In the automotive industry, whether it is a host factory, a dealer or a researcher, they insist on the idea that when a house is sold, it is a time when the car is difficult to sell. The relationship between the two is so clear that there is a “squatting†pattern between car sales and real estate sales. However, in 2018, the house was not particularly good to sell, and the car was still hit by the industry as “the turning point of sales in the past 28 yearsâ€, and new changes were taking place in car consumption.
Car sales fell for the first time in 28 years
In the elevator at the doorstep, I changed several car advertisements in less than a week. The electronic screen on the stairway is also a car advertisement. The flyers that were sent on the street or the car advertisements... People intuitively feel: "The car is not good. sold!"
Jiangsu is one of the provinces with the largest sales volume of passenger cars in the country. As the sales manager of the large local car sales company Xiezhong Group, Ma Ning felt the obvious change of market conditions – the “Golden September and Silver 10†of traditional car sales disappeared. In October 2018, local car sales showed a large decline.
“Some dealers’ cash flow has been broken.†Some of the heads of automobile sales companies in Jiangsu said that when the market was difficult to digest, the OEM did not adjust the production capacity in time, and the new car was forced to the dealers’ link, resulting in more than 3 dealers’ stocks. In the month, cash flow was difficult and had to be sold at a loss. Even so, the sales of ordinary cars in the end of the year are still not improving.
The decline in sales in Jiangsu is the epitome of the country. According to the analysis of research institutions, China's passenger car sales are expected to decline by 1.6% in 2018, which is the first annual sales decline in the market in 28 years. Xu Changming, deputy director of the National Information Center, said that even if the country lowers the purchase tax, it will be difficult to make sales increase significantly. The auto industry will encounter short-term difficulties. It is recommended that manufacturers should do a good job of zero growth in production and sales in 2019.
The “turning point†means that the Chinese people’s demand for cars has changed. Xin Guobin, deputy minister of the Ministry of Industry and Information Technology, said that from the current situation, the period of rapid growth in production and sales may have passed, and low growth is probably the normal state of future development. There are economic reasons for the low growth of car sales, and more importantly, consumer demand is changing.
Demand differentiation, used cars into "fragrant"
"If I withdraw the rented house in the urban area and go back to the suburbs, I need a car." Zhang Han, who has just graduated from the master's degree for 4 years, calculates the cost of living: Nanjing city rents a house for more than 2,000 yuan, if you buy more than 100,000 yuan cars for the month, and now rent almost, also need to buy a car a few million down payment. Due to the short-term economy more difficult, Zhang Han intention to consider a used car.
Nanjing Daming Road as a used car dealer, Chen Changjiang witnessed the fiery second-hand car market in the past two years, "it is almost a closing a sale, there is just to get a driver's license who bought practiced hand, there are insufficient budget Buy second-hand brand name."
Manning also believes that second-hand car sales is indeed growing rapidly. "Although the overall decline in gross profit, but used car has become an important source of profit for the company." Used car selling a used car also makes online platform has become the focus of competing for capital.
"Now the new car is generally sold at a price lower than the purchase price. If you want to make a new car, you can only make money. You can only bundle value-added services." Zhang Feng, a 4S shop on Nanjing Mingluo Road, said. The various types of bundled service routines that have been refurbished have discouraged price-sensitive groups such as Zhang Han.
The price-sensitive group is on the front end, meaning that the demand for cars has reached a preliminary saturation stage. According to the statistics of the Ministry of Public Security, as of September 2018, the number of cars in the country was 235 million, and the number of motorists reached 363 million. Among the top three provinces and cities in terms of private car ownership, Jiangsu has a private car for 5.72 people, Shandong has a private car for 5.76 people, and Guangdong has a private car for 6.65 people.
Low-end cars are gradually saturated, and high-end cars continue to optimize
The arrival of price-sensitive groups has put the sales of low-end and mid-end cars to a test. Dealers in the Nanjing market generally said that the biggest impact of the decline in sales was mainly the common brands such as Volkswagen and the low-end and mid-end cars of domestic brands of less than 200,000. These types of cars have become more frequent in recent years, with an optimized price/performance ratio to attract customers.
The low-end sales are not smooth, and the sales of high-end cars are rising, highlighting the polarization of automobile consumption. Xiezhong Automobile sells BMW, Audi, Lexus and other brand cars. Its statistics show that people who come to the store to watch the car in 2018 will purchase more cars than the first time, and those who buy more than 20% of the customers will account for more than 60%. And many people are looking at high-end brands.
Shi Xiaoping, secretary general of the Jiangsu Automobile Industry Association, said that the automobile sales market is showing the characteristics of low-end gradual saturation and high-end continuous optimization. Such changes are related to the current stage of economic development, and also indicate that the entire automobile industry should be continuously developed and improved in accordance with the requirements of structural reforms on the supply side. At the same time, it is necessary to guide the consumption of automobiles through relevant policies, and form a structure of energy-saving, environmental protection, applicable and flexible consumer demand, and input a great impetus for the healthy and sustainable development of the automobile industry.
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