Chapter 6 The Stone of Other Mountains
The hot sales momentum of Zhonghua Group's products in the sedan and SUV markets has not slowed down, and its monthly sales even exceeded that of SAIC Volkswagen and FAW-Volkswagen combined.
You must know that with the strong influence of Santana, Jetta, Polo, Bora and Passat models, Volkswagen has always been the leader in the sedan market.
But now its monopoly has been broken by the Zhonghua Group, which has joined forces to outsell the Volkswagen brand in the sedan segment (SUVs are usually counted as pan-sedans).
If in the past, the Chunghwa Group was still a low-end car manufacturer, but now with its efforts in the lucrative pan-sedan segment, it has begun to seriously threaten Volkswagen's market position in China. If the Huaxia brand is taken into account, Zhonghua Group has grown into an independent brand that cannot be ignored in China in just three years.
Spring River Plumbing Duck Prophet!
As SAIC Volkswagen, the most successful joint venture in China's automotive industry, the Chinese delegates were the first to feel the aggressive arrogance of the Chung Hwa Group. They knew that if they didn't do anything, SAIC Volkswagen would face a strong competitor in the future.
In the previous analysis of benchmarking companies, joint venture brands such as Honda, Toyota, Peugeot and Hyundai, which are thriving in the Chinese market, are the targets that SAIC Volkswagen has been focusing on. Because in addition to the Chinese market, they are competitors to the public in the global field.
But at today's meeting, they had to put Zhonghua Group in the first place as a benchmark company, because the Volkswagen brand, which originally occupied the top spot in domestic sales, was squeezed into second place. Although Volkswagen is still able to dominate the ranks in terms of profit margins, it is an indisputable fact that it has been beaten in terms of sales.
If left unchecked, no one can know what the future market will be.
"It can be seen from the star product 'Qin' of Zhonghua Group that they deliberately staggered the competition range with the joint venture brand, and used the level dislocation competition tactics to win the market range of 100,000 yuan.
The price of the POLO is similar to that of the Qin, and now that the A0 class of the same category is added, the price of the Polo is expected to be even more under pressure in the future.
In addition, Santana is also obviously squeezed by 'Qin', and many consumers who land within 150,000 have set their sights on 'Qin', or the misplaced SUV 'Tang'.
These performances prove that even if we do not list Chung Wah Group as a competitor, their products have actually threatened the sales of our products. ”
Shili Yangchang has always produced many outstanding foreign compradors, who have proved to a certain extent that Chinese can actually do well in business with a good platform.
The Chinese head of the marketing department of SAIC Volkswagen analyzed at the company's joint meeting.
Such a joint meeting was attended by representatives of the Chinese and German sides, who analyzed and discussed the future market strategy.
The reason why Volkswagen is so dominant in the Chinese joint venture is that the localization is very good, and most of the things are delegated to the Chinese representatives, except for the German representatives in important positions.
"According to our estimates, sooner or later, Zhonghua Group will have to develop upward, which is the only way for every enterprising brand.
The deadline for the launch of the B-segment is approaching, and once they succeed in launching the B-segment, they will be in direct competition with our Volkswagen brand. At the current pace, they will be one of our biggest potential competitors!"
He said these words to the German delegates who were present at the meeting, and the purpose was to make the German personnel aware of the danger of the China Group.
"In order to deal with such a situation as soon as possible, I suggest that we continue to sink the product and compete directly with Zhonghua Group in the corresponding models!
First, we can expand our product line and further expand sales. Second, we can stifle the momentum of the rapid development of the Zhonghua Group and prevent them from completing sufficient accumulation in a short period of time. The third is to deal with the future brand melee in advance, and the joint venture brand is now on top, and sooner or later it will have to face the battle in person.
You must know that Huaqiangbei's copycat mobile phone, every component can easily find a supplier in a nearby factory, as long as you find someone to splice it together, it can become a fully functional mobile phone. This has given many Chinese independent brand mobile phones the opportunity to grow, and they can enter the mobile phone field without much threshold.
Although the Nokia, Motorola and Samsung joint venture brands have struggled to maintain their premium status, they have also had to lower the bar further in the face of the flood of Chinese phones, launching high-quality and affordable phones to cater to the market.
This is the case with mobile phones, and the automotive industry is likely to have the same day in the future!"
With the position of China's world factory becoming more and more stable, Shanzhai mobile phones have begun to march to all over the world, and the low-end mobile phone industry has become the world of Chinese mobile phones.
Industries with relatively high technical difficulties, such as automobiles, are likely to have a much lower threshold in the future, prompting many companies to easily enter, forming another round of copycat shockwaves.
The Chinese representative who spoke made a speech used the example of a mobile phone to hope that the public would realize the special features of the Chinese market as soon as possible and realize the local layout in advance.
Seeing that everyone in the room was looking at him, the head of the German representative knew that it was his turn to speak.
"We are also aware of the rapid rise of the Chung Wah Group, which may be a difficult competitor in the future.
As for the expansion of the product line, we have already made some moves at our headquarters in Germany, and the SAIC Volkswagen Y project is a concrete example. The new product development of the PQ34 platform of Project Y is underway, and it will be officially launched to the public in 2008. This is a new car development project led by local Chinese engineers, and it is expected to achieve good results.
When Project Y achieves practical results, I believe that the German headquarters will put more resources into China to give you more surprises. ”
SAIC Volkswagen must obey the Volkswagen Group's global strategy, and the Chinese market is special, but it cannot afford to receive more special treatment.
