Chapter 0343 - Reduced Sales
For the world automobile market in the eighties and nineties of the twentieth century, the European and American markets were the most competitive and largest automobile markets, and the rest, whether it was the Japanese and Korean markets or the booming Chinese market, could not be compared with the European and American markets.
Especially in the U.S. market, is the best opportunity for major automobile manufacturers to preach, as long as they can gain a firm foothold in the U.S. market, then for consolidating their market position, it is definitely of great benefit, South Korea's Hyundai Motor, the island country's Toyota Motor, all rely on the success of the U.S. market, and the rapid rise, become a force that cannot be ignored in the world auto market.
The domestic automobile market has not yet fully developed, the cake is so big, Santana's introduction project, Zhou Jingming has paid a lot of effort, he does not want to compete for the market, and let this project go down the drain, Santana's price reduction is inevitable, Zhou Jingming will never fight a price war in China, before the domestic automobile industry is not strong enough to compete with Europe and the United States, the best way for major domestic automobile manufacturers is to keep warm, not cannibalism.
Since the domestic market does not allow Tianming Automobile to develop further, the best strategy is to go out and compete for the super cake of the European and American markets.
For foreign car manufacturers, Zhou Jingming is not so soft-hearted, whether it is a price war or a technology war, Zhou Jingming has the confidence to wrestle with them.
Of course, this is only an expectation of Zhou Jingming's development strategy, at present, Tianming Automobile does not have the energy to enter the European and American markets, and the most important thing is to stabilize the domestic market.
And on the other side, SAIC Volkswagen.
Since entering 1988, SAIC Volkswagen's life is not easy, Shencheng side, the release of the Phoenix brand car, quickly seized the car market that originally belonged to Santana, and the company's strategy to enter the northern market, is also because of the release of the Hongqi Dongfeng sedan, and greatly affected, can be described as the back of the enemy.
The new market has not been developed, and the base camp is also full of crises, in this context, SAIC Volkswagen can no longer sit still, and immediately called Xu Guanglu to the company's headquarters.
"In January this year, our Santana's share in the private car consumer market fell sharply, and the sales of 4S stores in Shencheng, Jinling and Nanjing-Hangzhou fell by more than 40% year-on-year. Xu Guanglu sat there and reported with a solemn face.
From the moment he learned that Zhou Jingming wanted to build his own car, Xu Guanglu expected that there would be such a day, but the popularity of the Phoenix brand sedan by the market still shocked Xu Guanglu, and consumers' pursuit of this car far exceeded the enthusiasm of Santana when it was on sale.
However, Xu Guanglu can understand the choice of consumers, the price is only half of Santana, and the configuration of the gearbox and engine is far better than that of Santana.
"That's a drop of 40 percent?" Yu Ping, vice president of SAIC Volkswagen, was shocked, "Didn't you say that the supply of Phoenix cars in a month is only 100 units? Why did the sales of the three places drop so much?"
Xu Guanglu smiled bitterly, "Although only the supply of 100 units goes to the private car consumer market, many people would rather wait in line for the supply of the next batch of Phoenix cars than buy our Santana." ”
This is the most terrible place for the Phoenix brand car, the production and supply are not available, but there is still a large amount of demand waiting, if it is not for the production capacity of Tianming Automobile there, this is particularly like the hunger marketing of Xiaomi in later generations.
"Okay, I also know the specific situation, I called you here today mainly to discuss with you about the price reduction of the car. Yu Ping breathed a sigh of relief, "Lao Xu, you know the most about the production situation of the factory, tell me, if you take a price reduction, how much can the maximum price reduction be?"
Originally, Volkswagen of Germany resolutely disagreed with the measure of price reduction, after all, Santana has only been listed in China for three years, and the price has been reduced once during this period, and now it will continue to reduce prices, which is not conducive to the protection of shareholders' rights and interests.
However, after figuring out the current competition situation in Shencheng, the German side could only agree to take price reduction measures.
"In terms of the procurement of parts, the engine accounts for the majority, especially now we are gradually replacing the carburetor engine with an electronically injected engine, the cost can not be reduced for a while, the gearbox and the front and rear axles, but the cost can be compressed, plus our factory has engaged in science and technology during this period of time, and the production has increased at the same time, the cost of people has also been reduced. Xu Guanglu paused, and silently calculated in his heart,
"If you add it all up, after the price reduction, the price of a Santana will be less than 100,000 yuan!"
"100,000 yuan...... That car was reduced by about 20,000 yuan?" Yu Ping frowned slightly, such a downgrade is a bit too big, I'm afraid that the ministry will not agree!
"I know that compared to the current price, the price reduction is a bit large, but even so, we still have to earn, and the increase in sales will also make up for the loss caused by the price reduction. Xu Guanglu said earnestly.
He knows Zhou Jingming's ability too well, if Zhou Jingming doesn't miss the old feelings and takes this opportunity to expand production capacity, Santana can only rely on government orders to make a living, and the private car consumer market will be taken away by Phoenix cars!
"I will talk to the leaders about the price reduction, and your OEMs will try to reduce the cost as much as possible. Yu Ping nodded, he didn't know the advantages of the Phoenix car, if it weren't for the aura of a state-owned factory, Santana would almost not be able to compare with the Phoenix car.
The proposal was quickly approved by SAIC Volkswagen's board of directors and officially announced on February 20. The price reduction has reached the standard of 21,000 per car, and after the price reduction, each Santana only needs 98,000 yuan to drive home.
Santana's price reduction has brought immediate results, and the originally deserted Santana 4S store has become lively again, and the number of people who come to buy cars has increased all of a sudden.
Those who were waiting in line to buy a Phoenix car, there are also many people who chose to give up waiting and buy Santana cars instead, although Santana is not as good as Phoenix cars in terms of performance, but after all, it has German blood, and in the case of similar prices, there are many consumers who still value the origin of the vehicle.
In this way, Santana also quickly regained a part of the market share, and the competition between Phoenix sedan and Santana has also begun to enter a white-hot stage.
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