The maximum reduction of the shanghai-based general chevrolet 2. 4l 7 flagship versions amounted to $53. 9 million。
The official price storm in the car market continues. Last week, the shanghai general official announced that 11 products under the three brands of buick, chevran, and cadillac, totalling 40 car models, would be fully adjusted, with a maximum reduction of $5. 39 million. On the following day, the popular sharon announced a price reduction。
A month ago, the shanghai public officially reduced the official price of some cars, followed by a number of companies such as chang anfoft, beijing modern, a crowd of people and the east wind. Today, the general price reduction in shanghai has caused the storm to descend and the tide to rise. In the view of many industry people, a price reduction could become one of the leading melody of the car market in 2015。
"the price drops are getting worse."
“if demand continues to decline in the second half of the year, large-scale price wars are likely to erupt again.”
The official landing in shanghai involved not only a larger number of models, but also a larger price reduction, involving three brands: buick, chevran and cadillac. Of these, the 2. 4l 7 flagship editions of the chevlÁnco pacci had a maximum price reduction of $5. 39 million; the maximum reduction of the cadillac srx and cts was $30,000; and the drop of the beque price was relatively small, at around $10,000。
In recent days, journalists have visited the beijing section 4s shop and have found that the market price for most vehicles under the shanghai general flag has been lower than the price of guidance following this adjustment. For example, the amount of chevrolet's premium is currently $28,000, and the cash margin of bekken has reached $36,000。
On the other hand, market margins for other brand models are also increasing. Compared to a month ago, the margin of preference for 508 kaua k5 increased by about $6,000, while the bmw3 system, mass maitens and japanese-borns fell by 10,000 yuan。
“the car market today is one-on-one, and as long as one of the main brands drops the price, the other brands fall.” a german brand dealer told journalists that, in the past, market promotions usually started in june, but had to start a month earlier this year. A japanese brand dealer is willing to accept that most distributors today are more rational than they were a few years ago, and do not “underline” down-market promotions, but if demand continues to decline in the second half of the year, large-scale price wars are likely to erupt again.” by that time, whether the manufacturer drops or not, the dealer's single store will probably save itself and the day will be worse.”
The growth slows down
“the decline in sales growth in the first quarter is still unexpected and the plant's annual marketing plan may be excessive.”
Declining market demand is considered by many industry sources to be a major reason for driving firms to lower prices。
Data from the chinese association of automotive industries show that we have continued to grow negatively in terms of motor vehicle sales into 2015. In the first quarter of this year, a total of 5,305,000 vehicles were sold, representing an increase of 895 per cent over the same period, but an increase of 1. 14 percentage points from the same period of the previous year. In january-april of this year, however, our growth in the volume of motor vehicles fell by 2. 8 percentage points. Also, the “survey on the early warning index of chinese automobile dealers”, published by the chinese association for the circulation of cars, showed that the early warning index for stocks in april of this year was 60. 5 per cent, an increase of 14. 2 per cent over the same period and above the alert level。
According to choi dong-soo, secretary-general of the national motor transport federation, the sales targets for major cars were planned early in the year, but the year-round increase was unexpectedly high compared to the fall. As a result, the company’s annual marketing plans may still be too high, which is one of the major reasons for the overall price war. “producers may be counterproductive if they simply consider the market share of their brands and the completion of annual assignments.” the deputy secretary-general of the chinese automobile circulation association, saku hong, stated。
In this environment, some companies have also begun to adjust their original distribution plans. Bmw’s ceo ange, china, publicly stated that the company had cut output in china and reduced the supply of vehicles to distributors, which would still be the case in the second quarter. “it is not excluded that more cars would follow up on the adjustment of capacity plans and sales targets.” a joint brand market leader indicated。
Press watch
We can't save the market by cutting prices
As a result of the popularly awarded price-cutting event in shanghai, many cars have followed suit and are gaining momentum. In fact, every year a car operator falls, but for years it has not been as high-profile and concentrated as this year. But whatever the “housekeepers” approach may be different, its underlying intent is very different: to attract consumers in the form of official price reductions, to boost market sales; and to reflect the same reality – the less optimistic nature of the car market since this year。
The slowing down of our car market has become an indisputable fact. Data show that in 2010, chinese automobiles sold more than 18 million cars, an increase of more than 40 per cent, but after entering 2011, sales increased less than 3 per cent each year. There were semi-car companies that did not complete their tasks in 2014. In 2015, most cars had set a steady growth target of 10-20 per cent, yet the market situation was worse than expected. In january-april of this year, the growth in passenger cars continued to fall, particularly in the car market, with a 9. 8 per cent decline in april。
However, it is not easy to “stop” the previously established production and marketing targets of individual cars, including factories that have been or are being built. This has resulted in the accumulation of more and more stocks and the increasingly tense relationship between manufacturers and distributors. With the combined effect of various factors, the pressure of distributors and manufacturers can be seen in the fact that it also seems easy to understand that the seemingly ignominious pilot companies are competing for price reductions. In the face of falling market demand and declining capacity planning, producers appear to have had to lower prices in order to ease the pressure on stocks and increase profits for distributors。
However, even if this group officer's drop would really boost the promotion and suspend the stock pressure, tomorrow? Motor companies are bound to be unable to keep prices down and consumers will not buy forever. Without changes in production and distribution planning, changes in the distribution structure, and the elimination of contradictions with distributors, the dilemma remains. Maybe in these ways, the autobots need to think more。
Zhang jie, a reporter for this edition
