Chapter 20: Reaching the Next Level

The dual-brand strategy showed that Han Hao was not only satisfied with the treatment of the top three in China, but was ready to take advantage of the opportunity of the 2008 Olympic Games to really launch an impact on the international automobile group.

Hyundai-Kia Group has completed the globalization process with the smooth transformation of the 2002 World Cup, and the Chunghwa Group will take the first step in the global brand strategy in 2008 and land in the developed markets of Europe and the United States. However, compared with Hyundai-Kia Group, Chunghwa Group has less experience in testing the developed market of automobiles by 20 years, and in the early 80s, South Korea's Hyundai Pony model has landed in the North American market and gained a firm foothold.

In the same direction, in 2005, the Zhonghua Group only landed in the European market to test the waters, if not considering the national trade factors, Han Hao estimates that to gain a firm foothold in the developed markets of Europe and the United States, it will take at least 12 years of experience that is, two generations of complete models.

Compared with the 20 years of South Korea's Hyundai Kia, the 12 years of the Chunghwa Group can be regarded as a one-third of the time. However, in emerging market countries such as India and Russia, the Chunghwa Group entered earlier than Hyundai-Kia and is expected to qualify for head-to-head competition with each other.

The reason why Hyundai-Kia was chosen as a benchmark is because they are also Asian car companies and are one of the most successful car giants in recent years. With a reference object in front of you to catch up, you will be able to avoid detours. The internationalization of automobiles can take shortcuts with people, so there is no need to cross the river by feeling the stones.

In the past 2005, Zhonghua Group achieved good results that surprised Han Hao.

Zhonghua Group achieved total sales of 1.402 million vehicles in China, a growth rate of 54.7% compared with 906,000 vehicles last year, and became the only domestic automobile group with sales exceeding one million.

The sales of FAW Group, the leader of last year's market, have declined significantly this year, from 1.01 million units to 921,000 units, while SAIC Group has ranked second with 983,000 units, and China's auto market has been reshuffled again.

The list of the top three finalists in the market has not changed, but the ranking has been completely disrupted, and Zhonghua Group has reached the top to become the first domestic car company in terms of sales, which means that China's auto industry has entered a new era.

On top of the main force composed of the "four troikas" last year, the Chinese Legion added a small SUV "Song" and a small sedan "Ming" mixed light cavalry into the ranks, and absorbed two major heavy cavalry units, Yaxing buses and Zhonghua heavy trucks, and there were also foreign mercenaries of the Chinese BMW cruising around the periphery, and the strength of the entire legion has been greatly enhanced, and it is worthy of being the first in China.

"Qin" is still the best-selling sedan model in China, and it occupies the first place on the list every month with its good reputation, which makes many joint venture brands envious. They gave up the goal of catching up with the numbers, and had to make a fuss about maintaining profit margins, and no longer listed surpassing "Qin" as a short-term strategy. The second and third generations of "Qin" alone have contributed more than 410,000 sales to Zhonghua Group, and have actually become the main ace of the group.

The newly debuted A0 class small sedan "Ming", sales rose all the way in three months after the National Day was launched, 3000-5000-8000 units, showing strong competitiveness. In the competition with joint venture brands such as POLO, Fit, Carnival and Swift, it has not fallen behind at all, and has become the first in sales in the same class with excellent cost performance and rich configuration. As an upgraded version of the new sedan manufactured by Zhonghua Group 2.0, the "Ming" has completely gotten rid of the old-fashioned domestic car, fully integrated with the international trend, and has become a truly global model.

In the SUV field, Zhonghua Group is soaring happily in this blue ocean by virtue of its preconceived advantages. Although many private enterprises have poured into the SUV field and then withdrawn, SUVs have been accepted by more and more Chinese people and have begun to become another major choice to replace sedans.

In the context of the joint venture brand only CRV, and the domestic brands only Great Wall Haval and Chery Tiggo, the compact SUV "Tang" and the small SUV "Song" are so good, showing the existence of the crowd.

Last year, the sales of "Tang" were hot, and 150,000 units were sold, and this year, the sales continued to exceed the 210,000 mark, becoming a star model that can compete with sedans. Its excellent performance has made many domestic independent brands see new market growth points, and they have listed SUVs as a breakthrough point again.

