Autonomous MPV attack "Enterprise Edition"
In the bustling sales environment of kiosks, the MPV market seems to be experiencing a dramatic shift—like a clash between ice and fire. In the first five months of this year, both the production and sales of MPVs dropped by 10.42% and 10.2%, respectively, compared to the same period last year. This decline comes amid a financial storm that has only intensified competition in the commercial MPV segment. However, in Foshan’s auto market, independent brand MPVs have found an opportunity as more self-employed entrepreneurs look for practical and cost-effective options.
The "old name" brands are regaining popularity among car buyers, and with the current economic climate and rising demand from small and medium-sized enterprises (SMEs), the Ling Zhi “09 Venture†model priced at 9.99 million yuan is making waves. It recently launched in the Foshan market, and the next 20 orders came directly from SME owners.
Domestic MPVs are now being favored by SMEs during their early business stages. According to data from the China Association of Automobile Manufacturers, while cars and SUVs saw growth in the first five months of the year, MPVs experienced a significant drop, with production down 10.42% and sales down 10.25% year-on-year.
MPVs entered mainland China in 2000 and grew rapidly, especially between 2004 and 2007, with an average annual growth rate exceeding 20%. By 2007, they even hit a 23.1% year-on-year growth. However, traditional consumption habits still dominate, with official vehicles accounting for a large portion of local MPV purchases in Foshan, followed by commercial use and then private buyers.
According to a dealer at Hai Ba Road Auto Market, many companies that initially purchased MPVs for official use haven’t yet reached the point of replacement. Combined with other factors, this has led to a slower adjustment phase for MPV sales.
Additionally, rising fuel prices this year have increased the cost of car ownership. Large-displacement, high-fuel-consumption models are being phased out, replaced by more economical and eco-friendly alternatives. For SMEs, the desire to purchase larger MPVs has also declined, impacting overall sales.
Despite these challenges, independent brands are finding ways to thrive. In Foshan, two distinct segments of MPVs exist: high-end commercial models like Buick GL8 and Toyota Previa, and more affordable domestic options such as Great Wall and Ruifeng. These domestic MPVs offer good value, comfort, and affordability, making them ideal for SMEs and entrepreneurs.
To break through, MPVs must expand beyond their image as official vehicles and target the family market. This shift is already underway, with models like the Great Wall New Jiayu gaining traction among both home and business users. The 09 Venture model, with its practical design and efficient fuel consumption, is proving popular among budget-conscious SME owners.
As MPVs evolve, they’re no longer just for commercial use. Many buyers want to balance family and business needs, enjoying life with colleagues and friends. The Great Wall New Jiayu, for example, offers ample space and ease of access, making it a top choice for those looking for versatility.
With the growing purchasing power of SMEs in Foshan, the demand for MPVs is expected to rise. As more entrepreneurs seek reliable and cost-effective vehicles, MPVs will continue to play a key role in the market. For independent brands, understanding and adapting to the evolving needs of SMEs will be crucial for long-term success.
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