Chapter Ninety-Four: Winter is Coming

When Huaxia Hongguang announced its listing, but consumers paid the money but couldn't pick up the car, the winter of the automotive industry was quietly coming.

I thought that after the Lunar New Year in 2004, China's auto market would usher in a wave of rapid growth, but I did not expect that under the national macroeconomic control measures, the economic cooling will increase, the future development expectations are uncertain, and the consumer sentiment of holding currency to buy is rising, coupled with the rise in international oil prices, the car seems to be unsellable overnight.

China's auto industry, which has never been worried about selling, has entered a situation where the mountains are covered by heavy snow. For the vast majority of manufacturers, it is a freezing period, and only a few manufacturers have found the only hot springs to spend the winter in the ice and snow.

If even a giant like Volkswagen is so cold that he shiveres, then the new army who only entered the automobile industry with great fanfare last year still feels cold to the bone marrow after wearing layers of cotton clothes.

In an Oaks 4S store in a provincial capital, only 3 orders have been sold in a month, which is still the result of huge discounts. The main engine factory frantically pressed the goods, and the capital chain of the 4S store was very tight, so it had to be traded at a loss of 3,000 yuan per SUV.

Why do you still have to do a loss-making business 4S store?

The first is to return the funds as soon as possible.

The car is depreciating every day in the warehouse, the overall car market environment is not good, and the domestic SUV has started a fierce price war.

The Oaks SUV "Original Power" was priced at 73,800 yuan, but the manufacturer saw that the market sales were not good, and applied the price reduction method of the home appliance industry to try to use big promotions to win back popularity. Less than 30 days after the listing, the official announced that the hurricane action had come with a price cut of 3,000 yuan, which made 4S store investors miserable.

The manufacturer bears half of the cost of the price reduction, and the other half is lost to the 4S store investor, and the car is not sold and loses 1,500 yuan.

The capital chain of the 4S store is basically as follows, mortgage the vehicle's certificate to the bank, use the bank's loan to the main engine factory to pick up the car, and then the consumer pays and then redeems the vehicle certificate to the bank to complete a capital flow. Investors in 4S shops have to bear the interest on the loan, sell the car one day earlier, and reduce the loan cost by one day.

The second is to hope to return to the cost in the purchase of jewelry.

Selling a car loses 3,000 yuan, but if consumers buy car film, they may be able to earn back 1,500 yuan. Explosion-proof sunscreen film is basically a must-have for every car, and the price of 2,000 yuan of car film plus the cost of manual purchase is not more than 500 yuan. In addition, footpads, pillowcases, perfumes, leather seats, reversing radars and other accessories are more profitable than you imagined, and 100% income is not a lie. Relying on these, the 4S store may not be able to return 500-1000 yuan.

"Never use your speculation to evaluate the purchase cost of a 4S store, the difference is enough to scare your jaw. ”

A salesperson at a 4S store said so frankly.

The third is to focus on the future and hope to earn back in the after-sales of vehicles.

Automobiles are sophisticated industrial complexes, especially related to personal safety, and require regular maintenance and repair. 4S shops rely on maintenance and parts sales, and can earn back the money from selling cars, and this part of the net profit is at least 40%.

In addition, 4S stores will sign cooperation agreements with insurance companies, and they can get a commission rebate of 15-20% after selling insurance.

Relying on these, the 4S store can earn back 1000-2000 yuan.

Fourth, it is to complete the manufacturer's task and obtain the manufacturer's rebate at the end of the year. In order to expand market share, OEMs will set sales targets for each 4S store. If it is completed, it will reward the 4S store with a 2%-10% price difference in the form of rebates at the end of the year.

Suffering the tragic situation of selling cars at a loss, I thought that the automobile industry was making money day by day, but I didn't expect to encounter a cold winter just after investing, which made the investors of Oaks 4S store miserable.

"I blamed myself for being fascinated for a while, and listened to the advice of others to make a fortune in one year and two years, and smashed the pot and sold iron to make up 3 million to join Oaks Automobile. I thought that their air conditioners were selling well, and they claimed to have invested more than 4 billion yuan to enter the automobile industry, but I didn't expect consumers to buy it at all!"

