Car prices or deceleration in China, multinational brands struggle to push new products expand the market

Posted on 8/3/2015 3:09:28 PM

In the first half of this year, China's auto sales growth rate dropped significantly over the previous year. China's automobile market downturn, which have allowed many domestic car prices miserable. At the same time, as the world's largest auto market, China's automobile market dismal performance, also affected by the major multinational car firms. For this reason, multinational giants have taken a number of initiatives to reduce the impact on its sales performance in the Chinese automobile market.
Domestic auto market downturn caught multinational car firms
Volkswagen, Toyota and GM, have recently launched the world's first half 2015 sales data terminal. Although look at the numbers, China's automobile market in the doldrums yet to cross-car prices caused massive unrest and hurt, but China's auto market demand retraction of these giants still feel the bursts of cool.
According to Volkswagen Group's latest quarterly earnings in the first half 2015, the Volkswagen Group sold 5.039 million global delivery, compared with 5.066 million in the first half of year 2014 fell 0.5%. At the same time, the public in the first half of this year fell by 3.9% year on year to 1.74 million shipments in mainland China and Hong Kong, which is the public since 2005 to reduce the internal Chinese market for the first time six months to ship. Heizmann and CEO of Volkswagen Group (China) CEO said in a statement, the public market in China is facing "new normal", China is a key market, the Volkswagen Group, Volkswagen's goal is to maintain long-term quality growth.
In stark contrast is the Toyota. In the first half of this year, although retail sales of Toyota's 5.022 million, down 1.5 percent, and won the first years of global sales ceded the public, but Toyota's sluggish performance is very eye-catching Chinese automobile market. The first half of 2015, Toyota's new vehicle retail sales in China accumulated 512,800, an increase of 10.1%.
GM first half of 2015 places 4.861 million global retail sales volume ranked third, 4.922 million compared to the first half of 2014, down 1.2%. Although the first half of GM sales in China reached 1.72 million, a record high, but the growth rate was only 4.4%, much lower than last year.
In addition, according to the latest official Ford second quarter and first half of the North American market, financial data, Ford second-quarter net profit rose 44%, refresh since 2000 record earnings. But Ford's China sales of 543,488 in the first half, only be achieved with the same period in 2014 basically the same level; Ford China sales of 83,506 in June, down 3% compared with June 2014.
Hyundai Motor Company recently released bulletin also showed that the first half of 2015, total Hyundai sales and gross operating profit fell 1.4 percent year on year and 17.1% in the second quarter, 24% of its profits and even suffered a sharp decline. Among them, 1--6 months, Hyundai Motor sold a total of 513,784 in China, fell 8.5%. The company's sales in China last decline, dates back to the second half of 2007.
A number of initiatives to reduce the impact
Effect of slow growth caused by the Chinese automobile market for the major multinational car firms have moves to deal with. In addition to timely adjust marketing plan in China, the major multinational car firms have plans to introduce more new vehicles in the Chinese market, to use extensive product line covers a wider range of markets. At the same time, these multinational giants are actively layout markets outside of China, in order to tap more considerable potential in emerging markets.
Coordinating marketing relationship
For the first half of the automobile market of the "new normal," and some multinational car firms start to adjust the production and marketing plan. In the first half of this year, to reduce the BMW dealer inventory and financial pressure, the BMW dealer to take a "combined" type of support policies, including lowering the dealer shipments in the second quarter; optimization Dealer assessment system; improving internal processes, accelerate dealer rebates and reimbursement aspects; development service to help dealers, used car and financial services and other new businesses; launch more cost-effective models to improve product competitiveness dealers. At present, BMW's dealer inventory dropped to an average of 1.5 months of age, it has been lower than the industry average.
BMW China seems to give distributors such a comprehensive and effective support and form a sustainable business model, it is to achieve critical users, dealers and manufacturers to win long-term goals.
Rich product line
To seize more market segments, cross-car prices are constantly increasing new product launch efforts. For example, in a recent Changchun Qi Bohui, many multinational car firms have brought a wealth of participating models. According to current statistics Qi Bohui organizing committee, international and joint venture brands accounted for 64.5% of the total exhibition area of the previous record high; Mercedes-Benz, Volkswagen and other car companies for the first time the brand Museum of standalone package. "Despite the current downturn in the Chinese economy, but we have full confidence in this market." Participate in the Changchun Qi Bohui Subaru Motor (China) Co., Ltd. Cao Xuejun, deputy general manager, he said.
Recently, the Volkswagen Group has formalized its "economy car" project, the new brand will eventually be "FAW - Volkswagen joint venture sub-brand" in the form of land in China. Reportedly, the brands of cars priced between 55,000 to 76,000 yuan, will include SUV, sedan and hatchback models such as MPV. In addition, Renault has recently released its Kwid mini crossover vehicle, priced at about 29,000 yuan to 39,000 yuan, is expected in the second half put the Indian market and will sold to Iran, Russia, Brazil and China and other markets. It is understood, Fiat, Peugeot and other multinational car firms also have plans to launch a low-cost car market in China.
Open up more new markets
General Motors recently announced its five-year investment plan in Brazil amount to double to meet with Chinese SAIC to develop plans for a new series of Chevrolet cars. General Motors CEO Dan Amman said GM will be in the next few years to invest $ 5 billion, and SAIC to develop the Chevrolet brand in a new series, a total of six models, including compact cars and SUV, the new models are expected to be played in 2019 Market-oriented sales.
It is worth mentioning that this general plan is not limited to the Chinese market. Plan shows the future of the project will be sold to the new car in Brazil, India, Mexico and other emerging markets. Dan Oman said that through this effort, GM hopes to use its scale to outperform their competitors, it is expected to promote the growth of global vehicle sales over the next 15 years.
With Iran agreed to a long-term halt its nuclear program in exchange for the West to lift its economic sanctions, many multinational car firms have brainer, intended to seize the market. Peugeot Citroen first to announce it will cooperate with Iran to establish a joint venture car prices; Renault Group and Volkswagen also actively plan, desire to enter the Iranian market. Headquartered in Hamburg, Germany, chairman of the consulting firm Germela Thomas Wolfensberger said: "The major auto giants are eager to enter Iran on the automotive industry is concerned, this is the last big emerging market."

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