[YesAuto Industry] Red flag cars are a special kind of sentiment for Chinese people. Long ago, the red flag riders were not ordinary people. In 2018, Hongqi implemented a new strategy and began to leverage the civilian car market. So far, everyone is full of curiosity about the question: to whom did Hongqi sell? Was it mainly bought by government agencies? Do you buy too much? Who likes to buy red flags? As the only luxury car brand with pure Chinese descent, what kind of consumer awareness has Hongqi gained in the luxury camp? ……Data can answer these questions best, the following is for you to answer your doubts.
Note: The sales volume in this article refers to the volume of compulsory motor vehicle traffic insurance, and reflects the actual landing data of the terminal market.
★Simple traceback: “Big Red Flag”, “Little Red Flag” and “New Red Flag”
From “the head coach” to “the people's red flag”
For more than 60 years, the Hongqi brand has experienced three historical stages: “Big Red Flag”, “Little Red Flag” and “New Red Flag”. The representative model of the “Big Hongqi” era is the Hongqi CA770, which is a special historical mark. In 1996, Hongqi, which had been discontinued for 15 years, “come back” and successively launched three models: Mingshi, Century Star, and Hongqi Shengshi. The appearance of these three vehicles reflects Hongqi's desire to reverse the recognition of the “Chief Executive Car” and the “Foreign Affairs Concierge Car”. Know the transformational intentions of the private consumer market in order to fight for more. This stage is the “little red flag” era. At the beginning of this era, the red flag wanted to become a “red flag for the people.”
However, the market did not give Hongqi the expected return-in the five years from 2007 to 2011, the three cars sold less than 7,000 in total… In 2012, Hongqi Shengshi, Xinmingshi and Shijixing withdrew from the stage of history , The medium and large sedan Hongqi H7 came out to take over, but in the next six or seven years, Hongqi did not launch any new models. It only relied on this model to survive for six years, and sold less than 14,000 vehicles in six years. The car and the red flag are about to become a “hidden legend”.
In January 2018, the Hongqi brand strategy conference was held in the Great Hall of the People in Beijing, marking that the red flag that has passed through a Jiazi has entered the “new red flag” era, and the new story starts here.
★How much did you sell? What is the best selling model?
The medium-sized car Hongqi H5 and medium-sized SUV Hongqi HS5 sell best
As a luxury brand, Hongqi’s current model camp is still biased towards high-end cars. If ordinary people will not buy (can't afford) the leader-level executive car Hongqi L5, there are currently one large-scale car and medium- and large-sized SUV/vehicle on the market. There are 3 models and 2 medium-sized SUVs/cars. The only compact SUV model is the pure electric Hongqi E-HS3.
In 2018, Hongqi sales began to recover, breaking through the 10,000-unit level for the first time that year, exceeding 25,000. By 2019, the total annual sales volume of the Hongqi brand is close to 100,000 vehicles. In the first half of this year, it has exceeded 60,000 vehicles. The annual sales volume of more than 100,000 vehicles can be expected. Hongqi has set itself the goal of achieving 200,000 wholesale sales this year. 200,000 vehicles are the annual sales of second-tier luxury brands such as Cadillac and Lexus in China last year. Which car can become a lever for Hongqi's sales?
At present, Hongqi's medium-sized SUVs and medium-sized cars are the best sellers. The Hongqi H5 sedan and the Hongqi HS5 SUV together account for nearly 90% of the brand's total sales. In the first half of this year, the sales of Hongqi HS5 exceeded 30,000, which is the best-selling car under the brand, contributing more than half of Hongqi's performance, and the market trend is better than that of Hongqi H5. The Hongqi HS5 was officially launched in May last year, and has therefore become a key model that will drive Hongqi's sales growth this year.
However, Hongqi H5 still maintains good growth. In the first half of this year, a cumulative year-on-year increase of 16%. On July 10, FAW Hongqi officially announced the launch of the Hongqi H5 facelift. There are 7 models available with two displacements, and the price range is 14.58. 190,800 yuan, this is the price that China's auto consumption is happy to hear, and it is also a price that is acceptable to young consumer groups. It should continue to bring good feedback to Hongqi in the later period.
The three medium-to-large SUVs/cars are sold in average, and it is more challenging to think about 10,000 vehicles this year. Hongqi H7 has been on the market for many years. At the beginning of the design, it was adjusted in advance to make concessions for Hongqi H9. The top price of 300,000 is the entry price of luxury models, but it can only account for 10% of Hongqi sales, and the main thing is The official car market (analysis will be given later). The monthly sales volume of Hongqi HS7 has not exceeded the 1,000-unit level, and consumers of medium and large SUVs prefer to choose overseas luxury brand models.
The Hongqi H9 will be listed on August 23. In the car buying craze in Autohome in July, the Hongqi H9, which is in the pre-sale period, ranks first on the 500,000-1 million car craze list. Can the enthusiasm be turned into paying for the car? Yes, it will be clear soon. In addition to sales contribution, the greater significance of Hongqi H9 is probably to make a new world of Chinese brands in the medium and large sedan market. After all, 98% of this segment is in the hands of overseas brands, and even 20% are pure imported models.
★Who did you sell to? Who dominates private consumption and official car use?
