Easy car: the third and fourth tier markets will become the driving engine for the growth of China’s auto market in the future

With the upgrading of consumption and the change of current consumers’ concept of buying cars, the domestic luxury car market in 2021 still performs well despite the epidemic situation and lack of core.According to the company’s “YI · Che Zhi” team, the cumulative sales of luxury brands reached 3.326 million units in 2021, basically unchanged from the same period last year.At present, there are more and more luxury brands rely on the Chinese market, and constantly in the third and fourth tier market penetration layout.So, in today’s competitive environment, super luxury brand in the third and fourth line of the market incremental space how much?Jiangsu Huaian, as one of the third-tier weak cities, since the opening of the first BMW 4S shop in 2010, in the following decade, 10 different luxury brand 4S shops have been opened in Huaian market. In addition to the first-tier luxury brand “BBA”, second-tier luxury brands have also entered the market.Lincoln, Volvo, Cadillac and Lexus have all entered the region.Surprisingly, porsche will also open a super luxury brand showroom in 2022. Will the appearance of super luxury brand bring new waves to the high-end market?In the process of investigation and understanding, Huang Dong, general manager of Huaian Baorui Xiangtai Audi store, said, “The concentration of brand stores in the first and second tier markets is high and tends to be saturated, but in the third and fourth tier markets, there is still a large incremental space, which is the driving engine for the growth of China’s car market in the future.”He explained that after years of development, although the consumption concept and consumption ability of the third and fourth tier cities are gradually improving, but he felt that super luxury brands at this time entered the third tier weak market like Huai ‘an, may still need two or three years of market paving and cultivation period.Meanwhile, Miao Jia, general manager of Huaian Hongyu Tianxuda Lincoln Store, held a similar view.At present, there are two characteristics of the growth trend of luxury cars in third – and fourth-tier cities that deserve attention, she said.First, the market share of “BBA” brand in Huaian market accounts for about 70%. First-tier luxury brands are still the main target of local high-end car consumption.Second, with the increasing number of young customers, luxury brands’ main models are gaining popularity.She added that Audi, Mercedes and BMW will continue to dominate the domestic luxury car market in the future, while luxury brands like Lincoln, Lexus, Volvo, Cadillac and Lincoln will provide strong support for overall luxury car sales growth through diversified product portfolios.And the layout measures of the third and fourth tier market of super luxury brands will certainly promote the penetration of local mainstream luxury car brands.However, Miao Jia also felt that porsche in Huai ‘an market really momentum, may need a year or two of momentum.Even though opinions vary, The speed of Porsche’s promotion in Huai ‘an remains the same. Does this reflect that the super luxury market in such third-tier cities has matured?According to easy car, porsche in jiangsu layout for 15 showroom now, among them, the porsche is getting ready for the opening of huaian, jiangsu province are the first “farce” exhibition hall, different from conventional static display exhibition hall, “farce” exhibition not only brings new try to store customer interactive experience, flexible modular design also can let store modified expansion is more likely in the future.Chen Fangqi, general manager of Huai ‘an Porsche Center, is quite optimistic about the development of Huai ‘an Porsche in the next two or three years.First of all, Baode Enterprise Group, which is investing in the construction of Huai ‘an Porsche Center, will investigate the size of the city before layout. According to GDP data in the first three quarters of 2021, the total GDP of Huai ‘an is 315.989 billion yuan, and GDP represents the overall strength of local economic development.Has foreseen the future development prospect and economic development speed of Huaian economic car market.Secondly, Porsche has nearly 600 permanent customers in Huai ‘an. At the beginning of the new store, it is equally important to develop new customers through old customer groups and explore customer opportunities in the surrounding areas of Huai ‘an in addition to serving existing Porsche customers well.Third, by measuring scale, development of huaian luxury car Chen Fangqi said, “we expect the huaian luxury car market this year as a whole will be sold at 400 levels, consumption upgrading trend will drive the luxury car market continues to heat up, so the first year for new store opening in cultivating brand awareness at the same time, also can according to the growth of the sales and after-sales business, timely adjust team size.”In addition to the three favorable factors analyzed by Chan, another agency has estimated that China’s luxury car market penetration rate is expected to exceed 18% by 2025.Therefore, in general, the marketing service channels are sinking to the third and fourth lines, and the early layout lays the brand influence, which has become a new incremental blue ocean for luxury and super luxury brands.This judgment is also supported by The sales plan of Chan Fong Yee.She said huaian Porsche is confident to achieve its sales target of 100 units by 2022, as the domestic porsche buyers are getting younger and the proportion of young customers is increasing.All pictures are used by YI Che authorized Gonggong Daily.Contribution: Yi Che

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