Small-displacement flat VS Large displacem

　　According a saying of one SOHU blog, this year’s auto market is full of uncertainty. The changes of auto sales and production in April and May make the expected original track doubtable because though the callback during April and May is reasonable, the leading models of last year, with a displacement of 1.6 liter or lower are lack of momentum since the preferential policies are shrinking and the entire market is suffering sluggishness. Just like soccer teams without a leading star and share market without an increasing stock, there will be a period for adjustment. Without a leading star, a team can not play well while share market without an increasing stock is sluggish. Receptively, without popular leading models, the sales of the auto industry can never keep stability.

　　China’s housing and stock markets are always influenced largely by the policies. Since last year, the auto market also has been impacted much by the policies. Facing financial crisis, the state introduced a preferential policy to halve the purchase tax of vehicles with a displacement of 1.6 liters and below, which turned the auto market to be extremely fast-paced. However, presently, the bullish market immediately shows sluggishness once preferential policies are shrinking. The data from China Automotive Technology and Research Center shows during the first five months of this year, models with a displacement between 1.3 to 1.6 liters have won highest production and sales, with a production of 39.3% and sales of 39.4% among China passenger cars. However, its production and sales growth is already lagging far behind models with a displacement of higher than 1.6 liters.

　　During the first five months of this year, cars with a displacement of higher than 2.5 liters have gained the fastest sales growth, especially the 2.5-3.0 liters car, of which mostly are large SUVs and luxury vehicles and a small number of large MPV. Its production and sales growth rates are as high as 227.7%and 155.08% respectively. Among cars with a displacement of lower than 2.5 liters, 1.6-1.8 liter models have gained the fastest production growth. Carmakers are generally optimistic about the future market potential. The highest sales growth rate is won by 1.8-2.0 liters models, which shows a higher purchasing power.

　　From the above data, from January to May of this year, medium and large displacement models have more growth momentum than 1.6 liters or lower vehicles, which indicates the demands in the auto market is balanced generally. And the flat sales of small displacement cars and hot sales of large displacement cars are resulted from the reoccurred demand of medium and large displacement models, especially large SUV and luxury cars had suppressed by the supportive policies last year. In addition, from January to April this year, the growth of imported luxury cars also has a certain stimulus on the sales growth of domestic sales luxury cars.

　　However, only from the sales and production growth rate from January to May of this year can conclude neither that without the supportive policies, the sales and production of 1.6 liters or higher displacement models will stagnate or the medium and large displacement models will grow vindictively according to the famous saying fortune’s wheel is ever turning. In fact, 1.6 liters or higher displacement models can best represent the current personal purchase-based consumer trend of China auto market. Energy saving and emission reduction is a common trend throughout the world. It is only that among the 1.6 liters or higher displacement models in China, there are seldom boutique model and famous brand models. Facing a growing sense of Chinese consumers, all the models belong to this range will have to boost their quality urgently.

　　With the further development of economy and society, the auto consumers will also be growing. However, the private car consumer group will gradually show a trend of normal distribution, that is models with too small or too large displacement as well as priced too low or too high will not account for much of the market while 1.6-liter displacement models will take up the largest market share. During the development, the market will conduct self-regulating just like a kind of “ecological balance”. Therefore, though it is important to know clearly which models are popular in current market, it is even more significant to recognize which models can keep hot sales constantly. Only models with styles and displacement meet the consumers’ psychology as well as quality assurance can be the final winners.

　　Just like the ongoing World Cup, the way to play is not important since both European play and South American play have their own advantages and disadvantages, teams with famous players and are good at strategy and tactics will definitely win. Therefore, no matter the model and displacements, qualified cars and brands will finally gain market share. On the other hand, short-sight carmakers who are only engaged in short-term changes in the market will land in a predicament due to changing consumers and market. As Chinese passenger car consumers become more sophisticated, the demand in auto market will gradually go to a kind of balance. Only models have their own clear positioning and consumer groups coming out on top finally.

　　(Translator: Yalong/Jessie)

　　See original Chinese report Please click: http://zhaiqin.blog.sohu.com/155296678.html