“Low quality and low price†is a long-standing consumer's inherent understanding of self-owned brand cars. Although the quality of self-owned brand cars has ushered in a great improvement in the past two years, its brand premium is still hugely different from that of joint ventures. “In the mainstream market segment, the average price difference between independent and joint venture models is above 45%.†At the 7th Global Automotive Forum in 2016, a group of data published by Zhu Huarong, president of Changan Automobile (000625), showed that at the same time What we can see is that from the AOO-class to the B-class, the difference between the autonomy and the joint venture has further widened as the model level has increased. An A0-class car, the average price of the independent is about 44,000 yuan, and the joint venture is about 46,300 yuan. The average price of a B-class sedan is about 136,800 yuan, and the joint venture is more than 200,000 yuan, which is 40% higher than the former. In the SUV field, the average price of joint-venture models is almost twice that of its own brand. In response to the “encirclement and suppression†of the joint venture brand, the independent brand has been relying on cost-effectiveness in the market for many years, but Zhu Huarong believes that with the joint venture step by step, the independent brand has gradually lost its cost advantage. Due to the small size of the bicycle, the cost sharing pressure of the vehicle increases. He used Changan Automobile as an example. Although Changan Automobile's independent product scale has exceeded one million units last year, its profitability is still very weak, and only a very thin profit is generated. The 2015 annual report of the car company can also confirm this point. Jianghuai Automobile (600418, shares it) sales in 2015 reached a total of 588,000 vehicles, achieving a net profit of 858 million yuan, including 2.535 billion yuan of high government subsidies; 2015 Great Wall Motor (601633, shares it) achieved a net profit of 8.059 billion Yuan, an increase of 0.22% compared with 2014, but the gross profit margin of products was only 25.2%, down 2.5 percentage points from 27.7% in 2014. In the first quarter of this year, the financial report showed that its net profit decreased by 5.5% year-on-year, and its gross profit margin decreased by 1.3 percentage points year-on-year. However, due to the contribution of the SUV market, the overall profitability of self-owned car companies in 2015 should be better than 2014, and because of the heavy volume of SUVs, the sales volume of domestic independent brands has risen rapidly, and the market share has also rebounded, once exceeding 40%. . However, this situation has not continued. In March and April of this year, with the layout of the joint venture in the low-end SUV market and the decline of the macro market, the market share of independent brands has once again declined. "When we see a series of growth and development, we should also see that Chinese auto brands are facing a series of competitive pressures." Zhu Huarong said. The competitive pressure of independent auto companies comes from the fact that the market dividend of SUV is gradually decreasing. On the other hand, in the traditional sedan market, the performance of independent brands can be described as “routineâ€. The data shows that in 2012, the share of self-owned brands in the car market was about 27%, and by April of this year, this figure had dropped to 18.7%. What is more noteworthy is that in the market of more than 100,000 yuan, the occupancy rate of independent cars is less than 10%. Under the crisis, an interesting phenomenon is that in the keynote speech of the opening of the Global Automotive Forum this year, multinational auto companies are more concerned about the future of intelligent, unmanned and other technology prospects, including Zhu Huarong and Guangzhou Automobile Group (601238, Feng Xingya, the deputy general manager of the company, focused on discussing the opportunities and challenges of Chinese car companies in the new normal. Zhu Huarong said that Changan will create a diversified profit channel and put intelligent and new energy in an important position, and Feng Xingya basically expressed the same development path with him. However, in the context of both cost and market pressure, there are multiple challenges in how independent brands balance the relationship between profit and investment. Cui Dongshu, the secretary-general of the National Passenger Car Market Information Association, clearly stated: “The core obstacle to the profitability of self-owned brands is the high cost.†In recent years, independent brands have been accelerating the launch of new models, and in new energy vehicles and driverless cars. Strengthening R&D in forward-looking technology areas requires a lot of capital investment, which is the source and driving force for sustainable development of the company, but it is also a huge cost pressure in the short term. Composition is characterized in that ethylenically unsaturated group (CH 2 î†C<) operation is performed, under the existence of dispersion agent and antioxidant, to polyolefin series composition, and at least one kind of epoxy group and amino group is filler-graft-bonded with olefin through organic peroxide. 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In response to the “encirclement and suppression†of the joint venture brand, the independent brand has been relying on cost-effectiveness in the market for many years, but Zhu Huarong believes that with the joint venture step by step, the independent brand has gradually lost its cost advantage. Due to the small size of the bicycle, the cost sharing pressure of the vehicle increases. He used Changan Automobile as an example. Although Changan Automobile's independent product scale has exceeded one million units last year, its profitability is still very weak, and only a very thin profit is generated.