As for the small SUV "Song", it has also opened up a new market segment, with an average monthly sales volume of more than 10,000, becoming a new army that closely cooperates with "Tang" to harvest market heads. In particular, it is worth mentioning that the "Song", which went abroad to Europe, has been recognized by local consumers with its excellent performance in the European crash test, and has completed the goal of selling 5,000 vehicles in Europe in three months. Since the Russian market is considered separately due to the establishment of joint venture factories, the European market in Han Hao's mouth is excluded from Russia.

The goal of 5,000 sales under the noses of discerning Europeans can be said to be a major breakthrough for Chinese automobiles, showing that the Chinese have the ability to manufacture automotive products that meet international first-class standards. Although the products are mainly sold to relatively underdeveloped regions such as Central and Eastern Europe, in Germany, the birthplace of automobiles and a major country in the automobile industry, "Song" has completed the sales of more than 400 vehicles, which can not but be said to be an affirmation of another significance. The arrogant Germans, after witnessing the crash test, were willing to show their respect for the "Song" with practical actions.

In the separate Russian market, they have a soft spot for SUVs, and the sales of "Tang" and "Song" once surpassed that of the sedan "Qin", becoming the first choice for many Russian fighting national warriors. After the joint venture factory in Russia, the cost of Zhonghua Group has been reduced a lot, and with ultra-cost-effective products, the car dealership has continued to expand in Russia and completed the occupation of large and medium-sized cities.

The Russian economy has not yet come out of the quagmire, with 962,000 vehicles sold in 2005, of which 181,000 vehicles belonging to the brands under the name of the Chunghwa Group, accounting for nearly 20% of the overall market. Compared with last year's pitiful 28,000 units, this year's 181,000 units have achieved a six-fold growth rate, and "Gaz Zhonghua" has become a well-known joint venture brand in Russia.

At the beginning, he had a unique vision to enter the Russian market, and a joint venture with a local declining automobile company, and finally achieved fruitful results and began to become a monopoly in the local area.

As for China BMW, thanks to the country's liberalization and regulation of the economy to take off again, the national GDP growth rate in 2005 was as high as 10.4%, and 9.6 million square kilometers of land is thriving.

In the competition with the old rival Audi, although it has a congenital disadvantage compared with Audi, which is included in the ranks of official cars, under the conditions of the rise of China's emerging rich class, the sales of the 3 Series and 5 Series domestic Chinese BMW have increased significantly, and the growth rate is as high as 40% BMW showing blue sky and white clouds is the dream of many Chinese.

Under the last wave of impulse sales at the end of the year, China BMW achieved the sales target of 45,000 units, completing the promise made by Han Hao when he introduced BMW two years ahead of schedule. Compared with Audi's 68,000 units, BMW is catching up more and more quickly, and it is expected that the domestic Mercedes-Benz will be launched next year, and the luxury car market will be more exciting.

China has become the fastest growing market for BMW in the world, and BMW China has become one of the most successful joint venture brands in China.

In such a favorable situation, Han Hao is ready to negotiate with BMW on behalf of Zhonghua Group, asking the other party to introduce more models into China, especially the X3 and X5 in the SUV field are BMW's fist products, and the more high-end 7 series sedan and the more personalized MINI can also be introduced into China.

If the BMW Group introduces more models into China, Han Hao believes that BMW China has the ability to pull FAW Audi down.

Including Zhonghua BMW, the Chinese brand alone contributed 795,000 domestic sales, accounting for more than half of the entire group.

The remaining sales volume is basically borne by the Huaxia brand, and the Huaxia Three Musketeers, composed of Huaxia Hongguang, Huaxia Guangguang and Huaxia QQ, continue to dominate the mini car market.

As the first product designed for urban and rural consumption upgrading in China, Huaxia Hongguang continues to maintain a hot sales situation in the market, with monthly sales continuing to exceed 20,000 units, becoming a veritable big brother product of Huaxia Automobile. The annual sales volume exceeded 250,000 units, showing that this product designed after in-depth research on Chinese urban and rural consumers is very in line with the needs of the domestic market and has been unanimously supported by the majority of consumers.

