Chapter 568: Supply Exceeds Demand, Ice and Fire

The Yangcheng Auto Show is like a catalyst for the Huaxia Auto Market.

During the whole auto show, the business of many 4S stores was more hot than before.

By the time the show came to an end, the trend didn't look like it was going to change at all.

Normally, November is not the peak season for car sales.

Gold nine silver ten is.

But November, which is only 30 days old, is already about to surpass the two elder brothers.

"Big brother, the business of this 4S store is making money too quickly, and now our Mercedes-Benz, BMW, Porsche and Xingchen automobile products basically have no discounts, and they sell very well."

"Even the small-displacement models of Modu Volkswagen and Spring City Volkswagen are in short supply because of the purchase tax incentives."

"The whole market is showing unprecedented heat."

"I estimate that after the November sales data comes out in two days, it will surprise everyone."

"It is likely that sales in November this year will be more than 50% of the same period last year, and it is possible that some models will even double directly."

Guo Shufu is in charge of Huaqiang Group's 4S store business, which is now one of the largest dealers in South China, with dozens of 4S stores of more than a dozen car brands.

They also have a very say in the sales of various brands of cars.

At least in the South China market, their opinions are invaluable.

The most important thing is that it didn't seem to be a very high-end business, but now it has become very profitable.

Especially now there is no discount on the terminal, and some models can only be picked up after some boutiques are selected, which makes the profitability of the 4S store better.

Even for Huaqiang Group, the business of the 4S store is now the bulk of the profit.

For example, in the parts business, the annual profit margin is relatively fixed, and there will not be a particularly large gap.

"The current market situation is indeed much better than everyone imagined."

"Even at the beginning of the year, everyone didn't expect that this year's market would be so good."

"It's also a great thing for us."

Guo Shuyin's mood is also very good.

Huaqiang Group is now preparing for listing, and is expected to become the largest parts company in South China except for Nanshan Group.

This is something he would not have dared to imagine ten years ago.

"Yes, fortunately, we began to follow the pace of Nanshan Group last year and started several new hot stamping production lines."

"Otherwise, we will not be able to supply parts for some models."

For the current OEMs, when the sales situation is very good, which supplier drops the chain, it will definitely be beaten.

Guo Shufu doesn't want his company to have an accident because of supply problems.

"You will personally visit each OEM next month and communicate with their sales department."

"What should be expressed means don't be reluctant to spend money."

"When the production capacity of the main engine factory is limited, sending us an extra car can make us an extra 10,000 yuan, or even more."

"In this case, other 4S stores must also be looking for ways to increase the number of their own car pick-ups."

Many people have always felt that it is the deepest water to engage in procurement.

But Guo Shuyin knew that in the automobile company, the water in the sales department was deeper.

Not to mention anything else, this year alone, their company has sent out more than 5 million.

Next, if the models in the 4S store are still in short supply, in order to let the main engine factory give itself more cars, it is estimated that another 5 million will be spent in a short period of time.

Of course, when the money is spent, Guo Shuyin doesn't feel distressed.

After all, the flowers are worth the money.

"No problem, I'll arrange a business trip starting tomorrow, and it should be the peak sales season before the Spring Festival, so I can fight for more vehicles to come back."

Guo Shufu is in charge of this business, so he naturally has no opinion on this.

It seems that there are still more than two months left for me, but in fact, it is very nervous.

After all, he has more than a dozen OEMs to visit, and visiting an OEM is not done in a day.

Tonight, you made an appointment with someone who was in charge of Yangcheng's sales tour for dinner, tomorrow night with someone's manager for dinner, and the day after tomorrow with someone's director.

If the relationship is seduced, you can also make an appointment with the vice president in charge of sales.

These people's time is not necessarily as long as you want.

Basically, if it's not a coincidence, it will take a week for an OEM to get it done.

Sometimes, you even have to run from place to place.

Dinner with people in the imperial capital tonight, fly to the magic capital tomorrow morning, do the first half with customers in the magic capital that night and then do the second half, and then fly back to the imperial capital during the day the next day.

Because there's another game waiting for you to socialize at night.

This kind of work is actually very testing.

Comrades who are not tested by alcohol are often unbearable.

Guo Shufu's belly is much bigger than a few years ago.

I can't see my brother when I urinate.

……

1 December 2009.

It's the first day of the month again.

