Qinjie M9 individual car purchases account for less than 60%, what impact does n
Recently, a set of sales data from May 2024 is worth studying and analyzing, as this set of data presents the proportion of individual car purchases. I believe that starting from this perspective can resolve some ongoing debates regarding automotive design philosophies. For instance, looking at popular vehicles such as the AITO M9, Li Auto L9, Tesla Model Y, Denza D9, XPeng X9, and Li Auto MEGA, the current data suggests whether future designs should lean more towards a homely style or a business-oriented one.
As always, let me preface with a disclaimer:
The data and charts analyzed in this article come from the "Jie Lan Road Automotive Industry Database." For more analysis content and questions about data samples, you can search the web for "Jie Lan Road" to inquire.
The data refers to retail sales, which may differ from the delivery figures announced by the manufacturers themselves.
The term "individual" in the context of personal proportion refers to vehicles with ownership by an individual. Therefore, the "non-individual" analyzed in this article refers to vehicles with ownership by a company or other institutions.There is also an important premise that we must acknowledge: some individual users purchase vehicles through their companies, such as company executives who buy cars for personal use but register them under the company's name (company car purchases can be tax-deductible). Additionally, there are ride-hailing companies and car rental companies that purchase vehicles, which ultimately are registered under the company's name. Therefore, even in these cases, there is a strong association with the company.
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Here, I will discuss the association of this category with the company in terms of vehicle usage needs, purchasing power, and consumer behavior.
Let's start with a few popular vehicles.
The personal ownership ratio of the BYD Qin PLUS is 69%, and at a volume level of 48,300 units, the usage of this model by company executives can be considered negligible. Therefore, we can assume that 31% of car buyers are car rental companies, ride-hailing companies, and general company vehicles.
What are the vehicle usage needs of such a large proportion of the population? I believe they are stable quality, low cost of use, and competitive sales models.Quality stability and low cost of use are two points that are easy to understand. A money-making tool must not be prone to breakdowns, and under such high-frequency use, the quality stability of spare parts must be good. In the era of pure fuel vehicles, representative taxi models like Elantra and Jetta were synonymous with durability. If BYD Qin PLUS can also do well, it can also add the "durable" label.
The cost of daily and long-term use, as well as maintenance costs, should also be low. The daily cost is nothing more than how much is spent per kilometer, and pure electric vehicles have an advantage. Long-term use costs include insurance and maintenance, where maintaining new energy vehicles has an advantage. However, recently, insurance has been adjusted for new energy vehicles, so it depends on the specific policies for operational vehicles. There are also reports that BYD is starting to sell insurance, which remains to be observed.
Maintenance costs, especially for the battery part of new energy vehicles, will become an important influencing factor. The battery of new energy vehicles has always been an unstable factor hanging over everyone's heads in terms of cost of use.
Even though taxis and ride-hailing services are greatly influenced by policies, I believe that models with better quality will definitely be more popular. If they also come with competitive sales models, then they will definitely have a promotional effect on sales.
A typical example here is the Toyota bZ3. In the sales volume of 0.41 million vehicles in May, the proportion of individual car purchases was only 8%, and non-individuals were as high as 92%. Behind this is strong car purchase policies, purchase channels, and financial policy support, which has allowed this once "miscellaneous brand" electric vehicle to achieve better sales under Toyota's quality halo than models like Qiyuan A05 and Roewe D7.Similar to BYD Qin PLUS, models with a high proportion of non-personal car purchases, which are more oriented towards rental car companies, ride-hailing companies, and ordinary company vehicles, include: AION S, with a personal share of 16% and a non-personal share of 84%; Hongqi E-QM5, with a personal share of 28% and a non-personal share of 72%; Buick Velite 6, with a personal share of 60% and a non-personal share of 40%; BYD Qin, with a personal share of 1% and a non-personal share of 99%; AION Y, with a personal share of 53% and a non-personal share of 47%; Roewe D7, with a personal share of 55% and a non-personal share of 45%.
For models with a high non-personal car purchase ratio, if they want to increase the personal share, it is recommended to first focus on preventing motion sickness and providing ample foot space in the second row. After all, when purchasing a car for personal use, one must consider the comfort of rear passengers, who are true family and friends, not ride-hailing passengers who are unlikely to meet again. It doesn't matter if ride-hailing passengers get car sick, but if your wife gets car sick and vomits in the car, see how you will handle the situation.
