Chapter Eighty-Eight: Official Price Reduction

"If we don't spend a penny from the state, why can't we build cars? If we lose money, it's all our own factory money, and if we make it, we can increase tax revenue for the state!"

At the State Planning Commission, Niu Dawei of the Huaxia factory got into an argument with a female staff member for some reason. Pen × fun × Pavilion www. biquge。 info He accompanied Han Hao to the capital to run relations, and begged his grandfather to tell his grandmother every day to hand over the materials for approval, and realized the depth of the water in the yamen of the capital.

The Huaxia Mitsubishi project needs to submit various materials for review by government departments, and while public relations is private, formal channels are still going through the process.

"Your project needs to use the country's foreign exchange reserves, but also related to the layout of the national automobile strategy, of course, through our unified coordination and arrangement!

In this process, Niu Dawei has already submitted materials three times, but each time he was called back by the other party for lack of materials, no wonder he couldn't hold back the anger in his heart.

This scene happened to be seen by Hu Yiming, he beckoned Niu Dawei to give him the materials, and then said to the female staff member cordially.

"Xiao Fang, accept the materials first, I have already said hello to Director Hao. It is not easy for local comrades to come here, so it is good to make up for the missing parts in the future. ”

For the sake of Hu Yiming's face, the female staff members reluctantly accepted the materials, and the State Development Planning Commission is in charge of the examination and approval power of major national projects, and the people who usually come into contact with local officials at all levels have long since developed a posture of looking above the top.

The Huaxia plant project was not greeted by the senior leaders within the Planning Commission, so it was not welcomed by the staff when it started the process.

The same starting time for the project waiting for approval, others have already applied for the third round, and the Huaxia factory is still stuck in the middle of the first round. The State Development Planning Commission's internal discretion is too large, and it does not disclose its business processes, so the projects that have a relationship have the green light all the way to the queue, and those that have nothing to do have to queue up slowly.

Fortunately, the Zhehai Provincial Government stepped up its public relations efforts, and Liu Shizhao, secretary of the provincial party committee, made a special phone call to the responsible comrades of the State Planning Commission, and Executive Vice Governor Zhou Tiannan went to the capital to supervise the war, and the Huaxia Mitsubishi project came to the table of the decision-making level of the Planning Commission.

In the surrounding provinces have launched automobile projects, Zhejiang Province now has the hope of Huaxia factory, the province began to vigorously support its development, of course, this is inseparable from the vigorous promotion of Haizhou City, after all, the city has smashed a lot of funds into it.

With the high-level of the provincial government coming forward, the project of Huaxia Factory once saw the light of day. Although there is a slight surplus of micro-surface projects in the country, the surplus is aimed at the fact that the production capacity of the state-designated production enterprises is not at full capacity, for example, the production capacity of Changhe micro-surface only accounts for about half of the design standard. Although the micro-passenger market has ushered in great development, for state-owned enterprises that invest in 50,000 production scales, the annual market of 148,000 vehicles is still insufficient. However, considering the actual situation in Zhehai Province, developed private enterprises do have a huge market demand for micro-cars. Moreover, considering the balance of local governments, the surrounding provinces all have automobile projects, and the micro-cooperation project reported by Zhehai Province is actually not very important. The 50,000 micro-faces and the 50,000 cars are completely different in nature, and although there is internal controversy, the project is expected to be approved in principle by the State Planning Commission with the guarantee of the Zhejiang provincial government.

In order to make the project pass the examination smoothly, Han Hao even prepared a joint venture plan with the local government, turning the Huaxia Automobile project into a joint enterprise with state-owned capital, and diluting his identity as a private enterprise, so as to eliminate the worries of the national authorities about the private nature. If the project is brought back again, Haizhou City and Zhehai Province will invest in land and cash, and the management power is in the hands of Han Hao, but the new enterprise will have a certain number of state-owned shares. Now the main difficulty of the Huaxia Mitsubishi project is that it is stuck in the identity of a private enterprise to make cars, and if there is a state-owned capital background guarantee, then it will not encounter such great resistance.

The micro-noodle project here finally ushered in hope, and Han Hao also left the capital to return to Hushan, because the motorcycle market once again set off a price war.

The price of 90CC engines has dropped from 2,800 yuan per unit to more than 1,000 yuan, and a small private factory in Suwu Province even made a 90CC motorcycle vehicle of 2,200 yuan on the market. You must know that a year ago, the price of 90CC vehicles was at least 6,000 yuan, and now the ultra-low price of 2,200 yuan has greatly impacted the entire motorcycle market.

Originally, 1.8 million motorcycles were sold last year, so just after the New Year, the national motorcycle market continued to usher in a fierce price war. In the first two years, there was a swarm of motorcycle projects, and now it has finally reached the stage of bayonets. Price reduction promotion is the best means of competition, first some small factories play the price card, and then Jialing, light riding these giants can not stand up to add in, the overall price of the motorcycle market fell by 10% again, further squeezing the original capital chain on the tight major manufacturers.

