After Volkswagen, Hyundai - Kia cheap cars have begun to layout

Posted on 5/21/2016 3:00:52 PM

Following the popular "cheap car" program exposure, Korean brands Hyundai - Kia is also preparing to launch low-cost products in China.
"Cheap car" concept was first proposed by VW, Volkswagen plan to jointly FAW - Volkswagen to build cheap cars for the Chinese market brand (Budget Car Brand), control costs by ensuring the safety of the premise, the launch vehicle for the general public are not currently covered by the low-cost market, a wider audience, so as to enhance sales.
According to the plan, Volkswagen cheap cars will put in 2018, covering the SUV, MPV and sedan market.
Recently, NBD informed car Hyundai - Kia plans to market the next two years China launched three "cheap car", two of which in the modern brand, in a Kia brand, pricing is expected to dip to $ 100,000 or less.
Korean brand cheap cars, what is backing? Like with the public, Hyundai - Kia "cheap car" is also the first choice in the SUV segment. Intentions too obvious, Hyundai - Kia hopes to launch low-cost SUV grab market!
However, NBD car learned that Volkswagen will cheap cars and layout "joint venture brands," different, modern - Kia "cheap" SUV will retain Hyundai and Kia logo.
For ongoing "brand up" crucial and little effect of the Korean brand Hyundai - Kia is, Are they afraid of several "cheap car" further down the brand it?
"We hope that all market segments can have the product coverage." Beijing Hyundai a responsible person told reporters NBD car.
NBD car learned that foreign car prices, Hyundai - Kia sales in China is currently second only to General Motors and Volkswagen in third place. However, the market share in China in 2014 but never dropped to 10.4% in 2015 to 8.9 percent, the lowest in seven years. The first four months of this year, Beijing Hyundai and Dongfeng Yueda Kia also have suffered a 12% decline.
In the joint brand among Korean cars it has always been considered the main cost is its own brand at the "up tackling" the most common choice of standard objects.
"The traditional areas of strength in the Korean brand cars, but now share their own brand cars were taken away a lot." Federation of the Secretary-General Choi Dong-tree analysis of such cars to NBD, "Now SUV market is hot, but sales of the top many are concentrated in the SUV range of about 100,000 yuan. "
To meet the challenges from its own brand, Hyundai - Kia had to change strategy.
According to the Automobile Association statistics, in April sales, SUV sales before the three Great Wall Hover H6, Guangzhou Automobile Chi Chuan GS4, SAIC-GM-Wuling Baojun 560, NBD car learned that several owners of pin models priced at 8-11 million. Lower price does make a joint venture brand is very difficult, but the monthly sales of 25,000 -4.4 million of the results, indeed, a joint venture brand jealous.
Thus, placed in the Hyundai - Kia choice becomes clear before, let alone the general public are from. Faced with popular "cheap SUV" market, Korean cars is difficult to say no, to miss this wave of the SUV market, Hyundai - Kia cheap cars plan quickly launched.
It is reported that the Kia brand "cheap SUV" will be launched in 2018, pricing will be dropping to 10 million range, while compared to the current SUV's have a higher price.
"Our future strategy is to reach one million sales, SUV is the most important market opportunity." A market KIA official cars to NBD said, "This year we began at least a year to launch a SUV car."
But The official opinion, the introduction of more favorable SUV product does not necessarily hurt the brand. In fact, before the introduction of "cheap SUV", Dongfeng Yueda Kia will launch next year a mid-sized SUV, the "cheap SUV" on the loss of brand power, they will make it up in other products.

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