The price war at the end of the year has drastically quenched the thirst of independent brands

At the end of the year, it was time for major auto dealers to start counting their results and hand over their transcripts. In the face of this year's market situation, independent brands can be said to have not been as lofty as they were when they released their sales targets at the beginning of the year, although in addition to BYD’s sales target, the rest of the car companies are still calmly moving, but actually The sales volume of almost all self-owned brand car makers fell sharply.

The current situation facing the self-owned brand can be said to be very bad, and the time and place is not as good as it is. There are joint venture brands such as the new Sail, Machi, and Rena, and there are other independent brand crazy killers. Moreover, the self-owned brand The brand image in the eyes of consumers has not been greatly improved. In order to achieve sales goals, independent brands can only reduce prices.

Thus, with last year's experience, a price war at the end of the auto market is inevitable. The price reduction promotion can indeed play a role in pulling up sales, and it can save face. But in the long run, it is nothing more than drinking and quenching thirst. The increase in sales through price-cutting promotion is only a face to the manufacturer. It is a mirage and cannot play a fundamental role in the increase in sales volume. However, it is the manufacturers' injury. The profits of the manufacturers are affected and their profitability is greatly reduced. The evil consequences of this are a series.

Manufacturers are not fools. If they eat themselves, they will inevitably transfer these losses to things that are related to them, such as compressing procurement costs, reducing dealer profits, reducing workers' wages, and so on. As a result, the malignant reaction caused by price reduction promotion will become a bad cause and effect cycle, and the final result will be the impact on the quality of the car. The decline in quality will inevitably affect sales. If the car cannot be sold, it will be reduced again. At the expense of the interests of manufacturers, suppliers, distributors, and employees, the quality of cars will decline again. The end result is that the company is eliminated.

The original brand image of self-owned brand cars in the minds of the Chinese people is not very good. The low price and low quality are almost the same as the self-owned brands. If the prices are frenetic, the brand image of the self-owned brand can only be worsened and the self-owned brand can be nailed to the brand. "Low price and low quality" shame on the column. Therefore, self-owned brand cars need to avoid price wars. A pure price war can only damage people and hurt people. Ultimately, it is the Chinese auto industry. Only working hard to improve the quality of automobiles and brand image is the long-term solution.

This year's sales target can not be completed, but it is a good thing for independent brands. Only through painful experience can it be possible to go further in the future development. Only when it is too easy to go, the level of the Chinese auto industry can really be improved.