BYD took the lead in announcing its own sales volume, and its sales exceeded 30,000 units in March, reaching 30,043 units.

Other models also performed well, with a historic 51,113 units sold in the month.

This figure is almost double that of the same period last year.

The cumulative sales volume in January ~ November also reached 400,000, and it successfully entered the first echelon.

According to the rule that the better the results, the higher the enthusiasm for releasing sales information, BYD's official Weibo naturally couldn't wait to release the good news as soon as it passed 0:00 on the 1st.

It seems that the young lady in charge of the operation officer micro has been working overtime for a long time.

"Lao Wu, the next important task of the sales department is to stabilize this sales, I don't require you to continue to grow in a short period of time, as long as it can stabilize around 50,000 units per month, then this result is qualified in the next three years."

Wang Fu is in a very good mood now.

Monthly sales of 50,000 units.

This is a number that he could not have imagined before, but now he has done it.

Even Yangcheng Honda and Yangcheng Toyota have not yet achieved this number.

In the entire Lingnan Province, BYD's sales this month are definitely the champions!

Even compared with Chery, Geely, and Great Wall, the monthly data is still slightly advantageous.

If it weren't for their sales in the first half of the year being higher than BYD's, it is estimated that BYD would be able to hit the sales champion of its own brand this year.

It can be said that the counterattack was perfectly realized.

Of course, he also knows that behind this counterattack, there must be a certain amount of moisture in it.

It does not mean that we can continue to increase sales on this basis in the future.

That's why he gave instructions to Wu Huabi like that.

"Mr. Wang, now that all models are selling well, and the preferential margin has begun to pull back, can we consider reducing the rebate to the 4S store? This also increases our profit margins. ”

Although BYD's sales are good, the profit margin is not very good.

Especially the F3, the best-selling one, earns thousands of dollars for a car.

To exaggerate, BYD sold 50,000 cars, and it didn't make as much money as Xingchen Automobile sold 2,000 cars.

That's why Wu Huabao made such a proposal.

"We have to make the 4S shop able to make money, so that they can be motivated to sell cars."

"Now is an important moment to stabilize sales, don't easily move the dealer policy, otherwise no one knows what the consequences will be."

Wang Fu is not a greedy person.

Although he also hopes that the company's yield can get better, if it is a way to quench his thirst, he will definitely not support it.

The consequences of that would be unbearable.

The boss said so, Wu Huabiu naturally won't come hard.

Even for him, this is the most desirable outcome.

In the future, he does not need to bear the pressure of profitability.

As long as the sales are stabilized.

However, the popularity of BYD F3 sales has also formed a strong stimulating effect for many car companies.

Great Wall Motors, which has always wanted to become the No. 1 in the independent brand industry, is discussing this matter at this time.

"Mr. Wang, judging from the current market situation, although the growth rate of SUVs has been very fast, sedans still occupy the most important market."

"I think it is necessary for the company to develop a few more sedan products to enrich the product line."

"For example, BYD, people have achieved monthly sales of 30,000 units with F3 alone."

"If we have two best-selling sedans, then this month's sales can easily exceed 50,000 units."

It's not that Lian Furong doesn't agree with the company's strategy of vigorously developing SUV models, he just doesn't feel the need to hang himself on an SUV.

The car can also be very fragrant.

BYD is the best example of this.

Geely Automobile also has cars that sell more than 10,000 cars a month.

Great Wall Motors has no reason to wield a knife from the palace.

"From the perspective of the R&D center, there is no problem in developing sedans."

"As long as there are products with SUV models, we can develop basic sedans on this basis."

"Among them, the powertrain and chassis can be shared, and all kinds of equipment can basically be shared, mainly by redesigning some of the body and interior and exterior parts."

Zhu Jianbo, as the director of the R&D center of Great Wall Motors, naturally expressed his opinions on R&D at this time.

For him now, developing a few more sedans is nothing particularly difficult.

But when the time comes to calculate the grades, it can indeed be much richer.

So he's inclined to support it.

However, he also knew what Wang Ying's point of view was, so after simply expressing his opinion, he didn't say anything.

"The market for sedans is very wide, and I naturally know this."

"Not only BYD's F3 sells very well, Yangcheng Honda's Accord, Yangcheng Toyota's Camry, and Xifeng Nissan's Teana, which car does not sell more than 10,000 per month?"

