Chapter 122: Hundred Days Offensive
Benefiting from the halving of the purchase tax and the release of car purchase demand brought about by the purchase of large items to go home during the Lunar New Year, China's auto consumer market has stepped out of a wave of big yang line, and sales have skyrocketed, clearing up a lot of inventory for manufacturers.
However, as soon as the lively Hujiang Auto Show ended, many small and medium-sized car companies in China found that the small spring brought by the Lunar New Year had also come to an end, and the wind of cold winter was whistling outside the factory gate.
Over the years, since the change of owner, Brilliance Auto has changed from a rich peasant to a poor peasant, and has been struggling on the food and clothing line. Whether it is Zunchi, or Junjie, which has high hopes, is in the domestic auto market, it belongs to its own shouting for a long time, and as a result, consumers do not buy it, and passively evolve into a local model in a corner. If it weren't for the hard support of Brilliance Jinbei and the continuous blood transfusion of the local government, Brilliance Auto would have gone bankrupt long ago.
Brilliance Auto just planned to take advantage of this wave of good market to make a profit, but it didn't expect its 4S store to refuse to pick up the car before May Day, because dealers found that their inventory was full again.
Why did the national authority announce that car sales are currently hitting new highs, and sales are often increasing by more than 30%, but as a result, Brilliance Auto cannot be sold?
"A Brilliance Jinbei has been sold for more than 10 years, and consumers have long been tired of seeing it. There are too many small problems with Zunchi and Junjie, and the market reputation is not good, and the competition is not fierce at the beginning. Now look at the new cars launched by Zhonghua Group and a large number of joint venture brands, if I am a consumer who sees these cars in our store, they will also turn around and leave. ”
In the face of the investigators sent by the manufacturer, the owner of a Brilliance Auto 4S store answered unabashedly.
"The product is 1, marketing, after-sales, service, etc. are all 0, if 1 does not stand up, 0 plus more is 0.
I'll not hide it from you, we have tried all kinds of methods, but the warehouse is full of cars, and even the sales staff have changed batch after batch. Anyway, it's not in our 4S store, but in your OEM to find the reason.
You don't have to threaten me, hold on for another half a year, if it doesn't work, I'll close my door and go to another family. ”
After all these years, he hasn't made any money, and the owner of this Brilliance 4S store is full of complaints.
This similar situation also happened to the new domestic independent manufacturers such as JAC, Lifan, and Zotye in the field of sedans, and their models could not be sold due to lack of competitiveness.
Yin Mingshan, the first Lifan boss who proposed that cars should be sold like motorcycles, found that even if he reduced the price of Lifan cars to only be more expensive than motorcycles, he was already the cheapest car in sales, but sales were still declining.
"Why don't consumers buy our Lifan cars?
In fact, Lifan Motors just showed a lot of face in front of the people of the whole country not long ago, but it was not because of the performance of its own car, but because Yin Mingshan's own son bought a Bugatti Veyron sports car with a price of 30 million.
Bugatti Veyron is known as the fastest car on the planet, and the price of 30 million is prohibitive, but Lifan's son-in-law in his 30s still bought it with a lot of money, and it suddenly became famous among the rich second generation in the country.
The motorcycle business has been shrinking, and the automobile business has not been satisfactory. However, the pull effect of 4 trillion has allowed Lifan to temporarily overcome the difficulties.
Someone has calculated that for a 30 million Bugatti Veyron sports car, Lifan must sell at least 3,000 Lifan 520 sedans to earn back. The sales of 3,000 units are almost the sales results of the Lifan 520 sedan in the current two months.
At the same age, Lifan Gongzi owns the most expensive car in China, but Han Hao, who was also born in the 70s, does not look at the price and only sits in the car under the name of his own group, which has an immediate impact on his own car brand.
Why is it that the price card, which has always been tried and tested, cannot be played? Where has the dividend of market increment gone? Obviously, the overall sales of automobiles are rising, why are many small and medium-sized car companies in trouble again?
At this time, Han Hao was in Wujiang City to inspect the production base, which is currently a large factory with an annual production capacity of more than 600,000 vehicles, and the fourth production line project has been approved, and the production scale will be further expanded.
"Thanks to modern and fully automated production equipment, we can now control the cycle time of a vehicle to 68 seconds. It can be said that it brings together world-class lean production and lean management system, and is a green and environmentally friendly factory integrating lean, agile, flexible and modular. ”
Han Hao pointed to the steady stream of new cars coming down the production line, and introduced it to the top leaders of Wujiang City who were inspecting beside him.
As soon as Zhonghua Group came in, it developed rapidly and became a large-scale industrial base comparable to the second automobile, which made Wujiang City regard it as a key project to attract investment. It is rare for Han Hao to visit, and naturally Wujiang City and even Northern Hubei Province attach great importance to it, and the leaders show up to accompany him.
The predecessors planted trees, and the descendants enjoyed the shade.
Miao Yuwei, the current vice minister of the Ministry of Industry and Information Technology, introduced the Zhonghua Group into Wujiang City, and a large number of people thought that this was a move to lure the wolf into the room, but the rise of the Zhonghua Group overshadowed the local snake and the second automobile for a while, which convinced everyone to admit that their vision was still not as far as the leaders of the central ministries and commissions.
