"I am extremely disappointed in the manufacturer." Jiangshan said that by "manufacturer" he meant the joint marketing and service organization of Jaguar Land Rover China and Chery Jaguar Land Rover, or IMSS for short. "Jaguar Land Rover brand and products are good, but IMSS has done nothing and has a lot of internal friction. Dealers can basically only watch the weather for dinner. " Jiangshan explained.
Jiangshan's words aroused the curiosity and questions of the editor of New Car and New Technology.
In the past few years, although the overall sales volume of China automobile market declined, the sales scale and market share of luxury cars increased. With the cycle of 10, the luxury car market in China has rapidly expanded from 700,000 to 3 million. At the same time, since 20 12, Jaguar Land Rover has entered a strong product cycle, with the number of products expanded from 6 to 13, and the technical resources are also very rich. It stands to reason that Jaguar Land Rover should have a good sales performance in the dual strong cycle of market and products.
But statistics show the opposite result. In the past 10 years, the growth curves of most luxury brands were relatively smooth, but Jaguar Land Rover was M-shaped. Since 20 17, the sales volume of Jaguar Land Rover in China has changed from a high of more than 0/60,000 vehicles in 20 19 to only 0/0,000 vehicles in 2019, which is 38% lower than that in 20 17, and it has been downgraded from the fourth largest luxury brand in China to the seventh (excluding Tesla).
On the other hand, Mercedes-Benz, BMW and Audi, as well as Cadillac and Volvo in the second-tier luxury brands, have all achieved positive growth in synchronization with the market, especially Cadillac, Volvo and Lexus, which have successively overtaken Jaguar Land Rover.
What happened to Jaguar Land Rover?
Sales fell back to five years ago.
From 20 10 to 20 19, it can be called the "golden decade" of luxury goods market in China. In 20 10, the market capacity of luxury brands in China was only about 700,000 vehicles, but by 20 19, it had exceeded 3 million vehicles, and its market share had also increased from 3.25% to 10.63%. In ten years, the market capacity has more than tripled.
Jaguar Land Rover also caught up with the bonus of luxury car market in China by leaps and bounds, especially after the establishment of Chery Jaguar Land Rover, Jaguar Land Rover's dual-brand product line expanded rapidly. The product line extends downward from large cars and enters the market of medium-sized cars and medium-sized SUVs with larger sales volume. The number of products has expanded from Range Rover, Discovery, XF and XJ to 13.
In 20 12, jaguar land rover surpassed Lexus in China and ranked fourth in luxury car market. Since then, Jaguar Land Rover has maintained a leading position in the luxury car market in China, and the factory has also slogan "BBA+JLR" in the luxury car market in China.
The turning point occurred at 20 17. After Jaguar Land Rover reached the peak of 162200 vehicles, its sales in China declined rapidly in 20 18 and 20 19, with negative growth exceeding double digits. In 20 19, the sales volume of Jaguar Land Rover in China was 100094, which was 38.5% lower than the historical peak and even lower than that in 20 15.
At the same time, German luxury brands headed by Mercedes-Benz, BMW and Audi have successively exceeded the sales of 700,000 vehicles. Among the second-tier luxury brands, Cadillac and Lexus broke through 200,000 vehicles one after another, and Volvo broke through 1.5 million vehicles. Cadillac, Lexus and Volvo, which once lagged behind Jaguar Land Rover, have surpassed Jaguar Land Rover one after another, and the gap has widened.
The market share data further shows the decline of Jaguar Land Rover. Before 20 17, Jaguar Land Rover's share in the luxury car market in China has been higher than 6.4%, reaching 7.6% at its peak. In 20 18 and 20 19, the market share dropped to 3.6%. From 20 10 to 20 19, Jaguar Land Rover's market share decreased by 44.4%.
Among the seven luxury brands, only Audi's market share has dropped significantly, while others have increased. The decline of Audi's market share can be regarded as a return to a reasonable market position. In 20 19, the market shares of Mercedes-Benz, BMW and Audi China luxury cars were 26.5%, 25.6% and 24.4% respectively, which were equivalent to their global level.
