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Why Porsche host world premiere of New Macan in China?

From:Internet Info Agency 2018-07-25 15:40:39

Although the Chinese auto market has gradually entered a stage of slow growth, dividends brought about by the consumption upgrade have made many luxury brands continue to soar their sales, making them benefit most. At the same time, consumers have converted their ideas of considering vehicles just as a transportation tool, and their demands of differences and customizations in brands and products are gradually magnified. And that is the reason why the market segmentation of luxury SUVs has been expanding in the past two years.

Many consumers believe that the BMW X6 is the pioneer in the luxury SUV market. Even though with sporty coupe style, its sales performance has always lacked distinction. After the Porsche Macan launched in 2013, this niche market was truly activated and attracted consumers around the world. Under the premise of retaining the traditional SUV functionality, this time, Macan mainly focused on the sports car-like appearance and excellent sport ability to attract more young consumers.

The word "Macan" is derived from Indonesian, meaning "tiger", strong in limbs, fast in speed, and a combination of flexibility, strength and agility. And it is used to describe the car’s great performance both on the track and in the mud pool. It remains the sport car characters of 911 and boasts the practicality of the Cayenne.

July 25, 2018, the brand new Macan will be introduced in Shanghai. This is the first time that Porsche host world premiere of its new cars in China. Why they choose Macan? Why they choose China?

Macan makes Porsche more down-to-earth.

The general public's doubts about Porsche should not have produced SUVs are caused and broken by Cayenne. Lucky Macan, it was born in expectation, and became Porsche's "shining star" once it was introduced. Over time, Macan has gradually become the benchmark for sport ability in luxury SUVs.

The business model of automobiles is improving while the consumption is upgrading. In the past, the upper class in metropolis or big cities and upstarts in small cities were the main consumers of luxury brands. They are just minority. But now, profits brought by those massive middle class that we often ignored has already drew attention of any luxury brand.

The core of the Blue Ocean Strategy is to actively discover potential market demands based on existing customer needs. The birth of Cayenne, Macan and 718 is based on this demand. Thus, more and more people have realized their dream of owning a Porsche.

Some may say that Porsche has become a brand that can be seen everywhere. But it is undeniable that Cayenne, Macan and 718 bring profits to Porsche, so that they have the capital to develop new technologies and products. Thus, when Porsche becomes common on the street, the market has answered the question whether it is good or not.

World-wide sales of Porsche,

162,145 units in 2013,

189,849 units in 2014,

225,121 units in 2015, among these, 80,000 units are Macan,

237,778 units in 2016, among these, 95,642 units are Macan,

246,375 units in 2017, among these, 97,202 units are Macan,

Porsche initiated “Strategy 2018” in 2013: By 2018, Porsche will generate greater than 15% ROS (Return on sales), record sales of more than 200,000 cars worldwide. In terms of sales goal, Porsche has reached its goal in advance in 2015. Macan represents the core of “Strategy 2018” and has made significant contribution to it.

Macan is the core, so is the Chinese market

Sales in Chinese market,

37,425 units in 2013,

46,931 units in 2014,

58,009 units in 2015, among these,28,400 units are Macan,

65,246 units in 2016, among these, over 34,000 units are Macan,

71,508 units in 2017, among these, 31,180 units are Macan,

Again, in 2015, the Chinese market emerged as Porsche's largest single market in the world. In the following two years, it helped Porsche update its sales record continuously. If Porsche wants to continue to grow, the Chinese market is critical.

However, Macan’s sales in China in 2017 declined year-on-year in 2016. One reason is that, following with Macan, other brands have also entered this new segment after having seen the bonus brought by coupe SUVs. The niche market, which originally had only Macan and BMW X4, welcomed the Mercedes-Benz GLC Coupe at the end of 2016. In addition, Jaguar F-PACE and Land Rover Range Rover Velar also diverted a portion of potential consumers.

Another reason is that Macan was introduced in China in July 2014. It has been four years since it was launched, and its competitiveness is weakening. Of course, it is normal for each product to experience these ups and downs throughout its life cycle.

But Macan is not the only one experiencing the difficult period. In the first half of this year, Porsche's global sales exceeded 130,000 units, a new record high. Although the Chinese market has maintained its position as the largest single market with 33,363 units sales, the sales experienced a negative growth of 7% compared with the same period of 2017. But fortunately, it's not all Macan's fault.

From September 1, the EU's latest World Light Vehicle Test Procedure (WLTP) and Real Driving Emissions (RDE) standards will be officially implemented to replace the current NEDC test procedure. The new regulation brings in lengthy testing procedures that may result in the discontinuation of some major European fuel vehicles, including Porsche.

In response to this situation, the production capacity of the Porsche Germany plant has been adjusted, causing a certain decline in supply in China in the first half of the year. In addition, in May, the relevant state departments of China made an announcement on cutting auto import tariffs, which will be implemented on July 1. This new policy has led some consumers who want to buy a car sit on the fence, which in turn affects sales.

Although the decline in sales in the Chinese market is not entirely caused by internal factors, for Porsche, there is an urgent need for a product to change this situation, and this task will naturally go to Macan.

Meanwhile, with the implementation of the EU's most stringent emission standards, Porsche will limit the units of the 911 series, the Cayenne and the Panamera sold in the European market in the short term. It is foreseeable that sales in Europe will also be affected. Under such circumstances, the importance of the Chinese market becomes even more prominent.

That is why Porsche chooses to introduce the new Macan in China. In doing so, this new car can attract more consumers in the Chinese market. In addition, Porsche may take the opportunity to place its market focus in China. I believe that after the launch of the new Macan, Porsche will soon be able to get out of the difficult period.

From the Mercedes-Benz S-Class Maybach to the Volkswagen Touareg and the Audi Q8, and then to Macan, more and luxury brands will select China to host their world premiere. This not only highlights China's position in the global automotive market, but more importantly, these global car models will also become closer to Chinese consumers. Now, let us wait for July 25, and see what surprises the new Macan will bring. 


Editor:Xi Xiaolin