Dealers cut prices to ignite manufacturers cut prices to fight bonfires


The expected fourth wave of price cuts finally arrived at the traction of FAW-Volkswagen, Changan Ford, and Shanghai-Volkswagen GOL. After nearly a week of waiting, Shanghai-Volkswagen once again thrown a “blockbuster.” The POLO series cars, which are now in a hot period of the market, also announced price adjustment on November 27, and the price of bicycles was generally reduced by RMB 7100 to RMB-17100. . Since POLO has been a popular model in the market, industry insiders estimate that Shanghai-Volkswagen’s move will have a huge impact on the auto market.

The fourth wave of price cuts: dealers point war

With regard to the fourth wave of price cuts that has just arrived, we can clearly see that almost all of the price reduction promotions conducted by dealers have caused them. FAW-Volkswagen’s Chengdu dealers started to adjust their Jetta, Golf, and Bora’s price adjustments from the Chengdu Auto Show. The biggest drop was over RMB 10,000; Chang’an Ford Motor Co., Ltd With the promotion of price cuts, Mondeo's price dropped by 20,000 yuan. Then, Shanghai-Volkswagen GOL joined the group and cut prices in the form of "summer festivals". The maximum price reduction reached 10,000 yuan, completely igniting the fuse of the year-end price hike. Then in a short period of one week, Palio, Sail, Maxima, and Hurricane Hurricane all made price adjustments in different forms. The price fell by 5000-15000 yuan, and the fourth wave of price cuts at the end of the year has already emerged. But at the same time that many brands have cut prices, there has also been such a problem. All sales promotion actions are from dealers, but manufacturers are seldom acted. Even if a few manufacturers act, the models they are involved in are not the best-selling models in the current market. There is "year-end big sale" means.

POLO rushed down, the manufacturers can't stand it?

Until November 27th, the Shanghai-Volkswagen POLO sedan, which was the first car in the strict sense of the word, went on a “diveboard” in a crash. According to information released by Shanghai-Volkswagen, the price of its hatchback series was reduced by 7,100 yuan; the sedan series was reduced by 17,100 yuan, with an overall decrease of about 10%. Contrary to the price cuts we mentioned earlier, the POLO with this price cut has an outstanding sales of 70,000 units. It can be said that from the analysis of brand influence to market share and sales trends, POLO is more appealing than any brand that previously announced a direct price cut by manufacturers. Its price reduction proves a market inference that the last wave of price cuts by automakers is approaching this year. According to market participants, the price reduction of POLO is actually reasonable. Prior to this, as distributors started to lower their prices in order to create better sales at the end of the year, “it is difficult for prices to rise and go back”. - The move is also to cater for the entire market.

The effect forecast: A drop can be realized!

The price cut of POLO once again broke the price balance system of the entire economy car and pushed all economic cars similar to its price to the edge of the collective “diving”. Given its strong market appeal, it is estimated that it is similar to its price. The models are hardly free to cut prices. However, as we mentioned just now, some distributors have already acted in advance before the price cuts. In other words, "dangerous people" like Carnival, Palio, and Sail are actually lowering their prices, but manufacturers have never been able to admit it. In such a strict market supervision, it has not been recognized by the OEM, and almost no dealers have ventured to touch the price policy. Although manufacturers' price cuts are imperative, for the entire market, what kind of promotion can it play? We are still not sure. We can show that the fourth wave of price reduction booms during the year is based on the experience of frequent price cuts this year. Will not cause special pursuit of consumers, after all, faced with wave after wave of price cuts, consumers "have to buy" the psychology has been generated. The key is to see which brand can break this mental defense.



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