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After the Chinese New Year in 2004, domestic automakers began to hurry up and try again. The so-called "backwaters, if you do not enter, you will retreat," and it is difficult for the Chinese car industry that maintains a constant acceleration to have a moment's breath. The accumulated profits of the manufacturers can only be re-invested as investment, and the additional capital needed seems to be endless. Like a “bread that is being fermentedâ€, the hot Chinese auto market will break through the barriers of rationality in 2004, and ignoring everything to seize the market is the No. 1 task facing all manufacturers.
This time last year,
Based on the high growth in car consumption that was beyond the imagination of the previous year, all car manufacturers have set higher sales targets. A year later, the industry association statistics show that in 2003, 201.89 million cars were produced, an increase of 83.25% year-on-year. The sales volume of cars was 1,971,600, an increase of 75.28% year-on-year, and the production and sales volume were a net increase of 928,100 units and 846,560 units respectively over the previous year. . Faced with this string of figures, business leaders once again began to blame their conservative. Thus, for the 2004 production and sales plan, various manufacturers have opened their minds, the "Great Leap Forward" of the myth of the makers once again staged.
Undoubtedly, new models, price cuts, increased production capacity, and expansion of channels will be the theme of the car industry in 2004. There are already industry figures advocating that in 2004 the sales of cars should exceed 3 million vehicles. Based on the increase in production plans of various auto manufacturers, the construction of the corresponding auto specialty stores will also be doubled on the original basis. In this way, 4S shops built by millions and millions of people in 2004 will be the most spectacular sights. The hot car market is like a speeding train that can no longer slow down.
In 2004, it has been a long time since China’s promise to the WTO was completely honored. For all auto manufacturers, occupying as much market share as possible will be the number one task. In order to achieve this goal, the low-end models will give up profits and become the vanguard of the decisive battle market; and the addition of more intermediate models will accelerate the decline in prices; in addition, with the further implementation of the localization of BMW, Cadillac, Mercedes-Benz and more high-end imports The landing of the car, the high-end market has begun to take off.
Behind the inertia of high speed
In 2003, key auto companies accelerated the introduction of new products and updated their existing products. Excelle, QQ, Fit, Saina, Gore, Audi A4, Mazda 6, Maxima, etc. One after another, new models have been launched. The market presents high-, medium-, and low-end vehicles with different displacements and configurations. The prices of many types of cars have reached the lowest point. Affected by this, the enthusiasm for private car purchases has once again become a driving force for the rapid development of the automobile industry. The decisive force.
In synchronism with new models and price cuts to stimulate consumption, the restructuring of the auto industry has developed in depth in 2003. The three major groups have increased domestic and foreign joint ventures and cooperation, which have greatly promoted the Group's own development. Chang'an, Beiqi, Southeast, and Guangben have also strengthened their own strength through internal lead outreach. Some private enterprises have brought huge amounts of money to enter the auto industry, aggravating the competition in the auto industry and inspiring the vitality of the auto industry. In addition, the rapid development of related industries has promoted the development of the automotive industry. Roads and traffic conditions have improved, and industries such as metallurgy and petrochemical have developed at a rapid rate, and the automobile has formed a situation of mutual promotion and coordinated development. In addition to these favorable information, potential danger signals are also exposed. There are two forms throughout the year in the auto market. One is continuous price increase, and the other is continuous price reduction. There is a large area of ​​inventory for models that have not been accepted by consumers. Behind the growth of more than 70% of the car as a whole, some companies have suffered losses. Industry insight sent warnings of overcapacity on more than one occasion. The world-renowned international accounting firm KPMG Financial Consulting Services pointed out in its “China Automotive and Parts Market Survey†that as the fastest growing automobile market in the world, China In the next two years, there will be a crisis of overproduction. By 2005, the surplus will reach 2.3 million.
As early as October 2002, at the 7th Asia Pacific Auto Industry Roundtable held in Shanghai by the Economist, some experts called for attention to the issue of China's auto overcapacity. In April 2003, the United States Goldman Sachs also warned in its “Global Automotive Industry Assessment†China article that China’s auto industry will oversupply in two years’ time. China's auto market return rate may quickly fall back to the industry's average level within two years, so Goldman Sachs recommends that foreign capital be cautious.
But even so, the expansion of domestic auto companies has already been "strengthening, can not help".
Market share overrides everything
For the multinational auto giants, a dilemma is before them. The zero tariff in 2006 is undoubtedly a huge temptation. By then, large quantities of imported cars will be driven to China, and it is undoubtedly the best demand for almost all profits to come by themselves. However, the concern is that in view of the current development speed of the Chinese auto market, the cost performance of domestic cars is rapidly increasing. In 2006, the advantages of imported cars will have to be discounted, and the construction of more critical channels will not be successful, even better. The products must also be incorporated into the existing channels for sales. The market development efforts will be marked with a question mark. In such a situation, increasing investment with Chinese partners is the best choice to expand the existing market. For the future car companies, market share is the right to speak, which is the basis for seeking profits, otherwise everything is equal to zero.
In 2004, the car will bid farewell to the era of "all people picking up firewood and high flames." Basically saturated production capacity will accelerate competition in the market, and based on the goal of occupying the market, manufacturers will have to make every effort to push products out. In 2004, the old models represented by Jetta had to be introduced in order to maintain the existing sales volume, and the additional configuration and vehicle improvement costs could only be divided from the profit. A group of economical cars that were active in the car market before 2003 will continue to play the role of a market pioneer after completing the corporate mission. Low-end models that take the market as their ultimate goal will have to lift their prices. At the beginning of the year, Nanjing Fiat fully reduced the price of accessories. With the current production scale, if Palio continues to lower prices, it will likely reach the bottom line of cost. And Jiahua, which is expected to sell for about 200,000 yuan in 2004, is the weapon of profit for South Asia. Similarly, the fit of Guangzhou Honda can not be compared with the Accord in terms of revenue, but the low-end cultivated consumer groups will in the future provide a source of inexhaustible market space.
In the Chinese New Year auto market, the news from the relevant auto sales stores confirmed that the auto sales did not appear to have the hot scenes expected by the merchants. More consumers just asked for prices, and the consumer's price reduction expectations were not met. However, based on the huge production plan in 2004, the overall price reduction of the auto market is not enough to impress people.
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September 12, 2023