Oakes' investors privately vented their bitterness on their old friends.

"In the same automobile city, the China Automobile 4S store orders no less than 90 cars every month, and the people who ordered the cars are crazy to queue up. We Chinese have this bad habit, see others lining up and follow themselves, and when buying a car, we will swarm to buy what sales are high.

Isn't it that FAW Toyota's Corolla is officially listed, and a group of people can't afford to buy Corolla, so they all go to sell Zhonghua 'Qin'! The funniest thing is that the 4S store also provides free rebranding, a set of Toyota Bull Head Label down, and all that comes out are Corolla!"

After a few glasses of wine, the investor poured out all the grumbling.

Now in the whole automobile city, the best business is the Chinese brand, followed by Guangqi Honda, followed by SAIC-GM and Shouqi Hyundai. The rest are in a half-dead situation, and even FAW Toyota, which just announced the launch of the Corolla, is not much better.

You must know that with the successful case of Guangqi Honda in the past, Toyota is a better Japanese manufacturer than Honda, Corolla - Crown - Ruizhi, a complete set of combination punches, how much sales should it bring. Therefore, FAW Toyota's 4S store dealership competition does not know how much sword and sword shadow it contains.

In Guangfu City, the capital of Nanyue Province, the base camp of Japanese sales, FAW Toyota has approved 14 4S stores, and it is said that the public relations expenses of each store manufacturer are not less than 10 million. These 14 are already the result of cutting and cutting, and there are forces behind them that cannot be offended. With so many competitors located in the same city, it is basically equal to the situation where three monks have no water to drink, and no one can drink enough, and the biggest winner is the main engine factory.

After the Chinese New Year, the highly anticipated Toyota Corolla was officially unveiled in China, and as Toyota's most successful model, the Corolla gave all investors great expectations.

17.5-203,800, 1.8L Corolla retook the road of Weichi's high-priced listing.

Toyota has once again shown great self-confidence, and it seems that the sales of the Vios have not met expectations and have not reminded them how to integrate into the Chinese market.

"Even the imitation of the Corolla can sell so well, as a genuine product made by Toyota, it will definitely sell very well. ”

At the discretion of Toyota's new marketing director, the Corolla was set to be launched at a high price.

Although FAW Toyota is a joint venture, the Japanese side is determined in terms of pricing, and FAW's main suggestion is not adopted.

The price was 30,000 yuan higher than expected, but the dealer still accepted the fact that the Corolla was listed at a high price and was preparing to welcome customers who came to consult.

Unexpectedly, an article comparing domestic corollas and sales of corollas in Taiwan caused an uproar on the Internet, and the article listed the obvious simplification of domestic corollas in a detailed way of graphic comparison: the vehicle stability system VSC, electronic auxiliary power steering EMPS and other configurations were canceled, and the price was 3-40,000 yuan more expensive than the Taiwanese sales version.

The conclusion of the article is clear, and it is clear that there are obvious corners cut in the domestic corolla, and there is also price discrimination against mainland consumers.

The target group of Corolla belongs to the middle and high income people in China, who are very sensitive to information on the Internet, and they encountered a public opinion sniper as soon as they were listed, which made the high-priced Corolla fail to usher in a good start.

It was a premeditated sniper operation, and the article immediately circulated on the Internet, and it was also on many other media platforms.

Who exactly planned this operation?

The suspicion is obvious among the direct opponents after the Corolla is listed, GM Excelle, Hyundai Elantra, Volkswagen Bora, etc., and even Zhonghua Automobile cannot rule out suspicion.

There is no way to know the truth of the matter, but the biggest beneficiary of the Corolla after its listing turned out to be the "Qin", which has been looked down upon, and the sales of "Qin" continued to soar.

Objectively speaking, the target group of "Qin" and "Qin" are not in the same range, and consumers who are willing to spend nearly 200,000 to buy Corolla will not look at "Qin" in their early 100,000s, and the users who really make "Qin" skyrocket are those who originally planned to buy other brand models in their early 100,000s.

In the market, "Qin" is called a small flower crown, and Vios has been excluded, which makes "Qin" more popular, and sales have also risen.

In the cold winter of the auto market, China Automobile is one of the few companies that has found a hot spring to spend the winter in the ice and snow.

