2005: Years of Practice for the Automobile Dealers


Xinhua News Agency, Beijing, January 3 (Wang Wenxuan, Fan Jinghua) In the last two days of 2004, "Vios, Corolla series fell by an average of 20,000," "Sunshine series fell below 140,000," "Weiwei, Ville maximum decline of 15,000," "Chery The price cuts across the board “M6 discounts of 25,000 to 40,000 across the board...” This piece of news, such as snowflakes, has been “into” China's auto market in 2005 with the cold wind. There is another news for the “new year” of the auto market together with the “price reduction”: According to relevant state agencies, Chinese auto companies are in a situation of increasing production but not increasing revenue, and are already in the edge of the whole industry. At the time of the reunification, many car dealers who had been struggling for more than half a year had to face still more mature currency holders. Last year, at the "Saving the Auto Market" forum held in several automobile trading markets in Beijing, dealers generally believed that "cultivating internal strength" was already their first priority in the New Year, and most of the wishes for the New Year were waiting for: 2005. The price of the car has stabilized and there are still some gains. Is the car price in 2005 really stable? With this problem, during the New Year holiday, the reporter interviewed several dealers, but none of them dared to confirm or negate it, but they all said that the “price reduction” of the auto market in 2005 was still the theme. Zheng Aiguo, director of public relations for Dongfeng Motor Passenger Car Company, believes that from the perspective of tariff reductions this year and the cancellation of auto import licenses, the factors for price cuts in the domestic auto market are relatively clear. He disclosed that if Dongfeng Nissan wants to cut prices, it will certainly drop before the Spring Festival. However, Dongfeng Nissan has promised to “price reduction compensation” and will protect the interests of consumers. It can be said that in order to stabilize prices, manufacturers and distributors have tried their best, such as promising "price reduction compensation". There are also quite a few manufacturers who announce that the price of their own model is already in line with international standards and will not drop again. However, Zhang Chao, general manager of Beijing Zhonglian Automobile Trading Market, believes that the domestic price of the same model should be 5% lower than the international price, because the domestic labor price, raw material price, etc. are all lower than the international market, so far the so-called “price and international "Integration" is actually a false connection. Another important indicator that affects the 2005 car price is more concerned about the undisclosed 2004 Chinese car inventory. In order to complete the production and marketing plan that was set up at the beginning of the year, from the fourth quarter of last year, many manufacturers have "incredibly" transferred inventory to their dealers. This "pass-through" will inevitably affect the improvement of sales in 2005. Xu manager of a famous brand 4S shop near Liuliqiao in Beijing said: “In the auto market in 2004, the price is not spectrumd is a feature. This year's car price will definitely remain the same, and it will intensify even more irregularly. "Bao" has become 'grass', and it was not even thought of. The days of getting a car to make a fortune are gone forever. It is only their own mentality to take the initiative to 'stabilize' it." Analysis of Lu Jinhua, the Beijing Automobile Association, believes that The sales volume of Beijing's autos is good in terms of quantity. The key problem is that the profit rate of autos is decreasing, and the expectations of dealers are too big. In the face of inventory and repayment pressure, the days are very sad. The dealer used to operate in the store and waited for customers. This year, it is certainly not feasible to wait for another time. Dealers are faced with a new topic: how to transition from simple car sales to planned marketing. The new year has already started. Chinese car dealers who quickly ate “fat” two or three years ago have experienced a car market in 2004 and are still “consolidating” in the auto market. They must learn to practise their internal strength to meet the new requirements. Unpredictable market changes.