Prior to the avalanche of luxury car prices, the price dominoes had actually spread in lower-level markets. In the shadow of Toyota recalls, the price system has always been stable, FAW Toyota and Guangzhou Automobile Toyota had to through the "all models to reduce prices" to prevent the rapid decline in market share, the maximum discount rate even reached 50,000 -6 million. Mazda 6, Honda Sibo Rui and other mid-size cars also appear to range from 20,000 to 30,000 yuan. Under the pressure of price cuts for mid-to-high end models, the brands that were still humming are following in secret.
Price warfare is a common practice, but the average price drop of 10%, the highest price reduction of more than 70,000, but it is a signal - the automotive industry is to avalanche price continuation of the "blowout" time.
Massive inventory detonation price war
According to the latest statistics from the China Association of Automobile Manufacturers, from January to July 2010, the production and sales of automobiles both exceeded 10 million, an increase of 44% and 43% year-on-year, respectively, and the year-on-year growth rate was down 5% from the first half. In July, car sales increased 15% year-on-year and fell 12% month-on-month.
According to the reporter's visit to the dealers, a series of beautiful data was obtained in full exchange of dealer stocks. The general inventory of high-end cars such as BMW remains at a depth of about 0.7 to 1 month, while the mid-range and mid-to-low-end vehicles are generally around 1.3 to 1.5 months. At present, half of the domestic car sales have not yet reached the standard. In the independent brands, more than 60% of car companies failed to complete the original plan.
According to statistics from the China Association of Automobile Manufacturers, sales in the automotive industry surged 72% year-on-year in the first quarter of 2010, but the year-on-year increase in April was only 33%. In May, the inventory of passenger cars increased to 545,500 units, an increase of 18,100 vehicles from the end of March. This is still a figure that does not include dealer inventory. Taking into account the transportation and terminal inventory, the general industry inventory is 1.5 months of production and sales, which is nearly 2 million inventories. However, through visits to dealers, it has been found that the inventory of some low-end models has reached more than two months.
After the accidental madness in the auto market last year, the collective optimism of auto makers this year has been hit by the market.
Last year, driven by the automobile to the countryside policy, Changan, SAIC-GM-Wuling and other self-owned brands with small-displacement vehicles were the biggest beneficiaries. Chery, Geely and other companies have announced that they will enter the micro-vehicle industry, and Chang’an eat equally this market with a capacity of 4 million to 5 million vehicles. Not only that, stimulated by the surge in production and sales, Geely, BYD, etc. can not wait to launch high-end products, collective attack this piece of the original joint venture brand mid-level car positions.
The self-owned brands collectively seeking high-end car market, has always refused to join the low-end market joint venture brands, but also quietly brewing low-end take-all. On August 30, Dongfeng Nissan Motor Co., Ltd. will introduce the first car Mercedes in the compact hatchback market in Beijing at a price of 70,000-100,000 yuan.
The independent brands want to move joint venture brand cakes, and the joint venture brands spoil their own brand positions. Between the two camps that originally had differentiated and survived, they are moving from local wars to full-scale wars.
Mr. Li, an independent brand agent in Beijing, was clearly prepared to cut prices. “I feel that there is something in the market. Today, the auto market is similar to the home appliance market five or six years ago. money."
Mr. Li's flexibility refers to promotion techniques and is also a psychological game between distributors and consumers. Reporters visited and found that there are many 4S stores launched "the biggest price concessions in history" for the inventory model, which contains hidden mysteries. According to industry sources, in fact, before the implementation of the half-price reduction policy for 1.6-emission vehicle purchases, there are dealers who have quietly increased their prices, and prices have become more favorable. The actual discount rate is not so great. This practice is decreasing as many brands increase their own production.
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