The personal share of Enovate M9 is 58%, and the non-personal share is 42%, with a sales volume of 15,800 units in May 2024. For a model with a guide price of 469,800-569,800 yuan, after excluding the possibilities of rental car companies, automotive media purchases, channel test drive cars, competitive product rental research, and so on, in the non-personal share, we believe that the proportion of purchases by company executives or related individuals still occupies a significant portion.
How should we view the needs of company executives or related individuals for purchasing cars? We believe that two points can be emphasized:
Value expression, not the first car.In the past, we said that Mercedes-Benz, BMW, and Audi represent a certain value, which can be roughly understood as the economic strength displayed by purchasing power, or the taste, individuality, and sports values promoted by the brands. Now, emerging models like the AITO M9, based on product strength, can express what kind of values for car owners?
It's not easy to elaborate on the part of AITO M9 that involves values, so let's look at these models: Li Auto L9, personal proportion 74%, non-personal proportion 26%; Equation Leopard 5, personal proportion 68%, non-personal proportion 32%; BYD D9, personal proportion 58%, non-personal proportion 42%; VOYAH Dreamer personal proportion 55%, non-personal proportion 45%; GAC Aion E8, personal proportion 67%, non-personal proportion 33%; GAC Aion E9, personal proportion 57%, non-personal proportion 43%; XPeng X9, personal proportion 71%, non-personal proportion 29%; Li Auto MEGA, personal proportion 61%, non-personal proportion 39%; Zeekr 009, personal proportion 40%, non-personal proportion 60%; Volvo EM90, personal proportion 21%, non-personal proportion 79%.
What can be observed:
- The non-personal proportion of MPVs is generally high, and the more expensive the MPV, the higher the non-personal proportion.
- The Equation Leopard 5 shows a trend of emerging in the rental car market.The Ideal L9 holds significant appeal for company executives or associated individuals, and a sample size of 0.61 million is ample for analysis. This group of high-net-worth individuals is likely not purchasing their first vehicle and also has a need for value expression. In the past, vehicles like the Land Rover and Mercedes-Benz GLS might have been more popular. However, with market and economic adjustments, the high-income group primarily focused on real estate has shifted to a new economic group with higher education acceptance.
Beyond functional satisfaction, the Ideal can undertake some family and personal value expression. But compared to the Enovate M9, the values expressed are much less, hence the May sales volume is less than half of the Enovate M9. Speaking of which, the Enovate M9 actually matches the replacement needs of former Land Rover and Mercedes-Benz GLS owners.
The personal proportion of the XPeng X9 in the new energy MPV segment is very high, indicating a lack of attraction for non-personal users, which is precisely where the XPeng design positioning is lacking. The family and business use of MPVs must be two legs, and it's not easy to walk without one. Where is the XPeng X9 design missing? I think it's the styling; the styling is not very capable of showcasing certain business values.
Although the Volvo EM90 has only 0.02 million, or 200 units, in sales statistics, non-personal vehicle purchases can account for about 158 units. The wealthy's emphasis on personal life safety is beyond our imagination.
In summary, for models targeting high-value non-personal users, on the product level:SUVs must have comprehensive functions; even if some are not useful, they should be included. The basic product capabilities should be maximized, offering more features than previous models. Capable adults always want "everything."
MPVs must consider commercial needs. Currently, the market is still too small for MPVs that are expensive, large, and only aimed at home use.
When considering models for rental use, they should be convenient for renters, without being overly personalized with smart features.
On the value level:
The first issue to clarify is that the consumer demographics have changed with the overall industry's upgrade and replacement. New money, old money; high-knowledge, high-income groups, real estate high-income groups; first-generation wealthy, second-generation wealthy, and so on. These opposing changes require the values reflected by automobiles, a significant consumer product, to undergo a transformation.In China's market, the values reflected must align with the appropriate values. Otherwise, non-individual users, due to factors such as social circles, can be greatly influenced in their purchasing decisions.
In fact, Zhou Hongyi's recent car-buying process can illustrate a clear logic, well-defined needs, and a diversified non-individual car purchase case.
Of course, car manufacturers should also encourage designers, product positioning, and R&D teams to communicate more with those responsible for non-individual car purchases and those who will use the vehicles. The changing demands for cars in the current era can easily go astray if they rely solely on the traditional fuel-powered vehicles as a guide.
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