Hyundai leads Volkswagen, Toyota follows up with second wave of price cuts to attack auto market

Vendors often put inventory in an administrative order to force dealers, which led to a large inventory of dealers backlog, and the lack of cash flow has become the dealer's most troublesome problem, behind the manufacturer's guide price, some of the dealer's discount is no longer what Secrets, which ultimately led to the decline in the Chinese auto market, the decline of manufacturers, and disorderly and complicated dealers are on the decline. On September 7, Beijing Hyundai announced suddenly that its product prices were in the name of adapting to international market price competition in advance. The entire line was downgraded, with an average decrease of about 10%. If Shanghai General Motors took the lead in price adjustment in May of this year, and after the joint price cuts between South and North China in June triggered the first round of price cuts in the Chinese auto market in 2004, then in the first week of September, headed by Beijing Hyundai, Volkswagen and Toyota-related models. Follow-up, marked by the successive price cuts of more than 20 models, the second round of price cuts again hit the Chinese auto market. Beijing Hyundai has dropped by 23,000. Following Shanghai GM, Shanghai Volkswagen, and FAW-Volkswagen, this year Beijing Hyundai also lowered the prices of its products. Sonata's product range from the previous 172,800 to 249,800 yuan, down to the current 149,800 to 228,800,000, thus the Sonata product line fell below 150,000, the highest drop of 23,000; and Elantra's price range from the previous 126,800,000 To 168,800 yuan, to the current 112,800 to 151,800 yuan. Elantra 1.6 manual standard type dropped 14,000, priced at 112,800 yuan, fell to less than 120,000 yuan. At this point, the Beijing Hyundai product line covers four displacements of 1.6, 1.8, 2.0, and 2.7, and 11 models. The price range is from 112,800 to 228,000 yuan. The Shanghai Volkswagen related models also appear down. From the dealer's offer, the original price of 106,000 yuan for the century rookie price of 99,600 yuan. Passat 2.0 manual type fell within 200,000 yuan, priced at 194,100 yuan; 1.8T manual type fell into 210,000 yuan, priced at 209,700 yuan. In addition, Vios, Corolla offers 5,000 yuan each; Kaiyue two 1.8L automatic car models market price has been lower than the guide price of 15,000 yuan, while the two 1.6L manual transmission models have also reached a profit margin of 10,000 yuan; tight Mondeo also quietly discounted 5,000 yuan; Fit offers 6,000 yuan; SAIC-GM-Wuling's Chevrolet SPARK dropped 5,000 yuan; Dongfeng Citroen Beverly's profit margin increased to 4,000 yuan to 5,000 yuan; Elysee full line discount 5,000 yuan; Saina full line of profit 17,000 yuan To 20,000 yuan; Picasso's discount rate also reached more than 10,000 yuan. Price cuts became disorderly and complicated. One of the most obvious characteristics of this price cut is that dealers are anxious to get rid of the constraints imposed on the prices of vehicle manufacturers. In the current Chinese auto market, the manufacturer’s guide price has lost its guiding significance and is directly Consumers face to face dealers, they are more able to directly grasp the consumer's mind and the judgment of the market price. Since May of this year, the gloomy and depressed atmosphere of the auto market has continued to this day. Although the auto market has been warming up, sales of most automobiles have continued to decline or remain unchanged. However, manufacturers are anxious to complete the sales target of the year. Therefore, manufacturers often force inventory to the dealers with administrative orders, which leads to a large inventory of dealers backlog, and lack of cash flow has become the dealer's most troublesome problem, in the manufacturers Behind the guide price, some of the dealer's discounts are no longer a secret. This ultimately led to the price cuts in China's auto market becoming a decline in manufacturers, dealers are also falling in disorder. Inventory pressure is the main reason Beijing Hyundai stated that in 2005 China's imported cars will be cancelled import licenses, which will surely have a strong impact on the Chinese auto market. Beijing Hyundai has to adapt to the competition in the international market in advance and introduce a new pricing policy. Prepare to meet the challenge of a new competitive environment calmly, and let customers enjoy the price in line with international standards in advance. Meeting the international price challenge seems far-fetched, but it is extremely urgent to solve the manufacturer's inventory. According to the latest statistics from the China Association of Automobile Manufacturers, Chinese auto inventories, especially car inventory, have increased significantly in the first seven months of this year. From January to July of this year, China's auto industry has added 226,600 new industrial stocks, including 113,400 new car stocks. This year's new car inventory is mainly concentrated in the top 10 auto manufacturers, which accounted for more than 80% of the country's auto production and sales of the 10 companies, added inventory of 130,400 vehicles. The top 10 auto manufacturers added 63,501 new inventories, of which Shanghai Volkswagen and FAW-Volkswagen added more inventory. Shanghai GM produced more than 27,800 vehicles in the first 7 months, digesting previous inventory. In 2003, China's auto inventory was 52,900, of which 47,300 were sedan. On the one hand, the continuous reduction of the prices of manufacturers and distributors leads to a very serious phenomenon of consumers holding on to the coin. Since May of this year, the price reduction of car prices has reached an unprecedented level. Many major adjustments in car prices exceed the psychological expectations of consumers. The prediction of the bottom line of car prices has been repeatedly smashed by the market. This has hit the car buyers a lot. At the same time it intensified the wait-and-see attitude of potential buyers. The marginal effect of car price reductions has also become worse. On the other hand, at present, the domestic automobile market has entered a post-transition period in which import quotas have been completely eliminated. The phenomenon of the purchase of coins pending in the car market is even worse than before the accession to the WTO. The differentiation trend of car companies continues to increase. Many of the new car expansion projects that have been invested since last year have already produced production capacity. However, the market demand has not kept pace with the same, and the production and sales of cars have continued to decline, resulting in a large number of car production capacity being shorted. With no increase in the number of cakes in the entire sedan market, the high growth of a few companies is at the expense of the decline in the production and sales volume of most other companies. Taking into account the higher base of production and sales of cars at the end of last year, if there is no fundamental improvement in the car market in the next few months, there will be more regional and corporate output decline. (International Finance News reporter Gong Guangjun from Shanghai)