In such a fierce market competition, Huaxia Motorcycle was inevitably passively involved in the price war. In China, price reduction is the most ideal means of promotion, which is directly related to the lack of money in the pockets of Chinese people. Although Huaxia Motorcycle has won a certain reputation, with the price reduction and squeezing of imported motorcycles all the way, and the homogenization of other domestic brand motorcycles on the market at low prices, the sales volume of Huaxia Factory began to decline. This does not bode well, as the Huaxia plant's motorcycle production capacity has been greatly increased this year, and it is expected that the annual output may reach 600,000 units. If the product is unsalable, it means that the profitability of Huaxia factory will drop greatly.

"Other manufacturers of motorcycles look exactly like you, they only sell for 5,000 yuan, you sell for 9,000 yuan, imported for only 12,000 yuan, you give me a reason to buy your Huaxia motorcycle?"

Consumers will always shop around, with the increase of similar competitive products, the call for Huaxia motorcycle price reduction is also increasing. Not only the customer demanded, but also the dealer also demanded a lower price, otherwise the market share was robbed by others.

Han Hao has been busy in the capital for a long time, has been running for the car project, but when he came back to his senses, he didn't expect that the motorcycle market had undergone earth-shaking changes, and too many competitors were fighting too fiercely.

Huaxia factory has a low-cost advantage by virtue of its own technology, but in order to maintain its brand image, it is impossible to reduce the price too much at once. It is a good thing to fight a price war to a certain extent, it is easy to expand market share, but it is easy to overdraft profits if you keep fighting, and you cannot develop sustainably and healthily. It is not easy to build the Huaxia brand into a high-end domestic motorcycle brand, and if it falls to the same price as other small factories, then it will no longer be able to recover its status. It is necessary to ensure that the motorcycles of the Huaxia brand have a technical generation gap with other domestic brands and have their own unique high-tech functions in order to maintain the status of high-end brands.

Unfortunately, the electric injection engine jointly developed with AVL has not been completed, the ABS electronic auxiliary braking system has not been implemented, and the front and rear disc brake systems have not been tested.

First, it is too careless, thinking that Huaxia Factory has no direct competitors in China and has not studied market trends; second, it does not have enough understanding of the entire motorcycle market and does not carry out scientific planning for product launch. If you can introduce advanced equipment features at this time, such as EFI, disc brakes, ABS, etc., any of them, customers will be willing to pay more for them.

At the beginning, Huaxia Motorcycle was able to quickly gain a firm foothold, thanks to its outstanding appearance and high cost performance, but now the cost performance has declined, and customers naturally have a psychological price point in their hearts. For example, they don't pay the same price as imported motorcycles to buy domestic Huaxia motorcycles. The price of Huaxia brand motorcycles should be 30% lower than that of imported cars, which is the conclusion reached by Han Hao entrusted to the dealers after full investigation.

Domestic goods are not as good as imported goods, which Han Hao himself admits that the gap between the two is not something that can catch up in a moment. However, things will continue to develop in the future, and benchmarking imported goods is one of the goals of Huaxia Factory.

In this context, Huaxia Factory celebrated the launch of the 600,000th motorcycle and opened the prelude to the official price reduction promotion. The original 9,800 yuan motorcycle suddenly dropped to 8,888 yuan, which also gave a gift package worth 600 yuan, a price reduction of more than 15% to reach the psychological expectation of the Chinese people.

After making a price reduction strategy, Han Hao knew that the good times of making more than one billion yuan last year were gone, and the profit of Huaxia Factory this year may be reduced by 40%. Because according to market research estimates, the theme of this year's motorcycle market is to reduce prices, until a large number of manufacturers are eliminated.

Once the price reduction news was announced, the sales of the Huaxia brand finally stopped the downward trend and began to rebound steadily. There are more than 200 motorcycle manufacturers in the national directory, and there are countless OEM catalog manufacturers, and even three no product enterprises, the motorcycle market is in so many manufacturers of competition, the market is sliding towards the collapse step by step.

For this reason, Han Hao has strengthened his determination to enter the automotive field, which has a higher threshold than the motorcycle field, and there are not so many opponents competing together. Although there are hundreds of large and small automobile manufacturers in China, most of which are transformation factories, and there are less than 20 companies that really have market influence, compared with motorcycles, it is still a blue ocean of competition.

Especially now the U.S. market often exceeds 10 million car sales, and now China is only 1.42 million, the same vast territory, more large population, in contrast to China's auto market in the future can be expected.

It is necessary to enter the automotive field when the foreign auto giants have not completed the carve up of the domestic market, and take advantage of the development of the Chinese auto market to complete the initial accumulation, otherwise it will be even more difficult to enter the automotive field in the future.

In Han Hao's expectation, the State Development Planning Commission preliminarily approved the approval of the Huaxia Mitsubishi project and submitted the project to the leaders of the State Council for approval.

Not surprisingly, next month, the Huaxia plant will be able to officially introduce Mitsubishi Motors' technology and equipment, taking a step into the automotive field.