Over the years, the Chinese market surging into the luxury car brand in 2015 began to feel a chill. According to the data of various luxury brands announced in April, the Audi luxury car brand champion and runner-up BMW sales growth in China, even less than 1%. The second-tier leader in luxury car brand Jaguar Land Rover this year, sales growth is slowing.
Close to the Jaguar Land Rover believes that the company's sales decline is temporary, but the high base last year, the company's sales in China nearly two months the chain has increased considerably, clear look at other brands.
"Securities Daily" correspondent noted that Jaguar Land Rover was substituted to become the leader of the second-tier luxury car brand Cadillac April sales were to drop 43.99 percent, followed by Volvo sales were in April is only 112 more. April sales of the traditional off-season, the stock market continued hot, mainstream car brand markdowns multiple factors led directly to the luxury brand car sales fell collective.
Faced with a tough market environment, Jaguar Land Rover has the initiative to cut auto sales performance goals, according to the new sales plan, Jaguar Land Rover sales in the first four months, China has basically reached the goal. Meanwhile, Jaguar Land Rover to join the joint venture, Chery Jaguar Land Rover sales of new cars take to shorten payment times and increase the target rebates rebate amount, enhance domestic aurora sales support upgrade business policies directly reduce the pressure on the dealer to resolve the current industry manufacturers exist Relations between dealers "tip-to-head" with.
Jaguar Land Rover CEO of Greater China high-Bo to the "Securities Daily" reporters that China's macroeconomic decline and we are in the transition period together local production led to short-term fluctuations of the business Jaguar Land Rover, "We want a total of adversity and distributors, in addition to these initiatives, we also help to develop other profitable auto mode other than new car sales. "
Jaguar Land Rover dealers
The "golden years"
As we all know, Jaguar Land Rover sales in the past five years, rising fast, driven mainly rely on the Chinese market, Jaguar Land Rover sales in China far exceeded the growth rate of its overall global growth. In 2010, Jaguar Land Rover sales in China is only 26,100, while in 2014 rose to 122,000, the gap with third-Benz shrinking, followed by an increase of 63.9 percent four years, 71.4%, 29.8%, 28.1% .
Analysis of Jaguar Land Rover in China's rapid growth reasons, we must mention the Chinese auto market continues to hot SUV models. Data show that, SUV sales increased from 136,000 in 2004 to 2,765,000 in 2013, sales increase more than twenty times. A few years ago, due to the relatively empty luxury SUV market as well as Land Rover is the only focused on the luxury SUV brand, Jaguar Land Rover riding "Dongfeng" ride that sales in China.
Jaguar Land Rover look at that time the relationship between manufacturers and distributors. Since entering the Chinese market since 2003, Land Rover has been a regional sales agents system, Beijing Hui Tong Lu Hua, SCAS Shenzhen, Shanghai and Dalian WTO honor four regional agents have the right to import. These four dealers once occupied more than 70% of domestic sales of Land Rover, Land Rover because early on the full-size SUV market is almost "no rival", four dealer price is not uniform, all of them earned a disk full bowl full.
Even Jaguar Land Rover in 2010 after China's resumption of the agency, the Chinese market everywhere Audi Q7, Porsche Cayenne kind of full-size luxury SUV, but the title of the king dressed in luxury SUV Land Rover vehicles are still highly sought after by Chinese consumers, due this year Land Rover before February are based on sales in China, a net importer of fashion, in short supply situation causing consumers "to buy or not to buy," Land Rover dealers to maintain profits.
Late last year, a sweeping luxury brand dealers "defection" in vogue, with the exception of the Jaguar Land Rover dealers are still enjoying the abundant profits and stay out.
Double factor
Jaguar Land Rover sales decline caused by
Over time, the dealer luxury brand 4S shop is open the door can not lose the business had already become history, but Jaguar Land Rover dealers "bitterness" just a little bit late. In the weak macroeconomic adjustment and Jaguar Land Rover business double background, Jaguar Land Rover dealers to enter in 2015 began to taste the negative sales growth, "bitter."
"For macroeconomic terms, the first quarter of 2015 domestic GDP growth of 7%, the lowest is six years; for Jaguar Land Rover, includes transition Changshu factory put into operation and the company has led to local production business in the short term fluctuations ", high Bo said that all of these changes have led to user demand for our products has slowed, which also led to short-term affected our sales.
