Chapter 0525 - Price War

Whether it is from the company's production and sales scale, or from the cash flow of the two companies, Tianming Automobile Company and Toyota Motor Company are not an order of magnitude, not to mention, almost every island country car manufacturer, is backed by a domestic consortium, plus Toyota Motor Company's global profits are far more than Tianming Company, want to win the price war Toyota, Kubo Jianying feels that Tianming Company has no chance of winning.

In the European and American markets, because of the developed automobile industry, the consumption psychology of car enthusiasts is also very mature, simply relying on the price advantage to seize the market, in fact, the effect is not great, mainly depends on the performance and quality of the car, which is why in the face of the aggressive offensive of the Kirin car, Toyota has no way to parry in the European and American markets, because the performance of the Kirin car is too good, in the same level of sedans, none of them can be compared!

But the Southeast Asian market is different, because the level of economic development can not be compared with the European and American markets, coupled with the development of its own automobile industry is not good, here, price is definitely the key factor that can become the market to seize the market!

The little Fuwa sedan Kubo Jianying is very well understood, the price in China is not even less than 10,000 yuan, Kubo Jianying really can't understand, how Tianming Company can control the cost to this extent, because in his opinion, the cost of an engine should not only be 10,000 yuan, right?

I thought that this little Fuwa sedan would bring such a low cost by reducing performance, but what I didn't expect was that in less than a year, this car sold more than 100,000 units in China!

Kubo Kenei would not believe that a sedan with mediocre performance could sell as many as 100,000 units in such a short period of time!

The only explanation is that this little Fuwa sedan, which is worth less than 10,000 yuan, is not as unbearable as they thought in terms of vehicle performance, and even far beyond ordinary cars!

Therefore, in the face of this time the little Fuwa sedan into the Southeast Asian market, Toyota Motor Corporation has given great importance to it, Kubo Jianying is like a big enemy, the price advantage has made them unable to parry, if the performance is still very good, it is simply adding fuel to the fire for them!

"The Southeast Asian market must not be lost! Otherwise, Tianming Automobile Company is likely to use the Southeast Asian market as a springboard to further occupy the Asian market, and when the time comes, our company will be attacked by the enemy!" As a sales elite, Kubo Jianying's market sense of smell is no worse than Xu Weidong, otherwise he would not be able to achieve the position of Southeast Asian sales director in Toyota.

The next day, Toyota's middle and senior management enlarged meeting was officially held to discuss how to deal with a series of actions by Tianming Automobile Company in the Southeast Asian market.

As the head of the Southeast Asian market, it was only natural that Kenei Kubo would be the main speaker at the conference. 1

"Ladies and gentlemen, you must all be able to see that Tianming Automobile Company is preparing for the official entry into the Southeast Asian market, once they have a firm foothold in Bangkok, they can take this opportunity to gradually encroach on the rest of the market in Thailand, until the entire Southeast Asian region, to establish their own sales network, which we have experienced in the European and American markets. ”

In the conference room, Kenei Kubo is speaking.

"Then as the sales director of Southeast Asia, do you have any good countermeasures for this matter?" a vice president of the company looked at Kubo Jianying and asked, while the rest of the people also looked at him when they heard this.

"The reason why Tianming Automobile Company chose to use the small Fuwa car to enter the Southeast Asian market, instead of using a more high-end Kirin car or Phoenix brand car, is because he is very aware of the situation in the Southeast Asian market, high-end cars in the Southeast Asian market, can not be eaten at all, and the low price of the small Fuwa car, just in line with the car buying psychology of Southeast Asian consumers, the price of a small Fuwa car, only less than half of our price, just caught our weakness!"

Kubo paused, and then continued, "So the key to market competition this time is the price!"

"So your suggestion is...... Fight a price war?" the vice president continued.

"This won't work! The price of the Xiaofuwa car is only 2,000 US dollars, and no matter how much our car costs are reduced, it cannot be said that it will be reduced to less than 2,000 US dollars, and we can't let our company operate at a loss in order to keep the Southeast Asian market!"

"That's right, I don't think the idea of a price war is advisable. Once we make this start, it is basically impossible to return to the original price, and the Southeast Asian market, which is losing money every year, I don't think it will be okay!"

"It's not realistic to want to achieve a price similar to the Xiaofuwa sedan by reducing costs, and your proposal is very difficult for our R&D department to do. ”

Before Kubo could elaborate further, many people expressed their opposition.

In the eyes of these people, the price war with the little Fuwa car, the final result is only difficult to ride a tiger, the price is sticky, it is very simple to go down, but if you want to rise back, it is simply difficult to climb to the sky, this "ratchet effect" makes many manufacturers dare not easily fight the price war, because once the price war starts, there is basically no way back.

Kenei Kubo smiled, " The price war must be fought, but the price war I am talking about, may be a little different from your understanding, because the price war I am referring to is not in the ordinary sense of fighting for the market through price reduction, the price war I am talking about, does not involve price reduction, we still maintain the original price unchanged, or in other words, under the premise of ensuring profitability, appropriately reduce the price, but it is not blindly compared with the price of the little Fuwa car, because at this point, we will never be able to compare with the little Fuwa car. ”

As soon as Kenei Kubo said this, many people were even more puzzled, if the price did not even fall, then what kind of "price war" was there to talk about?

"Aren't you talking about a loan to buy a car?" someone in the conference room soon asked, this way of buying a car, on the European market, has begun to take shape.

"That's right, it's a loan to buy a car!" Kubo Kenei nodded with a smile, "The models that our Toyota has launched in the Southeast Asian market are basically our company's entry-level sedans, with prices ranging from five thousand dollars to ten thousand dollars, while the price of the Xiaofuwa car in Bangkok is two thousand dollars, if we use the loan to buy a car,"

Kubo Jianying quickly calculated in his heart, and then continued, "For example, the down payment only needs to pay 30% of the payment, and the gap between our car and the Xiaofuwa car in terms of price will no longer exist. ”

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