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Chapter 250 Huge Vacancies in the Market

Guo Yuan heard Mr. Lei's meaning, and he tentatively asked: "Mr. Lei, you mean that the competitiveness of Nanbangguo's cars is not enough?"

"That's right, Mr. Guo in 2002, you were still young and maybe you don't remember much. I was already working at that time, and 2002 was the year when Nanbangguo cars officially entered our country.

At that time, the domestic auto market was dominated by German-Japanese joint venture vehicles.

But at that time, this car was not cheap. Let me give you an example to understand. At that time, the Honda Fit, which was considered very close to the people in the imperial capital, sold for about 10 yuan.

This figure does not seem expensive, and it is about the same as it is now, but the purchasing power at that time was very different from what it is now.

2002 yuan in 10, this price can buy a house close to [-] square meters in the third ring district of the imperial capital.

In the past 20 years, China's GDP has increased tenfold, and housing prices have also increased tenfold, especially in first-tier cities and central urban areas.

Mr. Guo, if you take the housing price as a base for comparison, the difficulty of buying a Fit back then is equivalent to buying a Porsche 911 today, which is outrageous. "

After listening to Mr. Lei's words, Guo Yuan was a little surprised. This sounds really outrageous.

Now the house in the Third Ring Road of the Imperial Capital is estimated to be 7 to 8 square meters, and 20 square meters is not equivalent to a Porsche 911.

"Was Mr. Lei's Nanbangguo's car very cheap at that time?" Guo Yuan asked.

"It's very cheap. When the cars from Nanbangguo came in in 2002, the Kia Maxima was 3 yuan cheaper than the Fit, which was equivalent to the salary of many people at that time for one or two years.

More importantly, this car was equipped with an automatic transmission at the time. Many people were able to afford an automatic transmission for the first time because of the Nanbang series of cars, and so did I.

Moreover, because of their own local culture, Nanbang has done a good job in publicity.

In 2004, when Liu Xiang won the 110-meter hurdles championship in the Athens Olympics, Kia immediately signed an endorsement.

With the help of Liu Xiang's reputation, Nanbang car has suddenly become a representative of high configuration and low price, and has become a popular domestic model.

At that time, in order to attract investment, the imperial capital also gave Hyundai Motor a lot of preferential policies, giving money and strength.

Many taxi companies in the Imperial Capital also use the Imperial Capital Hyundai.

Now there is a popular saying on the Internet that all high-selling cars are destined for online car-hailing, and it was the same at that time, and the destination was taxis.

When I was working in the Imperial City, I happened to catch up with the most interesting time for the taxis in the Imperial City. At that time, the taxis in the Imperial City were divided into three gears.

The lowest starting price for Xiali is RMB [-] km, Elantra RMB [-] km, and the high-end Hyundai Sonata and so on are two RMB.

At that time, both Xiali and Fukang were in the elimination period, but because Xiali was the cheapest, many people would choose it.

The $[-] Elantra is not bad either. It is a more competitive one. Fukang is the worst. Its model is as old as Xiali, but it is a bit expensive and its comfort is not much better, so there are few candidates.

And the most choice is the two-yuan Nanbang taxi.

From this, we can see how wide the coverage of Nanbang series cars was at that time. The key is that the quality of Nanbang cars is also qualified, and there are few problems when driving, which has won the favor of the mainstream market. "

Hearing Mr. Lei, a veteran in the business world, talk about these things, Guo Yuan found it quite interesting, and Guo Yuan was also willing to be a personal supporter of Mr. Lei.

"Mr. Lei, Nanbang Motors sold so well at the beginning, and its reputation is so good, why didn't it work?" Guo Yuan asked.

"The decline of Nanbang was actually doomed from the very beginning. At that time, the owner of Nanbang was focusing on cost-effectiveness. The large number of successful cases seemed to give Nanbang an illusion: that is, if they want to dominate the Chinese market, they must rely on cheap prices. .”

Guo Yuan's expression became weird when he heard the words: "Mr. Lei, they are reducing allocations to the China market, right?"

"Mr. Guo, you are right. They made an extremely wrong decision to prepare a special model for Huaxia, reduce the configuration, and continue to compete on price."

The corner of Guo Yuan's mouth twitched, should he be said to be from Nanbangguo?The way of doing business is the same.

Guo Yuan remembered that he used to eat egg yolk pies from a certain Liyou in Nanbangguo who had done a similar operation. He used serious cocoa butter abroad, but replaced it with cocoa butter in China.

Unexpectedly, the cars in Nanbangguo also engaged in this kind of show operation.

"Then what happened next?" Guo Yuan asked.

"In 2016, the sales volume of Nanbang series cars has reached 180 million grains. Facing the competition from competitors who continue to upgrade their configurations, K3 and Elantra still do not come standard with ESP, K2 has low configuration, and even the passenger airbag is not provided.

Some models are obviously equipped with self-produced gearboxes such as 6AT8AT, but when they are imported into China, they have to be replaced with dry-type dual-clutch. Replace it with advanced technology, and make a low-end and cheap special tribute version.

In order to reduce costs, Elantra changes its name every time a bag is released, and sells the new model and the old model together.

There was even a miracle that Elantra, Yuedong, Longdong and Lingdong were sold under the same roof.

This kind of behavior has seriously consumed the brand power of Nanbang Motors, so that people think that Nanbang cars are cheap products without technology.

