Recently, at the management meeting held at the Wolfsburg headquarters in Germany, the Volkswagen Group officially confirmed the low-cost car plan. This brand new cheap brand will eventually land in the Chinese market in the form of “FAW-Volkswagen joint venture brand†and connect with Jetta-Volkswagen's most entry-level product, Jetta. According to the plan, the car will be put on the market as soon as August 2016 and will be put into operation at the FAW-Volkswagen Wuhan plant.
From the initial news release to the final plan, it has been three years, and the key information of the project, which is called “Budget Car†by the public, has also changed. The "50,000 yuan cheap car" that was previously claimed to be "upgraded" to the price range of less than 75,000 yuan was still unable to reduce the imagination of the "wolf coming".
Volkswagen
It is an indisputable fact that the growth rate of the public in China is slowing down. According to official data from the public, the sales volume in the Chinese market in the first 11 months of last year was 3.34 million units, a year-on-year increase of 12.9%. From the performance of Volkswagen in China in the past five years, the growth rate of more than 35% before 2011 has ceased to exist. Even the increase of 16.2% in 2013 is almost impossible to achieve in 2014.
At the same time, as the biggest source of profits for Volkswagen in China, Audi, which has consistently ranked among the top three in the German system, faces many challenges. BMW plans to introduce more than 10 new cars this year. Mercedes-Benz has recently announced that it will release China as the first market for new cars, and will be ahead of the European and American markets in terms of progress. It is worth noting that the second camp consisting of Jaguar Land Rover, Cadillac, Infiniti and other brands is also eclipsing the luxury car market share.
In the domestic 75,000 model market, Shanghai GM Chevrolet Sail is undoubtedly the most successful model. In 2014, Chevrolet Sail continued to lead the car sales list with a score of 253,000. The new car Sail 3 was only 13 days old and its sales volume reached 14,516. This kind of performance has made the public who has been enjoying a big meal in the Chinese market feel hunger. At this moment, it is time for the Volkswagen cheap car to come. Qin Huanming, deputy general manager of FAW Group, once said that in the market segment of 60,000 yuan to 80,000 yuan, there are about 3.5 million vehicles in China. Now only Sail and other products have no real market leader. "FAW is therefore working with the public to study this market segment."
According to the plan of the Volkswagen Group, the goal of the mass cheap car is to achieve a profit before tax of 8%. Although this data is not too tempting, it certainly has a positive effect on the financial figures. The goal of Volkswagen's new low-cost new brand is to create an economical family car that has better performance than its own Chinese brand, but the price is comparable to that of its own brand. In the early stage, Volkswagen plans to launch a total of three models including four-door sedan, hatchback and SUV in China. Obviously these models are the absolute mainstream models in the Chinese family car market. When these three new models are available, Volkswagen's goal is to sell 500,000 units a year, and these models will be sold in this new brand's separate 4S store. This means that the construction of the "cheap" brand sales network will soon be officially launched in China.
Autonomous crisis
A survey of Volkswagen's cheap cars that Sina Auto is currently doing shows that 78.5% of people think that “the public needs to push cheap cars and look forward to this carâ€; 65.1% think “low price plus mass brand and The technology is very lethal," said that it will buy popular low-cost cars; 57.4% believe that "this will threaten the development of independent brands." It can be seen that the mass cheap car is very popular with the public.
A senior executive of the Volkswagen Group publicly stated that “our products will exceed all Chinese domestic models at the same price levelâ€, which is the first threat to the self-owned brands. According to the latest data, in the first ten months of last year, the sales volume of self-owned brands in the small car market totaled 516,700 units, with a market share of 30.2%. Although it is still the largest faction in the market, the sales volume decreased by 20.6% year-on-year, and the share decreased by 7.3%. The lack of attention to the market by independent car companies is the main reason for the decline of independent car companies in the small car market. For example, in recent years, Chery and BYD, who have “escaped†from the market, have sought to make breakthroughs and cut a large number of small cars. Tianjin FAW, which is deeply entangled in this market, has not launched a new model in the past two or three years.
“In the past few years, due to the concentration of energy from multinational auto companies in medium and high-end models, independent brands have gained relatively stable development space. With the implementation of policies such as purchase restriction and the acceleration of urbanization in China, the space of first- and second-tier auto markets Smaller, multinational auto companies have to turn their attention to the third and fourth-tier markets. Compared with foreign brands, independent brands do not have an advantage in terms of brand and technology. Therefore, once foreign capital enters the low-end car market, it will focus on low-end autonomy. The brand will inevitably be affected.†Zhang Zhiyong, an auto industry commentator, said, “But now the independent brands have made great progress in research and development and branding. Therefore, the impact of foreign car companies on the launch of cheap cars on their own brands is difficult in the short term. judgment."
In the face of the product positioning of the joint venture brand, the independent brand also began to seek counterattack in the most advantageous A0-class car market. Chery Ariza 3 has locked its competitors in joint venture brand models such as Shanghai GM Chevrolet Sail, Dongfeng Yueda Kia K2 and Beijing Hyundai Rena; the new self-owned brand Kaiyi also designated the first model C3 as an A0-class sedan; Beijing Auto announced that it has officially classified the E-series into the Sic Bo brand and launched the new redesigned model Sic Bo D20, which includes 21 models of the Saab D20 hatchback, sedan and Cross versions.
The Volkswagen cheap car is really coming. In the end, it is a wolf or a sheep. You only need to know if you have been in the main battlefield of your own brand.
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