In the face of the emergence of "Tang", whether it is other domestic independent brands that are struggling, or joint venture brands that are beginning to feel the pressure of the market, they all agree that China's auto market is about to usher in a moment of elimination.

Because of the combination of hardware and software, "Tang" has become a new market benchmark, which has greatly improved the aesthetic ability and purchase appetite of consumers.

What's even more terrifying is that Zhonghua Group also rumored that it would continue to produce the classic "Tang" model of the previous generation of classic "water drop ripples", and lowered the price to the range of 7-120,000 yuan, not giving other independent brands a way to live at all.

You must know that the mold cost of "Water Drop Ripple" has already been recovered, and if you continue to produce now, it is simply to produce one and earn one, even if it is sold for 50,000 yuan, it can still be profitable.

If the two generations are in the same house, it is simply a market harvester, and the sales of "Tang", which has started the dimensionality reduction attack, are expected to exceed 100,000 units in a single month.

Why is it necessary to achieve a strategy of coexistence between the old and new generations?

First, in order to cope with the market sinking pressure of the localization of joint venture brands, the market dividends will be grabbed in their own hands as much as possible. The more I get, the less you will naturally have, and you can invisibly hit your competitors.

The second is to start the reshuffle journey, there are too many Chinese car brands, and it is time to concentrate on the oligarchs.

Third, after market research, consumers still recognize the "Water Drop Ripple" model. If it goes on the market through the facelift, it is expected to maintain its competitive advantage.

The dragon-faced "Tang" is indeed very good, but the previous generation of "Tang" with water drops and ripples is not bad, at least compared with other independent brands and even joint venture brands, it still belongs to the same level.

The meaning of this sentence is that the dragon-faced "Tang" is a generation ahead of the market, but the water droplet ripple "Tang" still maintains the same level as the mainstream of the market and still has strong competitiveness.

If the strategy of two generations is still the experience that Zhonghua Group has learned from joint venture brands, especially Volkswagen and Toyota, as long as consumers recognize it, it is a normal market behavior. After all, if the price is in place, there is only one answer, which is "really fragrant".

Of course, this is only a special marketing method for a specific period of time, and it will not be around for long.

"Tang" started the classic door, so will the classic "Qin" of the sedan be far away?

Originally, it could have won a glimmer of life in a small market space, and the annual sales volume could guarantee that about 30,000 units could survive, but in the face of the dimensionality reduction blow of Zhonghua Group, the hopes of other small and medium-sized car companies were basically dashed.

Lifan Group, which used to make a fortune from the motorcycle business with Zhonghua Group, and then turned to the automobile field, finally couldn't stand it, and announced that it would withdraw from the automobile market at the end of the year, switch to the real estate market, and begin to enter the real estate blue ocean where the competition is relatively less powerful.

After a whole year of hard work in building a car, it is better to develop a real estate project to make money.

Lifan, which proposed that cars should be sold by the pound, is estimated to be proposed to sell houses by weight. What's even more amazing is that when Lifan announced its withdrawal from automobiles and real estate, the stock price actually rose and fell.

Because there are no less than 50,000 developers in China's real estate industry, Lifan Real Estate is an A-share listed company with a certain degree of competitiveness. More importantly, the real estate industry does not have a car-making giant like Chunghwa Group, which can give newcomers a lot of room to survive.

The automobile market really can't play the China Group. It is estimated that if you want to enter the automotive industry newly, don't knock on the door without 10 billion capital strength. Even if you knock on the door, you have to be prepared to lose all your money.

In such a cold winter, huddle for warmth has become the first choice for survival.

The three state-owned groups of FAW, Dongfeng and Changan Automobile formed a national team alliance, but except for the three axes at the beginning, there seems to be no movement and continue to enter a state of fighting for themselves. In the perfectly competitive automobile market, relying on the hand of the executive to integrate, in the end it is still excluded by the hand of the market.

On the contrary, Chery and JAC Automobile in Anhuai Province finally merged into one to form a new Chery JAC Automobile Group under the strong promotion of the local government.

The new company, with total assets of more than 100 billion yuan and more than 50,000 employees, will form two pillars of passenger cars and commercial vehicles, and jointly support the automobile industry in Anhuai Province.

However, the stock market is not optimistic about this, on the contrary, the listed JAC fell by more than 6% as soon as it resumed, indicating that investors are not optimistic about the future of these two weak local car companies.

The most important thing is that Chery and JAC have not had their own flagship products for many years, and compared with market benchmarks such as Zhonghua Group, they really can't find any bright spots.

Qoros, which was built with a lot of money, tried its best to get rid of its relationship with Chery, and regarded itself as an international joint venture brand, and the sales network was also rebuilt, as if there was really no Chinese ancestry.

Such a mysterious market operation is really incomprehensible.

The Chery Iron Army, which dared to fight and try its best to get on the project, has evolved into a bloated and passionate, clock-hitting monk, and outstanding talents have left one after another, no longer daring to be the first in the world.

Among the domestic brands, SAIC Motor announced the Roewe 950, Great Wall announced the H8, and Changan Automobile announced the CS35 and Yidong.