After the Skoda brand is confirmed to enter China, it will take on the task of competing in the lower price range, and is actually the main force of the Volkswagen Group to benchmark domestic independent brands.
In the face of China's request for Volkswagen to release more low-priced products, the German representative could only use Project Y as a shield.
"In the future, the Skoda brand will enter China, and it will take on the responsibility of guarding the low-end market of the Volkswagen Group.
As for the Chung Wah Group, I admit that they are very good opponents, but with the introduction of more models by the Volkswagen Group in the future, I believe that we will still maintain a sufficient advantage in the automotive field.
Here, I can tell you that Volkswagen will soon launch new SUV products to compete with other brands in the compact SUV market and bridge the product line gap. ”
The German representatives' top priority was the profits of the joint venture, and the main goal this year is to make the financial statements look better after the Volkswagen brand's profits in China fell sharply last year.
As for the threat of the Chung Hwa Group, although Volkswagen attaches great importance to it, it does not want to sacrifice profits and disrupt its own product deployment to deal with it.
The meeting ended unhappily, with the German side continuing to reject China's request for more support for the localization of models and technologies. Although they work with the Chinese, they have a firm grip on technology transfer, preventing any opportunity for Chinese partners to emerge.
"The Germans are too confident, they don't believe that the Chunghwa Group is a sufficient threat to Volkswagen. Anyway, I am in my own position, and I am worthy of my professional ethics.
In a few years, it is estimated that the Germans will definitely regret letting the monster of the Zhonghua Group grow. Every car they launch is a hit product, and it will be difficult to curb it when it gets bigger!"
After the meeting, the Chinese representative who spoke just now was full of emotion to his colleagues, and everyone could see that the China Group was gaining momentum, but he could not come up with practical countermeasures.
"Look at your hatred of iron and steel, now SAIC is sending elite soldiers to Roewe, its own brand, do you want to consider it?
Relying on outsiders to help you can't rely on it after all, you still have to rely on yourself.
If we can build up the Roewe brand and directly go against the Zhonghua Group, it will be enough to wipe them out in the initial state!"
Seeing this, the colleague next to him replied with a smile.
"Roewe is ready to start with the B-segment, after all, the model information of the Rover 75 is in our hands. It's just that the engine production equipment was moved away by Nanqi, and it is a big trouble to build a new production line.
At the beginning, neither of the two companies was convinced, but as a result, Rover moved half of their homes, and they both suffered dumb losses!
Our SAIC family has a thick background and can withstand the toss. On the contrary, it is Nanqi who has a swollen face and is fat, Fiat is too busy to take care of itself and is unable to introduce new models to Nanqi, if their new MG car does not sell well, Nanqi will be in a deep quagmire.
Now that the momentum of the Zhonghua Group is so strong, whether it is MG or Roewe, the prospects are not good! If the two join forces, they may still have the strength to fight. ”
To be a market executive in SAIC Volkswagen is indeed extraordinary.
When SAIC and Nanqi moved home after dismembering Rover, they found that the assets in their hands were not enough to realize their dream of being their own brand as soon as possible.
According to the current progress, it will take at least 2 to 3 years for SAIC and NAIC to digest the assets obtained from Rover.
It's just that there will always be a big mountain in front of them, and the China Group will be their unavoidable nightmare.
When other peers decided that Zhonghua Group would develop and launch a B-class car, the project codenamed Z was indeed progressing in an orderly manner within the company, but the direction of development was slightly revised by Han Hao, and the first version of Z will be a pure electric new energy model.
Chinese auto brands have been lacking in appeal, and in layman's terms, the brand premium is not high, and consumers are unwilling to pay more for it.
Why is it difficult for domestic mid-level cars to break through the 150,000 curse, because the joint venture brand is stuck at the threshold, and China's B-class cars must come up with different excellent quality in order to enter this lucrative market.
In order to promote the image of the Z model, Han Hao plans to start directly from the pure electric car, at least so that consumers will feel bright when they see the product, or have a loud shouting of cool performance.
Of course, the price of the pure electric version of the Z sedan is not cheap, and Han Hao does not plan to sell a few, the most important thing is to advertise and use it to raise the brand image.
Subsequently, the gasoline version of Z followed the listing and entered the highly competitive market as an upgraded product of Zhonghua Group's upward development.
According to the progress of research and development and reasonable considerations, the 2008 Capital Olympics will be the best time to officially meet the public.
At that time, not only in China, but also with the opportunity of the Olympic Games to promote to the world, so that people around the world can know the style of pure electric cars from China.
In the field of traditional internal combustion engines, Chinese automobiles belong to the objects of catching up behind their foreign counterparts, but in the field of new energy vehicles, Chinese automobiles will take the lead in transitioning, leading the trend of the development of the times, and giving people all over the world a big surprise.
Because of the actual use of the Kunpeng T1 new energy bus, Zhonghua Group has provided many beneficial technology accumulation in the field of new energy vehicles, and the feasibility of converting from buses to cars is gradually becoming clear.
China Automotive Research Institute has set up a branch for new energy vehicles, specializing in in-depth research on lithium battery pure electric vehicles, and has also begun to carry out feasibility analysis in the field of hybrid vehicles, and has begun to build a travel tool for the next era.
Tesla's electric vehicle solution is enough to prove that it is a feasible road, and Zhonghua Group is standing on the shoulders of giants to start, and it is very likely to launch its own pure electric car one step earlier than Tesla. ()
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