The price of private car licenses hit new heights

In the March private car license auction held on March 17, the final minimum transaction price and average transaction price of 8000 private car licenses reached RMB 58.30 million and RMB 58.56 million, respectively, both of which hit a record high and hit 60,000 yuan. 60,000 yuan in this price range, is the main position of the independent brand models. Some industry insiders believe that high-price private car licenses may affect the sales of self-owned brand cars in the Shanghai market and gradually push their own brands out of the Shanghai market.

Jin Yongsheng, research director of Xinhuaxin, said that it is unrealistic for consumers to purchase their own brand models with a price range of less than 100,000 yuan. The introduction of private car licences has affected the sales of self-owned brand cars in the Shanghai market. In the long run, sales of self-owned brand cars in first-tier cities such as Shanghai will be adversely affected. Consumers who can afford the Shanghai brand will certainly not buy their own brand cars.

“High-price private car licenses will definitely affect the sales of self-owned brand cars in the Shanghai market, and will gradually push their own brands out of the Shanghai market. There are few self-owned brand models for the A0-class models on the Shanghai market.” National Passenger Vehicles Association The Secretary-General Rao Da told reporters.

According to data from the Automobile Industry Development Research Office of Shanghai Information Center, the price of private car licenses directly affects the composition of high, medium, and low-end cars on the Shanghai market. The higher the private vehicle's license fee, the higher the proportion of high-end cars in the Shanghai sedan market and the lower the number of low-grade cars will be reduced.

The research office pointed out that private car license auctions have affected the development of the low-end car market, while most of the low-end cars are self-owned car models. The purchase of official vehicles in Shanghai, the selection of taxi models, and vehicle modifications all contain provisions that are not conducive to foreign models entering the Shanghai market.

The embarrassing situation that the self-owned brand car encounters in the Shanghai market is not a solitary version, and the performance of self-owned brand cars in the Beijing market is also the same.

According to the “Report on the Survival Status of Beijing Distributors” (hereinafter referred to as the “Report”) issued recently by the China Automobile Dealers Association and CITIC Securities, from January to November last year, only 355,000 new vehicles were sold in Beijing, a year-on-year decrease of 53%. Annual sales of about 400,000 vehicles, a year-on-year drop of 56%, Beijing dealers are facing a more severe operating situation.

According to the "Report," the market share of major self-owned brands such as Chery, Geely, BYD, Great Wall, Jianghuai, Lifan, Chang'an and Roewe in Beijing fell from 13.6% in 2010 to 6.7% in the first half of last year.

However, Chery Automobile dealers in Shanghai believe that the high price of Shanghai's license plate will not affect the sales of Chery Automobile. “The majority of Chery’s car owners are Shanghai S&C licenses and foreign licenses. They do not apply to the Shanghai license. The Shanghai license has already reached 50,000 yuan two years ago, so from the current point of view, it has little impact on Chery Automobile. This is the same reason for other independent brands.” Chery Automobile, a dealer in Shanghai, told reporters.

A regional sales manager of Jianghuai Automobile Co., Ltd. said that JAC sold more than 5,000 vehicles each year in the Shanghai market, but there are very few models on the Shanghai market.

In order to curb city congestion, Shanghai has introduced flexible private vehicle license prices and Beijing's policy of restricting purchases to curb urban congestion. Many people interviewed by the reporter said that the practice of these two first-tier cities will lead other cities to follow suit.

“The introduction of restrictions on car consumption in first-tier cities will definitely affect the sales of self-owned brand vehicles in these markets. However, the market is now fully saturated in the first-tier market. Independent brands do not have to compete directly with foreign brands, and they can go to third-tier cities or even four or five. Line cities to advance layout, China's auto market consumer demand is diversified. The opportunity of independent brand cars do not necessarily have to be sought in first-tier cities.” Su Hui, president of the China Association of Automobile Circulation Association Tang Hui told reporters.