The owner of the Zhonghua 4S store, who is located in the same automobile city as Oaks, smiled very happily during this time. When the neighbors swatted flies and no customers entered, the Zhonghua 4S store still maintained a state of full customers, and the sales of "Qin" and "Tang" were not affected in any way.

"Being a brand agent is similar to reincarnation, as soon as you are born, it determines whether you will be rich or hard in this life. I was lucky enough to go from Huaxia Motorcycle to Huaxia Automobile, and then co-founded as an agent for Zhongxia Automobile. Now that the cost of investing in building a store has been basically recovered, it will be the harvest season from now on. ”

The owner of the Zhonghua 4S store felt that he could have today, and the most correct move was to follow the right person, and with the footsteps of Zhonghua Group, he himself made a lot of money.

In fact, in the same automobile city, everyone's external conditions are the same, the service is similar, the only gap is the brand represented.

The vehicles produced by the brand are cost-effective and meet the appetite of the market, and even a dog can sell the car. If the vehicle doesn't work, the ace salesman has to sigh the northwest wind every month.

At the time of the cold winter in the domestic auto industry, the foreign consulting company Roland Berger took the lead in announcing that the Chinese auto market has entered a stage of overcapacity. They analyzed that the current vehicle production capacity of China's automotive industry is about 8 million vehicles, and the production capacity under construction is 2.2 million vehicles, and the cumulative completion will exceed the 10.2 million mark. In addition, a large number of companies have announced their entry into the automotive industry, and the existing manufacturers have announced the expansion of production capacity, and the production capacity that is being invested in these companies has reached nearly 10 million units.

In 2003, China's automobile sales exceeded 4 million, and the market is expected to reach 10 million by 2010.

Subsequently, Goldman Sachs and Citibank also voiced their voices, agreeing with the assertion that China's auto production is overproduced and that macroeconomic control is inevitable.

Within the State Council, there is also a debate about whether China has overproduced automobiles.

Before, the macro control put the automobile industry in a hurry, but I didn't expect that after a period of time, the automobile industry appeared unsalable.

"Automobile projects have been launched in various places, especially the car industry, which is desperately expanding, and the planned production capacity has far exceeded the demand of our country, and the automotive industry must be regulated as soon as possible. Especially for private enterprises entering the automotive industry, they must close the door and raise the threshold, and now the SUV market below 100,000 yuan is rotten, which is the evil result of their swarm of influx. ”

Some people advocate macro-control of the automobile industry, and cannot let go of the projects in various places, resulting in a waste of resources.

"Our country has not yet entered the automobile society, and now the one-size-fits-all regulation is not conducive to the healthy development of the automobile industry. We should look at the current market situation rationally. On the one hand, the self-owned brand SUVs below 100,000 yuan just mentioned cannot be sold, and on the other hand, brand cars such as Zhonghua, Guangben, and Hyundai are still in short supply.

If you want to talk about excess, I think it's a structural excess.

On the one hand, the products of individual enterprises continue to sell well, and the phenomenon of queuing up to increase prices still exists. On the other hand, a considerable number of enterprises are unsalable, and their inventories have increased significantly, so they are forced to start a price war.

Therefore, we need to work together through the two hands of the government and the market. With one hand, we must raise the market access threshold, let really powerful enterprises come in, and control new production capacity. On the other hand, it is necessary to speed up the restructuring of the existing automobile industry, encourage mergers and acquisitions, and clean up ineffective production capacity.

Only by combining both hands can we solve the current problem of structural excess. ”

This is the view of the other side, who advocate that regulation is OK, but the brakes should be applied to the brakes, not the brakes.

Foreign consulting companies warn that China has overproduction of automobiles, which has some truth, but it cannot be fully believed. China's affairs should be viewed from the perspective of development, and it is necessary to seek truth from facts, and if the automobile has not yet entered ordinary households on a large scale, if it is a one-size-fits-all restriction, it may be the Chinese economy that will be hurt in the end.

Eventually, the leaders embraced the latter view and decided to continue to encourage the development of the automotive industry and bring it to every household. However, local regulation and control should still be implemented to create a good development environment for the automotive industry.