Of course, some people who have driven Nanbanguo cars before may say that the technology of Nanbangguo cars is good, but it is also true that they cut corners and materials. "

"But Mr. Lei, I remember that the global sales volume of cars in Nanbang Country is still the third highest in the world. They are killing the Quartet in Europe and the United States. Their cars should not be sold in China, right?" Guo Yuan asked.

"Mr. Guo, this is what you don't know. The domestic Nanbang national car is not the same as the European and American Nanbang national car."

"I know! Mr. Lei, didn't you say that Nanbangguo's cars cut corners in China?"

"It's not just a matter of cutting corners, according to my survey, Nanbang's cars now often get full marks in the tests of the American Highway Association and are among the best in the safety list.

However, as a special domestic model, the Imperial Capital Hyundai Festa, in the crash test of China Insurance Research Institute in 2019, the A-pillar was directly and substantially broken, and it directly got the most garbage P-level in the crashworthiness test.

This is a turning point in the history of the Nanbang car's reputation collapse. Even if the Festa is a special edition, it can't be so rubbish, right?

And Festa is a special offer, but Sonata is the same model around the world.

As a result, the Sonata, which scored full marks in all small events in the United States, came to the China Insurance Research Institute to participate in the 40% frontal offset crash test, and the A-pillar broke.

In order to keep costs down and maintain a price advantage, Nanbang even made moves in the field of safety, which consumers will not fail to see.

The most outrageous thing is that Nanbangche arranges and combines the old technologies with a long history, and then sells them as new cars. The high EQ is called the classic skin test. To put it bluntly, it is not enterprising. "

After listening to Mr. Lei's words, Guo Yuan probably already understood the reason why Nanbangguo's automobiles would weaken.

It's just that Guo Yuan didn't understand why Nanbangguo did this?
"Is Mr. Lei Nanbangguo doing this because Nanbangguo discriminates against the Huaxia market and thinks that Huaxia is poor and can only afford cheap cars, so it reduces the allocation?" Guo Yuan asked.

Mr. Lei shook his head when he heard the words: "Mr. Guo, your statement seems reasonable, but it is somewhat emotional. It is not acceptable to give up a profitable business for the sake of discrimination.

We are all businessmen, and making money is the most important thing. How many businessmen will struggle with money? "

"Looks like a lot, right?"

"Most of those are coerced by zzzq, and zzzq can't coerce the chaebol in Nanbang."

"why?"

Mr. Lei smiled and said: "In a word, market problems must ultimately be answered from the perspective of the market.

I think the only answer is that the competitiveness of domestically produced cars has been too strong in recent years.

When Nanbang cars are in full swing, what are the domestic cars? BDF0 point DF3, Chery QQ, Geely Beauty Leopard.

At that time, many cars of domestic brands were still selling well, but the word-of-mouth was not very good.

But just over a dozen years have passed, and now domestically-produced cars have come up with high-end, high-end and low-end cars, which can cover all price points below 50 yuan, and strive to achieve the highest cost performance at each price point.

In the past one or two years, the domestically-produced cars in Chengdu can only be described as outrageous.

The German BBA can still survive by relying on brand value, but the Japanese track of Nanbang has to fully face the impact of domestic cars.

As the world's largest auto market, China's competition is obviously the fiercest in the world.

Too many models cannot be sold in China, but getting them in Europe, Southeast Asia, and South America is all kinds of random killings.

The main reason why overseas markets are still calm is trade barriers and production capacity.

The price of BYD's Han and Tang series in Europe is 50 million RMB.

Because MG still has a certain brand awareness and considerable product power in the European market, its market share has grown rapidly.

Under the impact of domestic cars, the only way out for joint ventures is to find ways to use brand awareness, establish a mid-to-high-end image, work hard to climb to the top, and even choose other joint ventures.

However, Nanbang National Car may be afraid of competing with Japanese and German brands at the same price, or it may be because of internal disagreements. In short, it chose to reduce the configuration and reduce the price.

At this level, can he compete with the hard steel of domestic cars?Obviously not, he doesn't have the ability!
So the final result can only be to face BYD.Geely, Chang'an and other products worth about 10 yuan were fancy-styled. "

"So that's the case, Mr. Lei's analysis is really thorough!" Guo Yuan expressed his admiration for the vision of the seniors in the business world.

"Mr. Guo praised it absurdly. In fact, apart from competitiveness, there is another reason, that is, the new energy vehicles at Nanbang are too hip.

In 2021, the sales volume of new energy vehicles has reached 688 million, and the relevant department has an estimate that the sales of new energy vehicles will reach 850 million this year.

Then it means that if the total sales remain unchanged, the share of fuel vehicles will be further eroded by 162 million vehicles.

This is equivalent to the disappearance of one or two large fuel vehicle groups from the Chinese market.

As for the sales volume of Nanbang brand in China's new energy vehicles, I specifically checked, Mingtu sold 177 units in the past year, and Kia's K3EV sold 592 units in the past year.

In the past few years, the Chinese auto market has undergone extremely drastic changes. The Nanbang brand has done nothing in new energy, so their car sales will decrease. The huge car vacancy in this market needs to be filled by new brands of cars, such as our rice car. . "

Hearing Mr. Lei talking about the vacancy in the market, and then mentioning the use of rice cars to fill the market, Guo Yuan's heart skipped a beat. He seemed to understand the purpose of Mr. Lei's coming to the company to find him.

(End of this chapter)