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Fuel Vehicle Market Declines, New Energy Market Rises


The recent rise in oil prices has caused many people to change their thinking about buying a car. Since new energy will become a trend in the future, why not start and experience it now? It is because of this change of concept that China's fuel vehicle market has begun to decline with the rise of new energy sources. At the same time, a brand-new marketing model also followed this wave quietly, completely subverting the traditional automobile industry.

1. Most car companies begin to transform

At present, there are many car brands in China, but there are only about 30 car companies with excellent sales. Joint venture car companies such as Volkswagen, Toyota, and Nissan account for most of the sales in the market. In the past two years, domestic independent brands such as Great Wall, Geely, and Changan have also begun to slowly erode the share of the joint venture car market with the improvement of their product capabilities.

In 2021, Volkswagen ranks first in the 2021 total car sales brand list with 2,165,431 units, and BYD, the representative of new energy vehicles, ranks tenth with sales of 730,093 units. Joint venture car companies such as Volkswagen, Toyota, and Nissan have also begun to slowly transform and develop towards the new energy market. Of course, in this battle, there are also many car companies such as Baowo, Zotye, Huatai, etc. that have withdrawn from history, or have been acquired by more powerful car companies.

2. Dealers after declining sales

In 2018, my country's car sales declined for the first time in 28 years, which was due to the increase in car ownership and the introduction of purchase restriction policies in various places. At the same time, there has also been a double-point policy, and even the promulgation of the National 6 policy in 2020, many car companies have not responded for a while. Only after that did everyone launch models that comply with the National 6 and National 6B policies, which undoubtedly accelerated the demise of many car companies, and even some outstanding models have finally ushered in "off the shelf" in the face of strict environmental protection standards.

Close up of car headlights on new cars in salon blurred background. Choosing your next new vehicle, Car sales, market place

The auto industry has gradually shifted to the stock market. At the same time, with the decline in sales, a large number of stock cars began to appear in 4S stores, which undoubtedly increased the inventory cost of 4S stores, increased operating pressure, and prevented capital turnover. In the end, many 4S stores began to close down, and for those car companies that were not in the top 30 sales, the reduction of 4S stores undoubtedly made the already low sales worse.

The arrival of new energy vehicles has also subverted the traditional marketing model. After 2018, many new energy brands have sprung up. Many of these new energy brands are not developed by traditional car companies, but by Internet technology companies, Suppliers, automotive industry practitioners founded. They completely got rid of the shackles of dealers and began to set up offline experience stores, urban exhibition halls, etc. Most of these stores are located in key business districts such as urban centers, shopping malls, and auto cities, and adopt the direct sales model of OEMs. Not only can the location attract more consumers to visit the store, but the service quality has also been improved. The previous agency model of buying and selling goods has also become a thing of the past, and car companies can accurately judge the market for on-demand production.

3. New energy vehicles begin to develop

As car companies begin to embark on the steps of electrification and intelligence, the advantages of traditional fuel vehicles have gradually decreased. Although everyone is reluctant to admit it, the only advantage for traditional fuel vehicles is the cruising range. Nowadays, many new energy vehicles are equipped with intelligent driving assistance systems above the L2 level, and technological configurations such as millimeter-wave radar, lidar, and high-precision maps are readily available. At the same time, pure electric drive can also bring excellent performance similar to sports cars, and there is no need to worry about mechanical failures caused by improper operation, and fuel maintenance costs are also greatly reduced.


Like the MEB pure electric platform launched by Volkswagen, it can help the Volkswagen Group to open up a new path. With the advantages of large space and high configuration, the sales of ID series models using the Volkswagen MEB platform are very good. At the same time, Great Wall has also developed Lemon DHT hybrid technology, Geely has developed Raytheon hybrid technology, and Changan's iDD plug-in hybrid technology is also very advanced. Of course, BYD is still one of the few in China. One of the leading car companies.


This oil price turmoil is undoubtedly a catalyst for the development of new energy vehicles, allowing more consumers to understand new energy vehicles, and use a better operating model to upgrade the marketing model of the Chinese auto market. Only new technologies, new technologies, and new sales models can make it easier for more people to accept new energy vehicles, and eventually fuel vehicles will gradually fade out of the historical stage.

Post time: May-31-2022