Medium-sized cars are mainly for private consumption, and medium- and large-sized agencies and above are mainly purchased
So, who has sold the red flags that have always been special in the minds of consumers? Some people say that Hongqi's sales have continued to grow in the past two years. Has it been bought by institutions? Or did you go to run operations? How much do you buy privately? The answer will be revealed immediately-
There is a saying that some Hongqi cars are indeed running, such as the electric model Hongqi E-HS3. In 2019, Hongqi E-HS3 used for rental and leasing accounted for 73%, but the launch of E-HS3 itself is to test the waters. In the new energy market, its own production capacity is also very limited. As can be seen from the table below, in addition to electric vehicles, Hongqi's other models are still used for non-business, and most of the models are purchased by private individuals, especially medium-sized cars. Hongqi has opened up the civilian market in this area.
Hongqi H5 and Hongqi HS5 are mainly for private consumption, and almost 90% of them are purchased by individuals. The medium and large sedan Hongqi H7 was mainly bought by institutions, and official vehicles are probably the main flow. In the first half of this year, the Hongqi H7 purchased by institutions exceeded 80%. This was also the strategic direction set by the Hongqi H7 that year. However, the Hongqi H7 was in the first half of this year. Sales decreased by 37% year-on-year.
The SUV model Hongqi HS7 accounts for more than 70% of the private consumption market, which is nearly 20% lower than the private consumption of other models. The Hongqi HS7 will also be launched on August 29. If it wants to gain more shares in the medium and large SUV market dominated by foreign brands, it obviously has a tough battle to fight, and it has more responsibility than feelings.
Speaking of this, what everyone cares about is “Whether the local tyrant or the official second-generation person buys the red flag or the young freshman”, this issue belongs to the category of privacy, so we can't touch it here.
Hongqi E-HS3 is a pure electric vehicle, which mainly relies on leasing and operation to bring goods. Guangzhou and Tianjin are its largest consumer cities. In the first half of this year, Hongqi E-HS3 only sold 124 units, down 97% year-on-year, giving people a strong sense of decline… “Chinese-style new noble and refined” pure electric large SUV Hongqi E-HS9 will also be launched this year , Large-scale, pure electric, luxurious, how much do you think is appropriate (rub your hands)……
★Which cities do people like to buy red flags most?
Changchun, Chongqing, and Beijing are the most sold Hongqi cars
Let's find out which places people bought the red flag.
Generally, the main sales positions of luxury brand cars are in first- and second-tier cities. Taking the data for the first half of this year as an example, excluding Hongqi, other luxury brands accounted for 32% of sales in first-tier cities, while Hongqi's sales in first-tier cities accounted for only 16% during the same period. There was also a slight difference in second-tier cities. Other luxury brands The proportion of sales in secondary cities is 28%, and the red flag is 25%. Obviously, the second-tier cities are the main sales positions of Hongqi vehicles, and the sales in the third-tier cities also exceed those of the first-tier cities. The market structure of Hongqi and foreign luxury brands is significantly different.
At present, people in the north prefer to buy red flags. Southern cities are relatively rare. Changchun, Chongqing and Beijing are the three cities that buy the most red flags. Looking at the data from last year and this year, Changchun sold the Hongqi H5 the most, followed by Hongqi HS5, and Chongqing is the same as Changchun; Beijing sold the Hongqi HS5 the most, followed by Hongqi H7. In fact, Beijing sold the best in 2019. The Hongqi car is H7, or part of the purchase reason. Hongqi H9 will be available soon. Guess where it will sell better in Beijing and Changchun?
In the city, Changchun absolutely loves Hongqi. In the first half of this year, in the sales ranking of luxury brands in Changchun, Hongqi ranked only behind Audi (5,613) with 4,375 sales, and sold more than Mercedes-Benz and BMW. Beijing's luxury brand cars still lead the BBA, and Hongqi is only ranked ninth. Changchun people have the highest loyalty to Hongqi, perhaps because they have a special affection for Hongqi.
Why is Hongqi not as popular as a general luxury brand in Tier 1 cities? There are differences in consumer cognition. According to the model comparison data of Autohome, the main competing models of Hongqi H5 are Regal, Hongqi HS5 and Accord, the main competing models of Hongqi H7 are Hongqi H5, Audi A6L, and Hongqi HS5, while Hongqi HS5's competitor is Tanyue , Ankewei and Tiguan L.
It can be seen that Hongqi has not yet entered the competition camp of traditional mainstream luxury brands in the minds of consumers. At present, Hongqi must first overwhelm mainstream foreign brands, and the brand is on the way to rise. In addition, from the guidance price point of view, the price of Hongqi car is significantly lower than that of the three luxury brands with the highest sales in the Chinese market. As of press time, the final guide price of the Hongqi H9 has not been announced. The pre-sale price is 330,000-600,000 yuan, which is equivalent to the BBA model. Can it compete with the BBA model?
Hongqi has extraordinary significance to China's auto industry. Hongqi is like a new life, but the rivers and lakes are also more dangerous. After all, BBA has been deeply involved in the Chinese market for many years and has a strong tendency to monopolize the luxury car market. Hongqi is like a rising star to compete with it. It is not just the feelings of family and country, but also more hard-core power. In the old days, Wang Xietang’s Qianyan flew into the homes of ordinary people. It has initially become the red flag of the “people’s red flag”. If you want to truly settle down in the auto market, you still need to continue to make progress in the private consumer market. After the Hongqi H9 goes public, you need to be in the market The strategy has a clearer direction, especially the discrimination with the Hongqi H7 of the same class. Bless the red flag!