·The effect of the second-line luxury brand localization strategy is emerging

In 2016, the growth of the first-line luxury car camp gradually slowed down. The growth of Mercedes-Benz is unstoppable. It has grown substantially for two consecutive years. The gap with Audi and BMW is getting smaller and smaller. Especially Audi's position as the luxury brand may not be guaranteed in 2017.

But these three first-line luxury brands still don't have to worry about being surpassed by second-tier brands. Jaguar Land Rover ranks first in the second-tier luxury brands in 2016, but its total sales volume is 119,000 and Mercedes-Benz's 472,000 cars are far behind. It is difficult to hit the first camp. It is not easy to win the second place.

A number of second-tier luxury brands have already experienced the urgency of domestic production and are joining the domestic army. However, can domestic production guarantee high growth?

  Jaguar Land Rover sold 119,048 vehicles in China in 2016, up 30% year-on-year. Jaguar brand sales surged 77% year-on-year, while Land Rover's performance was slightly worse, up 8%. However, there is no doubt that domestically produced models account for more than half of the total. The three domestically produced models of Land Rover have discovered the magic, and the Range Rover Aurora and Jaguar XFL perform well. However, because Cadillac is entering rapid growth, the first come of Jaguar Cool Tiger is not easy.

  Cadillac can be said to be the biggest beneficiary of the domestic market. Cadillac is the largest growth rate among the top three luxury brands in the top three, achieving a year-on-year growth of 46.5%. Looking back at the 2016 Cadillac action in China, it is not difficult to find that its domestic speed is accelerating. At the beginning of last year, Cadillac announced that it will produce five new models in the future, three of which are SUV models. Among them, the luxury car CT6 and SUV models XT5 have been launched at the beginning of the year. Together with XTS and ATS-L, Cadillac domestic models have begun to take shape. In addition, the XT5's average monthly sales of nearly 6,000 vehicles is also quite impressive.

  Also benefit from the domestic brands and yangko. According to data provided by Honda China, in 2016, the sales volume of Acura brand in China was 8,143 units, which doubled year-on-year. The first domestic compact SUV model of Acura contributed the most. In the months after the listing, the cumulative sales volume reached 5,130 units, accounting for 63% of the total sales volume of Yingge in China in 2016.

Just when other brands are busy domestically, there is a brand that “stable on the Diaoyutai”. Lexus, which has always insisted on the import model, is the only second-line luxury brand that has not yet made the domestic market but still maintains a good growth momentum. In 2016, Lexus sold a total of 109,000 units, a year-on-year increase of 25.6%. Lexus, which has maintained double-digit growth for two years, has not received its official response and has not done anything, despite repeated domestic reports. Public opinion is anxious, Lexus is not in a hurry, step by step to promote various plans, in 2017 there will be three product models into China. Looking back at 2016, Lexus recalled vehicles many times, up to ten times. But this still does not affect the image of the Lexus brand. Lexus has its own insistence on domestic issues.

Like Lexus, Lincoln, which has never been domestically produced, can be said to have won a big win in 2016. The sales volume in China is 32,558, which is nearly double the year-on-year growth, almost three times that of 2015. But unlike Lexus, Lincoln is actively making domestic purchases. Ford saw Lincoln's potential in China. According to foreign media, it has discussed localization with Changan and is expected to start production in Chongqing.

For Infiniti, the road after the birth is not calm. In 2016, Infiniti sold 41,590 vehicles in China, a year-on-year increase of 3.4%. The cumulative sales of its two domestically produced models, the Q50L and QX50, were 26,100 units, accounting for 62.7% of the total sales. Although these two domestic models contributed a lot, but Infiniti has no other domestic models, the domestic process has stopped, the sales ranking has fallen to the end of the second-line luxury brand. The domestically-produced model with a monthly sales of 1,000 has a lot of money for Infiniti. Infiniti has not gone well on the road of domestic production. Last year’s recall and general manager’s multiple substitutions have caused great damage to its brand image. The sales volume in the first half of the year is the most Good proof. For 2017, Infiniti still has no plans to increase domestically produced models. It can be seen that Infiniti is re-examining its localization strategy.

Compared with the ups and downs of Infiniti, Volvo's development is stable, but it still has not achieved the expected high growth. In 2016, Volvo's total sales in China were 90,930 units, an increase of 11.5% year-on-year, with Volvo XC60 and S60L being the best sellers. However, compared to the low growth in 2015, Volvo's development is accelerating. Volvo is taking a very determined road to localization, and the localization of the luxury flagship S90L has been put on the agenda. Volvo not only established an automaker in China, but also built an engine plant, and last year it sold its locally-produced models overseas. Not only that, Volvo is helping Geely achieve brand up, and the L brand that shares the platform with Geely has also been released. Therefore, the localization of Volvo is accelerating.

Therefore, it is not important that domestically produced products are not domestically produced. What is important is that car companies are looking for the most suitable way for their own development. Domestically, they can achieve high sales and high growth.

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