Core Viewpoint - The 2025 Qilu Autumn Auto Show showcases over a hundred automotive brands, with Beijing Hyundai presenting its popular models and promotional activities to attract consumers during the peak buying season [1][2]. Group 1: Event Overview - The 2025 Qilu Autumn Auto Show is held at the Shandong International Convention and Exhibition Center, featuring a luxurious experience for car enthusiasts and buyers [1]. - Beijing Hyundai highlights several new models including the fifth-generation Santa Fe, all-new Tucson L, and the eleventh-generation Sonata, among others [1][2]. Group 2: Promotional Activities - Beijing Hyundai offers a "factory price direct sales" promotion during the auto show, along with various trade-in subsidies to enhance consumer purchasing power [2][4]. - The prices for key models are as follows: fifth-generation Santa Fe at 173,800 yuan, all-new Tucson L at 119,800 yuan, and the eleventh-generation Sonata at 115,800 yuan [4]. Group 3: Product Features - The all-new Tucson L is designed for mature users, featuring a 1.5 TCVVD engine and an 8AT transmission, emphasizing spaciousness, aesthetics, and high configuration [6]. - The Kustu MPV model is recognized for its family-friendly design, achieving a 61.8% industry-leading axle ratio, making it a top choice for family travel [8]. - The all-new Elantra, a global best-seller, caters to younger consumers with its stylish design and sporty features, while the eleventh-generation Sonata is built on the i-GMP platform, focusing on quality and performance [10]. Group 4: Safety and Quality - Beijing Hyundai emphasizes safety and quality at the auto show, showcasing a dissected fifth-generation Santa Fe to highlight its structural integrity and material quality [11][13]. - The fifth-generation Santa Fe utilizes advanced materials, with 75% high-strength steel and 53.5% ultra-high-strength steel, enhancing safety and comfort for users [13]. Group 5: Market Performance - In August, Beijing Hyundai's sales of fuel vehicles reached 14,971 units, marking a 15% year-on-year increase, while the company continues to advance its electrification strategy with the upcoming launch of the EO (ELEXIO) electric SUV [14].

Core Insights - The retail market share of domestic brands in China's automotive market has increased by 7.5% year-on-year to 64% in the first half of the year, while joint venture brands have seen their market share decline to 36% [2] - The decline in market share for joint venture brands is attributed to the rise of new energy vehicles and the strong emergence of domestic brands, leading to significant challenges for joint ventures [2][8] - Joint venture brands are undergoing channel reforms to adapt to the changing market environment, focusing on strategies that emphasize efficiency and customer engagement [6][20] Market Performance - Despite the overall decline in market share, some mainstream joint venture brands have stabilized or even increased their sales due to product strategy adjustments and significant channel reforms [3][4] - For instance, FAW-Volkswagen's sales reached 436,100 units in the first half of the year, a 3.5% increase, driven by strong performances from key models [3] - Beijing Hyundai also reported over 100,000 units sold in the first half, with significant growth in specific models like the new Elantra and Tucson [4] Channel Strategy - Joint venture brands are shifting from aggressive expansion to channel optimization, focusing on reducing the number of underperforming dealerships while enhancing the quality of remaining outlets [8][16] - The strategy includes a focus on dealer profitability, with measures to ensure that dealers can sustain operations and remain engaged with the brand [15][17] - Companies like FAW-Volkswagen are implementing policies based on return on sales (ROS) to improve dealer performance and operational efficiency [5] Innovation and Adaptation - The automotive industry is experiencing profound changes with the rise of electric, intelligent, and digital vehicles, prompting joint venture brands to innovate their sales models [9][10] - There is a growing emphasis on digital tools to enhance customer engagement and streamline operations, allowing for better data sharing between online and offline channels [9] - Joint ventures are exploring new retail models, including direct sales and experiential centers, to adapt to consumer preferences and market dynamics [9][18] Future Outlook - The restructuring of the automotive market presents both challenges and opportunities for joint venture brands, which must leverage their existing channel networks to remain competitive [20] - The focus on dealer profitability and channel health is critical for sustaining market presence and preparing for future growth [17][20] - By transforming traditional sales channels into user-centric ecosystems, joint venture brands can better navigate the evolving landscape and enhance their market positioning [20]

Core Insights - The Chinese automotive market is undergoing a silent transformation, with joint venture automakers rebounding after three years of declining market share, showing a significant recovery in the first half of 2025 [2][3] - The resurgence of joint venture brands is attributed to their strategic restructuring and adaptation to market trends, including deep operations in the fuel vehicle market and localization of new energy technologies [2][4] Joint Venture Recovery - In the first half of 2025, major joint venture automakers reported impressive sales figures, with FAW-Volkswagen achieving a cumulative sales of 436,100 units, a 3.5% year-on-year increase, and FAW Toyota seeing a 16% increase with 377,800 units sold [3] - The strong performance of fuel vehicles has been a key driver of this recovery, with models like the Volkswagen Sagitar and Magotan showing significant sales growth [3][4] Pricing Strategy - The adjustment of pricing strategies has been crucial for the recovery of the fuel vehicle market, with average promotional discounts for joint venture fuel vehicles reaching 23.1% in June 2025, nearly doubling from 13% in 2023 [4] - Many joint venture automakers have adopted a "one price" strategy, enhancing product competitiveness and reshaping consumer preferences [4] Channel Optimization - The optimization of distribution channels has injected strong momentum into terminal sales, with FAW-Volkswagen focusing on dealer return on investment and prioritizing channel health in its strategic agenda [4] - FAW Toyota's direct sales model for the Corolla has alleviated pricing competition among dealers while enhancing service quality [4] Localization and R&D - Joint venture automakers are restructuring their competitiveness through deep localization strategies, with a focus on local R&D and decision-making processes [6][8] - The shift towards local teams leading product development is evident, with new models like Nissan's N7 being entirely developed by Chinese teams [6] Dynamic Technology Adjustments - The ability to dynamically adjust technology routes is a significant aspect of the transformation, with Volkswagen's recent embrace of range-extended technology marking a notable shift in strategy [7] - The market is witnessing a surge in range-extended vehicle sales, with a 78.7% year-on-year increase in 2024, indicating a growing acceptance of this technology [7] Electric Vehicle Surge - Joint venture automakers are preparing for a wave of electric vehicle launches, leveraging local technology platforms to regain market influence [8][9] - Major brands are collaborating with Chinese tech companies to enhance their smart driving systems, ensuring competitiveness in the electric vehicle market [9] Conclusion - The rebound of joint venture automakers is not coincidental; it reflects a survival evolution in the Chinese market, where local technology and consumer demands are reshaping the automotive landscape [10]