The key to breakthrough in the auto market is to rely on services

“This year was a continuation of the blowout of the auto market last year in January and February of this year. Sales volume was better than the same period in previous years. From March to now, the auto market is really cold.” Liu Zhifang told reporters, “The downturn continues until the end of August, when the auto market There is little sign of recovery. The auto market in October was basically the same as in September, with sales increasing by 20%-30% from August and still staying at the stage of 'signs of recovery'.” “From the overall sales situation, This year cannot be compared with 2002 and 2003. However, it is basically the same as in 2000 and 2001. Taking the Geely brand as an example, a total of 2280 units were sold as of October 15th, compared with about 3,000 units sold in the same period of 2003. This year, the Geely brand can sell an average of about 150 vehicles per month, and last year it can sell an average of about 300 vehicles per month, and the gap is obvious. FAW, SAIC brand sales also fell by about 30%.” Although in sales and in 2001, In 2000 it was flat and even slightly increased, but distributors are now under more pressure than they were two or three years ago. Liu Zhifang said: “Sales profits have been drastically reduced. In 2000, the profit from the sale of 100 vehicles was 1.6 million. This year, the profit from the sale of 100 vehicles was 160,000. Before a car dealer could earn 2000-3000 yuan. , now can only earn 200-300 yuan." Liu Zhifang thinks: If this year's New Year's Day, the Chinese New Year auto market is still as plain, there will be many dealers can not persist. It now appears that this is almost inevitable. Until June next year, it is estimated that 50% of the 4s shops in Beijing will be diverted to do something else. Several dealers have now withdrawn. Reasons for the downturn in the auto market Liu Zhifang believes that there are several reasons for the downturn in the auto market. The first is that the production growth of the manufacturers exceeds the growth rate of the consumer market. “The market is developing steadily, but the manufacturers’ production speed is too fast. From 2002, some manufacturers’ production has even increased by 200%. For example, SAIC Motor’s output in 2000 was 170,000, and its planned production in 2001 was 210,000. The planned output at the beginning of this year was doubling between 400,000 and 500,000. However, is the number of consumers demanding this model up by 200%?” The increase in production and consumption capacity is out of proportion. The consequence is an increase in inventory, and the pressure of inventory has led to vicious competition in prices. “Now the inventory pressures of various manufacturers are quite large. In order to clear inventory, only the price cuts stimulate consumers. This means is not a good method, and the purchasing power of the market is not a product that can buy all of the manufacturer’s inventory products. Purchasing power: When a brand loses price, his market share rises. What about other brands? Only the price is reduced. In the end, there must be a large amount of inventory, but which brand has more stocks.” The second reason is Bank tightening of personal car purchase credit. When it comes to personal credit, Liu Shifang’s helplessness is: “In the past, we applied for 10 loans to buy a car and we could basically approve it in three days. Now that we declare 10 cars, we can report 15 cars in 15 days. All of them are not clear, and no one knows the exact reasons.” “From the point of view of consumption habits, even if ordinary consumers can pay for the car at one time, they are willing to pay in installments, so the pressure on the economy is less. The previous payment was 10%. 20% can, even some dealers make a zero down payment, now down payment needs at least 40%.In the past, in our sales, 30% of consumers purchased by way of loans, and this proportion has an increasing trend. This part of the customer is very important to us.” The third reason is the chaotic price system. “There is no one company that can really unify the price. There is no real value in the real price of a model in the Beijing market. A consumer who does not understand the true price of a car in the auto market for three days, how can it be? Can you decide to buy it? This model of Asian city has existed for 10 years. The car sales market should be shuffled again.” What is the key to breaking through? As for how to break through the sluggish auto market, Liu Zhifang said: “The best way is to rely on services to drive sales. We have more than 7,000 members. They want to repair and maintain vehicles. We do a good job of this service, relying on their reputation to promote. The effect is still good. In a few days, it is the anniversary day of Geely's sales store. We need to engage in an activity and take part out of our profits to give back to consumers. After all, we have obtained profits from consumers." It is believed that expanding the sales network as much as possible must also be done. In the north, in the Asian Games Village, there are several big sales markets in China United have our shop. In the 4S shop of the Asian Games Village, we did not have the cost of rent and the pressure was not great. However, if it is a new entrant, one-time investment will cost tens of millions. In the current situation, it is really stressful. Although it takes a lot of investment, there is a certain risk, but this must be borne by the gains. Liu Zhifang said: “In Beijing, many people want to buy cars. When and by what means do these people buy? No one can tell. We can only hope that all aspects of the preparation conditions will be sufficient, and we hope that the country’s macro-control will be implemented next year. It will be beneficial to us. Bank credit will generally tighten at the end of the year, and the auto market at the end of this year cannot hold too much hope."

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