Reporters learned that this year February 1, Chery Jaguar Land Rover's first model, the Chinese-made Rover Aurora officially listed, priced 448,000 yuan -58.28 million. In all fairness, this price is not high, based on past experience, the price will not fall sharply after luxury brands of imported cars made in China, generally lower prices are about 15%. Surprisingly, since the second half of imported cars inventories rose sharply in November, a pilot implementation of a series of parallel importation of factors caused the original "valuable commodity" importing Aurora substantial discount the impact of the domestic sales of aurora.
China Automobile Dealers Association, an unnamed source said, Jaguar Land Rover sales have fallen sharply since February and the main vehicle is the Range Rover Aurora switched to domestic car sales are directly related. You know, the Land Rover Aurora once accounted for 30.4 percent of global sales of Jaguar Land Rover, Jaguar Land Rover in recent years has been the best-selling model.
"Also included models such as the Jaguar XF and XJ are experiencing product upgrades, including new Jaguar XE, Land Rover Discovery god Bank and other new models entering the market, it can not help us increase sales in the short term." Bo Gao to the "Securities Daily" He told reporters.
Jaguar Land Rover rebate Speed
Help dealers improve profitability
Into April car sales season, Jaguar Land Rover sales were last two months, despite the increase, but still die hard up sharply downward trend. Recently, it was rumored Jaguar Land Rover main dealer partners - SCAS six major dealer groups intend to hold together a way to stop the purchase of Jaguar Land Rover to seek subsidies and change.
Jaguar Land Rover Jaguar Land Rover and Chery joint venture also listen to the voices from the dealer, rapid on-year sales target of 160,000 of the original plan was amended. "This year we have the initiative to cut the dealer's performance goals, according to the new sales plan, Jaguar Land Rover China basically reached the goal the first four months," close to the Jaguar Land Rover told the "Securities Daily" reporters, the second quarter sales target down by 10% -20%.
Meanwhile, Jaguar Land Rover also adjusted its business policy to enhance the dealer from cash flow and enhance domestic aurora sales support in two ways.
In improving cash flow distributors, manufacturers incentives to accelerate the payment of key projects to improve and enhance the overall incentive payment process, the introduction of auto parts sales a month of credit from the second quarter of fiscal year 2015, Jaguar approved the sale of subsidized projects will be extended to 60 days interest-free support. Jaguar Land Rover, responsible person, Jaguar Land Rover in the past quarter rebate policy is "seasonal sales, under quarterly review, and the next quarterly rebate," now adjusted to "seasonal sales, the first month of the next quarter, rebate, ahead of about five months. "
Aurora sales in the domestic support, streamline domestic manufacturers Aurora in May and June auto market variable marketing expenses to support the project, the domestic models Aurora upgrade program subsidies would involve all retail vehicles and increase the amount of subsidy.
Bo Gao said the new business policies that demonstrate our commitment to the dealer through thick and thin, we believe that the difficulties are temporary, we want to help distributors to develop other revenue model other than new car sales, in order to achieve a more sustainable future development, "short-term We will take a series of internal measures to ensure that our dealers to maintain business growth and profitability. "
Chinese luxury SUV market
Prospects Unlimited
Reporters learned that high Bo has always paid great attention to relations with distributors, attended the opening ceremony almost every dealership Jaguar Land Rover CEO of Greater China after taking office. "I have long believed that our relationship with dealers need to win", high-Bo to the "Securities Daily" told reporters.
Bo Gao believes that Jaguar Land Rover is most concerned about the long-term development and operations in China, not just the concern of a few months or a quarter performance. He bluntly "we enter the Chinese market, time and development model with other vendors and different, so we do not compare with other car manufacturers, we believe that customer demand is still very strong."
Indeed, Land Rover brand as the world's only focused on the luxury SUV, production enterprises, and its positioning in the luxury and luxury, between certain sense no competitors. Bo's high confidence that is from here, but also from China's SUV market judgment, he had a high-profile mention "Jaguar Land Rover luxury SUV next to occupy the Chinese market 10% share."
A set of data from the Chilean research advisory bodies, our SUV industry or sustained high growth is expected in the next eight years the average annual compound growth rate of 19 percent SUV. Referring to the United States, Germany and Japan SUV market space, the future of China is expected to steady proportion passenger SUV sales will account for 1/3.
With Chinese investors continue to profit in the stock market, wait until they need to purchase luxury SUV models, perhaps they will think of "dwelling" inside Siming period of dialogue, "this is not just a jeep, which is the Land Rover! Special car the British royal family, This car man, bloody, and hope to have a Land Rover in the city hold back a long time, want to be like a wild horse, like a head mane, wind drift grew up on the prairie. "