has come to an end. Various car companies’ report cards have been released. From the perspective of the overall sales of TOP15 companies, the top three companies are still occupied by SAIC-VW, SAIC-GM and FAW-Volkswagen. (There is no change in the first three rankings. SAIC GM is close to 2 million. Vehicle). In the top five list, we discovered Geely's figure. Geely achieved sales of 1.248 million in 2017. It entered the ranks of the million-sales-class automakers for the first time, ranking 5 places higher than 2016, and its sales increased by 62.0% year-on-year. In addition to Geely, the performance of two other independent car companies is also very noticeable: SAIC Passenger Vehicles and GAC Passenger Vehicles (16th place), both of which have exceeded 500,000 units in sales, and sales have increased significantly year-on-year. The car ranking is a strong leap into the top 15 list.

Today we analyze from the perspective of sales to see how the two companies in the top 15 car companies achieved leapfrog growth.

Geely Automobile

As can be seen from the following table, Geely’s sedan accounted for nearly 90% of its shares in 2015. The kingpin products are the Emgrand EC7, Vision, Global Hawk GX7, King Kong, Borui, etc., among which the Emgrand EC7 occupies Geely as the classic model of Geely. More than 1/3 of sales share, bicycle dependence is very high, and the rest of the models are also basically old models. Borui, as a high-end new model that was just launched at the time, has not yet reached its sales scale. So at that time, look at Geely's product portfolio. The competitiveness is not obvious. From 2016, with the launch of a series of new models such as Bo Yue, Vision SUV, and Emgrand GL, Geely's product line coverage has gradually improved. In 2017, a number of models performed well in their respective market segments. The share of SUVs and cars accounted for almost half, the dependency on the Emgrand EC7 single car model dropped to 19.2%, and Bo Yue and Dorsett GS were also created. The long-range, long-range SUV, and Emgrand GL's wide range of hot models reduce the company’s dependence on single models. After two years of transformation, Geely achieved a balanced development of cars and SUVs, and several hot-selling models strongly supported the situation.

SAIC Passenger Car

The segmented market structure of SAIC Passenger Car in the past two years has undergone major changes. In 2015, sedan accounted for 70% of the total. The main sales products were Roewe 350, Roewe 360, MG3, Roewe 550, etc., among which Roewe 350 Occupy the sales of 30% of SAIC's passenger cars. If Roewe 360, which belongs to the compact car, is added, the two cars will occupy nearly half of SAIC's passenger cars. At that time, the market share of SAIC Passenger Vehicles was heavily biased toward the sedan market, which is contrary to China's SUV industry. After 2016, the Roewe RX5, a compact SUV launched by SAIC Motor, changed this situation and jumped to the top of the list. In just one year, sales of the Roewe RX series SUVs have accounted for nearly half of the market, reversing the trend of serious bias towards cars two years ago. From the perspective of trends and forecasts, the future development of SAIC Passenger Vehicles will continue to favor the SUV sector, especially the Roewe brand.

Unlike Geely, SAIC Passenger Vehicles and GAC Passenger Vehicles have also launched hot models in the past two years and are also expanding their product line coverage. However, the two companies are currently looking at single models. If the dependency (share) is too high, the Roewe RX5 (including new energy) in 2017 will be 45.52%, and the Chuanqi GS4 will be 66.33%. The change in the sales volume of a single model will have a big impact on the overall sales of the company. Although both companies are expanding their product lines, such as the RX3 launched by SAIC and the GS7 and GS3 launched by Guangzhou Automobile, they have not yet reached the support for overall sales.

On the whole, Geely Automobile and SAIC Passenger Vehicle's advancement is not without reason. The first and foremost is to reduce the company’s high dependence on single models and gradually improve the coverage of product lines in the market segments. This of course requires the accumulation of time and technology. In addition, to adapt to the needs of market development, using the SUV as the main product plan to open the market is also a good choice. The ultimate goal is to achieve a balanced development of cars and SUVs, forming a strong support for a variety of hot models.