Share shrinking nearly half of the Korean cars hit the price card

Posted on 9/7/2017 9:48:52 AM

This year in China encountered Waterloo Korean cars, is hoping to strengthen the cost-effective advantage to regain the loss of market share.
China Automobile Industry Association released sales data show that from January to July this year, Korean car market share accounted for 3.9%, compared with 7.3% last year, down 3.4 percentage points. In contrast, the Japanese brand rose sharply from last year's 15.7% to 18%, independent brands rose to 43.5%.
In order to regain the lost market share, Beijing Hyundai in 2017 Chengdu International Auto Show launched a new Sonata, the new ix25, the new Rena three intelligent models, open the localization strategy 2.0 era, Dongfeng Yueda Kia also announced the expansion of vehicle investment and other strategic plans.
Cost advantage advantage weakened
"This year is the 15th year of Beijing's most serious challenge to the year." Beijing Deputy General Manager Sales Vice Minister Wu Zhoutao in 2017 Chengdu International Auto Show, including the first financial, including an interview with reporters, said. In the first half of this year, due to only 24.08% of the sales target (1.25 million) this year, Beijing Hyundai will cut its annual sales target to 800,000. And Kia in the first half of the Chinese market, the total sales of new vehicles 130,000, less than 700,000 targets throughout the year into two percent.
However, Beijing's modern situation is slowly improving, in July this year, Beijing Hyundai chain growth of 42.7%, the new Tucson, new name map, led the three main models sales are exceeded 10,000. But Dongfeng Yueda Kia situation is even more severe, in July sales data, for example, the highest sales Kia K3 sold only 6,000 units, four SUV products, the total sales of less than 5,000 units.
As sales decline, some Korean cars dealers face operating pressure and choose to withdraw from the network. "After the incident, the dealer business flow dropped significantly, we help dealers in a timely manner to reduce the inventory structure, reduce inventory, while funding to support and help them do the cash flow.At the same time, we also continue to adjust the existing Product structure, the Chinese Internet cutting-edge technology applied to our products. "Wu Zhou Tao told reporters that the new Sonata, the new ix25, the new Rena have applied the intelligent network system.
In fact, whether it is Beijing Hyundai or Dongfeng Yueda Kia, they have experienced rapid growth period, but also once the rapid development of joint venture brand advertised object.
Dongfeng Yueda Kia from 2009 sales volume growth, from 240,000 all the way rushed to 2016 650,000, while Beijing Hyundai in 2009 on the growth rate reached 94%. Later, with the increase in market competition, in order to improve the brand premium capacity, Beijing Hyundai in 2010 proposed to enhance the brand premium and SUV models "D + S" strategy (high-class cars + SUV), in this strategy, Beijing's modern D + S ratio increased from 15% in 2009 to about 50% now.
"At that time some of the joint venture brands have not yet entered the Chinese auto market, combined with the joint venture brand has no domestic awareness, modern and Kia to cost-effective outperformed the market." Wenfeng car founder Zhang Zhiyong said in an interview with the first financial reporter, In recent years the Great Wall, Chang'an, Geely and other independent brands of the rise (independent brand market share has reached four percent), and joint venture brands in the high-end models prices continue to test a low, Korean car sales slowdown. And this year's strong performance of the Japanese car also sales of Korean cars also played a diversion role.
"In the past 15 years, we did rely on excellent cost-effective access to the Chinese consumer recognition in recent years, the strength of independent brands and comprehensive competitiveness to enhance our price advantage has a relatively weakening trend, which is the truth. But also through the internal adjustment to actively fight to improve the competitiveness of the product. "Facing the decline in sales, Beijing, deputy general manager of the sales headquarters of the Minister Hedong gave this explanation. Dongfeng Yueda Kia General Manager Su Nanyong in an interview with the first financial reporter also said that the main reason for the decline in sales is the price, "the past price is more prominent, and now a little relaxed, in terms of cost-effective improvement did not do bit."
Share shrinking nearly half of the Korean cars hit the price card
How to return?
For how to restore the lost market share, the right He Dong said this year will return to the price advantage. "From research and development, procurement, production, sales to service interlocking in the various processes, we are to ensure the continuous optimization of product quality under the premise of more cost-effective, more efficient operation and management to improve product competitiveness. Right Hedong said the new Sonata, the new ix25 and the original guide price compared to the down 15,000 yuan, the new Rena pre-sale price will also have a substantial adjustment. Dongfeng Yueda Kia will also be in the commodity level to strengthen, improve, such as design, new technology applications, reasonable prices and other aspects to make adjustments.
Wu Zhou Tao in view, the price is to do the quality, price, performance of the three aspects of unity, the future will be achieved through three aspects, one through the localization strategy, pooling the Chinese market in technology, supporting and other advantages, Of the localization of products; the second is to enhance the intelligent, electric, networking technology; third is to build based on the Internet model of after-sales service. At the Chengdu Auto Show, Beijing Hyundai also released a new Sonata 5 years 100,000 km free maintenance policy.
In addition to the price advantage is weakened, compared to the German Department of Japanese and other joint venture brands, the Korean car in the product strength still need to increase efforts.
From the product layout point of view, Beijing Hyundai this year in the product line layout is still dominated by small cars, the current large cars and high-end cars only the new wins and Sonata two models, will be listed next month, the new Rena is also a Boutique compact car, mainly for three or four cities riding a motorcycle or bus struggling young consumer groups, and Dongfeng Yueda Kia is only launched in the first half of a heavy new models KX7.
"We do not have the new Rena as a modern product of Beijing's revival, more products will be reflected in the future SUV, we will also put a new SUV this year - a new generation ix35, a new SUV is also expected next year Listed in the first half. "Wu Zhou Tao said that the future or to the high-end, large and intelligent direction to go, specifically how to go, in the modern fifteenth anniversary of Beijing will release a specific brand promotion strategy.

Post a comment

Hello guest, care to post a comment?