"There are also Chevrolet's Cruze, don't look at the Kaiyue, Volkswagen Lavida, all of them have good sales."

"But we must be fully aware of one point, for Great Wall Motors, the probability of achieving an SUV is much higher than that of a sedan."

"We launch an SUV model, as long as the appearance is passable, the price is right, basically the sales are not much worse, and there is no need to worry about the project losing money."

"But what about the sedan?"

"Which of you is confident that the car project will not lose money?"

Wang Ying scared Lian Furong to death with a word.

For the same basic SUV and sedan, the difference in production cost is very small, but the price difference is one or two thousand, or even thirty or forty thousand.

This alone makes the advantages of SUVs very obvious.

Especially for independent brands with relatively low yields, this is even more important.

In addition, the joint venture giants have a long layout in the field of sedans, and the product line is much richer than that of SUVs, and consumers' recognition of these products is also relatively high.

To compete with others in this market, the difficulty is obviously more than one level.

These things, stimulated by the news that F3 sales exceeded 30,000 units, were selectively ignored by Lian Furong.

"Mr. Wang, the difficulty of the sedan project is indeed higher than that of the SUV, but the market space of the sedan project is actually larger than that of the SUV."

"Many Chinese people buy cars and think that SUVs and hatchbacks without butts are not cars."

"In this case, our Great Wall Motor's products, in the eyes of many consumers, do not belong to their consideration at all."

"I think it's not good for us."

What Lian Furong said is not nonsense, but objective facts.

Chinese consumers are so "simple" that they feel that a car without a butt is "not a car".

Especially in the vast rural areas, the acceptance of hatchbacks is very low.

For example, if you buy a Fit or Polo back, it is estimated that many people will laugh at you behind your back.

This situation will slowly change after at least a few more years.

As an OEM, you know that this view of consumers is problematic, but you have to consider the positioning plan of the new model in light of the actual ideas of consumers.

Otherwise, you'll end up with failure.

"Judging from the situation in the past few years, the unswerving SUV strategy has enabled me to achieve a significant increase in sales."

"Now we have formed an SUV route with H6 as the main and H5 and H8 as the auxiliary."

"Soon the H2 and H3 models will be launched, and the H1 and H5 models are also in development."

"As long as we do it well, even if we only sell SUV models, we can become the champion of Huaxia's own brand."

Wang Ying's attitude is still very resolute.

Although she is also very envious of the monthly sales of 30,000 yuan, she is also looking forward to a certain SUV of the Great Wall can also achieve such a data.

But her views don't change easily.

It has proven to be a successful path, so why adjust it because of some practices of others?

Of course, Wang Ying did not criticize Lian Furong.

After all, when people make such a proposal, they also consider it from the company's standpoint.

If this will be criticized, then it is likely that no one will be willing to speak out in the future.

This is certainly not good for the development of Great Wall Motors.

It's just that not every car company can have a clear understanding like Great Wall Motors.

Yangcheng Automobile Group, which has enjoyed the sweetness of the sedan from the Trumpchi S, finally made a huge decision internally when it saw the news that BYD F3 became the champion of Huaxia bicycle sales in November.

"Mr. Zhang, we already have two cars about to go on the market, and now we will start the development of three cars in one go, and then we will have from A00 class cars, economic cars, intermediate cars, mid-to-high-end cars to high-end cars, is this step a bit big?"

Zeng Quanta naturally hopes that Yangcheng Trumpchi's sales can create a new record.

Otherwise, he wouldn't have worked actively day and night.

But now that so many new models have been launched in one go, and many of them are still sedans, he is still under a lot of pressure.

To develop a model, even if it is to copy the appearance of other car companies, it will require at least seven or eight billion, or even more than a billion yuan, before a product can come out.

But if the sales are very bad at that time, then the money will basically be wasted.

This is definitely a very hurtful thing for Yangcheng Trumpchi.

The point is that now they have to make several cars at the same time.

Previously, the layout of Yangcheng Trumpchi's sedan was already ahead of the curve compared with car companies such as Great Wall and Changan.

Now if there are a few more cars, it will really be an all-round sedan for all kinds.

It's not that Zeng Guangda doesn't have confidence in Yangcheng Trumpchi, but based on some past experience, it is inferred that at least half of these projects are going to fail.

And some other uncertain projects are likely to not make money.

