Car price reduction challenge profit limit Dealer sales pressure gradually increased
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Tianjin FAW's Ville price cuts, Nanjing Fiat followed its diving, and the profit of the 100,000 RMB economic car market once again became the heart of people's hearts. The automaker’s meeting in Wuhan said: “The auto market is in an increase period rather than a saturation period. There is still room for automakers to attract investment, reduce costs, and achieve economies of scale, but the challenge of profit warfare for price wars is indeed close to the limits of a certain period of time.Some plants may be walking on the tightrope, and most importantly, they are passed on to distribution. Business pressure will increase with price cuts.†BOC Bad Asset Supermarket Changan Suzuki Yuen Your Car Dream BenQ Projector Easily Has 100 Megabits of Dynamic E-mail 100,000 Yuan Car Profits First Dig Welley One Out, 100,000 Yuan New Cars Profit points were immediately cut. Looking at Tianjin FAW, the low price of Ville not only brought challenges to the opponent but also put pressure on Tianjin FAW's Xiali. Experts analyzed that Tianjin FAW Xiali now has only one word “闯â€. As long as it has passed the stage of relying on Boli on scale, the world will soon become wider. Xiali’s scale has enabled its components to enter the downside, selling it cheaper, and its profits can be guaranteed at the service end. And its own accumulation can also support Xiali brand constantly launch new products, dealers can also have money to earn. Li Lin, head of marketing management department of FAW Tianjin Xiali, made it clear that “Xia Li is still the foundation of Tianjin FAWâ€. In terms of new Wilo, experts generally believe that it will replace Xiali 2000 and Yaku. FAW has already confirmed that Xiali 2000 is only a transitional product at the beginning of the reorganization of Tianqi, and the rich product line of NBC platform makes it possible for Tianjin FAW Xiali to pressure one opponent on the speed of launch of new products, and it can quickly make up for Xiali 2000 through upgrading. The negative impact of failure. Li Lin said: “The question of whether or not Xiali 2000 and Yakuu will cut down production and production will depend on the market reaction in the next stage.†Nanjing Fiat, which was also proposed to make up for losses with scale, was the former Chery’s sales general manager one week after Ville listing. Incumbent Nanjing Feiate deputy general manager Sun Yong, engaged in a spring thunder operation in mid-March. On the one hand, Palio was reduced to less than 70,000 yuan. On the other hand, he threw out the killer and promised to reduce the price of accessories. This attack point was precisely chosen Some manufacturers let the whole vehicle lower prices, increase the price of accessories, and protect the traditional practice of profit. However, as a result, its profit margins will also become smaller. Sun Yong admits to the change of profits: “The impact will surely be, and the profits of bicycles will certainly be less, but this decline is natural. We can rely on scale to find and achieve a balance between scale and profit.†According to marketing As a rule, manufacturers are forcing dealers after they have forced their costs down and improved their low-profit viability. Li Lin said: "Our parts will not increase prices. And precisely because of the good quality of new products, the low rate of repair, and now let the dealers have some complaints objectively, that is, they do not earn more profits in the maintenance. The next step is to rely on value-added services and maintenance.†Fiat’s chief representative, Chiba, predicted last year: “According to the laws of the development of the automotive market, the current price war in the domestic auto market will lead to the elimination of the network, and manufacturers will take the initiative to reduce the number of We can't reach the required outlets, and the outlets will re-select more profitable brands.When the price cuts and outlets are eliminated, the demand for automotive products will tend to be calm, and in the final period of five or six years, the auto market price will be adjusted. The price cuts to the spread of mid-size cars Beijing Hyundai just lowered the price of Sonata, and its deputy general manager Li Hao revealed in an exclusive interview: "The price cuts that originally occurred in the 100,000 yuan car market are now starting to develop into mid-size cars." "9 million Wilo and 70,000 yuan Palio test the viability of the depot, depots naturally have to put pressure on distributors, and now, 150,000 to 20 Space yuan, the price surge is also spreading. In addition to the sales growth of Guangben and Shanghai General Motors is still high (84% and 94% YoY in February), the sales growth of many mid-sized vehicles has slowed down significantly, and Passat has declined for three consecutive months. Mengdiou's joining has even brought pressure on price cuts. Although Li believes that Sonata’s price cuts are the result of increasing production capacity to 150,000 units and the economies of scale, Beijing’s Hyundai's capacity expansion will take until April, after Guangzhou Honda has expanded its production capacity to 240,000 units. Lower prices. Therefore, direct price cuts and pressure on opponents are the real reason. Before the price reduction of Sonata, the Ford Mondeo and Santana 3000 were introduced at a low price, and the price of Santana 2000 was also falling down. Soon after the price reduction of Sonata, the new and old China also announced the price reduction. The price cuts between rivals in the mid-level car are intertwined, and the distance between the two is getting closer. Intriguingly, most of these cars are lowering prices in the name of the so-called "04" model. The purpose is nothing more than to attract users through the "new" style. An SUV dealer said: “A wide range of price reductions will continue and everyone will start harming each other. This is not a good thing for the entire automotive industry.†But some experts believe that lower prices and further competition are related to It is understandable that the industry’s survival of the fittest and the consumer’s perspective must be met. Of course, too many price cuts will discourage mid-size car users, and they will also impact some companies that produce low-end models at the same time. The impact of the Corolla on Vios is obvious, and Sonata’s influence on Elantra is also there. However, users who are now waiting to buy mid-size cars are more willing to buy coins because they have already had a car, and there is no such thing as an emergency. From this analysis, mid-range car prices may not be as stimulating to the market as low-end cars, which will make manufacturers pay more attention to server-side competition and strictly select dealers. But on the other hand, the profits of mid-size cars are higher than those of low-end ordinary cars, and price cuts will not immediately pose a threat to the dealer network. Dealers are willing to allow manufacturers to cut prices, but the reduction in rebates after price cuts also makes distributors feel painful. In the words of a manager at a mid-range car dealership in Beijing, “What I am most concerned about now is that with such a low price, how can I make money back in a short period of time? The network of OEMs is constantly expanding and selling cars is very low. Adding to the price cuts, it's more sloppy. Some people say that to avoid being eliminated, it's better to make plans to change the main children early, but now mid-range car manufacturers are basically lowering prices."
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