Like home appliances, mobile phones and other industries, price wars are inevitable in the rapid development process. The auto industry is shifting from the seller's market to the buyer's market. Price cuts are often one of the tricks that manufacturers use to attract consumers. Near the "May 1" business opportunity, many car dealers are rushing to the horse, this year's new round of price wars in the auto market is breaking out.
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According to the statistics of China Association of Automobile Manufacturers, from January to March this year, passenger cars sold a total of 5,530,100 units, an increase of 8.95% year-on-year, a decrease of 1.14 percentage points over the same period of the previous year. Among them, car sales have shown negative growth, and sales in the first quarter of this year were 310.37. Ten thousand vehicles, down 0.36% year-on-year. This year, Changan Automobile Group surpassed FAW Group for the first time in the top three sales of automobile manufacturers. In the first quarter of this year, Shanghai Volkswagen took the throne of the national car production company from the same door brother FAW-Volkswagen.
What is quite surprising is that among the car companies, Shanghai Volkswagen, which had a good performance in the first quarter, took the lead in cutting prices. On April 5th, Shanghai Volkswagen changed the previous "holding" and put down the "body" and decided to reduce the price of multiple models in the official name. Among them, the Polo family price reduction was up to 10,000 yuan, and the safety price of the road safety model was also Straight down 10,000 yuan.
Since then, Changan Ford, Beijing Hyundai, FAW-Volkswagen and many other companies with good performance in the first quarter have followed suit. On the eve of the opening of the Shanghai car, SAIC passenger car also decided to lower the price of its Roewe and MG brands. The price adjustment involved a total of 29 models, with a drop of 6000~20,000.
A car dealer said in an interview with the media that in the early years, the car dealers liked to announce official price cuts in March, with the aim of increasing sales in April and May. In the last two or three years, companies have basically changed their strategies and not cut prices publicly. Support dealers to release water in secret. Manufacturers have once again used the official price cuts this year, indicating that car companies are not confident enough about the market prospects this year, and hope to cultivate a sales atmosphere through this behavior.
The price warfare How do you think about the price war and what measures will be taken? This is one of the most mentioned issues among the responsible persons of many car companies during the Shanghai Auto Show. The answers given by many car owners are different.
Huang Yongqiang, deputy general manager of GAC Toyota, said in an interview with the media such as China Business News during the Shanghai Auto Show: “Is there a problem with the price reduction? The overall economic environment in China is stable and will continue to grow at a rate of 7%. The fierce competition will be the new normal of the auto industry. Each company will make its own strategy, we can understand it, and will also pay close attention to the development of the market. But in addition to the price, the demand for Chinese consumers, the service The requirements are also increasing, and it is not possible to maintain a long-term healthy operation of a company only through price competition."
"The more recent rumors are that the European and American departments have to take a price war. Some friends even told me that the price war has started. In fact, the price of goods is not completely determined by the manufacturers. The real price is determined by the market. Even the competitors that are quite equal to you determine your price. Sometimes the market promotion of these means, or the price adjustment, does not depend entirely on us, but on our opponents. We will adjust FAW from time to time according to changes in the market. The price of the Toyota car.†Jiang Jun, general manager of FAW Toyota, said in an interview with media reporters such as the “First Financial Daily†during the Shanghai Auto Show.
The general manager of Dongfeng Nissan said that the price of the products sold by the company is relatively reasonable. In the actual selection process of the customer, the price of the vehicle itself is also a factor considered by the customer. However, he believes that the first thing to consider is where the value of the customer's pursuit is, and a solution that is launched through the current market trends. He also said that before consumers would think that Loulan's price was too high, the company had reflected on pricing issues, and the new Loulan, which will be listed this year, will set a suitable price.
Yu Jun, executive vice president of Guangqi Honda, said: “The market competition is really fierce, so we will continue to improve the cost performance of our products and surpass the expectations of consumers. For example, when GAC’s third-generation Fit was listed last year, it was very The shocking strategic price, including the promotion of the Accord 2.0LX comfort version launched by GAC Honda last year, can be said that the price strategy of Guangqi Honda is leading. At present, the price reduction strategy of other competing products has not been sold to Guangqi Honda. Make an impact."
This price war is not only between the joint venture brands, but also will affect the independent brands, and the current self-owned brands and joint venture brands are significantly more insulting. Wu Song, general manager of Guangzhou Automobile Passenger Vehicle, said that Guangzhou Automobile Chuanqi has never been afraid of price wars. In a word, Chuanqi will not easily cut prices. In the product development stage, GAC Chuanqi considers the upgrading of the product, even if the new product launch will make some adjustments to the price of the old product, but this is strategic.
Zhu Huarong, president of Changan Automobile, said: "We are also concerned about the joint ventures to carry out price war-based activities in the form of promotions, etc. I am more concerned about the impact of some domestic brands. I think that as a mature car market, playing The process of price war is inevitable. Only when this kind of deep adjustment and further competition intensify will it produce a group of competitive enterprises. In general, the market competition tends to be more intense. We originally expected the growth rate of the auto market this year to be 7%, I recently proposed to adjust 7% to 5% at our company's high-level meeting, so that we can make a series of market action plans, more realistic."
Car companies face inventory pressure Previously, China's auto market has shown more than 10% growth for many years, but high-speed growth has become history, and the Chinese market is changing. Carlos Ghosn, President and CEO of Nissan Motors, said during the Shanghai Auto Show: "If China's market can maintain an annual growth rate of 6% to 7%, I am very satisfied. For the car manufacturing that has just entered the Chinese market. Businesses, they may hope to achieve a growth rate of 9% to 10%, but Nissan has entered China for many years. In the long run, we are more expecting sustainable and stable growth."
The industry generally believes that the sales of Chinese cars will increase by about 7% this year, about 25 million. However, this year is the final year of the "Twelfth Five-Year Plan", and many car companies have to hand over this stage of transcripts. Many car companies have accelerated the production capacity of the Chinese market in advance. However, there is often a gap between ideals and reality. According to industry analysts, China's automobile production capacity may reach 40 million this year, or there will be idle capacity of 10 million vehicles.
A person in charge of a joint venture car market recently said in an interview with the reporter of China Business News that many car companies have accelerated their market share, resulting in oversupply. The inventory of general car companies is within the normal range for one or two months, and the current inventory of individual car companies Even after six months, the pressure on business operations has increased significantly. Under this circumstance, some car companies began to slow down production speed to reduce dealer sales pressure, and on the other hand, reduce inventory through price reduction promotions.