Could it be that Yangcheng Trumpchi will really rely on the profits of Yangcheng Toyota and Yangcheng Honda in the future?

That's not a good reputation.

"BYD's car-making history is not much longer than ours, their F3 can be successful, and the F6 is also selling very well, there is no reason why we can't do it."

"In the future, these projects will be given to people and money to be paid, even if they can't get the results of F3 in the end, there should always be a monthly sales of 10,000 or 5,000 a month, right?"

When Zhang Jiaqi said this, Zeng Guangda didn't know how to refute it.

The official level crushed people to death.

This is not nonsense.

Thinking about making Yangcheng Trumpchi bigger and stronger is good for yourself.

If the final project really fails, and you have raised objections in the past, you don't need to worry about becoming a backbiter.

After figuring these things out, Zeng Quanta didn't bother.

However, in the Huaxia automotive industry, not everyone is not entangled.

For example, Strauss is in a particularly bad mood now, and he is also more entangled in the next steps to be taken by Audi.

"Vondel, the data has been counted, Audi sold only 4,982 units in November, not even 5,000 units."

"Not to mention the increase in this data, it is still a few units short of half of what it was in November last year."

"And this is still an appropriate increase in the sales data after some preferential amounts, otherwise it may be even worse."

Strauss doesn't pretend now, and directly shows the most real situation in front of Vondel.

Otherwise, he would have to figure out how to cover it up and explain it.

Now it's just rotten, but there is not so much pressure.

Or rather, at this time, the pressure has been passed on to Vondel's side.

"Judging from the sales data of various OEMs that have been released so far, the sales of many car companies in November have increased sharply year-on-year, and some have even doubled."

"In this case, Audi's sales have been cut in half, which is absolutely unacceptable."

Vondel's face was dark, and he was in a very bad mood.

"The sales of the Audi brand have declined, but the sales of the Volkswagen brand have achieved a year-on-year increase of 20%, and the overall sales volume has increased."

Strauss didn't explain, but Vonder became even more angry when he explained.

Because Volkswagen's sales have actually been dragged down.

According to the overall situation of the industry, it is reasonable that the sales volume of the Volkswagen brand in November should increase by more than 50% year-on-year.

Now it's only a 20% increase, which is a figure worth celebrating in the past, but compared to other masters, it seems a bit inadequate.

"Strauss, it's okay to fool the people at the headquarters with this statement, but you don't need to say it in front of me."

"If Audi's sales can't be reversed as soon as possible, then I'm afraid you won't be able to sit still in this position."

Vondel gave Strauss an ultimatum directly, which made Strauss's pressure even greater.

However, where there is pressure, there is motivation.

Soon, Strauss went back and began to develop a much larger promotion.

For example, the Audi A6L, which originally had a market discount of less than 20,000 yuan, has directly doubled according to the current plan.

Even some high-end configurations can directly go to the discount amount of fifty or sixty thousand.

If this preferential margin is placed in 2023, it is obviously not competitive.

At that time, when I bought a car, I didn't get a 20% discount, and I felt like I was losing money.

However, at the end of 200, in the context of the overall shortage of supply in the Huaxia automobile industry, this preferential margin is very good.

You must know that the Golf and Jetta, both produced by Chuncheng Volkswagen, are now less than 10,000 yuan, or even no discounts.

Now Audi is starting to cut prices sharply, which will make Audi's profit margins much more ugly.

But it's not a solution.

At the same time, when the first week of December has not completely passed, the China Association of Automobile Manufacturers has already released the overall sales volume for November.

Production was 1.82 million units, and sales were 1.86 million units.

Basically, one is produced and one is sold, and the overall inventory index is very low and still declining.

Such a booming industry data is absolutely unprecedented in the past.

Ten years ago, Huaxia sold 1.86 million cars a year.

Now it's been done in a month.

The most important thing is that according to this momentum, this sales record can be further broken in December.

Then the sales volume of Huaxia in 2009 is likely to break 14 million directly!

This increase is definitely very exaggerated.

It is no wonder that the China Automobile Association predicted that the 2010 car sales were 16 million units, which seems to be an exaggeration, but in fact there is no pressure at all.

After all, this increase is actually less than 20%.

At the current pace, that's totally doable.

This kind of overall supply exceeds demand, and the situation of local advantages of ice and fire should continue for a period of time in the future car market in China.

(End of chapter)