"Most car prices on the small car market to do a strategic judgment, very little investment in new product research and development, just as the original model plate cumulative customer base." September 14, for a car company executives in the 21st Century Business Herald reporter He said.
Small cars car prices in many eyes, is not a contributor to sales and profits, but to snatch the young first car customers, the so-called client base plate, so plan for future consumption upgrades.
According to the August sales figures released by China Association of Automobile Manufacturers, China's auto sales in the first eight months of double-digit growth, far more than previously expected. However, a significant decline in sales in the small car market, sales fell in August even reached 31% decline in the automotive market is the fastest growing market segments.
Shrinking small car market is an important reason car companies reluctant to invest in new models, but the new models on the market is too small, in turn, leads to further loss of the small car market as a whole. "Small cars a few years ago after a price war, profit cycle low, with the consumption upgrade, although cheap, but consumers do not like this kind of product." The official said.
SUV and small car markets and a hot and cold, is the result of market choices. Guangzhou sales charge for a car company, said: "Consumer upgrade is the inevitable trend of the automotive market, car companies conform with the trend, such as the small car is in power in the past, now the largest share of the A-Class, B-Class is the future maybe. "
Accelerate the shrinking market
In 2011, the small car market is still growing, segment of the market share in the increase, but the growth rate has slowed down. At that time, our country A0-class car sales reached 2,185,100, an increase of 7.6%, accounting for 21.6% of the domestic car market share.
But soon, the turning point appeared. In 2012, sales growth A0-Class sedans only 0.3%, far below the 7.7% growth rate of the overall auto market, sales A0-Class sedans was 2.1971 million, segment market share began to decline.
However, this time the sales of some models in the history of the peak of rush, the new Sail sedan annual sales reached 262,100, Rena sedan annual sales reached 207,100, the composition of the first echelon. Second-tier members of the sales are only 100,000 years or so, a large gap.
In this case, it is the price of large-scale joint-venture car prices dropping, when packed own brand no living space. Because the joint venture brands in the B-Class and A-Class to compete more fully, this time dropping a lot of car prices is only for size, price and profit is not a key consideration.
Price war contributed to skyrocketing sales of some models, and some models need to protect the price, sales quickly reduced. New Sail sedan average monthly sales of close to 22,000, the average monthly sales of Rena sedan close to 17,000, which does not appear before this grand occasion.
This can already be called legendary sales of small cars, a significant decline in sales began to walk back. The first half of 2013, the small car market sales started to decline, down 2.7%. 2013 full year, sales of small cars fell by about 4%.
The trend has been very clear, many car companies realize that only small cars do not make money, and good market image gone, it is difficult to see hope. 2011 A0-Class sedans in the entire car market sales accounted for 22.1%; in 2012 fell slightly to 20.8%; in 2013 the proportion of sales fell below two percent to 18.1 percent; in 2014 fell again to 17.0%.
This year, the first 8 months, the small car in the car market share of only 15.3%. Acceleration sales fell in June this year, A0-class car market, sales fell 25.6%, to August, sales decline has reached 31.9%.
The average monthly sales over Wan car is running, Polo in the first eight months of the average monthly sales of 14,600, it is the best-selling model; Sail the average monthly sales of only 8500, it is difficult for another monthly sales million. In addition to polo, on sales of other models on the market can not be over a million.
The market's most effective marketing only the price war. August, Sail sedan end market discount rate of 16.3%, Dongfeng Yueda Kia K2 sedan discount rate of 18.33%. Small car prices already low, the profit is very low, in the market of large-scale discount to its own brand basic throw this piece of the market.
Small cars have been abandoned?
Beijing Hyundai Rena first eight months of this year sales of more than 90,000, is selling better continuity of a small car. Beijing Hyundai in the course of millions of red, small cars made a great contribution.
To this end, Beijing Hyundai has introduced a small car accepted, Bi Ruina positioned slightly higher. According to the North now say, has been hard for many years Rena market, accept new customers can undertake part of the upgrade, to form a combined play small car market.
Beijing Hyundai attack small car market practice, in recent years an alternative. The overall market is shrinking; low profit cycle; brand low height, etc., resulting in car prices no longer develop new small car product. Some car prices even the original small car product delisting.
Two years ago to fight small-car strategy, Toyota Camry, also a cause dazzle campaign alone market, not to introduce new models. Competition made some sales scale joint venture car prices, the introduction of a number of small, inexpensive cars. For example, Nissan introduced A00-cheap cars R30, but many found that car prices, the market is not worth crushed.
Chinese consumers prefer large space, large displacement "cart" and alternative products on the market but too much, with the escalation of consumption, the price difference of thousands of dollars can buy a big SUV and other space products. The most recent year, the independent brand SUV products and prices dropping signs appear, the joint small car cornered.
"Consumer upgrade is an inevitable trend, car prices should also developed products to the market, small cars atrophy, may be replaced by more space and better driving vision of a small SUV, car prices for as long as it can seize market opportunities . "The car prices, insiders said.
Consumer automotive market will be upgraded. A-class car in the car market share of about 65%, of which part of the upgrade from the A0-class customers. To this stage has been completed, A-class car, the largest segment of the market share stabilized.
"Despite the current market is the most popular SUV, but it can be difficult to say how long the fire. However, we can predict, A-class car will be upgraded future may bring hot B-Class." The official said. Car prices are generally not down layout, but the layout to B-class car, probably waiting for this opportunity. China's auto consumption habits and the United States have a lot of similar places, like the study of car prices in the United States auto market development path, China's auto market to predict the future. In the United States auto market, B-class car market share is the largest.
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