· Repurchase will become the growth engine of the first-tier city auto market

Guangzhou's car purchase restriction policy has made this year's auto market and enterprises hung up. What the market and enterprises are worried about is that on the one hand, the Guangzhou purchase restriction policy has caused many other cities in China to be trapped by traffic jams to follow suit, and on the other hand, the automobile market caused by the purchase restriction policy has declined. Despite the fear of a sluggish market, the industry still agrees that some city purchase restrictions will come sooner or later, because the congestion caused by cars and the requirements of environmental protection have made some cities miserable.

How will the auto market under the purchase restriction policy change? Where is the driving force for car growth in such cities in the future?

Nielsen’s report on the car purchase survey in Beijing last year showed that under the influence of the lottery purchase restriction policy, repurchase cars accounted for more than half of Beijing’s new car sales, making it a major consumer highlight in the Beijing auto market. In an interview with the China Economic Times reporter, many industry insiders said that with the impact of domestic restrictions on purchases and the ability of re-purchasing cars in first-tier cities in China, re-purchasing vehicles will also become the driving force for automobile growth in first-tier cities, and auto companies need to grasp consumption trends. Especially independent brand enterprises.

Demand for repurchase cars in first-tier cities rises

Repurchase refers to the second purchase of a car after the consumer owns the first vehicle by increasing the purchase and redemption.

According to Nielsen’s survey of the Beijing auto market last year, the repurchase owners of the Beijing auto market with upgrades and repurchase purchases last year have reached 58% of the new car purchases, of which 35% are added to the car buyers. 23%. The report shows that Beijing auto consumers re-purchase cars have become a major feature of the market.

As the largest terminal trading market in Beijing, China Economic Times reporter learned from the Beijing Asian Games Village Auto Trading Market that in the Asian Games Village auto market, 41,700 new cars were sold in the first half of the year. Statistics show that 27,000 of them are repurchased. More than 64%. Yan Jinghui, deputy general manager of Asia City, said: "This data also confirms that re-purchase car consumers have become the driving force for car growth in the Beijing market."

In the interview conducted by China Economic Times reporters, the proportion of re-purchasing cars in Beijing dealerships of some auto companies is even higher, especially joint venture brands. It is reported that in some dealerships of Volkswagen, Nissan and Toyota, the proportion of repurchased cars can be as high as 70%. In the same brand distribution store in the Beijing market, the ratio of repurchase cars of BYD and Great Wall is also about 60%.

It is understood that the proportion of consumers repurchasing cars in Beijing has a lot to do with the introduction of the purchase restriction policy in Beijing. In particular, some new car purchases have been suppressed because of the restrictions on the number of cars, so the proportion of repurchased cars continues to rise. Nielsen's report pointed out that as more cities continue to limit automobile consumption, the repurchase car index of the restricted purchase city will certainly continue to increase the characteristics of the Beijing market. For example, the proportion of future repurchase cars in Guangzhou will definitely increase significantly. “Repurchasing a car will be a major feature of the future car consumption of the city.”

“Although the re-purchase situation in Beijing is relatively special due to the purchase restriction policy, from the perspective of the first-tier cities, the demand for re-purchase vehicles in the first-tier cities will continue to rise.” Nielsen’s vice president of consumer research in China, Zeng Jia, was interviewed by reporters. It is said that in addition to Beijing Shanghai, the demand for repurchase cars in some first-tier cities will also show different degrees of upward trend. On the one hand, urban traffic conditions will suppress the demand for new car purchases, and on the other hand, the upgrade of car consumption will make the previous The owner of the vehicle has entered the period of renewal, especially the current increase in the replacement ratio of used cars has explained this to some extent. Statistics show that the current annual sales of used cars in China has exceeded 4 million, with a compound annual growth rate of more than 25%. Due to the increase in the proportion of repurchased vehicles, the used car market is also gestating huge demand potential.

Re-purchase car consumption characteristics are obvious

According to Nielsen's survey report, the characteristics of repurchase cars in Beijing are very obvious. The report pointed out that there are significant differences between repurchase owners and first-time car owners: including car buyers' crowd positioning, consumer psychology and consumption trends.

According to the crop, the current occupation of re-purchasing car owners is mainly the middle- and high-level managers of private entrepreneurs or private enterprises, and is in the ascending stage of career and family life. Most of the repurchased owners were 70%, accounting for 41%; the majority of the purchasers were 80%, accounting for 44%.

From the perspective of the intentional model, there is no obvious difference in preference between the first-time owner and the re-purchase owner for the model below 120,000 yuan. Among the consumers who purchase car prices above 120,000 yuan, the repeated purchase of car owners has a higher intention for mid-size cars between 120,000 yuan and 300,000 yuan and luxury cars with more than 500,000 yuan. Upgraded and re-purchased owners have more SUVs at different price points. Preference.

In terms of car purchase demand, re-purchasing car owners' price considerations are not the focus, and safety technology and power systems are the most valued by consumers. A slight change is that the first time car buyers will consider fuel economy and economy when purchasing vehicles; and repurchasers will consider the comfort, quality and space of the vehicle. Among consumers who buy used cars, vehicle prices and age are the two most important factors for consumers.

“The owners of the second car are young, but they have already formed personal preferences for some practical functions through the experience of the previous car,” Crop told reporters. “If auto companies can demonstrate high security in product design. The functional advantages of sex, comfort, high quality and large space make it easy to win the trust of re-purchasing owners."

Grasp the consumption trend

In view of the current repurchase situation in China, although the proportion of the Beijing market is as high as 58%, many industry insiders do not think that the Beijing market has entered a large-scale secondary exchange era. However, with the increase in re-purchase consumption in first-tier cities, various car companies have launched marketing for the demand for secondary car purchases, and increased the marketing offensive for re-purchasing owners.

The reporter learned from a number of companies that the financial services for repurchasing car owners are the most common methods, including financial loans, trade-in, etc., which is particularly evident in the first-tier cities where the purchase restriction policy is implemented. Research shows that 31% of consumers in Beijing are willing to consider buying cars in a replacement manner, and the higher the level of car owners' interest in car replacement services. The SUV's intended car owners are willing to adopt the highest proportion of replacements, reaching 40%.

In terms of auto credit, the survey showed that car loan considerations for repurchase car consumers reached 26%, which also indicates a huge demand for auto finance services. According to Nielsen's calculation, the annual scale of domestic auto consumer loans is expected to exceed 400 billion yuan in the next five years.

However, it is worth noting that, whether it is the Beijing market or other first-tier cities, joint venture brands and luxury brands are more active and active in the marketing of re-purchasing owners. It is understood that a number of multinational vehicle brands have been actively carrying out credit services for their brands in China, such as the zero-interest car purchase service launched by Lexus. Some car companies have increased their trade-in, such as the used car business launched by Volkswagen. In addition, Mercedes-Benz has also launched car rental in China. Among the self-owned brand car companies, only some car companies have launched auto finance credit services, such as used cars and car rentals and even insurance. Self-owned brands need to strengthen in this respect to attract more re-purchasing owners.