On 5 april, the shanghai public service network announced a reduction in the sale price of multiple vehicles under the flag. Of these, the official price of the security series of mpv vehicles under the shanghai public flag has been reduced by $10,000 and the polo vehicle has been reduced by $80-10 million。
In addition, the shanghai public has introduced a wide range of consumer credit products, the vw brand being fully vehicle-based consumer support credit, including even zero interest rate preferences. This is an official price reduction that has been rare in recent years in the shanghai public, with visible signs of market grabs。
The official decline in the price of the car company, which had a 9 per cent share in the chinese market, raised market concerns. Analysts pointed out that, given the strong position of popular brands, their official price reductions would trigger a ripple effect, particularly with regard to weak brands or the need to reorient market strategies. The daily economy news reporter learned that the shanghai mass polo, who has been taking on the role of “introductor” of the brand, has made it an important strategy to improve sales using the “family promotion” advantage of the shanghai masses' b-rated suvs and c-rated cars at the desired nodes。
Polo returns to the mainstream price range
In response to the price reduction, the shanghai mass media informed journalists that the official price reduction was mainly a promotion。
It is understood that, since this year, the a0-class car market has begun to become a “hard-hit area” for declining sales as market demand changes. According to the chinese association for car circulation, the a0-class car market sold a total of 305,000 cars in the first two months of this year, a decline of 13 per cent over the previous year, a rate that fell to 1 per cent last year, well below the overall increase in the passenger market。
In addition, the rapid growth of sales of seo and flying between the same zones has put considerable pressure on polo. “the downward revision of prices can be reflected in sales more quickly.” the secretary-general of the united nations, choi dong-ho, stated to the daily economic news reporter that most consumers in a0-class markets were more sensitive to prices, and that with the lowering of the price of polo's guidance by the shanghai public, there would be more room for distributors to promote the car and that polo might be better sold。
The official price of polo, the pre-priced car-sale type, is concentrated between $859,000 and $1239,000, while the price of competition at the same level is between $599 and $799 million for the popular chevranceo, $7. 39 and $114. 8 million for awe, and $7. 38 and $11. 28 million for the official guide for the flight of hiroshima honda, which is generally higher than the bid。
A dealer told journalists that polo's terminal price was now at a discount of $80-10 million compared to the new official price, while the car had a discount of about $10,000 before the official price was lowered。
In response, the shanghai mass media indicated that, in the past, most of the promotions had come at the dealer level, and that the reduction in official prices had enabled the shanghai public to better control prices and allow more room for profits for distributors。
Choi dong-ho stated to the daily economic news reporter that “it is in fact normal for polo's price to be lowered between the main price areas of the a0 car”. The downward revision of official prices would also ease the pressure on dealers and better harmonize the promotion of the vehicle in the future。
Focus on switching markets
“the cars are the main market-seller model of the shanghai public.” the shanghai public informed reporters。
In addition to the official price reductions for polo and the road safety model, the shanghai public has focused on replacing the market with a replacement subsidy of up to $8,000 for the pasat, twayan, polo and santana models。
Although polo is known to have a modest share of the shanghai mass product camp, with 137,000 polos sold throughout 2014, representing only about 8 per cent of the shanghai mass market, polo is an entry-level product in shanghai's popular brand, able to introduce consumers to the shanghai mass vw brand at a lower threshold and retain young customers。
According to members of the shanghai public, 20 per cent of polo owners still purchase shanghai public goods when they change cars, while polo has sold a cumulative 1. 25 million vehicles, all of which are potential customers of higher-end models. The cumulative sale of 12 million vehicles by the shanghai public at present, seizing the replacement market and increasing vw brand loyalty, is important for future high-end vehicle-type strategies。
It has also been pointed out that the official price reductions and preferences of the shanghai public on their own initiative were intended not only to increase sales, but also to rob market ownership of the various sub-markets and lay the market foundation for the introduction of higher-end vehicles. It is necessary to consolidate the sales of medium- and low-end vehicles in order to achieve self-recycling within the product system。
According to popular planning in shanghai, a class b suv and a class c car will soon be introduced, while there was no high-end car in the shanghai mass system。
Moreover, under the shanghai public’s plan to hit the 2 million sales target this year, an increase of 16. 2 per cent over the same year; in the context of the current decline in sales in the automobile sector, shanghai’s population, which has a large base of sales, faces a considerable challenge, and the goal of hitting higher sales is clearly one of the purposes of this official price reduction。
