The more domestically produced cars are sold, the more expensive they are. It is not that domestically produced cars have expanded, but that domestically produced cars are getting better and better, and they are developing towards the mid-to-high-end market. With the intensification of market competition, the price of joint venture cars has been knocked down.
Domestic cars are getting better and better.
It was a last resort to sell them cheaply in the early days. China's automobile industry started late and had no experience in building cars. At first, it could only start with low-end cars, which were cheap before, and there was nothing we could do.
besides, compared with the joint venture car, people will buy it if the price is cheaper, right? Master thesis by Hu Xinfei of Hubei University of Technology, "Research on the Marketing Strategy of Independent Automobile Brands in China —— Taking JLBY as an Example".
from the very beginning, domestic cars have adopted the strategy of imitation and low price to develop the market. The price that consumers can accept is generally below 1, yuan. If the price exceeds 15, yuan, our friends who buy a car may choose a joint venture car.
In order to expand the market and enhance the brand value, the price is raised.
However, after so many years of development, the market share and popularity of domestic cars began to go up, and it is natural to sell more expensive cars.
the paper published by Peng fangchun and Liu ran in the journal modern marketing (the second issue), the analysis of marketing problems and countermeasures of self-owned brand vehicle enterprises listed in Shenzhen and Shanghai.
It says: After occupying the low-end market, domestic cars should develop into "high-end" to meet the growing demand for automobile consumption, thus expanding the market scale.
at the same time, domestic cars need to constantly enhance brand value, and change the original low-price winning into brand and quality winning. To tell the truth: domestic cars are no longer satisfied with the low-end market, but want to go to the middle and high-end market to grab the business of joint venture cars.
it's like: when you first started working, your salary was only 3 yuan. As your ability is getting stronger, you must want higher and higher salary, or go to a better and better company, right?
Domestic cars are indeed full of materials, and the price is not arbitrarily increased.
The price of domestic cars has gone up, and the cars are actually getting better, instead of selling junk at high prices. For example, the top-of-the-line Lingke 1 has a guide price of 21,8 yuan, but the configuration, comfort and other aspects are really good.
compared with the Toyota RAV4 with a guide price of 225,8, the horsepower of the lectra 1 is 83 horsepower, and the acceleration will be faster. Other seat ventilation, memory seat, rearview mirror memory, automatic folding and other functions are readily available.
in addition, the quality of domestic cars is quite good. J.D.Power released "Research on the Quality of New Cars in China in 218", and the average number of failures of 1 cars and mainstream cars is 17. Chuanqi, Link, WEY, Dongfeng, Changan and other brands are all above average, and Link even ranks third.
The price reduction of joint venture vehicles is due to the pressure from domestic brands.
Joint venture vehicles are under pressure to reduce prices in exchange for sales. In the face of the menacing domestic vehicles, the market competition is definitely getting more and more fierce. Joint venture vehicles are price reduction in exchange for sales, which is easy to understand, right?
The configuration and technical update of many low-end models of joint venture vehicles are still relatively slow, and their competitiveness is constantly declining compared with domestic vehicles. If you don't sell it cheaper, maybe no one will buy it.
the owner's home has a data to share with you. As of March 31st, within the price range of 1, to 15,, the preferential margin ranks. Only two of the top 1 cars are domestic cars, and the other eight are joint venture cars. Therefore, the discount of joint venture cars is now more common.
Joint venture cars have a large profit margin and may earn more money
In addition, for mainstream joint venture brands, the profit margin of cars is even greater, and there is a certain possibility of price reduction. Xu Shanda and others published a paper in Economic Guide, The Necessity of Scientific and Technological Innovation in the Development of Countries and Enterprises.
It says: Joint venture cars are more profitable than domestic cars, and besides the sales profit of models, each car can also get technology transfer fees, patent fees and so on. If the price is reasonably reduced there, the sales volume can still go up, and maybe it will earn more than the original.
in addition, some joint venture vehicles will maintain their profit margins by means of reducing allocation. As we said in the video before, spare tires, rear anti-collision beams, sound insulation cotton, batteries, etc. are all the hardest hit areas, and some parts are even cancelled directly, but no. As long as you sell enough, the money saved by the reduction of distribution is also on the order of millions or tens of millions.
Domestic cars are getting more and more expensive because they are getting better.
Generally speaking, the more domestic cars are sold, the more expensive they are. It is not driving up the car price, but the car is really getting better.
The cheaper the joint venture cars are sold, the pressure from the competition of domestic cars makes them conform to the market, and they can earn a little more than before.