Official Statistics: Chinese Brands Big Winner Of Anti-Japanese Row
We have followed the effects of the Chinese boycott of Japanese products with great interest, especially when it came to cars. Encouraged by very strong sales of German brands, we declared them the winner of the war of words. It looks like we may have made a mistake. At least if we can trust official Chinese statistics.
Market share by country, passenger vehicles, w/o SUV
Market Share Passenger Vehicles w/o SUVsJulAugSeptOctJapan21.1%20.0%13.2%9.0%Germany25.1%25.8%24.1%27.0%U.S.A.16.0%16.6%17.1%17.0%S-Korea9.8%10.3%10.7%10.7%France3.7%3.7%4.6%4.7%China24.3%23.5%30.3%31.3%Source: CAAM
The China Association of Automobile Manufacturers CAAM publishes monthly sets of data covering the auto business in China.
The chart, based on CAAM numbers, depicts the rapid fall of formerly market-leading Japanese brands to levels just a little bit higher than French brands. As drastic as it is, it is not surprising i n light of news that major Japanese automakers lost nearly half of their sales in China, Cui bono? According to CAAM data, the market share of Chinese passenger vehicle brands (ex SUVs) jumped from 23.5 percent in August to 30.3 percent in September. We chose to ignore this, because in September, the market share of Chinese brands always jumps, only to resettle later.
In October however, the market share of Chinese brands climbed further to 31.3 percent. That while the market share of all Japanese brands in China careened from 21.1 percent in July to 9 percent in October.
Sure, German brands are up strongly, from 25.1 percent in July to 27 percent in October. However, according to these data, German brands actually saw a slight dip of market share in September. The market shares of U.S., South Korean, and French brands are up moderately.
And now the same exercise for passenger vehicles including SUVs.
Market share by country, passenger vehicles, w/ SUV
Market Share Passenger Vehicles w/ SUVsJulAugSeptOctJapan19.8%18.6%12.2%7.6%Germany20.4%20.8%19.3%21.6%U.S.A.11.8%12.3%12.8%12.5%S-Korea8.7%9.1%9.7%9.7%France2.6%2.7%3.3%3.3%China36.7%36.4%42.7%45.1%Source: CAAM
Market observers we asked don’t think it is plausible that Chinese Toyota buyers cross-shop Chery or Geely. But you never know. Maybe, the anti-Japanese fervor translated into a strong pro-Chinese brand sentiment. If this could prove true, it could spell the beginning of the end of the Chinese paradise for foreign brands. We keep an eye on these data and see whether the trend solidifies.
Note: Chinese domestic brands mostly are independently owned, whereas joint venture partners of foreign makers usually are state owned enterprises.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
More by Bertel Schmitt
Comments
Join the conversation
Qing Dynasty's demise started when they lost a naval battle with Japan. The current regime would be smarter than that. The island dispute has been there for many decades. It's not that things are getting worse, just how useful it is as a distraction of attention away from internal battles of the Chinese CCP. The whole thing will be forgotten in one year. Just like the SiChuan earthquake, or the Beijing Olympic. Who still remember those?
Qing Dynasty’s demise started when they lost a naval battle with Japan that we maybe able to point all the blame to empress dowager, she mostly interested in decorating her yee wor garden, http://www.foreigners-in-china.com/beijing-china-travel.html she diverted all her mullas away from arming her country, say no to buying guns, cannons, war ships from the occidentals. middle kingdom has nobody but ourselves to blame.