This year, Wujiang's GDP has increased significantly, and the largest contributor is Zhonghua Group's production base in Wujiang City. Every day, there is a steady stream of new cars printed with the logo of Zhonghua Group, which are sent from Wujiang City to all parts of the country.
"Mr. Han, if you have any difficulties that need to be solved, you can contact us at any time. In the next three years, it can exceed one million production capacity in Wujiang City, which is really a rebuilding of an automobile city. ”
The newly appointed leader of Wujiang City, with a smile on his face, must do a good job in serving the Zhonghua Group.
Countercyclical investments are paying off.
When the market was bad, other car companies, including Volkswagen and Toyota, postponed and cut their investment plans in China, and only Zhonghua Group continued to expand production capacity. Now the market has suddenly improved, but China Group has become the big winner. Not only can we reduce costs through mass production and seize the market, but we can also try our best to grab market share.
No matter how well Volkswagen sells well, the domestic production capacity of Volkswagen in the north and south does not exceed 1.6 million units, while Toyota's production capacity in the north and south is only 860,000 units due to its late entry, and the production capacity of the remaining joint venture powerhouses is: SAIC-GM 760,000 units, Hyundai-Kia 800,000 units, Dongfeng Nissan 550,000 units, Honda 500,000 units, and Peugeot Citroen 450,000 units......
After the current production capacity of Zhonghua Group was put into large-scale operation at the Wujiang base and Nansha base, coupled with the smooth transformation of the production lines of other bases, the overall domestic production capacity reached an astonishing figure of 3.8 million vehicles. In other words, the production capacity of Zhonghua Group alone can almost unite the mainstream joint venture car brands that have entered China.
No matter how good the car sells, it is useless if it cannot be produced, and consumers can't wait for next year to pick up the car. Therefore, the sales of Volkswagen and Toyota's 4S stores often sigh when they see that there is no car in the store, and customers can't deliver the car even if they place an order.
However, the Chung Hwa Group was able to achieve full production, and a considerable part of the newly increased demand in the market was robbed by them. Even if the major joint venture brands have set off a pace of expansion, it will be three years before they can bear fruit.
In these three years, it is enough for Zhonghua Group to do a lot of things.
Since the 100-day offensive launched after the Lunar New Year, the production line of Zhonghua Group has opened a three-shift mode, and the 4S stores of major dealers are also full of customers, and there is an endless stream of people watching and ordering cars.
Why can't small and medium-sized independent brands such as Brilliance, Lifan, and JAC sell?
Just because the products of Zhonghua Group have grabbed their customers, the appearance of the benchmark model is more beautiful than yours, the interior is more luxurious than yours, the three major power parts are far ahead, and there are entry-level automatic transmission options, even the price is more cost-effective than yours.
How can this be competitive?
Not competitors of the same latitude at all!
As long as you look at the exterior configuration of the models of Zhonghua Group, and then look at the cars of independent brands such as Brilliance and Lifan, it is like a product that is 10 years behind.
It is indeed 10 years behind, after all, just the CVT automatic transmission and the engine with direct injection with turbocharging in the cylinder, these small and medium-sized independent car companies in China can't do it.
The overall situation of the reshuffle has begun, and Zhonghua Group no longer gives small and medium-sized car companies without R&D capabilities a chance, and they should say goodbye to the times and prepare to quietly enter the history museum.
Not only small and medium-sized car companies with independent brands, but even those joint venture brands that ignore the Chinese market and do not contribute to the work are also obviously feeling a chill on their bodies. With the independent Zhonghua Group as a comparison, Chinese consumers are no longer superstitious about foreign car brands and appear more rational in purchasing joint venture cars.
The first is the Suzuki brand, which relies on Changan Suzuki and Changhe Suzuki to focus on the mini car market, but the market performance is very unsatisfactory.
You must know that since Zhonghua Group can go to India to fight with Suzuki Motors, it is even more brave and good at fighting on its home turf, and Huaxia Automobile, which is good at the field of micro-cars, has continuously developed new products with a strong sense of market, and the sales of the two major Suzuki joint ventures have repeatedly hit new lows.
You must know that Chinese consumers like "big", but Suzuki Motors likes to be limited to "small", while Huaxia Motors has both "big" and "small" models, and Suzuki Motors is even more sad when the two are sandwiched.
If it weren't for Changan Ford to turn the tide, Changan Group's days are estimated to be accompanied by Brilliance.
Another more uncomfortable company is Mitsubishi Motors, which has launched a series of products in a joint venture with Southeast Motors, including compact and mid-size sedans and MPVs.
However, due to the frequent scandals of Mitsubishi's own confusion, it was almost acquired by the Zhonghua Group that year, and if it were not for the help of the Mitsubishi consortium, Mitsubishi Motors would probably have changed its surname.
With such an unreliable joint venture partner, Southeast Automobile is also helpless, and the Mitsubishi logo is almost inferior to the Wuling logo in China.
Mitsubishi's second joint venture partner, Changfeng Mitsubishi, has long been in a state of stagnation in production due to the decline in Pajero's reputation and the decline in the SUV field.
Only when the tide recedes will you know who is swimming naked.
Under the 100-day offensive launched by Zhonghua Group, relying on the combination of new car listings, price reductions and promotions, additional allocation without price increases, and preferential credit purchases, the tablecloth of China's auto market has been lifted, revealing the true card capabilities of many car companies.
Undoubtedly, the Chung Wah Group is one of the players with the most chips among them.