The continued outbreak of SUVs has driven the growth of the passenger car market, especially in the western market.

Recently, the Guangzhou Automobile Passenger Vehicle Project in Xinjiang was officially laid in the Urumqi Economic Development Zone. According to the plan, GAC will build a factory for the production of conventional models and new energy vehicles in Urumqi. The pre-production models will be the most popular models of GAC passenger cars, the Guangzhou Automobile GS4 and the new energy model GS4 PHEV.

Zeng Qinghong, general manager of Guangzhou Automobile Group Co., Ltd., said that the establishment of Guangqi's own brand in Xinjiang is an important measure for the early deployment of emerging markets in western China and the “Silk Road Economic Belt”, which is of great significance to GAC Group and Chuanqi.

Data show that in 2015, Xinjiang passenger car sales were 235,000, although the growth rate was only 2.5%, but in the overall automotive consumer market in Xinjiang, SUV models accounted for 47%. According to the statistics of the China Automobile Association, the sales volume of the SUV market increased by 52.39%, accounting for 29.42% of the passenger car market, still lower than the car market's 55.42% share.

The popularity of SUV models in Xinjiang is self-evident. "Daily Economic News" reporter learned that in the western regions of Gansu, Shaanxi and other countries, SUVs have generally received high attention.

In the case of SUV-led auto market growth in recent years, these regions have also been increasingly valued by car companies, including Shenlong, Dongfeng Nissan, and Beijing Hyundai, all of which are regarded as the core of the SUV product strategy.

SUV into sales volume

Due to the topographical features of the western region, SUVs have long been favored by local consumers.

According to data from the Association, in 2012, the SUV market in the western region accounted for 25.5% of the national sales, while the car market accounted for only 19.7%. From January to May this year, the SUV market accounted for 25.7%.

According to the data, in 2015, there were 3 SUVs sold in more than 100,000 SUVs in five provinces (Xinjiang, Ningxia, Qinghai, Gansu, and Shaanxi), namely Xinjiang, Gansu, and Shaanxi. Among them, Shaanxi's sales volume was 153,500 units, ranking first among the five provinces, accounting for 34.6% of the overall sales in the Northwest.

According to Su Hui, executive vice president of the China Automobile Distribution Association's visible automobile market branch, there are three main reasons for the popularity of the SUV market in the western region.

“First of all, the western region is mostly a plateau. From the topography, SUV models have certain advantages. Second, independent and joint ventures have been well-established in this market. The SUV products in the western region basically cover most of the prices. Interval; Third, in terms of the overall national market, SUV sales are a big trend."

"Currently, the SUV market in the western region has just entered a rising period and has not yet reached the stage of popularization. It is expected that in the next five years, the SUVs in the region will still show a high growth trend." Su Hui said.

Joint venture accelerates layout

While the SUV market in the northwest is hot, what other car companies and models are favored by the market?

The number of SUVs in Shaanxi in 2015 showed that the Haval brand had a total of 15,100 vehicles, ranking first, followed by Changan Automobile (000625, stocks), with a volume of 11,400.

In terms of specific models, last year, the top three SUVs in Shaanxi Province were Changan CS35, Haval H6 and SAIC Volkswagen Tiguan. From this point of view, the leader of the western SUV car market is still a self-owned brand.

"But the strength of the joint venture brand in the western region can not be ignored." Su Yinong, CEO of, pointed out that in addition to the two brands of Haval and Changan, they won the championship and had the absolute advantage. In the top ten brands of Shaanxi SUV, The joint venture brand still won 8 seats. It can be seen that the joint venture brand is struggling to catch up.

"Daily Economic News" reporter learned that in order to further compete for the western market share, joint venture brands are constantly adding "chips" in this market.

The much-anticipated Shenlong Chengdu plant is about to start production in October this year. It is understood that the plant will have an annual production capacity of 300,000 units, mainly serving Dongfeng Fengshen, Dongfeng Peugeot and Dongfeng Citroen. In the future, the plant will be put into production, including a total of six models of seven SUVs and MPVs.

From this point of view, in the context of the continued fierce SUV market, the western market has attracted the “coveted” of many car companies. Next, the “SUV battle” of independent and joint venture brands in this region will be more intense.

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