Although Audi is the leader in the domestic luxury car market, it has always followed the shadow of BMW. In 2001, FAW Audi sold 27,800 vehicles, becoming a well-deserved king, and the ultra-high premium made the joint venture make a lot of money.

However, China BMW also reaped 17,200 sales, and reasonable pricing made BMW the first choice for many young rich people who are most interested in individual life. In particular, the launch of the low-power BM320 version further lowered the price, and the price of 354,800 yuan became the first choice for entry-level luxury cars.

Since its establishment, under the strong promotion of Han Hao, BMW has completed the procurement plan with a domestic production rate of 42%, successfully avoided being levied high punitive tariffs, and greatly reduced production costs.

At the same time, the Zhonghua BMW joint venture announced a high-profile profit of 300 million, once again realizing the miraculous performance of "making a profit in the year of production" in the Chinese market.

Since the production line of Zhonghua BMW uses the original production line of Zhonghua Car, the two parties have not invested much in fixed investment, and the localization process has accelerated, and the joint venture has achieved its profit target in the first fiscal year.

If it weren't for the shortage of engines and transmissions from Germany, the annual sales volume is expected to exceed 20,000 units, and now the Zhonghua BMW 4S store still has 4,500 orders in hand to deliver in the future.

Originally, BMW expected to be mentally prepared to suffer losses within five years, but it did not expect that the Chinese market was the place where miracles occurred, and it achieved profitability in the first year, and there were quite a few of them. When the joint venture was established, Goldman Sachs analyzed that China BMW would lose at least 200 million yuan in the first year, but the reality gave analysts a resounding slap.

"I can finally return to Munich with my head up and receive applause, and the excellent results of BMW China have exceeded everyone's expectations, including me, of course!"

As a representative of the German side of the joint venture, Paison yelled excitedly.

After several years of unremitting efforts, this German, who has a special affection for China, finally found the next fertile ground for BMW.

"Don't forget to go back with the mission, and let the stubborn old men know that the most benefits can be obtained after the localization of core components such as engines and transmissions. BMW shouldn't keep its head held high all the time, and kiss the ground under its feet to reap more blessings. ”

Honda, Volkswagen, and GM have all established engine plants in China, and BMW must localize its core components in China if it wants to grow in the long run.

Therefore, Han Hao asked Paisen to further strive for in-depth cooperation with the German headquarters.

"It's a real problem, and Munich won't say yes, because all BMW engines in the world are produced in Germany. Now the seats, lights, spark plugs, wipers, instrument panels, etc. have been domestic parts within a year, which is already unconventional for BMW. ”

Regarding Han Hao's request, Paison was not very optimistic.

"In terms of body and chassis, at least next year to achieve the goal of localization, this is my bottom line that cannot be regressed. Baosteel ThyssenKrupp joint venture is about to put into trial production, we don't need to import too many CKD body parts, and the products produced in China are cheaper!"

If according to Han Hao's requirements for the localization of engines and transmissions, the ultra-cost-effective BMW will beat Audi to the point of being powerless. But this is clearly just wishful thinking on his part, and although the Chinese market is magical, BMW sales are still at a low level.

"But it's an indisputable fact that imported parts are more reliable. At present, the experience of Chinese workers is still lacking, and many precision parts cannot be produced up to standard. In order to ensure BMW's quality and reputation, it is understandable to be safe. After all, it is produced in Germany, and it must be a high-quality product!"

As a German, Paissen has a strong sense of self-confidence in his country.

Despite Germany's defeat in World War II, the Germans soon re-established themselves as a new economic power from the ashes, especially after the fall of the Berlin Wall, when East and West Germany were unified, and Germany ushered in a golden decade of rapid development. On the territory of the European continent, in addition to Britain and France, Germany has gradually become a voice that cannot be ignored.

Coming to the East, the people of this ancient country are very diligent and hardworking, but the accumulation of education and experience inheritance make it impossible for the Chinese to reach the height of German craftsmen for a while.

Based on this understanding, Paison said the above.

"I admit that there is a gap but it is because we lack the opportunity to prove ourselves. It doesn't matter, time will prove what I said, Chinese products are not only cheap, but also of excellent quality! Maybe one day, China will become the savior of consumers all over the world, but wherever the Chinese appear, the product will be cabbage price. ”

Han Hao said humorously.

After Paison returned to China, he reported Han Hao's proposal, but as expected, it was rejected.

"The Chinese market is still in the initial stage of car consumption, and it has not yet reached the level of popularity for luxury cars like BMW. Paisson, you're doing a great job in China, and I hope you can focus more on market development and not worry about the impossible. There is only one BMW engine plant in the world, and that is in Germany!"