The Roewe 950 has received strong support from General Motors, and directly took the LaCrosse shell and applied it to the Roewe brand. Under pressure from such a formidable competitor as the Chunghwa Group, GM began to arm its Chinese joint venture partners, intending to confront it with localization.

As for Great Wall Motors, which survived with the H6 SUV, they also took advantage of the situation to launch the H8 model, which was upgraded by the brand. It plans to use H8 to break through the 200,000 yuan mark and obtain more abundant market space. From the perspective of the market positioning of the H8, it is similar to the medium and large SUV "Yuan" of the Chinese brand, focusing on large space and luxury and comfort.

It is hoped that in the context of the successful opening of the medium and large SUV market of domestic brands by "Yuan", H8 can be used to get a piece of the pie, and H6 is no longer the only one to support the entire company.

However, due to the limited accumulation of Great Wall Motor's technology, the H8 has only one shell for a long time, and the design of the actual car is still being improved and perfected, and the date of listing is far away.

On the contrary, the best performer is Changan Automobile, whose overseas design institute has come up with the CS35 and Yidong, two forward-developed cars, indicating that its integration of overseas design capabilities has achieved initial results. The appearance of the new car has also been recognized by some consumers, which can be said to be the return of years of sharpening a sword.

However, compared with the competing products of Zhonghua Group, all the new cars of the own brand have the biggest drawback, that is, the outdated powertrain combination. There are no automatic transmission models, no turbocharged engines, neither of these mainstream trend technologies.

In this context, even if the new car is listed, it will be directly strangled fate, because Zhonghua Group has started the dimensionality reduction attack. This blow includes five major aspects, directly targeting the weakness of other independent brands.

The first is the downgrading of the class, a typical example of which is the reduction of the compact segment to the price range of the small car segment. The most obvious is that the classic model of "Tang" has dropped to the 70,000 range, even if it is a manual transmission, it is unmatched, and what is even more powerful is that it only needs to increase by 6000 yuan to be replaced with a CVT automatic transmission.

The second is dynamic dimensionality reduction. The same price range is a 1.6L engine, while the Zhonghua Group can achieve a 1.6T turbocharged engine. Not only is the power stronger, but even the price is cheaper than the competition, which is the advantage of mastering the core technology.

The third is the generational difference and dimensionality reduction. Due to the lack of automatic transmission technology, other car companies can only provide manual transmission options, but Zhonghua Group can achieve the entry of CVT automatic transmission at the same price. You must know that there is a world-wide difference in technology between manual transmission and automatic transmission, and these are not problems for Zhonghua Group.

The fourth is service dimensionality reduction. Due to the service network of 4S stores all over the country and the advantages of large-scale production, the zero-integer ratio coefficient of Zhonghua Group's models is already the lowest in China's auto market, with an average of only 220%.

The zero integer coefficient is the percentage of the price of all installed parts of the vehicle and the sales price of the whole vehicle. Under the premise of a certain vehicle price, the higher the zero-integer ratio coefficient, the higher its maintenance cost, and vice versa, the vehicle maintenance cost is the lowest.

In the insurance association's survey of 100 family cars produced and sold in China, Huaxia Hongguang, which has led the sales volume, has a zero integer coefficient of 150%, which is the lowest among all models in China. The highest is the newly produced Mercedes-Benz GLK, with a zero-integer ratio coefficient of more than 1100%, which can be described as jaw-dropping. In other words, if you dismantle a brand new GLK and sell it as parts, the total price you get is enough to buy 11 new GLKs.

It can be seen that if you buy Zhonghua Group products, whether it is repair, maintenance and other after-sales services, the price is low, the cost of using the car is greatly reduced, and consumers are virtually saved a lot of money.

Finally, there is software dimensionality reduction.

According to the first batch of car owners, the "Hongmeng" system, which has been in the limelight recently, is very convenient to use in cars, and has a prototype of intelligent travel. Once it is used, it can no longer accept the non-interactive and non-networked car machine system, and it is difficult to feel from luxury to frugality.

In order to promote the "Hongmeng" system, all Chunghwa Group models that were newly launched or newly remodeled in May 2012 will be equipped with this system.

Even due to the mastery of the underlying core data of the vehicle, Zhonghua Group also provided the service of replacing the central control of the "Hongmeng" system for the old owners of certain models in the 4S store, and promoted the new system at cost price for a fee.

In the first 3 months alone, "Hongmeng" has achieved 200,000 sets of machines, and it is expected to break through the million mark by the end of the year.

The above-mentioned five specific dimensionality reduction attacks are not only restrained for other independent brands, but also cannot be resisted by joint venture brands.

To this end, they have accelerated the pace of simultaneous global product launches, and even made the Chinese market the first place for new products.

In particular, joint venture brands led by Toyota, the Japanese leader, are determined to support their Chinese joint venture partners, transfer old models, and send overseas engineers to help develop new models on their own, intending to rely on them to slow down the progress of the Chunghwa Group.

Unexpectedly, this ambitious plan was suddenly interrupted.