In the early part of this year, the media highlighted 2006 as an "independent brand year," recognizing the strong performance of domestic car brands. The Chinese automotive market has seen a surge in self-owned brands such as Chery, Geely, BYD, Great Wall, Xiali, and Brilliance, all of whom have made significant strides.
According to data from the National Information Center, China’s self-owned car brands experienced a remarkable growth rate of 51.3% in the first half of the year—surpassing the 36.3% growth of joint ventures. Their market share now stands at nearly 25%, signaling a shift in consumer preferences.
By July, Chery was among the top four automakers, while FAW Xiali and Geely ranked eighth and ninth respectively. In sedan sales, Xiali led with over 103,000 units sold, followed by Chery QQ and Qiuyun at sixth and ninth place with 72,300 and 58,820 units respectively.
In August, most of the recipients of the Ministry of Commerce's awards for auto parts and components export bases were self-owned brands. This success has sparked excitement, suggesting that the era of independent Chinese cars is finally arriving.
The rapid rise of domestic car brands has caught the attention of foreign media. The New York Times noted, “From the Great Lakes region to Germany, the traditional industrial hubs should take notice: Chinese cars are coming!â€
Indeed, Chinese cars are making their mark. After years of trial and error, self-owned brands have found their direction and continue to push forward, despite the challenges ahead.
The journey of China’s self-owned brands began on July 15, 1956, with the completion of the Liberation truck. However, for many years, progress was limited. It wasn’t until the late 1990s that these brands started to gain momentum.
Whether it was Geely, Chery, or Brilliance, their paths to building vehicles involved innovation, adaptation, and gradual improvement. With competitive pricing and good value, their products began to challenge the dominance of joint-venture brands. Over time, they gained recognition and started competing more directly.
From January to July this year, Xiali topped the sales charts, while BYD F3 and Chery’s models also performed strongly. Even traditional giants like FAW, SAIC, and Dongfeng are now investing in their own brands. New models like Pentium and Weizhi are set to launch soon, signaling continued growth.
Positive developments include breakthroughs in core technologies. Chery’s ACTECO engine, Brilliance’s 1.8T engine, and Geely’s CVVT technology are now mass-produced. These advancements mark the beginning of a new era for Chinese car manufacturing.
Government support has played a key role. Policies issued in 2004 emphasized the importance of self-owned brands, and the 2006 National Science and Technology Conference declared independent innovation a national priority. Future plans will require major groups to develop their own platforms and R&D capabilities.
Government procurement policies now favor self-owned brands, and export initiatives are being strengthened. This bodes well for the future of domestic automakers.
Despite these successes, challenges remain. While price remains a key selling point, product quality and after-sales service still lag behind international standards. Rising material costs also put pressure on low-margin brands.
Technologically, some companies have made progress, but many still rely on imported components. Advanced systems like ABS and hybrid technology remain out of reach for many.
However, the potential for growth is clear. Self-owned brands have shown flexibility and responsiveness to market needs. They are improving quickly and gaining customer trust.
With accurate positioning and policy support, the future looks promising. Experts believe that self-owned brands could surpass 30% market share in the near future. As China continues to build a fair and supportive environment, the road for independent brands will only get wider.
Where will the self-owned brands go next? The answer lies in sustained innovation, improved quality, and a deeper understanding of consumer needs. The spring for Chinese cars is here—and it’s just the beginning.
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