Cruz car prices in China have reduced prices: sacrifice profits for market consolidation
The short-term profits and market share varies within the multinational car manufacturers have reached a consensus.
In early May, according to data released by GM China, Shanghai GM sales in China in April fell 6.7% to 119 032 units a year earlier. Subsequently, Shanghai GM announced in three main product lines Buick, Chevrolet, Cadillac brand 11 out of 40 models of the entire selling price of market adjustment. And this from the Shanghai Volkswagen down the first crosspiece car prices prices existing dominated one month duration. Month, Ford, Beijing Hyundai, FAW-Volkswagen, Dongfeng Peugeot has to go to the setting of prices through duty-free shopping, discounts and interest-free loans and other forms.
James Chao, general manager of the Asia-Pacific in the auto industry consulting firm IHS eyes, cross-car prices after reducing the prices of vehicles, means permanent commercial choice, and this choice is rarely reversible.
Special price adjustment motivation behind multinational automakers for China's auto market to return to cognition. January to April this year, according to data released by the China Association of Automobile Manufacturers, FAW-Volkswagen, Shanghai GM, Beijing Hyundai, Nissan and other companies hire sales compared to last year, have declined.
Money Wellcome president of GM China region (Matt Tsien), said in an interview, "expecting a double digit growth every quarter ...... This is not fair for the entire industry." Volkswagen (China) President and CEO Heizmann recently attended the presentation ceremony of the Shanghai Volkswagen is completed when Changsha is even more direct: "The car market in China if you want continued growth" double digit ", and almost not possible. "
At the time of growth of car sales came to a standstill, multinational car manufacturers expanding capacity has not yet ceased. James the Chao believes that the real concern is not the price reductions caused by reduced profits, but "now the next few years, manufacturers have the capacity and are able to meet and carry out the expansion, the market has begun to be real signs of weakness. "
In addition to sluggish market demand and excess supply capacity, multinational car manufacturers also face the growing plump wings of their own brands. 1 year - on April 10 to the rankings of brand sales of passenger cars, SUV Tiguan models except Fuga multinational car companies, and the remaining 8 seats are independent brands. And a year ago, sales of the top 10 in the only independent brand also Hafer, the Great Wall M, Tiggo and BYD (76.00, 0.00, 0.00%) S6.
Surely models independent brand SUV have greater impact on brand car models of joint ventures. China Association of Automobile Industry released data show that from January to April sales fell 9.17% sedan, SUV vehicle sales rose 17.84 percent. For this reason, the price adjustment of the cross-car prices for cars are also many models.
Change the face of China's auto market has been used to maintain a high market share and high profit margins for multinational car manufacturers have no choice. In the competition for the highest market share battle, never afford to fail. The short-term profits and market share behind the brand image associated long term with more lucrative car market with multinational car manufacturers have reached a consensus on the options.
However, multinational automobile manufacturers, the Chinese market brought some light to fade away. Estimated future 4--5 years Heizmann, Volkswagen growth in the Chinese market is likely to remain at 5.8 percent, we believe the global automotive market, which remains the best pace of development. Xiao Dawei, chairman of the region of Ford Asia-Pacific is also optimistic about the Chinese market, Ford's internal forecasts, the next five to ten years, the Chinese market will contribute 60 percent of the gradual growth in global sales of Ford .
However, Xiao Dawei to May 21 interview with the media confirmed, in response to the price war of competitors and not a weak market environment, Ford first quarter slightly reduced capacity in China, and this year China expects to cut the global car market 500,000.
