Monitoring based in South Korea school autonomy, joint venture "fight" intensified

Posted on 8/17/2015 3:44:07 PM

"You sell a dollar, sell Pentagon", since the second quarter of this year, China's auto market, "price cuts the wind" can be intensified, and the new round of "price cuts the wind," the focus business has become one of Korean cars.
August 7 KIA car prices in other "latent" a new round of price cuts to come, when the market dropped a heavy "bomb" - announced its two main Sportage SUV models, Chi running full official guide to below.
In fact, total sales in the domestic car market decline this year, prices of the latest cars in the liquidation of official stocks of common prices. Back in April of this year, FAW - Volkswagen, Shanghai Volkswagen, Shanghai GM, Ford Mitsubishi head rotor 149701-0520 and other large joint ventures have passed formal round of price cuts to try to "rescue". But so far, KIA was "successful 10 million to buy the joint venture brand SUV" tricks, but to stimulate nerves in the auto market hardest hit. This may also reflect, in Japanese car, pushing its own brand of Korean cars, the current living space market is increasingly narrow.
Is lower prices
"The purpose of this round of official price, but also to pull the terminal sales." PR KIA related told the reporter of "China Business", said: "As we know, the first half of the domestic car market is not very good, competition to reduce prices to attract customers is our most reluctant to use tricks I had to be used ".
According to the official message KIA prices, the price of sports cars lion whole department $ 50,000, Sportage full line price 20,000 yuan. After this round of official price, the Sportage models with low price of only 10 million succeed. KIA side expressed the hope that through this price reduction further improve Sportage, market competitiveness of enterprises Sportage SUV steady and orderly manner in the domestic car market slow growth of the "new normal" and development sustainable.
In fact, the KIA market performance in the first half of this year, it is not difficult to understand that the official price of "reason". According to statistics published by the Automobile Association show that in the first half of this year, total sales of KIA 303,200, up 2.4%. Among them, in the first half Sportage sales of 12,000, down 45.84 percent. Average sales of 38,010 Sportage, down 19.5 percent.
Total sales in disrepair, especially reduction of the two main models of SUV "double run" big sales, KIA official price "fuse" become. In fact, not only KIA, the Korean series "Brothers" Companies of Beijing Hyundai was the first step in reducing prices. In early August, Beijing Hyundai ix35 and the official announcement of its new SUV models Shengda two official price reduction goal, in which the whole system ix35 reduction price of 20,000 yuan, new victories and reached the biggest decline of about 30,000 yuan.
There is no doubt that since the first half of this year, domestic car market contraction in global demand, major ventures in the case of reduced sales volume, to take measures to reduce prices, and they boosted sales terminals. According to the latest statistics released by the Automobile Association show that in July car sales 1.503 million, a decrease of 16.64% compared to 7.12%. In the first half of this year, domestic SUV sales rose 48 percent, while the growth rate of the global automotive market of only 1.3%. With more and more models enter the competition in the SUV market it is intensifying.
"The lower car prices may have two reasons, one is the general lack of consumption, oversupply can only downs; structural surplus second stage the single market segment to pursue children gather, product homogeneity obvious, Pull the price is not open, so the car companies began to cut prices to grab the market ", with industry analysts believe that happened in the first half of this year, which have emerged - General market slowdown car, along with the competitive SUV segment, car prices are caused intensified sales continued.
"Fight" intensified
Of course, the domestic auto industry from the perspective of competition KIA and Beijing as the representative of the official price of modern Korean brand of this round, bringing the chain reaction is reflected first in the pricing system prices of brand-independent car Impact on.
"After ten years of development, domestic and Japanese, and German-based car brand in the United States it is still a big difference, but just barely, and the car manufacturer based in South Korea to compete because in the domestic market, the Koreans currently higher cost, which is currently the most competitive car prices of the most important independent brand cars average route. Therefore, many independent car prices in the short term in the target object, all Korean cars. "A high level of car companies independent brand, told reporters.
Reporters learned that in April this year after prices of cars on joint participation in the first round of price cuts, prices of independent brand cars in the price of the terminal has been adequate monitoring. In the first half, the Great Wall, FAW, JAC and other automobile companies independent brand have joined the ranks of the official price. And Korean cars of this round of official price, will certainly have a major impact on the prices of own-brand cars. This means market "melee" then, independent brands and joint ventures of the Korean brand particularly the brand, will be updated more.
In fact, the SUV market is the only price of own-brand cars through profitable first to open up the market, the joint venture brand certainly take more steps "ahead". In the past, the SUV segment, the joint venture brand compact SUV market segment accounted for 15 million to 20 million, while its own brand is the price range flagship from 100,000 to 15 million. "The first half of this year, Volkswagen Tiguan and other models have been the first to cut prices along with their own brand on the subject of substantial price adjustment Korean brand has been to directly reach 10 million price range head, pressure release is required to quickly transfer body to its own brand. "said independent car prices executive brand.
Guangzhou is an independent brand 4S store official said, each official price, consumers are the original equipment manufacturers of larger cars test margins. After the price reduction effect is to seize the best opportunity, but it's all for the consumer market Chibidaigou and chaos continue for a while.
One side is led to the reduction of product end-market demand unsaleable market, while the company had built the large production capacity, "lake", how to digest the inventory as soon as possible, to boost sales terminals, manufacturers and distributors are struggling with problems. And look at the situation from the first half, car prices and price cuts alone can not solve the dilemma of the terminal market.
Some analysts believe that now stands in front of his own car prices brand are three routes: the best way is to use the car again assault, the second option is to wait, after all, the car prices joint venture will cut prices, costs and profits are being put to the test, the worst to track the price, but is bound to trigger a new round of price increases, compressing further their own business car brand survive.
There is no doubt that the joint venture brand Korean brand take the lead, especially caused by the "price war" has spread gradually to their own car prices brand. It is foreseeable that in the coming domestic car prices, competition from independent and joint venture will enter the phase of combat "bloody assault". Of course, joint ventures and independent car prices, in addition to its price, how to improve product quality, the strength of the brand, increase consumption in the final market is the key to this round competition.

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