As for the evergreen tree on which Huaxia Automobile and even Zhonghua Group relied to make a fortune, Huaxia Light is still active in the vast urban and rural markets and has become a hard currency for carrying people and goods. Many cars are bought for more than 30,000 yuan, and they can still be sold for close to 30,000 yuan after two years of driving.

Affected by the high growth of the domestic economy again, many people bought cheap and multi-purpose Huaxia Light as a business partner, so that its sales increased compared to last year. In the context of the announcement of the discontinuation of the second-generation Huaxia Light, the third-generation Huaxia Light achieved a proud result of 180,000 units.

On the other hand, Huaxia QQ, monthly sales remained unchanged compared with last year, and in the case of growth in many models, it belongs to the representative of retreating if the boat does not advance against the current, in fact, the sales volume should have declined. This is mainly because its own small cars "Song" and "Ming" once diverted the market of QQ to a certain extent, and even Huaxia Hongguang also had an impact on QQ. QQ completed the task of 98,000 vehicles in the whole year, which is not outstanding, but compared with competitors Chevrolet Spark and Chery "Rarity", it is still far ahead.

From the relatively cold reception of QQ, it can be seen to a certain extent that Chinese consumers have a higher pursuit of automobiles, and the entry-level A00 sedan is becoming more and more disregarded.

In addition, about 40,000 units of micro-truck Huaxia Rongguang and Huaxia pickup trucks were sold, and the Huaxia brand contributed a total of 568,000 units in sales, which was temporarily inferior compared with the Zhonghua brand.

Finally, the newly acquired Yaxing Bus, with the help of Zhonghua Group, completed the sales of 10,100 units after winning large bus orders one after another, achieving the company's best results since 2000. There is also the merger and acquisition of Hunan Torch to obtain the heavy truck business, because it is still in the integration stage, Shaanxi Automobile and Hongyan operate according to inertia, and the total sales volume of 29,000 units has been obtained, which has not contributed much to the overall sales of the group.

The overall sales volume of Zhonghua Group of 1.4 million has achieved absolute suppression of the three old state-owned enterprises such as FAW, SAIC and Dongfeng, and Zhonghua Group has become the only domestic car company giant with more than one million. If we add in the 260,000 foreign sales contributed by the export markets of Russia, India, Europe, Southeast Asia and other parts of the world, Chunghwa Group will achieve the best result in history of 1.66 million units, far ahead of its major domestic competitors.

In the automobile business alone, Zhonghua Group achieved sales revenue of 115 billion yuan, higher than the overall revenue of the group last year, and achieved a net profit of 13.4 billion yuan, breaking through a new high again.

As for the motorcycle business, when the Chinese motorcycle market reached 20 million units, the export volume of Chunghwa Group's motorcycle segment exceeded 2.8 million units, and the domestic sales volume also reached a new high of 4.21 million units.

Chunghwa Group continued to occupy a one-third share of domestic motorcycles with unshakable results, and the export volume increased significantly, and began to export excess capacity abroad.

In addition, in the electric two-wheeled vehicle market, electric vehicles are constantly catching up with motorcycles, and the national sales of electric two-wheeled vehicles exceeded 10 million units in 2005. It has truly formed a pattern with Chinese characteristics in which urban people ride electric two-wheeled vehicles, while rural people ride gasoline motorcycles.

Huaxia brand electric two-wheeled vehicles entered the market early, and are at the forefront of battery technology, with a more terrifying market share than motorcycles, reaching a share of 42%. In other words, Huaxia electric two-wheelers have completed sales of 4.2 million units, accounting for almost half of the country in this field.

Combining the gasoline motorcycle and two-wheeled electric vehicle businesses, Chunghwa Group's motorcycle segment has become increasingly strong, with a huge sales revenue of 37 billion yuan and a profit of 2.2 billion yuan.

If the two major businesses are combined, the overall revenue of China Group will reach 152 billion yuan and the net profit will reach 15.6 billion yuan, which can be called one of the giants of Chinese mainland enterprises.

According to the 2005 National Top 500 Industrial Ranking, China Group entered the top 10 as it wished, ranking 10th, squeezing CCB out of the list, even if it entered the world's top 500, there is no doubt that it is worthy of the title of the first private enterprise in Chinese mainland. ()

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