Auto Market Beat - Q2 - China - July 2020

OVERVIEW
What you need to know
Covered in this report
Excluded
EXECUTIVE SUMMARY
Analysis on the market conditions: more regulations on sub-categories relieve the concern of car buyers
Ease purchase and road restrictions to drive environment-oriented upgrade purchases
Speed up the establishment of NEV safety standards
Encourage circulation of second-hand cars and drive car upgrade purchases
Vehicle inspection signs go digital nationwide
SALES VOLUME OVERVIEW
Sales rebound in Q2 2020 highlighted by a post-Covid surge in May
Figure 1: Overall sales volume of new passenger cars, Jan - Jun 2020, 2020 vs 2019
Figure 2: Overall sales and the production volumes of new passenger cars, Jan - Jun 2020
The market share of sedans and SUVs stabilise while MPVs are gaining share
Figure 3: Sales share of new passenger cars, by car model, Jan - Jun 2020
A polarising trend: luxury sedans and joint venture sedans of the RMB 100,000 tier took the lead in sales rebound
Figure 4: Top 15 best-selling sedans, Jan - May 2020
Japanese brands continued to take half of the seats of the top 10 best-selling SUVs
Figure 5: Top 15 best- SUV, Jan - May 2020
NEVs sales rebounded but may lack long-term potential
Figure 6: Sales volume of new passenger cars, Jan - Jun 2020
INTERPRETING BRAND PERFORMANCES
Luxury car sales recover quickly, showing great resilience
Figure 7: Sales volume of luxury cars, Jan - May 2020
Mercedes-Benz suffered a plunge in market share while Audi made its way back to the top
Figure 8: market share of luxury car brands,  Q1 vs April - May 2020, by market share in April and May 2020
Figure 9: sales volume of all Audi models, Q1 vs April and May 2020
Figure 10: sales volume of all Mercedes-Benz models, Q1 vs April and May 2020
Figure 11: sales volume of all Cadillac models, Q1 vs April and May 2020
MARKET SHARE OF DOMESTIC AUTO BRANDS SHRINKS
Figure 12: Sales share of new passenger cars, by country, Jan 2020 - May 2020
Leading domestic brands in Q2 plunged, while joint venture brands rose steadily
Figure 13: Market share of auto brands, Jan 2020 - May 2020, ranking by the brand market shares in April & May 2020
Volkswagen SUV models stepping up their efforts to maintain the largest market share
Figure 14: Sales volume of all Volkswagen models, Q1 2020 - April & May 2020
All Honda car models see increasing sales with its market share catching up to Toyota
Figure 15: Sales volume of all Honda models, Q1 2020 - April & May 2020
Buick launched substantial discounts to drive the sales in Q2
Figure 16: Sales volume of all Buick models, Q1 2020 - April & May 2020
Tesla Model 3 enjoys significant advantages in sales, while Chery eQ and ORA take new approaches
Figure 17: Top 10 best-selling BEVs, ranking by sales volume in April & May 2020
Figure 18: Chery eQ and ORA R1
Figure 19: Top 10 bestselling PHEVs, ranking by sales volume in April & May 2020
Expert interview columns: direct retailing and dealer modes have their own strength and will not be replaced by each other in near future
The challenge of direct retailing: great pressure on cash flow
The strength of direct retailing: the end customer experience is under control
Development trends in future: separate showcases for sales from aftersales service for cost optimisation
MARKETING CAMPAIGNS
Social distancing themed logos 
Figure 20: The COVID-19 edition logos of Mercedes Benz, Volkswagen, Hyundai and Audi
Audi invited multiple celebrity spokespersons for its live streaming marketing campaigns
Figure 21: Audi A4L online product launch
Figure 22: Tag promotion - #Brand new A4L, be a stronger self
Volvo featured employees in advertisement to show they care
Figure 23: Volvo 93rd anniversary commercial
Cadillac establishes the connection between “rear wheel drive” and “luxury” through relevant scenes
Figure 24: No rear drive, not luxury
Figure 25: Golden Rules from the Second-time Experience
From masks to river snails rice noodles: Wuling Hongguang marketing campaigns go with the tide 
Figure 26: Wuling’s marketing campaigns follow the ride
Understand car retailing based on consumer data: find the perfect balance between online and offline channels
Figure27: Acceptance of online car purchase, March 2020
TECHNOLOGICAL INNOVATION
BMW introduced electronic car keys and car features subscription
Figure 28: BMW electronic car key
Solar power car roofs
Figure 29: Model 3 with a solar charging board
JD and SAIC Volkswagen are collaborating to develop smart home built-in systems
Figure 30: JD MicroConnect
APPENDIX – MARKET SIZE
Figure 31: Total sales volume of new passenger cars,China,Jan 2020-Jun 2020
APPENDIX – MARKET SEGMENTATION
Figure 32: Total sales volume of new passenger cars，China, Jan 2020 - Jun 2020
Figure 33: Total sales volume of PHEVs，China, Jan 2020 - Jun 2020
APPENDIX – METHODOLOGY AND ABBREVIATIONS
Methodology
Abbreviations