Deputy General Manager Sun Yongrong of Nanjing Fiat
On July 3rd, Sun Yong, deputy general manager of Nanjing Fiat and general manager of the Ministry of Commerce, came to Chengdu for the first Nanjing Fiat Cup football match. He took a happily accepting this reporter's report on the green market of Sichuan University. Interview. He believes that the main reason leading to the full collapse of vehicle prices this year is the imbalance between supply and demand.
Sun Yong said that the Chinese auto market had a "turning point" in May this year. Some people say that it is because the macro-environment changes make the auto market so bleak. He believes that the main reason is that under the national macro-control, the imbalance between supply and demand has been exposed in advance. Many people believe that the main reason for the price war is the huge profits in the Chinese auto industry. Actually, it is not because the most fundamental factor in leading prices is the relationship between supply and demand.
From the demand side, China's auto market has shown signs of fatigue this year: First, after two consecutive years of “blowouts†in the Chinese auto market, growth has gradually slowed down. The growth rates of big cities such as Beijing, Guangzhou, Shenzhen, and Chengdu have come down quickly, but the second-tier cities have not yet fully started. Second, the price wars have cropped up this year. In particular, the price cuts in March and April occurred almost every day, leaving consumers at a loss. There are more and more investors watching money; Third, macro-control has inhibited group consumption and personal consumer credit business.
In terms of supply, it far exceeded the increase in the market. The first is the continuous improvement of new models and existing models. This is followed by manufacturers who already have products and are desperate to expand production capacity. I roughly figured out that at least more than half of the production capacity is currently emptying. The principle of economics tells us that supply exceeds supply and increases; supply exceeds demand, and prices must be reduced.
As for the profits of domestic cars, the more accurate argument is that the profits of 10 million yuan or so have been very thin, and the profit of models with more than 150,000 yuan is relatively higher. About 100,000 yuan is due to fierce competition, coupled with several rounds of price wars in the past few years, the moisture has been squeezed almost, and some models even slightly loss. This time, the price war was mainly focused on between 15 to 25 million vehicles, indicating that this piece of water is still a bit more.
So, how can we break the stalemate between auto supply and demand? Sun Yong believes that only tripartite efforts by manufacturers, media, and consumers will be able to get out of trouble. He expects Shanghai GM, FAW-Volkswagen, Shanghai Volkswagen, and Shenlong Motors to cut their prices and that there will not be too many strong followers in the short-term. After the price cuts by the manufacturers and dealers concession, the car prices will gradually stabilize. In addition, many manufacturers have begun to modify the sales plan set at the beginning of the year to start controlling stocks and reducing production. All these help to adjust the supply and demand of the entire market. On the other hand, China is still the world’s largest potential automobile consumption market, and will gradually enter a normal state of purchase after prices stabilize.