Car prices in China "enclosure movement" luxury cars have declined location

Posted on 1/19/2015 5:49:49 PM

As the world's largest car consumer, China's auto market has gone though the explosive growth, but still the focus of major car firms compete. 2014, in this "enclosure movement", no car prices slack, have resorted to every means to try to win more "land."
In order to lose ground in the fierce competition in a variety of different brands have different options.
Lift capacity plant
Although China's auto market in recent years, there have been "excess capacity" worries, dealers also generally face greater pressure on the stock, but the 2014 car prices in the construction, expansion of voice never stopped.
Last August 18, Shanghai GM Shenyang Beisheng base three projects into production; October 18, Dongfeng Nissan to build a 28-month yield Dalian plant was officially put into operation. In addition, in 2014, there are a number of car companies announced new plant construction and plant expansion plans: June 18, Guangqi Fiat factory in Guangzhou formal foundation, the first will be put into three new Jeep models; July 7, FAW-Volkswagen announced the establishment of the east, north, two new production base in Qingdao, Tianjin; October 16, DPCA fourth factory in Chengdu foundation.
Rich product line
Car buyers increasingly diversified demand for cars, for car prices, the two cars will be able to conquer the world by a situation of long gone, car prices in the market segments increasingly intense competition. In 2014, the major brands by introducing new models to seize new "hill" for their product lines contribute.
SUV car prices naturally will not give up a share of the new SUV in 2014 many have sprung up. Many brands on the basis of existing SUV models have played "small SUV + compact SUV" a combination of boxing, supplemented by large SUV to meet the greater demand. "Hover H3, H6, H9" "Do Keangkela, Ang Kewei, Kore" "Changan CS35, CS75", etc. are very representative of the portfolio. Some had no SUV product brands have launched new SUV to embrace the market.
Section 2014 also used car prices of new energy vehicles to enter the field of household consumption and a new energy policy and frequent positive environment for a new energy product releases. Although the new energy vehicles will take time away from universal coverage, but it contributed to the emergence of further segmentation of the trend of automotive products, but also the innovative concept of car consumption.
Dropping three, four market
As the automotive consumer has a characteristic wave-pass, that as the economy develops, automobile consumption hot spots to have a gradient levels, sub-wave approach gradually shifted from the high level of consumption of the low consumption level city to city, so with the rapid development of the automotive market over the years, three or four markets in the past two years, gradually replacing the secondary market has become the main force of market growth, market position in the increasingly important car prices also developing a strategic the three, four markets as the focus of expansion.
Chang'an Ford, for example, last June 19, Ford's 88 dealers concentrate opened earlier trade outlets opened a third of non-distributed in the Midwest a second-tier cities; at the same time, Changan Ford China's total dealer network to reach 750, of which about 75% of the layout in four, five or six-tier cities. Dealer network to dropping small city, will meet the needs of more consumers buy.
Depth localization
In the luxury brand market competition, Mercedes-Benz, BMW, Audi earned after domestic market share for all to see, other luxury brands in 2014 have also begun to make a big fuss in the localization.
Last October 21, the Land Rover Range Rover SUV Aurora's first domestic factory in Changshu offline; last November, with the listing of the new XC60, Volvo has increased to three domestic models; a few days later, Dongfeng Infiniti's first domestically Q50L models also listed on the Guangzhou auto show before.
Also in 2014, Acura announced it would achieve domestically in 2016, DS announced that at least one domestic car next year, Renault also in terms of product preparation, layout and other dealers are ready for localization.

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