Due to the good performance of BMW this year, the sales target for 2002 was set at 22,000 units, one year earlier than the previous target of breaking 20,000 units in three years.

Compared with the joint venture China BMW, the motorcycle performance of the entire China Group is bleaker.

In 2001, the national motorcycle sales reached a new high, reaching 12.13 million units, and 2.87 million motorcycles were exported.

The sales volume of Huaxia motorcycles exceeded 2.2 million, of which 520,000 were exported to Southeast Asia, Europe, South America, the Middle East and other countries, becoming a well-deserved hegemon in the domestic motorcycle industry.

However, China's motorcycle production and sales have been hovering at the early 11 million for 3 years, the growth rate has slowed down significantly, the price of domestic large and small motorcycle brands has been warned, and corporate profits have been declining year by year.

Huaxia Motorcycle's profit on a single vehicle has also dropped to 320 yuan per vehicle, a decrease of nearly 6 times compared with the industry's profit of 2,000 yuan in 1996. Compared with domestic manufacturers, less than 200 yuan of industry profits, Huaxia motorcycle life is quite comfortable.

Jialing Group, the second in the industry, sold 810,000 vehicles, and the third place was Qianjiang Motorcycle, which sold 760,000 units, but it fell 20% compared with last year, and was closely followed by the fourth place Lifan Motorcycle with 700,000 units.

Thanks to the consumption tax reform led by Huaxia Motorcycle, the small and medium-sized motorcycles have been reduced from 10% to 3%, and many companies can still eat although they are struggling to live.

After deducting various necessary costs, although 2.2 million motorcycles were sold, accounting for one-sixth of domestic sales, and sales reached a record high of 9.4 billion, the net profit of Huaxia Motorcycle was only 470 million.

Jialing, the second in the industry, has a profit of 60 million, Qianjiang Motorcycle 160 million, and Lifan 190 million.

In addition, in terms of electric motorcycles, major cities have banned gasoline motorcycles on the road, but they have turned a blind eye to electric motorcycles, and the lack of management departments has led to electric motorcycles blooming everywhere overnight in cities where motorcycles are banned.

As the earliest and largest manufacturer of electric motorcycles in China, Huaxia Electric Motorcycles achieved 680,000 units in 2001, an increase of 680% over last year, and electric motorcycles entered a stage of explosive growth.

The profit of a single vehicle exceeded that of Huaxia gasoline motorcycles, reaching 420 yuan per vehicle, becoming a new source of profit for the motorcycle sector, with a sales revenue of 2.4 billion yuan and a profit of 280 million yuan.

Thanks to the sudden rise of electric motorcycles, Huaxia's motorcycle sector has stopped its decline and opened a new profit growth point.

Compared with the single-digit profits of gasoline motorcycles, double-digit electric motorcycles are bound to attract many companies to enter, and the future development trend is very likely to repeat the footsteps of excessive competition of gasoline motorcycles.

As for the field of agricultural vehicles, Huaxia agricultural vehicles suffered from the impact of the general environmental downturn, did not complete the set target of 600,000, and only completed the sales of 520,000 units, ranking second in the market. On the other hand, the sales volume of traditional giant Shifeng agricultural vehicles rose steadily to 610,000, continuing to maintain the first place in the market.

Since Huaxia Agricultural Vehicle only launched three-wheeled motorcycle products, and was not involved in four-wheeled agricultural vehicles, the amount of difference with Shifeng Group was lost in the four-wheeled agricultural body.

Agricultural vehicles are very regional products, the basic sales are concentrated in North China, Central China and Northeast China, these years the agricultural vehicle market in other parts of the country is not enough, sales have been declining.

Originally, Han Hao optimistically estimated that agricultural vehicles would usher in a sales peak, but he did not expect that under the attack of micro-surfaces, micro-goods and light trucks, the agricultural vehicle market began to shrink. From 3.2 million units sold nationwide in 1999, to 3.08 million in 2000, and then to 2.8 million this year, there is a significant downward trend.

Huaxia agricultural vehicles from last year's profit of 4.54 million, to this year's profit of 28.6 million, it seems that the profit growth rate is obvious, but due to the fierce price war with the trend, the profit of the bicycle is very limited. After paying the state tax, the net profit is relatively only enough to drink porridge.

520,000 sales brought in revenue of 2.5 billion, but the net profit was only 28.6 million, and the agricultural vehicle business became a piece of chicken ribs that were tasteless and discarded. [.]