May Auto Market: Two Faces of Dealers


Most of the past five months have passed. Before the May 1st Festival, many manufacturers and industry players were bearish on the market, but the market has been stubbornly supported. However, after experiencing last year's price war, many car dealers are already bruised and unable to fight again. Manufacturers and merchants are beginning to realize that disorderly price wars can only lead to a loss of both sides, and the profits of businesses and manufacturers have fallen drastically, and some dealers even withdrew from the automobile business circle. Consumers, on the other hand, stand more and more idly after watching the tide of price cuts. Even if the tide retreats, they will never reach for the money.
In desperation, the dealers again adopted new tricks, so they placed two faces on the consumer.

â–¡ Buyout Distribution

The author recently learned from Beijing Yazhijiebole Automobile Sales Service Center, a well-known Beijing dealer, that the company has already bought more than 200 Bora cars that are currently selling well in the market and that it will be available to the Beijing market in the market at a special price. Selling. Beijing Yazhijie, located near Yuquanying in the South 3rd Ring Road, is one of the best distributors of FAW-Volkswagen for many years. The Bora 1.8T sedan they bought from FAW-Volkswagen this time is all lower than the market price of around 20,000 yuan. Price promotion, the lowest price of only 162,900 yuan, is indeed a very favorable offer. In particular, it is worth mentioning that the original 1.8T engine and transmission can be enjoyed at a price of more than 160,000 yuan, which is indeed an advantage in the increasingly competitive mid-size car market.
Coincidentally, the author learned from the Guangdong Junle Automobile Trading Co., Ltd. that the company recently bought out 500 units of the 1.4 models of 1.8T Bora to FAW-Volkswagen. According to reports, these Bora underwriting models are not factory inventory vehicles, but are currently on the market for sales of 04 models 1.8T, models include manual comfort and automatic luxury two, underwriting prices than the market retail price of 20,000 yuan discount, color Mainly silver. According to reports, the discounted prices of the two vehicles were RMB 169,900 and 188,900 respectively.
Dealers believe that their behavior of buyout and distribution is the result of market competition, and it is also an outbreak of the entire vehicle manufacturer and distributor in the fierce competition, which will result in a win-win result that benefits many parties. In particular, Beijing Yazhijie’s participation in the automotive sales market in Beijing has brought a new marketing model to the auto sales market, so that more consumers benefit from it.

â–¡ Price Alliance

The car dealership price consortium that was once popular in the past year has once again appeared in the capital. Audi, Honda, and other distributors have started to implement unified pricing and never lower prices. Such a "price coalition" makes it impossible for consumers to find lower prices in the market, but also makes the market price much more stable.
The background of the emergence of the “Price Alliance” is that after the “Implementation Measures for Automobile Brand Sales Management” was promulgated in April this year, the second- and third-tier distributors downstream of the 4S store have been greatly reduced due to the restrictions of the new “Measures” and disrupted market prices. The factors have gradually disappeared, and manufacturers have greatly strengthened their supervision of 4S stores. This objectively creates favorable conditions for dealers to reach a "price alliance."
"We only sell at a uniform market price for manufacturers, and we have no intention of monopolizing prices. The price coordination is only a phased market regulation." A car dealer explained the unified pricing strategy they implemented, and "only guarantees basic Under the premise of industry profits, it can provide consumers with effective follow-up services. Otherwise, it will form a vicious circle.” In fact, due to the emergence of price alliances, objectively restrained the situation of price confusion, let the car prices on the market begin becoming steady.
For these two faces of dealers, the vast majority of consumers are philosophical, and "buy out the distribution", because of the greater benefits, of course, are welcome. However, for the "price coalition," the voice of objection is endless. Consumers said that the “price coalition” has increased the cost of car purchases by consumers, and in the current situation, price monopoly is likely to occur, which is not a fully competitive marketing performance. The decision-making power of prices is more in the hands of manufacturers, and those who have not experienced full market competition may cause greater harm to terminal consumer groups. In this regard, industry insiders said that "price alliance" for manufacturers, businesses, consumers may well be a good thing, although in a short period of time may affect a certain amount of sales, but the long-term effect should have a positive effect. Uniform prices can increase consumers' confidence in the brand and no longer worry about the rapid devaluation of the vehicle. In short, the "price coalition" should be beneficial to consumers.

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