While the sales volume and market share are declining, Jaguar Land Rover dealers in China bear a huge inventory burden. According to the data of "Automobile Dealer Inventory" released by china automobile dealers association, Jaguar Land Rover has been in the top ten list of China dealers' inventory pressure for a long time. In July this year, Jaguar Land Rover brand ranked first in dealer inventory stress index with an inventory coefficient of 3.52, and in June, Jaguar Land Rover also ranked first with an inventory coefficient of 2.77.
High inventory brings two problems: cash flow and dealer loss. Jiangshan and several Jaguar Land Rover dealers said that there are about 250 Jaguar Land Rover dealers in China, of which about 200 are at a loss, and insiders of Jaguar Land Rover's subsidiary in China also confirmed this figure.
It is not the first time that Jaguar Land Rover dealers have a serious inventory backlog. As early as 20 18, due to fierce market competition, dealers' inventory pressure, unreasonable rebate policy, and unable to guarantee operating profits, dealers collectively "rebelled" manufacturers, stopped picking up cars from manufacturers, only sold new cars in stock, and even appeared a storm of quitting the network.
At the same time, Jaguar Land Rover, as a British luxury car brand with a higher brand premium than Mercedes-Benz, Audi and BMW, its terminal price has collapsed again and again. At the beginning of Chery Jaguar Land Rover's domestic production, the industry dubbed it "30% off for Leopard" and "20% off for Tiger". But now, under the pressure of inventory, the discount has further become a "60% discount leopard" and a "70% discount tiger". Even some Jaguar models gave a "5.2" discount for clearance.
The brand value of Jaguar Land Rover has been trampled on like never before.
Brand equity and product technical resources are the envy of opponents.
Jaguar Land Rover's brand assets, products and technical resources once made competitors very envious.
Britain has the largest number of high-end car brands in the world, such as McLaren, Rolls-Royce, Bentley, Jaguar and Land Rover. Although these brands are not entirely British companies in terms of equity, British aristocratic lineage has always existed in their brand genes.
Jaguar, for example, was positioned at the same level as Rolls-Royce and Bentley when it was founded. Until the mid-1990s, Jaguar produced almost only sports cars and luxury D-class cars, and it was always the royal car of the British royal family. In addition to the identity of the royal car, Jaguar's technical strength is also quite good. From 1935 to the early 1990s, Jaguar won many championships, including the 24 Hours of Le Mans.
Land Rover has been defined as a "luxury off-road vehicle" since its birth. If herdsman is a tool car to help engineers explore in the wild, then Range Rover is a luxury for the British royal family to play in the wild. As the only luxury and off-road car brand in the world, Land Rover has already established its position as the first luxury SUV brand in the world. In China, Discovery and Range Rover have always been symbols of the rich, and social status is as symbolic as Porsche Cayenne.
Jaguar Land Rover's current technical resources are also quite rich. For example, the well-known all-aluminum body covers 2.0T, 3.0T and 5.0T, ranging from four-cylinder and six-cylinder to V8, and has both turbocharged and supercharged engine technologies. Volvo is often criticized for having only a horizontal engine platform, but Jaguar Land Rover has vertical and horizontal platforms, as well as hybrid and pure electric new energy technologies. Land Rover also has its killer weapon: all-terrain feedback adaptive system.
Before 20 1 1, Jaguar Land Rover only produced large cars. Since 20 1 1, Jaguar Land Rover has successively owned Aurora, XE, F-PACE, and the renamed Discovery Shen Xing (later renamed Discovery Sport Edition), and entered the market of medium-sized cars and medium-sized SUVs with the largest sales volume. In addition to these models, Jaguar also launched the F-TYPE, a sports car used to build brand belief. Compared with the past, Land Rover has one disadvantage: more off-road vehicles and less luxurious interiors, but the shortcomings of these products have disappeared in recent years.
Compared with Cadillac and Volvo, Jaguar Land Rover is superior in the richness of technical resources, the width of product series and the depth of brand heritage. Even compared with Audi and BMW, it has some advantages.
During its strong product cycle and high market growth stage, Jaguar Land Rover's sales volume and market share dropped sharply. What's the problem? The editor of "New Car and New Technology" found that all the clues point to IMSS；; ; If further tracing, it points to Jaguar Land Rover and Chery Automobile.
(To be continued)