On August 23, Beijing Hyundai launched the world premiere of a small-scale car Rena in Beijing. The 7 models have 6 models with 1.4L displacement, and only one displacement is 1.6L.

On August 30th, as the first model of Dongfeng Nissan's entry into the compact hatchback market, Ma Chi will be listed in Beijing. The number of models listed on the market is 1.5L.

A new trend is emerging in the domestic automotive industry. Independent brands, mainly low- and medium-end sedans, have entered the mid-to-high-end market. Joint ventures involving mid to high-end cars have introduced economical cars to seize the low-end car market.

In recent years, the car products that multinational corporations have introduced in China’s joint ventures are dominated by mid- to high-end cars. The strategy of a joint venture car company has given the market space to its own brand cars.

Geely, Chery, Great Wall and other independent brand automobile manufacturers have their origins in economical cars. Although the quality may not be very good, the advantage is that it is cheap. For the working class, it would be worthwhile to spend tens of thousands of dollars to buy a car. As for brand awareness and quality, it is not so much to consider. Then buy the first car, the price plays a decisive factor. In this market environment, self-owned brand cars have basically occupied the domestic low-end car market.

Due to China's road environment and fuel supply, the state has been encouraging the development of safe, environmentally friendly, energy-efficient small-displacement vehicles. In the past few years, some local governments restricted the use of small-displacement vehicles on the road and put on the cards. Under the intervention of the state, these local policies were cancelled, removing obstacles to the development of small-displacement vehicles. In 2009, in order to encourage the purchase of small-displacement vehicles, the state levied a vehicle purchase tax on half of small-displacement vehicles of 1.6L or less. Since June of this year, the state has given a subsidy of RMB 3,000 to small-displacement vehicles that are energy-efficient. Under the guidance of the policy, the development of small-displacement vehicles has become a consensus in the industry, and market share has also increased significantly. According to statistics from the China Automobile Association, in 2009, sales volume of domestically produced cars accounted for nearly 70% of the total.

In the face of the broad market prospects of small-displacement vehicles, joint venture car companies have launched small-displacement cars with high performance-to-price ratio and competed with their own brands. In the past few years, the joint venture also launched a number of economical cars, but due to the high prices, it has not been able to gain the upper hand in competition with self-owned brand economic cars. The launch of Shanghai GM New Sail Car earlier this year changed this trend. The lowest price of New Sail was lowered to 56,800 yuan. The price is extremely competitive, coupled with well-known foreign brands and first-rate quality, it soon won the favor of consumers. In July of this year, the new Sail terminal sold more than 10,000 vehicles. After Beijing Hyundai Rena was listed, together with Accent, these two small-displacement economic vehicles covered the range of 50,000 to 100,000 yuan. This price is precisely the most concentrated area of ​​self-owned brand cars.

According to the statistics of the China National Automobile Industry Center, in July, Accor's terminal sales were 5,821 vehicles, and the sales volume was not small. Beijing Hyundai's expectations for Rena are monthly sales of 10,000 vehicles. With the increasing number of fine cars introduced by joint-venture car companies, great pressure has been placed on self-owned brand economy cars. For a time, Chery QQ and Tianjin Xiali, which had been far ahead of the small-displacement car market, failed to sell more than 10,000 units in July. For self-owned brand car enterprises, it is undisputed to enter the high-end market and is also the only way for the development of enterprises. However, they must not give up their own advantages, but should bravely face the challenges of joint ventures. In the development of new models, improvement of quality and development of second and third tier markets, more efforts will be made to recapture the market dominance of small-displacement economical cars.